State Street Corporation, a leading financial services firm based in Boston, has announced a significant leadership change. Joerg Ambrosius, who previously served as the company’s Chief Commercial Officer and was based in Germany, has been promoted to President of Investment Services. This division, which is State Street’s largest, provides a comprehensive range of custody, accounting, and fund administration services to the firm’s asset-management clients.
Ambrosius’ promotion marks a pivotal moment for State Street, as he takes over from Ron O’Hanley, who had been managing the division since January 2024 following the retirement of Lou Maiuri. O’Hanley, who remains the company’s Chief Executive Officer, will continue to oversee the investment services business. In addition to Ambrosius’ new role, Mostapha Tahiri, based in the United Kingdom, will maintain his position as Chief Operating Officer. Both Ambrosius and Tahiri will report directly to O’Hanley. This move underscores State Street’s commitment to strengthening its leadership in investment services amid a rapidly evolving financial landscape. — JON CHESTO
Trader Joe’s Workers in Hadley Vote to Decertify Union
In a significant labor development, a substantial portion of the employees at the Hadley Trader Joe’s have voted to decertify their union. The vote, which saw at least a third of the 70 employees casting their ballots for decertification, meets the threshold needed to potentially dissolve the union. The petition for decertification was spearheaded by Lee Stratford, who criticized the union organizers for allegedly sowing division among workers, promoting false narratives, and coercing employees to support their agenda.
Stratford’s petition claims that the union’s tactics led to an environment of division and negativity within the workplace. Trader Joe’s United, an affiliate of the Service Employees International Union, has not yet responded to requests for comment. The case is now pending a decision from the National Labor Relations Board (NLRB). This development is notable as the Hadley store was the first standalone Trader Joe’s location to unionize. Other locations in Minnesota, Kentucky, and New York have followed suit. The NLRB had previously ruled in December that Trader Joe’s had illegally fired a union worker in Hadley and withheld retirement benefits from organized stores. — DITI KOHLI
Crypto Startups Experience Slowdown in Deal-Making
The cryptocurrency sector has seen a noticeable slowdown in deal-making, reflecting broader challenges within the digital-asset market. Data from PitchBook shows that venture capital investment in crypto startups totaled $2.7 billion for the quarter ending in June 2024. This represents a modest 2.5% increase from the first quarter but a significant 9.8% decrease compared to the same period last year. Additionally, the number of deals closed during this quarter dropped by 12.5% from the previous quarter.
This slowdown in investment activity comes amid a broader market contraction in the cryptocurrency space, where startups are facing increased scrutiny and reduced venture capital interest. The decline in deal-making activity mirrors the broader challenges faced by the digital-asset industry, including regulatory hurdles and fluctuating market conditions. — BLOOMBERG NEWS
Congressman Proposes Reimbursement for Amtrak Service Disruptions
U.S. Representative Josh Gottheimer, a Democrat from New Jersey, is advocating for a new legislative measure aimed at protecting rail passengers from prolonged service disruptions. Gottheimer’s proposed “All Aboard Act” seeks to ensure that riders of New Jersey Transit are reimbursed if they experience delays of three hours or more due to Amtrak service issues. The proposed legislation would require Amtrak to compensate NJ Transit customers when its service is at fault.
The proposal comes in response to significant disruptions affecting commuters in the New York City region, particularly during a record heat wave that has stressed Amtrak’s aging infrastructure. If enacted, the “All Aboard Act” would be similar to existing passenger rights proposals for the airline industry, aiming to provide better protection and compensation for rail passengers facing delays and cancellations. — BLOOMBERG NEWS
Hawaiian Electric Faces Financial Turmoil Following Maui Wildfire
Hawaiian Electric Industries Inc. is grappling with severe financial difficulties as it deals with the aftermath of last year’s devastating wildfire in Maui. The company has issued a going-concern warning, reflecting concerns about its ability to meet financial obligations. The wildfire, which caused significant loss of life and destruction in Lahaina, has led to estimated liabilities of $1.7 billion for the company.
The financial strain is compounded by the need to develop a viable plan to address settlement obligations related to the disaster. The warning signals serious financial challenges for Hawaiian Electric, which is facing a substantial decline in its stock value, marking its largest drop in nearly a year. — BLOOMBERG NEWS
Maine Enacts New Law to Combat Wage Theft
Maine has introduced a new law aimed at addressing wage theft and ensuring that workers receive the compensation they are owed. The law, which went into effect recently, empowers the state to order businesses to pay back wages and damages for missed wages. This legislative change is part of a broader trend among Democrat-controlled states to enhance protections for workers.
Under the new law, the Maine Department of Labor has the authority to mandate that employers pay not only the unpaid wages but also additional damages equal to twice the amount of those wages, along with interest. This law follows similar recent amendments in states like California, which have also strengthened their labor laws to combat wage theft and protect workers’ rights. — ASSOCIATED PRESS
U.S. Renters Win Concessions Amid Surge in Apartment Construction
Recent trends in the U.S. rental market indicate that renters are gaining favorable concessions as apartment construction ramps up. According to Zillow, about 60,000 multifamily units were completed in June 2024, marking the highest monthly total in over 50 years. This surge in construction is easing the supply squeeze and leading property owners to offer concessions to attract tenants.
Concessions such as free parking and rent discounts have become more common, with Zillow reporting that over 33% of listings on its platform offered such incentives last month, compared to 25% a year ago. This shift reflects the growing supply of rental units and the increased competition among landlords to fill vacancies. — BLOOMBERG NEWS
LL Flooring Holdings Files for Bankruptcy
LL Flooring Holdings Inc., formerly known as Lumber Liquidators, has filed for Chapter 11 bankruptcy protection. The company is seeking to close several stores and explore options for selling its remaining locations. The bankruptcy filing is driven by the company’s $110 million in long-term debt and the challenges it has faced following the COVID-19 pandemic.
The decline in home sales and rising interest rates have negatively impacted consumer spending on home-improvement projects, contributing to LL Flooring’s financial difficulties. The company’s bankruptcy filing reflects the broader struggles within the retail sector, particularly for businesses heavily reliant on home improvement and renovation. — BLOOMBERG NEWS
Blink Fitness Files for Bankruptcy
Blink Fitness, a low-cost gym chain owned by luxury gym brand Equinox, has filed for Chapter 11 bankruptcy protection. The chain is facing stiff competition and higher operational costs, leading it to seek court protection while attempting to sell itself out of bankruptcy. Blink Fitness reported assets and liabilities each ranging between $100 million and $500 million in its bankruptcy petition.
The company has secured $21 million in new financing from its lenders to support its operations during the bankruptcy process. Blink Fitness, which markets itself as an affordable fitness option, has been struggling to recover from the impacts of the COVID-19 pandemic, similar to other gym chains that have faced bankruptcy due to reduced memberships and financial strain.