Week InReview
Friday | May 13, 2022
Calm descends.
The implosion of the TerraUSD stablecoin kindled wide-spread panic in the crypto space, but 24 hours later, things have calmed down significantly. Terraform Labs halted and then restarted its Terra blockchain in the wake of the collapse of TerraUSD and its related Luna token. Tether, the largest stablecoin used in cryptocurrency markets to facilitate trading, recovered from a mini-crash, soothing frayed trader nerves that its troubles might spill into the broader market. And Bitcoin rose as much as 6% to trade around $30,000. Such was the concern over the crypto crash that U.S. Treasury Secretary Janet Yellen weighed in to say Terra’s crash underscores the dangers of tokens that purport to be pegged to the U.S. dollar, and called for new regulations in the arena.
let's recap...
Photo: Miragec/Getty Images
Treasury Secretary Janet Yellen gave the U.S. government’s most forceful response yet to the meltdown of TerraUSD, saying that the crypto stablecoin’s woes underscore the risks associated with the asset class. (Bloomberg Politics - Crypto | May 12)

U.S. consumer prices rose at an annual pace of 8.3 percent last month, more than economists’ expectations and staying at a four-decade high, underscoring the urgency of the Federal Reserve’s push to stamp out inflation. (Financial Times | May 11)

Elon Musk likely saved more than $143 million last month by not reporting that his stake had surpassed 5%, the trigger point for disclosure, said University of Pennsylvania accounting professor Daniel Taylor, since the share price could have been higher had the market known of the billionaire’s growing stake. (The Wall Street Journal | May 11)

Rising interest rates dealt a critical blow to mortgage originations in the first quarter. The main cause was a sizable drop in refinancings, which fell about 40% from a year ago. Purchase mortgages were roughly flat, a turnaround from two years of double-digit gains. (The Wall Street Journal | May 10)

When Russia invaded Ukraine on February 24, nobody expected that the U.S., the EU, the U.K., Japan, Canada and other nations would isolate Russia from the global economy in retaliation. Instead of limited and largely symbolic sanctions, which were all Russia faced when it annexed Crimea and occupied eastern parts of Ukraine in 2014, this latest response has had devastating ripple effects. (Nature | May 9)
FSOC concerned about Treasury market functioning
Treasury Secretary Janet Yellen. Photo: Bloomberg
(May 12) — The Financial Stability Oversight Council is concerned about the functioning of the Treasury market, Treasury Secretary Janet Yellen told lawmakers on the House Financial Services Committee. 

“We have had episodes in which liquidity has dried up and we are working very hard – coordinating with the inter-agency Treasury working group – to look at reforms to make sure this critically important market for the United States and the globe functions well, has the liquidity that it needs,” she said.

Source: Alexandra Harris | Bloomberg Government
the cyber cafe
Maj. Gen. William Hartman. Image: U.S. Army/Joseph Friend
U.S. sent cyber team to Lithuania over Russia hacking threat
The U.S. rushed cyber forces to Lithuania to help defend against online threats that have risen since Russia’s invasion of Ukraine, the commander of the U.S. Cyber National Mission Force said Wednesday. The so-called hunt forward missions involve cyber teams going to nations where they’ve been invited by partner countries, where they scan networks with the goal of building the host countries’ resilience and share any new information about threats with government and private industry circles back in the U.S. 

Businesses seek to soften SEC cyber rules
Companies including Chevron Corp., Quest Diagnostics Inc. and Ernst & Young LLP are pushing to narrow proposed cybersecurity rules from the Securities and Exchange Commission in the private sector’s latest attempt to shape a growing array of regulations by Washington.

CISA & partners release advisory on protecting MSPs
The cybersecurity authorities of the United Kingdom, Australia, Canada, New Zealand, and the United States have released a joint Cybersecurity Advisory (CSA) to provide guidance on how to protect against malicious cyber activity targeting managed service providers (MSPs) and their customers.
— CISA
binge reading disorder
Photo illustration: Emil Lendof/WSJ
This billion-dollar crypto loan is easy to get, but gone in a flash
A hacker who robbed the decentralized stablecoin platform Beanstalk in April had a powerful tool: a $1 billion loan taken out with no collateral, no proof of income and no identity verification. The loan had to be repaid in less than a second, but that was all that was needed to steal tens of millions of dollars.

Now you can own a fraction of a fancy colored diamond
A new fractional ownership business centered on fancy colored diamonds will launch on May 18. Luxus, founded by hedge fund expert Dana Auslander and fashion journalist Gretchen Gunlocke Fenton, will debut with a first offering of a .54 carat fancy pink diamond.

Does a 9 to 5 workday still work in 2022?
But if we don’t do hybrid work right, it could increase inequality.
— World Economic Forum
220 x 128 px