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This week’s governance, compliance and risk-management stories from around the web
– Revolut has abandoned plans to merge with or buy a US bank and will instead pursue a standalone American banking license to accelerate its expansion into the US market.
Previously, the UK-based fintech had considered acquiring a US lender to secure a charter quickly, but regulatory and operational hurdles, such as maintaining physical branches and complex approvals, made that route less attractive.
According to The Financial Times (paywall), Revolut is now in talks with regulators to apply directly for a license through the Office of the Comptroller of the Currency, hoping the deregulatory stance under the current US administration will speed up the de novo banking approval process.
– Big players in the US cryptocurrency industry have turned against a major regulatory bill they once supported, threatening its prospects in Congress. The Clarity Act, which is designed to create a framework for digital asset regulation and clarify oversight between regulators, passed the House but has stalled in the Senate after Coinbase CEO Brian Armstrong withdrew support, prompting the cancellation of a planned committee review.
According to The Financial Times, opposition stems from disputes over clauses such as limits on stablecoin rewards and restrictions on tokenized stocks, which many crypto firms and advocates say could stifle innovation. Traditional banks have lobbied for caps on stablecoin interest to protect their deposit base, deepening divisions within the industry.
With lawmakers focused on upcoming elections and disagreement among crypto stakeholders, the bill’s future in the Senate is uncertain and its delay highlights political and strategic tensions over how best to regulate digital assets.
– The Delaware Supreme Court has ruled that a shareholder lawsuit against a stockholder agreement giving Moelis & Co founder Ken Moelis wide control over the board cannot proceed, siding with the company.
According to Reuters, the case came from the West Palm Beach Firefighters’ Pension Fund, which had challenged the 2014 agreement as violating Delaware law by undermining director independence. The high court reversed a 2024 Court of Chancery decision that had found the agreement problematic, not on merits but because the challenge was filed too late under Delaware’s three-year limit on such claims.
The Supreme Court avoided deciding whether the agreement’s terms themselves are lawful, following a similar narrow approach in a recent Tesla case. Delaware lawmakers had amended corporate law after the earlier ruling to clarify that stockholder agreements like this are generally permissible, so the practical impact of the decision on corporate law is limited.
– Global shipping firm Diana Shipping is preparing for a proxy battle at rival Genco Shipping & Trading, with plans to nominate six new directors to Genco’s board after its takeover bid was rebuffed.
As reported by Reuters, Diana, which holds about 14.8 percent of Genco’s shares, proposed acquiring all outstanding stock for $20.60 per share in cash representing a premium offer that Genco’s board declined to engage with. In response, Diana intends to replace the entire board with nominees experienced in shipping, finance and governance, aiming to push strategic alternatives that could include revisiting consolidation.
Genco says it will review the nominees through its usual process and maintains the current board is qualified. It previously said Diana’s acquisition proposal undervalued the company and suggested an alternative where Genco buys Diana instead.
– Workspace Group’s CEO Lawrence Hutchings is stepping down following activist pressure, with Charlie Green, co-founder of The Office Group, set to take over on February 2. The flexible office-space provider also named Tom Edwards-Moss as CFO-designate, with current finance chief Dave Benson staying through April to ensure a smooth transition.
According to Reuters, the leadership shake-up comes as major shareholder Saba Capital, which holds about 13.5 percent of Workspace, has been urging a ‘managed wind-down’ of the company, citing persistent trading challenges, refinancing issues and a concentrated shareholder base. Workspace’s share price has declined over the past 12 months with the company reporting a substantial pre-tax loss for the first half of its last financial year.
Board chair Duncan Owen said Green’s background positions him to accelerate execution of Workspace’s strategy focused on rebuilding occupancy, income growth and shareholder returns.
– Activist hedge fund Elliott Investment Management has made a significant investment in Stratolaunch, a US hypersonic-flight company, and will gain board representation as part of the deal, the Wall Street Journal (paywall) reports.
Stratolaunch, originally founded by the late Microsoft co-founder Paul Allen and now backed by private investors, has shifted its focus to developing reusable hypersonic aircraft used for high-speed flight testing for the US military.
Elliott’s capital comes amid growing private investment in hypersonic technology, reinforcing Stratolaunch’s efforts to expand production and testing capabilities and helping position the company as a key partner in US defense hypersonic programs.
– British drugmaker AstraZeneca said it will delist its American Depositary Shares (ADSs) and US-listed debt from the Nasdaq exchange and instead directly list its ordinary shares and debt on the NYSE. The transition will take place after markets close on January 30, with trading expected to begin on the NYSE on February 2, under the same ‘AZN’ ticker.
According to Reuters (paywall), the move follows shareholder approval for a plan to harmonize the company’s global share structure, allowing investors to trade ordinary shares seamlessly across the LSE, Nasdaq Stockholm and the NYSE, replacing the ADSs that previously represented ordinary shares on a two-for-one basis.
AstraZeneca says the simpler multi-market structure should broaden access and make trading more straightforward for global investors.