2024-03-28 18:46

WASHINGTON, March 28 (Reuters) - Some former FTX customers expressed anger and disappointment on Thursday after Sam Bankman-Fried, the crypto exchange's former billionaire boss, was sentenced to 25 years in prison for stealing $8 billion from customers. "25 years is a joke," a member of an FTX creditors group with the username Bruno Dixon wrote on messaging app Telegram minutes after the sentence was handed down by a New York judge. Another member of the same Telegram group, going by Steven, said the sentence was "laughable for such a serious crime." More than an estimated 1 million customers face potential losses as a result of FTX's sudden November 2022 collapse. Victims say they are still owed more than $19 billion based on current crypto prices. A New York jury last year found Bankman-Fried guilty of stealing from unsuspecting customers to prop up his hedge fund Alameda Research, buy luxury properties and fund political donations. Prosecutors sought a sentence of 40 to 50 years for what they say was one of the biggest financial frauds in U.S. history. Bankman-Fried's defense has argued that around five years would be appropriate since customers would likely be made whole. Some victims on Thursday said the sentence was as expected for a corporate fraud crime. "White collar guys get treated differently so 25 is probably as good as it was going to get," wrote one of the Telegram group's administrators, adding members should focus on recovering their assets. But other victims compared it unfavorably to the 150 years handed down to notorious fraudster Bernie Madoff. "I found 30-40 to be somewhat fair," wrote Tristan, another user of the same Telegram group, which has more than 3,000 members who say they have a combined nearly $700 million in claims. Bankman-Fried's attorneys said the former FTX boss had overlooked risk management but did not steal customer money. Bankman-Fried has vowed to appeal his conviction and sentence. Some customers said they thought 25 years was not enough to justify plea deals prosecutors inked with other top FTX executives, which allowed them to avoid stringent punishments in return for acting as witnesses. Many speculated Bankman-Fried would serve significantly less following his promised appeal. Mark Bini, a former federal prosecutor, said the judge's sentence took into account the magnitude of the crime and the finding that Bankman-Fried lied on the stand. "While less than the prosecutors' request for 40-50 years, it is a very significant sentence and sends a message that people convicted of crimes in the crypto space will face serious consequences," said Bini, now a partner at law firm Reed Smith. During the trial, prosecutors called FTX customers to testify and submitted dozens of victim impact statements to the court ahead of the sentencing. Many said they had lost years worth of savings and that their lives had been destroyed. "I lost my happiness, my ability to get out of bed, my desire to continue living," wrote one FTX customer who said they had a $4 million claim. Names were redacted. Reuters reported last year that FTX customers have created support groups to help each another navigate the complex bankruptcy claims process. Administrators now running FTX are still recovering assets. They said in January that they expect to have $13.7 billion to pay $31.4 billion in legitimate claims, including $9.2 billion from customers. Customers will be paid "in full" but at November 2022 crypto prices, the administrators said, meaning customers will not benefit from a rally in bitcoin and other tokens in recent months. Many FTX customers are fighting that decision. FTX was one of a string of crypto company bankruptcies in 2022 sparked by a collapse in crypto prices. Jumpstart your morning with the latest legal news delivered straight to your inbox from The Daily Docket newsletter. Sign up here. https://www.reuters.com/legal/frustration-some-bankman-frieds-victims-who-hoped-stiffer-sentence-2024-03-28/

2024-03-28 18:21

SAO PAULO, March 28 (Reuters) - Nutrien Ltd. (NTR.TO) , opens new tab, the world's largest producer of potash fertilizer, is mulling divestments in South America, replacing management and halting an acquisition spree in Brazil after steep losses in the region, according to sources with direct knowledge of the matter. Nutrien this year separated Brazil from the rest of its Latin American operations as it mulls the sale of Argentina, Chile and Uruguay assets in order to streamline operations in the region, two sources said. Since April 2023, at least eight senior executives or managers were fired or quit the company, including Brazil's entire supply management team, and the former Latin America CEO and CFO, according to three sources, who spoke on condition of anonymity because details of the changes have not been publicly announced. The company's shares rose to the day's high of C$74.33, up 2.2% following the Reuters story. Nutrien's troubles in South America come as fertilizer companies struggled with market volatility globally since Russia's invasion of Ukraine sent prices skyrocketing in 2022 only to collapse the following year as farmers held off on purchases and global supplies stabilized. The job cuts and potential asset sales stem from the challenges Nutrien faced cracking the farm retail market in Brazil, where it introduced a unique business model. Nutrien last year recognized a $465 million impairment related to its South American acquisitions, which Morningstar analyst Seth Goldstein said was due to the lower value of its fertilizer inventory. "As a new business, structural and leadership changes are part of the growth journey," Nutrien said in a statement to Reuters. The company declined to comment on details of its plans, including potential divestments or staff changes. RETAIL EXPANSION Nutrien started its Brazilian expansion soon after its 2018 formation through the merger of Potash Corp of Saskatchewan and Agrium Inc, which had one small fertilizer maker in Sao Paulo state. Nutrien initially planned to increase farm retail sales by as much as 30% in central and southern Brazil, mostly by buying existing dealers. International rivals including Mosaic (MOS.N) , opens new tab and Yara (YAR.OL) , opens new tab had avoided direct sales to farmers in Brazil, a hugely fragmented market. Andre Dias, who joined in 2019 as Brazil CEO and was later promoted to Latam CEO, announced some eight acquisitions in roughly three years, according company disclosures. Under his leadership, Nutrien sold fertilizer and other farm inputs at the newly acquired dealers or "experience centers," which are renovated stores often in urban areas. It also decided to centralize inventories to lower working capital requirements. But Nutrien retailers struggled to deliver orders on time due to software integration issues and difficulty managing farm input supplies, factors that alienated farmers, two of the sources said. Valuable relationships with local farmers were also lost after employee departures from the retailers Nutrien bought, according to one of the sources and Marcelo Mello, fertilizer director at agribusiness consultancy StoneX. By 2022, Nutrien said it operated in 13 Brazilian states and had about 200 commercial units in Latin America. Nutrien and other importers in Brazil also stockpiled fertilizers because they feared supply shortages after the threat of Western sanctions on large producers Russia and Belarus in 2022, three sources said. Chinese restrictions on exports to secure nutrients for its own crops compounded those supply fears. In 2023, Nutrien's gross margins suffered as it sold its high-cost inventory at a loss in South America. Last year, Nutrien's global sales fell by 23% to $29 billion while net earnings slumped 83% to $1.28 billion. Dias, the Latin America CEO, left the company in April 2023 and the region's CFO Luis Cerresi departed in December, according to their LinkedIn profiles. Nutrien had named new global CEO Ken Seitz in 2022. Cerresi declined to comment. Nutrien immediately suspended all acquisitions in Brazil and halted construction of new fertilizer plants after Dias left, two sources said. Dias disputed the notion that the company grew too fast in an emailed statement to Reuters, saying his work should not be judged by the volume of acquisitions, adding local competitors had made similar moves. Nutrien continues to face a challenging environment in South America. The price of potash is low and will stay there as huge new projects emerge in Canada and England, StoneX's Mello said. That spells trouble for any company with inventory on hand that costs more than the current price. "The entire industry in Brazil lost a lot of money last year," Mello said. Nutrien is looking for partnerships to use more capacity at its blending plants in Brazil, currently around 50%, said two of the sources. That could mean producing fertilizers for third parties, one source said. Nutrien said in its email to Reuters that its five blenders are operating below maximum capacity and it is making adjustments due to macroeconomic conditions. ($1 = 4.9756 reais) Get a look at the day ahead in U.S. and global markets with the Morning Bid U.S. newsletter. Sign up here. https://www.reuters.com/markets/commodities/nutrien-mulls-latam-divestments-after-losses-management-exodus-2024-03-28/

2024-03-28 18:05

WASHINGTON, March 28 (Reuters) - Over half of U.S. landfills observed by aerial surveys are super-emitting sources of methane, according to a new study in the journal Science published on Thursday. The study is the largest assessment to date of methane from landfills, the third-largest source of U.S. methane emissions, and suggests an opportunity to tackle climate change by targeting a prevalent and potent greenhouse gas. It was led by research group Carbon Mapper, with researchers from NASA Jet Propulsion Laboratory, Arizona State University, University of Arizona, Scientific Aviation, and the Environmental Protection Agency. Around 52% of landfills had observable methane emission point sources compared to the 0.2% to 1% of "super-emitter" sites in the oil and gas sector, the largest U.S. source of methane. Super emitters are sources that spew at least 100 kilograms (100 lbs) of methane per hour, according to the EPA. At large emitting landfills, 60% had methane leaks that persisted over months or years while the majority of leaks at super-emitting sites in the oil and gas sector were "short-duration events," the study said. Dan Cusworth, scientist at Carbon Mapper and lead author of the study, said that pinpointing these leaks offers a quick way to target emissions. “Addressing these high methane sources and mitigating persistent landfill emissions offers a strong potential for climate benefit,” he said in a statement. So far, oil and gas has been the main target of emerging regulations and voluntary programs in the United States, Europe and elsewhere. But as more aerial and satellite surveys are launched, regulators will be able to measure, quantify and act on methane from landfills. To date, companies and regulators have relied on model-based estimates of landfill emissions, as well as surveys with handheld methane sensors, which provide a less complete picture, the study said. The EPA's own greenhouse gas reporting system has underestimated the scale of methane leaks in landfills, according to the study. Aerial surveys showed emission rates were 1.4 times higher than the EPA's estimates. The EPA said that in 2021, 12% of all U.S. greenhouse gas emissions from human activities came from methane. Get weekly news and analysis on the U.S. elections and how it matters to the world with the newsletter On the Campaign Trail. Sign up here. https://www.reuters.com/world/us/aerial-surveys-show-us-landfills-are-major-source-methane-emissions-2024-03-28/

2024-03-28 17:16

BRASILIA, March 28 (Reuters) - Brazil's central bank lacks a clear view of the steps it may take at its June meeting, making it more dependent on what the data shows, governor Roberto Campos Neto said on Thursday, as uncertainty weighs on the scale of future rate cuts. Policymakers emphasized this week that uncertainties around the pace at which inflation will fall, both at home and abroad, had led them to revise their forward guidance, now anticipating another 50-basis-point cut at one upcoming meeting, in May, having previously flagged reductions on more than one occasion. "When we don't have such a clear visibility, it is understood that we become somewhat dependent on the scenario from here until then," Neto told a press conference on Thursday. The bank also revealed that "some members" of its rate-setting committee argued that if prospective uncertainty remains high in the future, a slower pace of monetary easing may prove appropriate. Economic policy director Diogo Guillen noted at the press conference that while some members drew attention to that point, that "didn't mean other members disagreed with everything that was said." Since the beginning of the monetary easing cycle in August, policymakers have cut the benchmark interest rate by a total 300 basis points to 10.75%. The central bank acknowledged in its quarterly inflation report released on Thursday that consumer prices rose by 0.54 of a percentage point more than it expected in the three months to February, mainly due to increases in administered prices and home food prices. It estimated smaller variations in inflation ahead, noting that, excluding seasonal effects, the projection is consistent with a slower pace of disinflation than that observed between 2022 and 2023. The bank also revised up its projection for economic growth this year to 1.9%, from the 1.7% expected in December. Policymakers highlighted a labor market showing dynamism and stronger wage growth, along with a credit market signaling recovery, evidenced by increased loans and declining interest rates and delinquency rates. However, the projection remains less optimistic than the government's estimate of 2.2% GDP growth, which Finance Minister Fernando Haddad said on Wednesday could be revised to above 2.5%. Private economists surveyed weekly by the central bank expect output to grow by 1.85% this year. In the report, the central bank raised its forecast for bank lending expansion in 2024 to 9.4% from a previous 8.8%. On the other hand, it lowered the estimated annual trade surplus to $59 billion from $73 billion "due to the downward revision in the export value projection, reflecting lower prices, particularly in soybeans, given the outlook for robust global supply." As a result, the central bank now expects a larger current account deficit of $48 billion this year, up from $35 billion. The Reuters Daily Briefing newsletter provides all the news you need to start your day. Sign up here. https://www.reuters.com/world/americas/brazil-central-banks-june-decisions-will-be-more-data-dependent-says-governor-2024-03-28/

2024-03-28 16:20

BERLIN, March 28 (Reuters) - China has initiated dispute consultations with the United States regarding tax credits under the Inflation Reduction Act to promote the production of electric vehicles and renewable energy, the World Trade Organization said on Thursday. China claims that the US credits at issue hinge on using domestic over imported goods, or discriminate against goods of Chinese origin, according to the WTO. Stay up to date with the latest news, trends and innovations that are driving the global automotive industry with the Reuters Auto File newsletter. Sign up here. https://www.reuters.com/business/autos-transportation/wto-china-initiates-dispute-over-us-tax-credits-evs-renewables-2024-03-28/

2024-03-28 15:36

ZURICH, March 28 (Reuters) - The Swiss National Bank's vice chairman called for an in-depth review of UBS's (UBSG.S) , opens new tab capital requirements in an interview with Swiss newspaper Finanz und Wirtschaft on Thursday. "We are not saying at this stage that more capital is needed," Martin Schlegel said. "This must first be analysed in depth." Schlegel said UBS's capital needs to be organised in such a way that it can better absorb losses. He also stressed the importance of a sufficient quality and quantity of capital being available. "It is undisputed that we need adjustments to the too-big-to-fail regime," he said. In the interview, Schlegel declined to comment on whether he would consider replacing Chairman Thomas Jordan, who recently announced he would be stepping down in September. "The central bank is very well-staffed, and continuity at the SNB is in any case assured," he said. Get a look at the day ahead in U.S. and global markets with the Morning Bid U.S. newsletter. Sign up here. https://www.reuters.com/business/finance/snbs-schlegel-sees-need-analysis-ubss-capital-requirements-2024-03-28/