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    After success in Paris, Los Angeles looks to elevate Olympic Games in 2028

    The Los Angeles 2028 Games are aiming to leave the city better off after the Olympics leave, key stakeholders said at CNBC x Boardroom’s Game Plan.
    That includes investments in transportation and housing, as well as further promoting all aspects of Los Angeles.

    Karen Bass, Mayor of Los Angeles, waves the Olympic flag as Thomas Bach, President of International Olympic Committee, applauds during the Closing Ceremony of the Olympic Games Paris 2024 at Stade de France on August 11, 2024 in Paris, France.
    Carl Recine | Getty Images Sport | Getty Images

    After a successful 2024 Olympics and Paralympics in Paris, the bar has been set high for the next summer Games in Los Angeles in 2028, something that key stakeholders in that event say the city will be ready for.
    Los Angeles Mayor Karen Bass told CNBC’s Andrew Ross Sorkin at CNBC x Boardroom’s Game Plan sports business event on Tuesday that what is making her anxious is “all that we need to do in our city to prepare” for the 2028 Games. However, she said that much like the last time Los Angeles hosted the Olympics in 1984, she believes the city will not only improve to host the Games but will benefit once they are over.

    That includes work on public transportation. Bass said she is hoping there will be “no cars to the venues,” and that viewers will take public transportation to the Games — a pledge that will require an investment in both bus and subway infrastructure, as well as collaboration with other cities to borrow buses.
    Bass said the city is also doing “whatever we can to eliminate street homelessness,” including building more than 18,000 new units for the unhoused population.
    Bass said there will also be discussions with companies in Los Angeles around work schedules to shift employees to remote work during periods of high traffic, as well as find ways to shift truck deliveries into the night, like what happened during the 1984 Games.
    “I think there is a way we can organize the region so that traffic will be less and manageable,” Bass said.
    LA 2028 President Casey Wasserman attended the Paris Games, an event that he told Ross Sorkin “reminded people why they fall in love with the Olympics,” and one he said organizers will look to build upon in Los Angeles.

    While no new permanent venues will be built for the Los Angeles Games, the first time in Olympics history, there are some challenges in utilizing all the city’s landmarks in the way Paris was able to feature famous locations like the Eiffel Tower by hosting beach volleyball nearby. Wasserman said Los Angeles got a glimpse of that with the Olympic Torch handover ceremony, when Tom Cruise scaled the Hollywood Sign and the Olympic Rings replaced the “OO”‘s in the sign — which Wasserman noted was done with CGI.
    “That’s obviously a longer, complicated conversation,” Wasserman said of altering the Hollywood Sign for the Games. “But I think it’s a pretty spectacular opportunity if there was a way to do it.”
    Actress Jessica Alba, who is on the Los Angeles 2028 board of directors, said the Games will present all different aspects of the city’s culture, from Hollywood to fashion to food, as “a global platform to showcase what they got.”
    “LA is a main character,” Alba said. “We want it to be a main character during the Olympics.”
    Disclosure: CNBC parent NBCUniversal owns NBC Sports and NBC Olympics. NBC Olympics is the U.S. broadcast rights holder to all Summer and Winter Games through 2032. More

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    No signs of slowing down for sports betting, industry leaders say

    Sports betting is continuing its integration into modern sports culture, and industry leaders do not expect the growth to slow down any time soon.
    Executives from FanDuel, Fanatics, DraftKings and Sportradar, a firm that provides data to sportsbooks, spoke at the CNBC x Boardroom: Game Plan on Tuesday afternoon.
    The industry has boomed recently, but taxes and ethical concerns have presented difficulties.

    A DraftKings Sportsbook logo is posted on the right field wall of Chicago's Wrigley Field before a game between the Chicago Cubs and Philadelphia Phillies on Sept. 27, 2022. 
    John J. Kim | Tribune News Service | Getty Images

    Sports betting is continuing its integration into modern sports culture, and industry leaders do not expect the growth to slow down any time soon.
    Executives from FanDuel, Fanatics, DraftKings and Sportradar, a firm that provides data to sportsbooks, spoke at CNBC x Boardroom’s Game Plan sports business event on Tuesday afternoon, discussing state taxes, new betting trends and the companies’ obligations to police safe betting practices.

    Of those three companies with sportsbooks, Fanatics is the most junior in the space. The Michael Rubin-led company launched its sportsbook last year and later acquired PointsBet’s U.S. assets as it plays catch-up to the others, which is not cheap.
    “The good thing about Michael Rubin is he is not scared of making material investments when it’s something that he believes in, and so our view is we want to be a top three player,” Fanatics Betting and Gaming CEO Matt King told CNBC’s Contessa Brewer on stage.
    Sports betting executives said they are also noticing that bettors are increasingly interested in placing wagers on individual players, as well as making real-time bets during whatever sporting event they are watching.
    “I think you’ll continue to see sports fans engage more, you’ll see us focus and serve them more with more personalized bets and markets,” DraftKings chief business and growth officer Marie Donoghue said.
    As much tailwind as sports betting companies have received from growing legalization and popularity across the country, taxes and ethical concerns have presented difficulties.

    Several states have a 51% tax on sports betting companies, and Illinois recently approved a tax increase on sports betting revenue. DraftKings attempted to implement a surcharge on winning bets in some states, but the company quickly walked it back after competitor FanDuel’s parent company Flutter said it would not do the same.
    Sports betting has also garnered negative headlines in recent months as professional sports leagues have struggled to effectively stop players from violating betting and gambling rules. Former NBA player Jontay Porter received a lifetime ban earlier this year for violating the league’s betting policy.
    The speakers also addressed widespread concerns about whether the nature of sports betting companies’ business models discourages them from providing proper guardrails to stop gambling problems.
    “We want to have a long-term sustainable business and if we are generating real-world bad impacts for our customers who have people who love them and are important to them in their lives and who they’re depending on, that’s not good for business,” said FanDuel president Christian Genetski. More

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    Women’s sports are on an upward trajectory as fans, brands engage

    Women’s sports leagues from soccer to basketball are looking to continue their growth, as they’ve drawn fans and sports media coverage in recent years.
    Speakers at CNBC x Boardroom’s Game Plan said company sponsorships are also seeing the value of building equity with fledgling leagues.

    Indiana Fever guard Caitlin Clark, #22, drives to the basket against Atlanta Dream guard Destanni Henderson, #33, during a WNBA preseason game at Gainbridge Fieldhouse in Indianapolis, Indiana, on May 9, 2024.
    Brian Spurlock | Icon Sportswire | Getty Images

    The fervor and passion surrounding women’s sports aren’t going to go away, said Jessica Berman, commissioner of the National Women’s Soccer League. They’re only going to get bigger.
    “We’ve finally reached the point where it isn’t a question as to whether this is a moment and it’s going to pass or whether it’s going to stand the test of time, because it isn’t just an isolated set of circumstances that have been successful, like one sport or one league or one event,” Berman said during CNBC x Boardroom’s Game Plan sports business event on Tuesday.

    Berman noted that women’s sports used to only account for around 5% of sports media coverage and now account for closer to 15%, showing a pattern of success across leagues and athletes. And those leagues are sharing best practices so that all women’s sports can get a boost.
    “We’re trying to grow our share of the pie; no fight over our tiny little sliver of the pie,” she said.
    And fans aren’t the only one taking notice. Sara Gotfredson, founder of Trailblazing Sports Group, said Tuesday that there’s a strong business case for brands to get in on the ground floor for burgeoning leagues like the NWSL and the Women’s National Basketball Association.
    Gotfredson noted that fans of women’s sports are “fanning differently” and are more engaged “from a brand partner perspective” than those who follow men’s sports and male athletes. She called out brands like Google, Ally Bank and AT&T as leaders in the space that are seeing the value in building equity with fledgling women’s sports leagues.
    “It’s still a small percentage of brands spending in women’s sports,” she said. “It continues to get bigger.”

    Cameron Brink, a forward on the WNBA’s Los Angeles Sparks has been endorsed by a number of brands including New Balance, Urban Decay and Legal Zoom.
    “Even though my [WNBA] contract may not be as much as I’m making off the court, that is how I show up in the space and what I love to do,” she said during Tuesday’s panel. “My success on court leads to success off court.”
    Both Brink and USC’s women’s basketball star JuJu Watkins agreed that more women’s sports games need to be more accessible for fans, with Brink saying “keep showing it and making it easier to watch.” Brink said that right now fans have to “jump through so many hoops” to watch games staring female athletes.
    Gotfredson, too, noted that there needs to be more coverage of these leagues on linear television as well as on podcasts, YouTube shows and other media.
    Yet Berman said women’s leagues have a lot of catching up to do. The NWSL, she noted, is only 13 years old and only recently became independent from the United States Soccer Federation.
    “Men’s sports have been around for hundreds of years and have decades of experience,” Berman said. “You can’t catch up to 100 years in 10.” More

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    MLB is aiming for a more national strategy, commissioner says

    A few rule changes and a new focus on amplifying players’ talents has the MLB looking at a different trajectory than it was a couple years ago.
    MLB commissioner Rob Manfred and MLB greats CC Sabathia and Albert Pujols spoke on stage at CNBC x Boardroom’s Game Plan event about the changes that have come to baseball.
    The future of MLB is centered around making the on-field product more exciting for fans, they said.

    Aaron Judge #99 of the New York Yankees swings his bat during the first inning against the Texas Rangers at Globe Life Field on September 03, 2024 in Arlington, Texas.
    Sam Hodde | Getty Images

    Major League Baseball is likely on a different trajectory than it was a couple years ago after the league implemented rule changes and renewed its focus on amplifying the talents of the its players, according to MLB Commissioner Rob Manfred.
    Manfred spoke at CNBC x Boardroom’s Game Plan sports business event on Tuesday afternoon along with former MLB greats CC Sabathia and Albert Pujols, touching on everything from regional sports networks to why young stars like the Cincinnati Reds’ Elly De La Cruz are so important to the game.

    As part of its changing mentality, the MLB has its sights set on becoming a more national sport, according to Manfred. The league has typically been more regional, including with its broadcasting rights, but Manfred said to grow the sport the way he believes is possible will require a stronger focus on taking MLB games to a bigger audience.
    “We need a more national strategy,” Manfred told CNBC’s Scott Wapner. “We’re blessed with a huge amount of content: 2,430 games. Because of the amount of content, I think there will be some local component but I think the strategy needs to be more national and our reach needs to be more national.”
    Meanwhile, the MLB has been one of several leagues affected by the bankruptcy restructuring of Diamond Sports, the largest owner of regional sports networks in the country. Some teams have already parted ways with the regional networks and turned to the MLB itself to produce and air its games instead of Diamond Sports.
    As for MLB’s star power, all three panelists said they’re excited about the talent the game has to offer. But Sabathia said the league needs to do a better job of creating and marketing star starting pitchers specifically.
    “I don’t know if it’s more stars because I think we have stars,” Sabathia said. “I think we have [Aaron] Judge, we have [Shohei] Ohtani, We have [Juan] Soto. It’s star pitchers, it’s starting pitchers.”

    As baseball has progressed, pitchers have thrown fewer and fewer innings — meaning the number of complete games and intensity of two elite starters going head-to-head has been reduced. The MLB has already tweaked rules to attempt to keep pitchers in the game longer, and the league is reportedly flirting with a minimum inning requirement for starting pitchers, according to ESPN.
    Major League Baseball has already seen its fair share of changes recently. The league instituted rule changes in 2023 that included putting limits on the number of pickoffs as well as installing larger bases, and the result has been a boom in stolen bases the last two seasons. The shift, or realignment of players in the field, was also pared down, so there is more of an opportunity for batted balls to become hits or for players to make more athletic plays on the batted balls.
    All three panelists also said it’s important to diversify the MLB’s audience. They noted that the league officially recognized statistics from the Negro Leagues for the first time earlier this year and has plans to do more work in underserved communities to attract a wider demographic of both players and fans. More

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    Clean energy sector looks to create even more jobs after the election — regardless of who wins

    Help Wanted

    Clean energy employment increased by 142,000 jobs last year, accounting for more than half of new energy-sector jobs, according to recent data from the Department of Energy.
    As presidential nominees Kamala Harris and Donald Trump prepare to face off in their first debate, voters will be tuning in for clarity on their plans to handle issues including the economy, inflation and job growth.
    Ameresco, which integrates clean tech and develops, owns and operates renewable energy projects, is forging ahead with hiring plans regardless of the election’s outcome.

    As presidential nominees Vice President Kamala Harris and former President Donald Trump prepare to face off in their first debate Tuesday night, voters will be tuning in for clarity on their plans to handle issues including the economy, inflation and job growth.
    One sector that faces particular uncertainty after the election is clean energy, which has received a boost from the Biden administration but faced skepticism from Trump.

    Climate change and a move toward more sustainable energy have bolstered job growth in the sector in recent years, thanks in part to funding from the Inflation Reduction Act and the Chips and Science Act.  Recent data from the Department of Energy showed clean energy employment increased by 142,000 jobs last year, accounting for more than half of new energy-sector jobs.
    The rate was more than double the growth for the rest of the energy sector and the overall U.S. economy, according to the newly released 2024 U.S. Energy and Employment Report.
    Since the implementation of the IRA and the CHIPS and Science Act, there’s been more “long-term certainty” for jobs related to energy efficiency, renewables and climate resilience, the nonprofit Environmental and Energy Study Institute said. The IRA is projected to generate more than 300,000 jobs annually for new energy project construction and about 100,000 permanent jobs each year, according to the EESI.
    While job growth in the sector faces uncertainty after the election, industry watchers say the future of energy production and consumption is always changing.
    “Energy systems have been in transition for decades — it’s always in transition, it’s always in a state of flux,” Daniel Bresette, president of EESI, said of the upcoming election’s impact.

    Ameresco, which integrates clean tech and develops, owns and operates renewable energy projects, is forging ahead with hiring plans regardless of the election’s outcome. It will increase its hiring by 300 workers in the U.S. and Europe this year, in positions ranging from engineers to project managers, developers, analysts and more. Ameresco provides efficient energy solutions for clients that range from federal and state governments to colleges and hospitals.
    “Everyone needs energy no matter what, regardless of who is in the White House. So the driver is going to be increasing that need for more secure energy sources, for cheaper energy sources and for cleaner energy sources,” said Nicole Bulgarino, executive vice president and general manager of federal and utility solutions at Ameresco. 
    The company is also looking to Gen Z to fill the jobs, as fewer applicants are coming up through trade and vocational schools and younger workers have shown an interest in climate-friendly opportunities. Ameresco, which offers tuition reimbursement and mentorship programs, said it has had success in recruiting recent college grads and investing in their training.
    Caroline Leilani Stevenson, a 22-year-old associate electrical engineer at Ameresco, is part of the Gen Z hiring push. Stevenson interned with Ameresco and came back full-time after graduation, working today on projects with the Department of Defense.
    She was able to work on a solar project in Honolulu, which was particularly meaningful, as she grew up on Maui. Like others in her generation, she found the idea of working toward more sustainable energy solutions appealing.
    “I wanted to make an impact and build something really big,” she said. “The energy needs of a large naval base are not the same as a small elementary school and the suburbs of New York or the energy usage of a hospital are not the same as a large data center … It’s great to be able to design something for a specific site and make a difference in that way. Being able to see and know that the power from these lines is going somewhere and it’s eventually going to improve life at large.”
    As Harris and Trump prepare to debate their policies, neither candidate has put forth a comprehensive plan on energy and climate change so far, leading to uncertainty for the sector. But their experiences in the White House can help to inform possible paths.
    Harris was a key part of implementing the Inflation Reduction Act, as she cast the tiebreaking vote to pass the bill as vice president to President Joe Biden. She also backed the Green New Deal while serving in the Senate but has walked back some of her earlier stances that veered further to the progressive left. Harris also said during an interview with CNN that she would not ban fracking, a position she’d taken in her previous bid for the White House.
    Trump meanwhile has promised to make energy cheaper and focused on drilling for oil in the U.S. He also rolled back major climate policies and has said he would rescind the IRA’s unspent dollars if elected. He called the Green New Deal the “Green New Scam” at an event at the Economic Club of New York last week.
    One thing is for sure: Industry analysts are projecting the need for energy to increase significantly, regardless of November’s outcome.
    “There [is] lots and lots of new, especially in the electricity space, lots of new demand, [from] the transportation sector, electrification, data centers, artificial intelligence. All of that adds up to a lot of electricity demand,” said Bresette. “It is almost difficult to imagine how much more energy we’re going to need in the future.” More

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    Streaming deals are key to future of NFL viewership, fandom

    The NFL’s recent slew of media rights deals with streaming services showcases the league’s push to broaden its fanbase and audience, speakers at CNBC x Boardroom’s Game Plan event said Tuesday.
    The NFL has streamed games on Amazon’s Prime Video, Google’s YouTube TV and NBCUniversal’s Peacock.
    Next up, streaming giant Netflix will air NFL games on Christmas Day, the league’s first media rights deal that “is truly global,” said Hans Schroeder, the NFL’s executive vice president of media distribution.

    Running back John Kelly Jr. #33 of the Baltimore Ravens carries the ball during the second quarter of an NFL preseason football game against the Green Bay Packers, at Lambeau Field on August 24, 2024 in Green Bay, Wisconsin.
    Todd Rosenberg | Getty Images Sport | Getty Images

    The National Football League’s bet on streaming is paying off — and helping to broaden its fanbase in the U.S. and globally.
    Hans Schroeder, the NFL’s executive vice president of media distribution, said at CNBC x Boardroom’s Game Plan sports business event on Tuesday that the league’s recent slew of exclusive streaming deals with media companies showcases its push to grow its audience.

    When the NFL signed an 11-year, $111 billion media rights deal in 2021, streaming was already part of the mix. “Thursday Night Football” found its exclusive home on Amazon’s Prime Video under that deal, while other legacy media broadcast partners got the green light to begin streaming games on their services.
    And that was just the beginning. The following year, the NFL’s “Sunday Ticket” package that allows viewers to see out-of-market games went to Google’s YouTube TV. Comcast’s NBCUniversal started streaming “Sunday Night Football” games on Peacock alongside its regular broadcast, and it later landed an exclusive Wild Card game that would only show on its streaming service. Streaming giant Netflix then secured a deal to air games on Christmas Day, beginning this year.
    “I think these latest steps are the latest in a journey that goes back probably 15 years ago, where we had a meeting with Steve Jobs and a small group of us,” Schroeder said, referring to when the former Apple CEO showed the group an early iteration of the iPhone and described how it would affect consumers. “That led us, in part, to retain the rights for live games on mobile phones.”
    Schroeder said that was the first of various steps the NFL took to get its current day, in which much of its media rights strategy is focused on streaming.
    The NFL Wild Card game that aired exclusively on Peacock earlier this year was a sign the strategy is paying off. It is considered the most-streamed live event in history with 27.6 million viewers, according to Nielsen.

    “I think for us that was maybe the most transformative moment in the last few years that we could put a Wild Card game, one of the truly highest valuable, highest viewed games of the year [on Peacock],” Schroeder said.
    The expansion into streaming has carried over into this season. Last week, the NFL’s first-ever game in Brazil was available exclusively on Peacock, averaging 14 million viewers.
    “I give the NFL a lot of credit putting the white lab coat on with us and experimenting,” said NBC Sports President Rick Cordella at the Game Plan event.
    He noted that Peacock’s sports strategy started with its launch in 2020 with English Premier League games, along with other sports like the NFL, and will keep growing in the 2025-26 season with NBA games.
    Similarly, Lori Conkling, YouTube global head of TV, film and sports partnerships, said during the Tuesday session that the data the company has across its various platforms shows high sports viewership and underscores why “Sunday Ticket” made sense as an offering.
    The majority of the NFL’s media rights deals are sewn up with traditional broadcast partners. Live sports broadcasts have maintained a large audience on traditional TV, even as consumers flee the cable bundle for streaming services. The majority of viewership still comes from traditional TV, according to ratings data.
    Schroeder said Tuesday that the NFL’s strategy exists in both the traditional TV and streaming worlds. Still, the league has said it wants to grow its fanbase and move in the same direction as the consumer, which is toward streaming. The league has also been trying to expand beyond its U.S. footprint, and playing games overseas is just part of the equation.
    “The Netflix deal will maybe be the first of its kind that is truly global,” Schroeder said. “And for us, I think there’s expectations that our global audience alone is going to rival what a window would do in the states.”
    Netflix will stream NFL games for the next three years, with two games being streamed this year on the platform, and at least one matchup in both 2025 and 2026.
    Disclosure: Comcast’s NBCUniversal is the parent company of CNBC. More

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    Federal Reserve unveils toned-down banking regulations in victory for Wall Street

    A top Federal Reserve official on Tuesday unveiled changes to a proposed set of U.S. banking regulations that roughly cuts in half the extra capital that the largest institutions will need.
    Introduced in July 2023, the regulatory overhaul known as the Basel Endgame would have boosted capital requirements for the world’s largest banks by roughly 19%.
    Instead, officials at the Fed, the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corp. have agreed to resubmit the massive proposal with a more modest 9% increase to big bank capital, according to prepared remarks from Fed Vice Chair for Supervision Michael Barr.

    A top Federal Reserve official on Tuesday unveiled changes to a proposed set of U.S. banking regulations that roughly cuts in half the extra capital that the largest institutions will be forced to hold.
    Introduced in July 2023, the regulatory overhaul known as the Basel Endgame would have boosted capital requirements for the world’s largest banks by roughly 19%.

    Instead, officials at the Fed, the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corp. have agreed to resubmit the massive proposal with a more modest 9% increase to big bank capital, according to prepared remarks from Fed Vice Chair for Supervision Michael Barr.
    The change comes after banks, business groups, lawmakers and others weighed in on the possible impact of the original proposal, Barr told an audience at the Brookings Institution.
    “This process has led us to conclude that broad and material changes to the proposals are warranted,” Barr said in the remarks. “There are benefits and costs to increasing capital requirements. The changes we intend to make will bring these two important objectives into better balance.”
    The original proposal, a long-in-the-works response to the 2008 global financial crisis, sought to boost safety and tighten oversight of risky activities including lending and trading. But by raising the capital that banks are required to hold as a cushion against losses, the plan could’ve also made loans more expensive or harder to obtain, pushing more activity to nonbank providers, according to trade organizations.
    The earlier version brought howls of protest from industry executives including JPMorgan Chase CEO Jamie Dimon, who helped lead the industry’s efforts to push back against the demands. Now, it looks like those efforts have paid off.

    But big banks aren’t the only ones to benefit. Regional banks with between $100 billion and $250 billion in assets are excluded from the latest proposal, except for a requirement that they recognize unrealized gains and losses on securities in their regulatory capital.
    That part will likely boost capital requirements by 3% to 4% over time, Barr said. It’s an apparent response to the failures last year of midsized banks caused by deposit runs tied to unrealized losses on bonds and loans amid sharply higher interest rates.

    Mortgages, retail loans

    Key parts of the proposal that apply to big banks bring several measures of risk more in line with international standards, while the original draft was more onerous for things such as mortgages and retail loans, Barr said.
    It also cuts the risk weighting for tax credit equity funding structures, often used to finance green energy projects; tempers a surcharge proposed for firms with a history of operational failures; and recognizes the relatively lower-risk nature of investment management operations.
    Barr said he will push to resubmit the proposed Basel Endgame regulations, as well as a separate set of capital surcharge rules for the biggest global institutions, which starts anew a public review process that has already taken longer than a year.
    That means it won’t be finalized until well after the November election, which creates the risk that if Republican candidate Donald Trump wins, the rules could be further weakened or never implemented, a situation that some regulators and lawmakers hoped to avoid.
    It’s unclear if the changes appease the industry and their constituents; banks and their trade groups have threatened to litigate to prevent the original draft’s implementation.
    “The journey to improve capital requirements since the Global Financial Crisis has been a long one, and Basel III Endgame is an important element of this effort,” Barr said. “The broad and material changes to both proposals that I’ve outlined today would better balance the benefits and costs of capital.”
    Reaction to Barr’s proposal was swift and predictable; Sen. Elizabeth Warren, D-Mass., called it a gift to Wall Street.
    “The revised bank capital standards are a Wall Street giveaway, increasing the risk of a future financial crisis and keeping taxpayers on the hook for bailouts,” Warren said in an emailed statement. “After years of needless delay, rather than bolster the security of the financial system, the Fed caved to the lobbying of big bank executives.”
    The American Bankers Association, a trade group, said it welcomed Barr’s announcement but stopped short of giving its approval to the latest version of the regulation.
    “We will carefully review this new proposal with our members, recognizing that America’s banks are already well-capitalized and … any increase in capital requirements will still carry a cost for the economy and must be appropriately tailored,” said ABA President Rob Nichols.

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    New Starbucks CEO Brian Niccol outlines priorities to end coffee chain’s slump

    New Starbucks CEO Brian Niccol explained four priorities for the U.S. business.
    Starbucks is hoping Niccol can turn around the coffee chain’s slumping sales, just like he did at Chipotle.
    Niccol plans to focus on the U.S. business initially before he turns to challenges in international markets.

    Brian Niccol, incoming CEO of Starbucks.
    Anjali Sundaram | CNBC

    New Starbucks CEO Brian Niccol will focus on improving the chain’s U.S. business in his early days on the job before he moves to fix its issues abroad, according to an open letter published on Tuesday.
    “… In some places — especially in the U.S. — we aren’t always delivering,” Niccol wrote in the open letter addressed to customers, employees and stakeholders. “It can feel transactional, menus can feel overwhelming, product is inconsistent, the wait too long or the handoff too hectic. These moments are opportunities for us to do better.”

    Niccol, who calls himself a longtime Starbucks customer, outlined four areas for improvement: the barista experience, morning service, its cafes and the company’s branding.
    “This is our plan for the U.S., and where I need to focus my time initially,” Niccol wrote in the letter.
    To tackle those challenges, Starbucks will invest in tech to improve baristas’ working conditions and allow them to craft drinks more quickly, make the company’s supply chain more efficient and upgrade its app and mobile ordering.
    Later, Niccol plans to address its international business, such as in China, its second-largest market. Starbucks’ business in China has struggled to bounce back from the Covid-19 pandemic, and increased competition has led the coffee chain to lean more on discounts and promotions to win back customers.
    “In China, we need to understand the potential path to capture growth and capitalize on our strengths in this dynamic market,” Niccol said.

    He also said the company will try to curb what he called “misconceptions” about its brand in the Middle East. Many U.S. brands, including Starbucks and McDonald’s, have faced boycotts tied to backlash against U.S. support for Israel’s offensive in Gaza.
    But for Niccol’s first 100 days, he plans to spend time in the chain’s cafes and offices and meet with key suppliers in the U.S.
    “Today, I’m making a commitment: We’re getting back to Starbucks,” said Niccol.
    The coffee giant named Niccol as chief executive in August, in conjunction with the company’s ouster of then-CEO Laxman Narasimhan. The leadership shake-up followed several quarters of slumping sales for Starbucks as demand for its drinks declined, particularly in the U.S. and China.
    Niccol’s official first day was Monday. He joined Starbucks from Chipotle Mexican Grill, where he spent six years as chief executive, turning it from a burrito chain in crisis into a consistent favorite of both diners and Wall Street. Now, he is tasked with executing a turnaround for Starbucks.
    Read the full letter below:

    An open letter for all partners, customers and stakeholders
    As I step into my first week as ceo, I do so not only as a leader, but as a long-time customer. Over the past few weeks, I’ve spent time in our stores, speaking with partners and customers, and talking with teams across operations, store design, marketing and product development.
    In each conversation, two truths emerged: First, Starbucks is a beloved brand with wonderful people. We are woven into the fabric of people’s lives and the communities we serve. Second, there’s a shared sense that we have drifted from our core. We have an opportunity to make the store experience better for our partners and, in turn, for our customers.
    Starbucks was founded on a love for high quality coffee — handcrafted by our outstanding green apron partners and enjoyed with intention. Coffee is our heart. We own and operate Hacienda Alsacia, our coffee farm on the slopes of Costa Rica’s Volcano Poás, which serves as the heart of our research and innovation efforts. From our network of Farmer Support Centers, Starbucks agronomists share research, education and best practices with local farmers. We invest in the finest quality beans. Our skilled team of roasters carefully prepare these beans in five Starbucks roasting facilities across the U.S., in Amsterdam to serve EMEA markets, in Kunshan for China, and in Karnataka, India, for that growing market. We also operate Starbucks Reserve Roasteries in Milan, Shanghai, Tokyo, New York City, Chicago and Seattle, where we roast small batch Reserve coffees. We design the best equipment for our stores and invest in training for our baristas to ensure every cup reflects our commitment to excellence. Each cup is more than a drink; it’s a handcrafted moment, made with care.
    Our stores have always been more than a place to get a drink. They’ve been a gathering space, a community center where conversations are sparked, friendships form, and everyone is greeted by a welcoming barista. A visit to Starbucks is about connection and joy, and of course great coffee.
    Many of our customers still experience this magic every day, but in some places — especially in the U.S. — we aren’t always delivering. It can feel transactional, menus can feel overwhelming, product is inconsistent, the wait too long or the handoff too hectic. These moments are opportunities for us to do better. 
    Today, I’m making a commitment: We’re getting back to Starbucks. We’re refocusing on what has always set Starbucks apart — a welcoming coffeehouse where people gather, and where we serve the finest coffee, handcrafted by our skilled baristas. This is our enduring identity. We will innovate from here.
    We’ll focus initially on four key areas that we know will have the biggest impact: 

    Empowering our baristas to take care of our customers: We’ll make sure our baristas have the tools and time to craft great drinks every time, delivered personally to each customer. For our partners, we’ll build on our tradition of leadership in retail by making Starbucks the best place to work, with career opportunities and a clear path to growth.
    Get the morning right, every morning: People start their day with us, and we need to meet their expectations. This means delivering outstanding drinks and food, on time, every time.
    Reestablishing Starbucks as the community coffeehouse: We’re committed to elevating the in-store experience — ensuring our spaces reflect the sights, smells and sounds that define Starbucks. Our stores will be inviting places to linger, with comfortable seating, thoughtful design and a clear distinction between “to-go” and “for-here” service.
    Telling our story: It’s time for us to tell our story again — reminding people of our unmatched coffee expertise, our role in communities and the special experience that only Starbucks can provide. We won’t let others define who we are.

    To support this vision for our U.S. business, we’re making investments in technology that enhance the partner and customer experience, improve our supply chain and evolve our app and mobile ordering platform. 
    This is our plan for the U.S., and where I need to focus my time initially. But Starbucks is a global company. We operate in 87 markets around the world, where thousands of talented green apron partners share their love of coffee with customers every day. I know I have much to learn from these outstanding teams and I look forward to getting on the road and spending time with them. In China, we need to understand the potential path to capture growth and capitalize on our strengths in this dynamic market. Internationally, we see enormous potential for growth, especially in regions like the Middle East, where we’ll work to dispel misconceptions about our brand, and in Asia Pacific, Europe and Latin America, where the love for Starbucks is strong. 
    My focus for the first 100 days is clear. I’ll spend time in our stores and at our Support Centers, meeting with key partners and suppliers, and working with our team to drive these critical first steps. Together, we will get back to what makes Starbucks, Starbucks. 
    On we go, 
    Brian  More