DealBook Briefing: The Fate of Financiers Tied to College Admissions Scandals

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Some business leaders are feeling the swift and sharp repercussions of charges issued by federal prosecutors relating to a college admissions scandal, in which wealthy parents were accused of using fraud and bribery to help their children get places at elite schools.

Gordon Caplan, a co-chairman of the global law firm Willkie Farr & Gallagher, was put on leave by the firm yesterday. He may face legal challenges from regulators and his own company, according to the New York Law Journal. He is accused of paying $75,000 to have someone improve his daughter’s score on the ACT exam.

William McGlashan, a partner at the private equity firm TPG, was placed on leave by the company. Yesterday, he stepped down from the board of STX Entertainment, the film studio he helped found. He is accused of having his son’s ACT answers corrected and athletic profile faked.

Manuel Henriquez, the C.E.O. of Hercules Capital, stepped down from that role yesterday, though he remains on the company’s board of directors. He and his wife, Elizabeth, are accused of spending over $400,000 in a scheme for their daughter.

“But the bigger financial unknown is whether airlines lose confidence in the Max,” Ms. Kitroeff adds. If that happens, orders for the 737 Max — the company’s best-selling jet — could dry up, handing an advantage to Boeing’s European rival, Airbus, which makes a similar plane, the A320neo. But outright cancellations of orders seem unlikely, because airlines typically put down large deposits.

The British Parliament voted last night to oppose the prospect of Britain’s withdrawal from the E.U. without an agreement with the bloc, writes Stephen Castle of the NYT.

“The vote was another harsh blow” to Prime Minister Theresa May, Mr. Castle writes. “A critical part of her strategy has been to play for time and use the fast-approaching threat of a chaotic, disorderly and economically damaging exit as leverage.”

“Mrs. May said that if lawmakers can support a deal in the next few days, she could request a Brexit delay until June 30 to put it in place,” he adds. “But that appears unlikely. Parliament rejected the agreement she negotiated with the European Union in a humiliating 432 to 202 vote in January, and defeated it again on Tuesday, 391 to 242.”

“Without an approved agreement, a longer extension would be needed, forcing Britain to take part in European Parliament elections in May. That suggests Mrs. May might make one more effort to get her unpopular plan through Parliament, threatening hard-line Brexit supporters that, if it fails, she will seek a long delay that could, potentially, mean Brexit never happening.”

Brookfield Asset Management announced yesterday that it had agreed to buy most of Oaktree Capital Management for about $4.8 billion, creating an alternative asset manager giant that will rival the likes of Blackstone.

Brookfield and Oaktree would control $475 billion of assets under management, including debt, according to Reuters. Blackstone, the industry leader, has at least $650 billion including debt, according to a spokesman of the firm who spoke to the news agency.


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