No global bank, with the exception of Morgan Stanley, had a particularly enjoyable second quarter, what with the nasty case of sniffles that’s been going around. And, given that there is perhaps no more vulnerable or immunocompromised Bank than Deutsche, one might expect none to be as badly affected, or even killed, by the global pandemic.

But no! Through sheer triumph of the will, the Germans have not only survived but thrived. Of course, “thriving” it their case involves losing money, just not as much as you—or analysts—expected.

A sprawling penthouse on the top two floors of 220 Central Park South sold for $99.9 million in July, becoming the year’s most expensive closing in New York City…. The month’s other top sales were also at 220 Central Park South: Two full-floor apartments sold for $55.5 million and nearly $54 million, and they, too, went into contract with anonymous buyers before the coronavirus outbreak.

PG&E was supposed to help Elliott gain access to as much as $2 billion in equity commitments, as part of a settlement struck in January to resolve competing and sometimes contentious restructuring plans, according to a court filing by Elliott…. PG&E allegedly breached its obligation, “and concealed that breach until after the evidence had closed with respect to the confirmation hearing, Elliott is now entitled to seek payment of this administrative expense claim,” the firm said….

Elliott complained that PG&E failed to use its “best efforts” to persuade other investors involved in the company’s reorganization to give Elliott the investment rights.”

GDP likely fell at record pace in the second quarter and state reclosings threaten rebound [USA Today]Although the grisly numbers in the April-June period have long been expected, a figure on Thursday that’s noticeably better or worse than the median 35% decline predicted by economists polled by Bloomberg could shed light on the length of the recovery…. Anderson estimates the economy will grow at an annual rate of 17.3% in the third quarter and 4.9% in the fourth quarter, a prediction that depends on Congress passing another stimulus of $1.5 trillion to $2 trillion. After the historic second quarter nosedive, that still would still result in a 4.8% contraction for the year, the largest since 1946.Yet even that forecast could be threatened by the virus surges and state rollbacks. The number of hours worked has declined in Arizona, Florida and Texas in recent weeks, according to Homebase, a supplier of employee scheduling software. Initial jobless claims, a gauge of layoffs, rose...

Through affiliates, Ms. Tilton has filed lawsuits in New York against metal refiner Libertas Copper LLC, employment agency Snelling Holdings LLC, shower-curtain maker Glenoit Universal Ltd., game-controller maker FSAR Holdings Inc. and 11 other companies that she had managed for years….

The Zohar funds have been trying to sell the businesses to recoup more than $1.7 billion that they say they are owed. The funds are seeking a bankruptcy-court order halting the lawsuits against the businesses, saying they are interfering with efforts to sell the companies…. “Ms. Tilton’s conduct is only getting worse by the day,” the filing said, adding that her claims to be owed millions of dollars in fees and indemnification are disputed and in some instances undocumented.

A federal judge in Manhattan demanded answers from prosecutors after a hedge-fund founder and trader convicted of mismarking securities produced documents they say show the government concealed evidence that might have cleared them…. Earlier this month, defense attorneys for the two men said documents they recently uncovered through a Freedom of Information Act request show that one of the government’s key cooperating witnesses read an allocution, or sworn statement of facts, when he pleaded guilty to a role in the scheme that was virtually identical to one drafted by prosecutors….

“We are entitled to know what else is out there,” Richard Tarlowe, an attorney for Ahuja, told the judge during a conference on Friday. “The emails do quite clearly in our view show that there was a deliberate effort taken to avoid putting things in emails to avoid disclosing them.”

People were ready to party in the Hamptons, and Goldman Sachs Chief Executive David Solomon, fresh off a great quarter and a multibillion-dollar fine to settle criminal charges in Malaysia, was one of them….

Solomon was on stage for an hour, just him and a turntable on an elevated platform, mask around neck, surrounded by animations of cherries and his deejay name, D-Sol, in flashing bubble letters. He put his hand up in the air, playing electronic dance beat takes on popular songs -- not unlike the Chainsmokers, with more Fleetwood Mac than Coldplay. Giant plumes of smoke went up in front of the stage as the sky turned pink and orange….

“Standing up there and watching the sunset, looking out over this huge field of cars and people on their cars, it was absolutely beautiful,” Solomon said Monday in an interview.

Europe’s Banks Told to Hold Off on Dividends [WSJ]The ECB, which supervises the largest banks in the eurozone, extended its previous recommendation for a moratorium on dividends and buybacks until January from October. It also asked banks to moderate the payment of bonuses and consider alternatives to cash payments, such as shares…. The ECB had previously told banks not to pay dividends until October so they could continue lending and more easily absorb losses from souring loans.

Sculptor Agrees to Pay $136 Million to Bribery Scheme Victims [WSJ]The $136 million settlement is believed to be the first time a company has compensated victims of bribery under the U.S. Foreign Corrupt Practices Act, according to FCPA lawyers…. Lawyers for Sculptor also have made it clear that the settlement is contingent upon the restitution amount being final. If other victims come forward, the settlement could be called off, they have said….“In this case it was a group of investors as a...

The Federal Deposit Insurance Corp. on Friday said it was easing lenders’ ability to hire individuals convicted of offenses such as shoplifting in a bid to expand the pool of potential employees in the financial industry…. Friday’s changes expand the types of offenses for which a waiver is no longer necessary, including small-dollar crimes involving less than $1,000….

Under Friday’s changes, individuals convicted of using a fake identification while under 21 will no long need to apply for a waiver. Small-time offenses that have been expunged from an individual’s record or sealed are excluded from consideration.

The agency also eliminated a five-year waiting period for people with just one minor offense; it imposed a three-year waiting period for two minor offenses.

Paul Singer’s Elliott Management Corp., which has been in business for 43 years, is also offering lower fees in exchange for locking up capital for longer. New York-based Elliott is asking some clients to switch to a share class that will lower their fees to 1.5%, from 2%. In exchange, it will take investors 18 months to take all their money out.

“There’s a trade war, there’s a technology war, there is a geopolitical war and there could be a capital war,” Dalio said on Fox’s “Sunday Morning Futures.”

“If you say by law ‘Don’t invest in China,’ or even possibly withholding the payment of bonds that the United States owes payment on in China -- these things are possibilities, and they have big implications, such as for the value of the dollar,” he said….

“The things I worry about the most are the soundness of our money,” Dalio said. “You can’t continue to run deficits, sell debt or print money rather than be productive and sustain that over a period of time.”

Anyway, this cooperation with U.S. authorities four years ago is all of a sudden big news in China, with government mouthpiece the People’s Daily accusing HSBC—which, again, derives most of its revenue from China—of “setting a trap” for Huawei in conjunction with the DoJ, which trap led Huawei to allegedly violate U.S. sanctions and eventually to another of the issues exacerbating U.S.-China tensions, the arrest and proposed extradition of Huawei CFO Meng Wanzhou.

Fed Outlook Turns Gloomier as Coronavirus Spreads [WSJ]Officials have warned this month in speeches and interviews that the economy faces a deeper downturn and more difficult recovery if the country doesn’t take more effective action to slow the spread of infection…. The Fed isn’t likely to roll out new stimulus measures this week but is debating how to provide more support to the economy once the economic outlook becomes clearer….The economy will face “severe economic consequences” if the public health response doesn’t improve, Mr. Rosengren said. The Fed’s policy response is “not going to be able to offset all the losses if we continue to make serious public health mistakes.”

The deal includes a $2.5 billion cash payout by Goldman and a guarantee by the bank to return at least $1.4 billion in proceeds from assets linked to sovereign wealth fund 1Malaysia Development Bhd (1MDB), the two sides said…. “We are confident that we are securing more money from Goldman Sachs compared to previous attempts, which were far below expectations,” Finance Minister Tengku Zafrul Aziz said in a statement.

“We are also glad to be able to resolve this outside the court system, which would have cost a lot of time, money and resources,” he said, adding that the deal would resolve all outstanding charges and claims against Goldman.

SEC Votes to Regulate Proxy Advisers More Closely [WSJ]Under Wednesday’s rule, proxy advisers must show their voting recommendations to public companies at the same time or before sending them to clients. They will also have to inform their clients of public companies’ responses to their advice…. “These rules are not wanted by those they purport to benefit,” Ms. Lee said in a statement, adding that they will “add significant complexity and cost into a system that just isn’t broken.”

CFTC Scales Back Oversight of Cross-Border Swaps Trading [WSJ]The Commodity Futures Trading Commission’s plan will effectively cede oversight of that activity to overseas regulators whose rules are deemed sufficient…. “It’s unnecessary for the CFTC to essentially be the world’s policeman for all swaps,” [Chairman Heath] Tarbert, a Republican, said during Thursday’s meeting…. The CFTC also won’t regulate trades handled or negotiated by bank employees in New York or other U.S. cities as long as...

The Arkansas Teacher Retirement System is suing investment and insurance giant Allianz for allegedly losing $774 million of the pension’s money in its volatility-trading funds…. “Active management missteps” and a “profound breakdown in risk management” caused the Allianz funds’ “extremely disappointing” results, ATRS’s consultant Aon told the pension fund in an analysis, according to the lawsuit. Aon “chastised AllianzGI for a ‘lack of transparency into the events that unfolded,’ which 'perpetuated... lost confidence in the risk management process’ and a loss of 'trust in the investment team.’ Moreover, AllianzGI has refused to explain to ATRS the investment decisions that led to the implosion of the Alpha funds.”

The activist investor went on CNBC in mid-March to warn investors that “hell is coming” and urge the White House to shut down the country for a month…. “I really blame CNBC,” Ackman said. “It took 15 seconds of my interview and then went around scaring people because it was good television. ... I gave a very bullish message. I said I was buying stocks.”

Sara Vavra, who departed as head of global macro in October, and Shannon Gitlin, who works in Point72’s investor relations department, filed grievances with the Connecticut Commission on Human Rights and Opportunities in recent months, according to court documents and interviews with members of the body.

Tesla reports fourth straight quarter of profits [CNBC]Tesla also reported its first full year of profitability on a GAAP basis, which means it can now be considered for inclusion on the S&P 500 index…. Musk announced that Tesla will build its next factory near Austin, Texas…. Automotive revenue declined by 4% year-over-year for Tesla from $5.38 billion to $5.18 billion, despite the company adding a new crossover SUV to its lineup, the Model Y, and opening a new plant in Shanghai in the past year.

The funds, including Palladian Partners LP, are seeking a payout of 645 million euros (US$738 million) in the High Court of England and Wales on the grounds that the government misled investors, either voluntarily or involuntarily, by publishing inaccurate statistics through the INDEC national statistics bureau for the year 2013…. The lawsuit stems from the 2001 default on a debt of US$95 billion, which came amid one of the worst economic crises in the country's history. As part of its restructuring programme, it sold GDP-linked securities, which were meant to pay out when growth hit a set threshold.

Today, only one of 21 politically appointed financial regulators at eight agencies is Black…. Since the founding of the agencies in the 19th and 20th centuries, only 10 of 327 people appointed to the most senior jobs at financial watchdogs—such as the Federal Reserve and Federal Deposit Insurance Corp.—have been Black… The Securities and Exchange Commission, founded as part of the government’s New Deal programs in 1934, has had two Black commissioners in its history. The Federal Reserve, established in 1913, has had three Black governors.

The Justice Department and the Federal Trade Commission have recently brought a string of criminal and civil cases accusing individuals and companies of using legitimate-looking websites to deceive financial firms into processing unsavory purchases….

“No processor, even if it spent a fortune, is going to perfectly shield itself from fraudulent merchants,” said Lois Greisman, associate director of the FTC’s Division of Marketing Practices. The FTC, she said, “is seeking to root out processors that are knowingly facilitating fraud.”

In an email sent Tuesday to more than 260,000 people on its U.K. waiting list, the company, which was authorized by the U.K. financial regulator last year, said the launch was postponed indefinitely. The launch would have been Robinhood’s first expansion outside the U.S.

“The world has changed a lot over the past several months and we’re adapting with it,” Robinhood said in the email. “Our efforts are currently best spent on strengthening our core business in the U.S. and making further investments in our foundational system.”

Congressional Republicans Are Close to Revolt Over Stimulus Aid [NYT]Even as Senator Mitch McConnell of Kentucky, the majority leader, divulged details of his emerging plan, expected to total roughly $1 trillion, President Trump had yet to sign on and Republicans remained deeply divided over several key elements…. It was an inauspicious start to talks on the measure, and top Republican officials privately cautioned on Tuesday that the coming negotiation, a wide-ranging election-year brawl, was likely to stretch into August, leaving tens of millions of unemployed Americans without extra help as Congress hammers out the latest recovery plan and the virus surges….“I just walked out of a meeting that could be sort of a Bernie bros, progressive caucus,” Senator Rand Paul, Republican of Kentucky, told reporters after the lunch. “I’m alarmed that we’re talking about spending another trillion dollars we don’t have.”

Over a two-year period until September 2014, the market-maker removed hundreds of thousands of large OTC orders from its automated trading processes, according to Finra. That rendered the orders “inactive” and so they had to be handled manually by human traders.

Citadel Securities then “traded for its own account on the same side of the market at prices that would have satisfied the orders,” without immediately filling the inactive orders at the same or better prices as required by Finra rules, the regulator said….

Nearly half of the 467 limit orders reviewed by the regulator in the six years until September 2018 were found to violate Finra’s requirements to display orders. The bulk of the violations were for failing to execute trades against existing quotations in a timely manner, Finra said.