Palihapitiya states half of large US companies cannot deliver returns exceeding the 8-11% cost of capital.
“What that means is that is the actual cost that you would borrow money at effectively. The problem is that half of large US companies now cannot deliver returns that exceed that.”
Palihapitiya notes Fed, OCC and FDIC sunsetted 2011 bank model guidance in April 2026
“What is a model? At a bank, it is the math behind almost every decision: who gets a loan, how much capital to hold, which transactions look like fraud etc etc etc. In April, the Fed, OCC and FDIC sunsetted the guidance banks have used since 2011 to check that math. The new”
Palihapitiya notes Fed, OCC and FDIC sunsetted 2011 bank model guidance in April 2026
“What is a model? At a bank, it is the math behind almost every decision: who gets a loan, how much capital to hold, which transactions look like fraud etc etc etc. In April, the Fed, OCC and FDIC sunsetted the guidance banks have used since 2011 to check that math. The new”