—— Florida Bans Chinese Citizens from Buying Property; MTA to Raise Subway Fares and Tolls; PacWest Sells $2.6B Loan Portfolio; Yelp Considers Sale, Stock Soars; AI Fake Photo Triggers Panic; NYC Office Values May Permanently Decline; JPMorgan CEO Has No Plans to Retire
1. Florida Bans Chinese Citizens from Buying Property
Florida Governor Ron DeSantis signed a new bill that bans Chinese citizens from purchasing real estate in the state, effective July 1.
The American Civil Liberties Union (ACLU), representing a group of Chinese citizens, has filed a lawsuit against Florida, arguing that the law discriminates based on race, religion, skin color, and national origin.
More than a dozen U.S. states have introduced similar laws, many of them targeting Chinese citizens.
Buyers covered under the new law may still purchase properties before July 1, but they must complete a registration process—failure to do so could result in criminal charges.
The ACLU argues that the new law violates the Constitution’s principles of racial and religious equality.
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2. MTA to Raise Subway Fares and Tolls
New York’s Metropolitan Transportation Authority (MTA) plans to raise subway fares and tolls by the end of August to boost revenue and reduce its budget deficit.
According to a presentation by MTA board members during a financial meeting today, the subway or bus fare could increase from $2.75 to $2.90, and the 7-day unlimited MetroCard could rise by $1 to $34. Highway tolls could increase up to 10%, with E-ZPass users facing up to a 7% hike.
MTA Finance Committee Chair Neal Zuckerman said that while the agency avoided fare hikes during the pandemic, the increase could generate an additional $305 million in annual revenue.
Currently, ridership has only recovered to about 70% of pre-pandemic levels, so MTA needs higher fares to reach previous revenue levels.
Last month, New York State agreed to provide $300 million in subsidies and increase payroll taxes to help MTA raise $1.1 billion annually.
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3. PacWest Sells $2.6B Loan Portfolio
Recently, Los Angeles-based regional bank PacWest has faced severe challenges, including a collapsing stock price and heavy customer withdrawals.
Year-to-date, its share price has plunged 71%. In the week ending May 5, deposits shrank by nearly 10%.
In response, PacWest executives considered various strategic options, including asset sales and fundraising.
According to public filings, PacWest has sold a $2.6 billion construction loan portfolio, which includes 74 individual loans, to Beverly Hills-based real estate investment firm Kennedy Wilson Holdings.
The asset sale will help PacWest boost liquidity and reduce the risk of loan defaults.
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4. Yelp Considers Sale, Stock Soars
According to The Wall Street Journal, activist investor TCS Capital Management has urged review site Yelp to consider selling the company or exploring other strategic options, sending shares up 18% after-hours to $38.25.
TCS believes Yelp could sell for twice its current stock price and plans to formally present its proposal to the board this Tuesday.
In early May, Yelp’s Q1 report showed a 13% rise in revenue, with CEO Jeremy Stoppelman crediting strong advertising demand as the primary driver.
A Yelp spokesperson said the company values shareholder input and will seriously consider any decision that could create value.
Yelp generates most of its revenue through business sponsorships and advertising.
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5. AI Fake Photo Triggers Panic
On Monday, an AI-generated image of an explosion at the Pentagon went viral on social media, briefly triggering a stock market sell-off.
Around 10 a.m. on Monday, the image spread rapidly on Facebook, and the S&P 500 dropped 0.3% to its intraday low. After the story was debunked, the market rebounded.
The image’s origin remains unclear, but the incident highlights the panic potential of AI-generated images.
As AI-generated visuals become more realistic, the risk of misinformation spreading rapidly continues to grow.
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6. NYC Office Values May Permanently Decline
Researchers from Columbia University and NYU found that while office workers are returning post-pandemic, office utilization seems stuck at around 50%—indicating the lasting and more severe-than-expected impact of remote work on New York City office buildings.
The study estimates that by 2029, the value of NYC office buildings may decline by 44% compared to pre-pandemic levels, up from last year’s forecast of a 28% drop.
NYU’s Arpit Gupta wrote that remote work may have become a long-term trend, causing permanent damage to office valuations.
Researchers found that NYC office occupancy appears capped around 48%, entering a plateau phase.
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7. JPMorgan CEO Has No Plans to Retire
Last Friday, Morgan Stanley CEO James Gorman announced plans to step down within the next year.
Meanwhile, JPMorgan CEO Jamie Dimon said during Monday’s investor day that he has no plans to retire, as he still has the passion for the job.
The 67-year-old Dimon stated that the next CEO must have the courage to admit mistakes and the ability to fix them quickly.
When asked by Wells Fargo analyst Mike Mayo how long he plans to stay, Dimon replied: three and a half more years.
The CEO of America’s largest bank said he will not step down as long as he remains driven by his work.
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This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.