Opening Bell: 9.21.26

Paramount and state AGs will settle lawsuit, allowing Warner Bros. merger to proceed, reports say [CNBC]Sources told Reuters that the settlement includes the creation of independent editorial boards for CNN and CBS and also stipulates a $30 million penalty per film if Paramount falls short of its pledge to release 30 movies annually…. As part of the merger agreement, Paramount agreed to a so-called ticking fee that would have kicked in after Sept. 30 and meant an additional 25 cents per share, per quarter to WBD shareholder until the transaction closed. The fee would have added an estimated $650 million per quarter in cash value to the deal.US Fed, BoE Step up Scrutiny of Bank Exposure to Trading Firms After Jane Street Loss [Reuters via U.S. News]The central banks are now seeking information ​on the trading ⁠firms' risk appetite, how banks' exposure to them evolved throughout the trading day, and how risk controls operated…. Last month, the US Securities and Exchange Commission subpoenaed Wall Street banks, including Goldman Sachs, JPMorgan, Citigroup and Bank of America. It ⁠was examining Situational Awareness' trading activity and use of leverage following its near-collapse, including the trades that triggered margin calls and the fund's communications ​with lenders.Crypto Blew Its Big Moment—and the Blame Game Has Begun [WSJ]“We had a lot of momentum in January,” said Brad Garlinghouse, CEO of Ripple, which supported the bill. “Then one group in our industry kind of shot ourselves in the foot….”Senate aides in both parties were exasperated with the crypto lobby and especially with [Coinbase CEO Brian] Armstrong and his team, who continued to wield their influence to extract concessions they viewed as good for Coinbase and the industry.Silver Lake Takes On Carl Icahn and All of Merger Arbitrage in Endeavor Fight [WSJ]Private-equity firm Silver Lake is asking a judge to declare that activist investor Carl Icahn and a group of hedge funds illegally colluded in attempts to fight the $13 billion acquisition of talent agency Endeavor…. Endeavor and Silver Lake argue the investors are interlopers who shouldn’t have a voice in the appraisal fight because they bought after the deal was agreed. Michael Burry Warns Hyperscalers Are Hiding $3 Trillion In AI Liabilities — And Wall Street Isn’t Looking: ‘When The Music’s Over…’ [Stockwits]Burry estimated the five hyperscalers have nearly $1.2 trillion in uncommenced lease commitments and more than $1.5 trillion in purchase commitments…. Burry argued that rapidly changing hardware could leave hyperscalers with expensive, highly specialized facilities that are difficult to repurpose if AI demand slows or chip architectures change….“Nvidia chips may be economically depreciating waiting in warehouses while GAAP depreciation remains at zero,” Burry wrote.Ken Griffin’s New Miami Headquarters on Pause After Construction Accident [WSJ]Building a skyscraper on Miami’s porous and water-soaked shoreline is proving to be… treacherous.A drill rig that was solidifying the foundation of Citadel’s future Miami headquarters toppled onto traffic early Monday morning, crushing three vehicles, including one that burst into flames moments after the driver escaped.