2025-06-25 20:10
Court officer to recommend auction's winner by July 2 Judge Stark instructed advisors to prioritize price over certainty of closure Resolution of parallel cases might have encouraged new bidders HOUSTON, June 25 (Reuters) - Black Lion Citgo Group, a consortium led by private equity firm Black Lion Capital Advisors, submitted an $8 billion all-cash bid for the parent of Venezuela-owned U.S. refiner Citgo Petroleum as part of a court-organized auction of shares, the company said in a filing released on Wednesday. Following the selection of a $3.7 billion offer by Red Tree Investments as starting bid in April, a court in Delaware received rival offers until June 18 for Citgo's parent PDV Holding as part of a bidding round aimed to pay up to 15 creditors for debt defaults and expropriations in Venezuela. Sign up here. The auction's winner is expected to be recommended by a court officer overseeing the sales process by July 2, with a final hearing set for August 18, according to a schedule recently updated by the court. Black Lion's offer, submitted last week, is backed by investors Quazar Investment, Anex Management and Fortress Management and includes an $8 billion base purchase price plus court and government fees and insulation funds for up to $3 billion, according to the filing. The Black Lion group did not participate in the first phase of the bidding round earlier this year, when a starting bid was chosen, according to court filings and sources. Black Lion did not immediately reply to a request for comment. When the auction's schedule was extended this month, court officer Robert Pincus said the resolution of parallel legal cases in pursuit of the same assets was expected to encourage new offers in the last mile of the sales process. A consortium of miners Gold Reserve (GRZ.V) , opens new tab and Rusoro (RML.V) , opens new tab and conglomerate Koch also submitted an improved offer as part of the bidding round's topping period, Gold Reserve said earlier this month, without revealing details. The group, which only includes companies that also are creditors in the case, had offered $7.1 billion for the shares during the starting bid phase, but its offer was not chosen because of its lower "certainty of closure," Pincus told the court. Two rival groups led by affiliates of commodities house Vitol and hedge fund Elliott Investment Management were considering bids in this round, but their submissions have not been confirmed. A $7.3 billion offer by Elliott's affiliate Amber Energy won the first bidding round last year, but was ultimately rejected by most creditors. Black Lion's offer "exceeds the current stalking horse bid and all reported topping bids publicly known to date" and "is backed by committed institutional funding, with documented capacity greatly exceeding $12 billion," the company told the court. Judge Leonard Stark, who is in charge of the eight-year case, instructed Pincus to prioritize price over certainty of closure in this phase of the auction. As the sale process completion approaches, some creditors including Gold Reserve are asking the court to request clarification from the U.S. Treasury Department on its protection over Citgo, which has been in force in recent years freezing any change of ownership of the seventh largest U.S. refiner. https://www.reuters.com/business/energy/black-lion-submits-8-billion-cash-bid-citgos-parent-filing-says-2025-06-25/
2025-06-25 20:01
THE HAGUE, June 25 (Reuters) - President Donald Trump on Wednesday called Federal Reserve Chair Jerome Powell "terrible" in his latest attack on the central bank chief and said he has three or four people in mind as contenders for the top Fed job. "I know within three or four people who I'm going to pick," Trump told reporters when asked if he is interviewing candidates to replace Powell. Sign up here. The leading contenders reportedly include former Fed Governor Kevin Warsh, National Economic Council head Kevin Hassett, current Fed Governor Christopher Waller, and Treasury Secretary Scott Bessent. Trump has repeatedly criticized Powell for not cutting interest rates and has floated the idea of firing him or naming a successor soon, though he nearly as often has walked back those threats, saying on June 12 at the White House, "I'm not going to fire him." At the White House on Wednesday, Hassett declined to say whether he had spoken to Trump about Powell's replacement. "I think the President will choose the person that he likes, and it's not going to be Jay Powell," Hassett said. Some analysts see this as an effort to influence monetary policy through a "shadow" Fed chair even before Powell leaves office in May 2026. Fed chairs have long been seen as insulated from presidential dismissal for reasons other than malfeasance or misconduct, but Trump has threatened to test that legal premise with frequent threats to fire Powell. Powell told Congress this week that higher tariffs could push up inflation this summer, just as the Fed weighs potential rate cuts. He said he and many at the Fed expect inflation to rise soon and that the central bank isn't rushing to lower borrowing costs. https://www.reuters.com/world/us/trump-says-he-is-considering-three-or-four-candidates-next-fed-chair-2025-06-25/
2025-06-25 20:00
June 25 (Reuters) - The regulator overseeing Fannie Mae and Freddie Mac on Wednesday ordered the housing giants to consider cryptocurrency as an asset for single-family mortgage loan risk assessments, a move that could potentially open the door to borrowers using crypto investments to qualify for home loans. William Pulte, the director of the Federal Housing Finance Agency, said in a social media post that he had ordered Fannie and Freddie to "prepare their businesses to count cryptocurrency as an asset for mortgage," which he said would be in line with President Donald Trump's vision of making the U.S. "the crypto capital of the world." Sign up here. The FHFA oversees Fannie Mae and Freddie Mac, which have operated under U.S. government control since 2008 after suffering heavy losses during the subprime mortgage crisis. They guarantee over half of the nation's mortgages. Cryptocurrencies are known for being highly volatile and are often subject to wild price swings, sometimes for no clear reason. In February, bitcoin -- the largest cryptocurrency -- suffered its biggest weekly fall in two years, dropping 16%, although it has since recovered. Trump has sought to overhaul U.S. cryptocurrency policy after courting cash from the industry on the campaign trail. Trump has appointed industry-friendly regulators and has hosted industry leaders at the White House. Cryptocurrencies have reacted favorably, with bitcoin reaching all-time highs this year. In a directive signed Wednesday, Pulte said that considering additional borrower assets -- such as cryptocurrencies -- could enable Fannie and Freddie to assess the full financial picture of a borrower and could "facilitate sustainable homeownership to creditworthy borrowers." Pulte's order did not specify which cryptocurrencies Fannie and Freddie should consider. https://www.reuters.com/sustainability/boards-policy-regulation/regulator-orders-fannie-freddie-consider-crypto-holdings-loan-assessments-2025-06-25/
2025-06-25 19:56
June 25 (Reuters) - The U.S. sent letters to Enterprise Products (EPD.N) , opens new tab and Energy Transfer (ET.N) , opens new tab on Wednesday informing the companies they could load ethane on vessels destined for China but could not unload the ethane in China without authorization, according to a person familiar with the matter and copy of one letter. The letters from the U.S. Department of Commerce follow a licensing requirement imposed several weeks ago on the companies' exports of ethane to China, which halted shipments and led to vessels anchoring in or hovering around the U.S. Gulf Coast. Sign up here. The letters may signal the U.S. preparing to lift restrictions imposed on exports to China in late May and early June, as the U.S.-China trade war shifted from retaliatory tariffs, to curbs on each others supply chains. With China granting rare earth export licenses to some firms and saying it would speed up the approval process, the U.S. now appears close to permitting ethane exports to China. Still, the companies are highly unlikely to risk loading the ethane on vessels and sending them on their way, the person familiar with the matter said. If the vessels make their way to China, it may be difficult to stop them from offloading the ethane and the companies could face penalties of up to twice the value of the shipment if they do. A copy of the letter seen by Reuters and later released by Enterprise Products said, "This letter authorizes Enterprise Products to load vessels with ethane, transport and anchor in foreign ports, even if... to a party located in China," the letter said. "However, Enterprise Products may not complete such export... to a party that is located in China," without further authorization. The securities filing with the letter did not include additional comment. Enterprise Products and Energy Transfer, two of the top U.S. ethane producers and exporters, did not respond to requests for comment. About half of all U.S. ethane exports go to China, where it is used by the petrochemical industry. The U.S. Department of Commerce also did not immediately respond to requests for comment. The ability to load and begin transporting ethane could relieve congestion at ports along the U.S. Gulf coast, where vessels have been stalled. Since May 23, the U.S. imposed new restrictions on exports to China of everything from ethane and chip design software to jet engines and nuclear plant parts. https://www.reuters.com/business/energy/us-allows-ethane-be-loaded-shipped-china-not-unloaded-letter-2025-06-25/
2025-06-25 19:46
June 25 (Reuters) - The Trump administration is proposing to hold a sale of oil and gas drilling rights on 80 million acres (32.4 million hectares)in the Gulf of Mexico on December 10 with lower deepwater royalty rates, according to the U.S. Bureau of Ocean Energy Management. President Donald Trump issued an executive order in January 2025 calling on U.S. institutions to refer to the Gulf of Mexico as the Gulf of America. Sign up here. The sale would be the first of three outlined in a Biden-era five-year offshore drilling program that included the smallest ever number of oil and gas auctions. The Trump administration in April kicked off the process to develop a new five-year program to maximize energy development. Trump has ordered government agencies to identify ways to increase already record high U.S. oil and gas production, arguing that past administrations had unnecessarily curtailed drilling to combat climate change. The administration plans to offer about 15,000 unleased blocks located 3 to 231 miles (5-372 km) offshore, according to BOEM, a division of the Department of the Interior. It is proposing a royalty rate of 16.67%, the minimum required by law, for both shallow and deepwater leases. Recent oil and gas auctions have required drillers to pay 18.75% on the value of oil produced in deep water. The administration said the lower rate would boost industry participation and lower production costs. "Offshore oil and gas play a vital role in our nation's energy portfolio, with the Gulf of America supplying 14% of domestically produced oil," BOEM Principal Deputy Director Matt Giacona said in a statement. "This proposed lease sale demonstrates BOEM’s commitment to advancing American Energy Dominance and fostering the production of affordable, reliable energy resources for the nation.” The proposal is subject to 60 days of public comment. A final sale notice will be published at least 30 days before the auction, BOEM said. https://www.reuters.com/business/energy/us-proposes-gulf-mexico-oil-gas-lease-sale-december-2025-06-25/
2025-06-25 19:22
Stablecoin issuers key buyers of Treasuries amid huge supply Demand for stablecoins surges among major banks, Paxos says Tether, Circle lead stablecoin market, valued at $256 billion BOSTON, June 25 (Reuters) - The potential for stablecoins to fuel demand for short-term U.S. Treasury securities was a hot topic at a money market fund conference in Boston this week, with investors expecting these digital tokens to absorb a huge supply of government debt later this year. Stablecoins are pegged to highly liquid assets such as the U.S. dollar and the tokens can drive demand for U.S. Treasuries by requiring issuers to hold large, liquid, and safe reserves to support a 1:1 peg to the greenback. Sign up here. "Stablecoins are drawing significant...demand for the Treasury market," said Yie-Hsin Hung, CEO of State Street Global Advisors, in keynote remarks at the Money Fund Symposium on Monday. She said about 80% of the stablecoin market is invested in either Treasury bills, known as T-bills, or repos, which are repurchase agreements. That represents about $200 billion, roughly less than 2% of the overall Treasury market. "But stablecoins are growing fast, and most likely, will outpace the growth of Treasury supply," Hung said. As more financial institutions and corporations adopt stablecoin for payments, remittances, or decentralized finance applications, issuers need to hold more reserves to back the growing supply. For instance, if the market capitalization of USDC, a stablecoin issued by Circle (CRCL.N) , opens new tab, increases by $10 billion, the issuer might purchase $10 billion in Treasuries to maintain the peg. Circle, a payments technology company, and Tether, a blockchain-enabled platform, are the two largest stablecoin issuers. Given expectations of looming Treasury supply of as much as $1 trillion by the end of the year, the market is looking for an incremental buyer that would be a source of new demand for U.S. government debt. Stablecoin issuers fit the bill, market participants said. "If they do indeed squeeze this supply balloon on Treasuries and rely on the front end of the curve for debt issuance, we think that one of the justifications...is that all this demand that's coming from stablecoins...gives (U.S. Treasury Secretary Scott) Bessent cover in order to make that shift to the shorter end," said Mark Cabana, head of U.S. rates strategy at BofA Securities, during one of sessions at the symposium. Cabana noted that stablecoin issuers tend to buy T-bills and shorter-dated Treasury coupons. In an emailed statement on Thursday after the story's initial publication on Wednesday, Tether said it already holds over $120 billion in U.S. Treasuries and continues to act as a significant buyer of short-term government debt. It added that it is already the fifth largest purchaser of U.S. Treasuries. "While we don't speculate on future Treasury issuance or allocations, we remain committed to maintaining highly liquid, dollar-based reserves," Tether said. Circle echoed similar sentiments. The firm noted that the majority of USDC reserves are held in the Circle Reserve Fund, which contains cash, short-dated Treasuries, and overnight repos designed to make USDC redeemable 1:1 for U.S. dollars," a Circle spokesperson said. "This full-reserve composition makes Circle a natural buyer of short-dated U.S. Treasuries and lender in the U.S. Treasury repo market, however, market demand for USDC determines the overall size of our reserves." Adam Ackermann, head of portfolio management at Paxos, a financial services and technology company, said he has had multiple conversations with the largest banks in the world wanting a stablecoin. "They're calling us and saying: I need a stablecoin in eight weeks. How can we get one?" "What's somewhat concerning is we're just at this fever pitch right now," Ackermann said. "It's great for the industry, but we need to start to put some guardrails on things." Stablecoins' popularity further ramped up after the U.S. Senate passed last week a landmark bill to create a regulatory framework for the token called the GENIUS Act. The Republican-controlled House of Representatives still needs to pass its version of the bill before it heads to President Donald Trump's desk for approval, but the bill's passage bolstered hopes of wider adoption of a once-niche part of the crypto sector. The stablecoin market is worth about $256 billion, according to crypto data provider CoinMarketCap, and is estimated by Standard Chartered to reach $2 trillion by 2028 if the legislation is signed by Trump. "I expect that there will be a proliferation of stablecoins," Cabana said. "It will be an incremental demand source (for Treasuries), I would guess, over the next three to five, certainly 10 years." https://www.reuters.com/business/us-treasuries-face-stablecoin-driven-demand-surge-supply-looms-2025-06-25/
