Goldman's payday

👋 G’day

Today’s brief:

• HSF kicks off its US$2bn merger briefings, with votes to follow.

• Goldman Sachs execs receive 30% pay raises, topping $60M salaries.

• Age verification tech race heats up for Australia’s social media ban.

And we’re back for another week.

Here’s the latest 👇

PRACTICE POINTS

Directors personally liable for costs

• Inadvertent but repeated Corps Act breaches may lead to personal liability for costs. In a recent decision, the WA Supreme Court granted remedial orders for repeated breaches of the Corps Act, but broke from usual practice by refusing to let company funds cover costs—leaving officers personally liable. Sprintex Ltd sought the orders under s.1322(4) of the Corps Act after it failed to lodge annual reports, plus cleansing notices for the recent issue of shares. Historical compliance failures and the refusal to provide affidavits impacted the departure from the usual position.

• AI tools are streamlining employer processes but could have unintentionally consequences.

  • Amazon's resume screening tool identified top candidates but it ended up favouring male applicants due to training on past data.

  • An accidental termination letter produced by Chat GPT instead of an abandonment confirmation letter opened up a general protections case against the employer.

  • And there’s employee surveillance. In a recent decision, an employee was terminated after computer surveillance revealed very low keystroke activity. While the termination was valid, a “big brother” approach could trigger WHS issues: Hall & Wilcox

• The Australian Energy Market Operator (AEMO) is on track to receive expanded powers to address a looming east coast gas shortfall, with energy ministers set to make a final call in June. The move signals urgent intervention may be needed as AEMO warns of shortages by next winter. Potential measures include topping up gas storage and even acting as an anchor buyer of LNG, where AEMO would commit to buying significant portion of LNG, providing certainty and stability to the gas market: The Australian

WORD ON THE STREET

HSF kicks off merger briefings

• Herbert Smith Freehills and Kramer Levin partners will start voting on their $2bn merger from March 24 to April 4. And HSF is set to hold partner briefings on the tie-up around the same time, kicking off in Singapore for its Asia-Pacific based partners. We’ve done a deep dive into HSF’s unexpected history, which you can check out here: Bloomberg Law

• The national operations manager at Chamberlains, has been struck from the roll for a “pattern and history of dishonesty” in handling trust accounts. A tribunal found she wrongfully accessed client funds when she was running her own firm: Lawyerly

• BlueRock is facing two lawsuits from ex-directors. Dominic Morello ($586K claim) alleges he was fired after complaining that the firm reneged on its deal to pay him up to $248k a year. Jack McLean-Dolphin is seeking more than $2.3m, made up of six years in lost wages and alleged loss of equity. McLean-Dolphin repeatedly raised concerns that he had not yet received any equity – which the firm offered senior employees who brought in clients: AFR

TALKING POINTS

Crypto bets big on politics

• Crypto exchanges are betting big on the upcoming federal election, making record political donations to both Labor and the Coalition. With Australia lagging behind Singapore and Hong Kong on blockchain regulation, the industry is pushing for clear rules. Both Labor and the Coalition are saying crypto is a priority, but if they don’t make good on their promises, expect an agitated crypto industry: Capital Brief

• A federal judge has halted most of Trump’s executive order targeting Perkins Coie, ruling it was a personal vendetta disguised as national security. The exec order stripped the firm of security clearances and mandated the termination of federal contracts, but the judge compared it to a “bill of attainder”—a punishment without trial, banned by the US Constitution: Guardian

• Labor sources suggest the upcoming federal budget will focus on 'buy Australian' policies, aiming to boost local suppliers in government procurement. This follows PM Albanese’s push for Australians to choose local products over American ones in response to Trump’s tariffs on steel and aluminium: ABC

TREASURY

DEAL ROOM

TikTok sale nears

• TikTok sale deal nears approval, with VP JD Vance expecting high level agreement terms sorted by April 5. The White House is in talks with four potential buyers, aiming to create a distinct American TikTok enterprise: Reuters

• CareSuper is merging with MIESF, adding $1bn to its retirement pool and growing to $57bn in assets. The deal adds around 17k members to its existing 570k, a clear competitor to wealth giant AMP. This follows CareSuper’s previous merger with Spirit Super, part of a wider consolidation trend in the super sector to compete for members and improve returns: AFR

• Ramelius Resources and Spartan Resources are set to merge, with a low-premium, $4.5bn scheme of arrangement expected this week. Ramelius (holding a 19% stake in Spartan) seeks to fix its production gap through Spartan adding ore to Mount Magnet. With gold surging past $US3000/oz, the combined entity could make it more attractive to passive gold ETFs: AFR

• The country’s largest pharmaceutical wholesaler, EBOS eyes a potential $1.1bn acquisition of Real Pet Food as Citi runs the sale. Private equity firms, including PEP, Navis, and KKR, are also circling. EBOS has been searching for acquisition opportunities after it lost a contract with Chemist Warehouse worth $1.1bn annually in June last year: The Australian

SECTOR SPECIFIC

$60M paydays at GS

🚜 DIGGERS

• Chinese-backed investors are refusing to exit Northern Minerals, defying an Albanese government order and raising fears over China’s control of critical minerals. Linda Reynolds says Beijing deliberately crashes commodity prices to push Australian producers into financial distress, then swoops in to secure control: The Australian

• Gold soared past US$3,000 for the first time. The rally underscores gold’s role as a fear gauge, with bullion breaching $1,000 post-GFC, $2,000 during COVID, and now $3,000 amid trade tensions: Mining.com

🏦 FIN

• Goldman handed its top four execs a collective 30% raise in 2024, with President and COO John Waldron now cleared for personal use of the firm's private jet — must be nice. Waldron took home $60m, while CEO David Solomon landed $61m. The bank’s profits jumped 71% to $13.5B, helping justify the phat pay boost: AFR

• ANZ has locked in a 10-year, $2bn limited guarantee from the federal government to support its Pacific banking business. In return, the bank will invest $50M in its Pacific banking systems and maintain fee-free international money transfers to the region: Capital Brief

🏡 RETAIL & REAL ESTATE

• Melbourne hotels saw a boost in occupancy for the Grand Prix weekend, with 87% occupancy. Despite lower room rates compared to Taylor Swift’s tour impact, international travel and Formula 1 continue to drive demand. Accor and Marriott report strong bookings, with growth from the US and local event-goers: AFR

• CBRE has reopened its Sydney CBD office after a transformation into a world-class workplace, blending innovative design and cutting-edge technology. Located at 363 George Street, the 3,700sqm space promotes collaboration and productivity with new facilities like a business lounge and event space. The office also aligns with CBRE’s net zero goals, earning 6-Star Green certificate: COMO

📱 TECH

• Apple is appealing a secret UK government order to create a "back door" for accessing encrypted data on its cloud systems. The case, shrouded in secrecy, was heard in private by the Investigatory Powers Tribunal. A lawyer representing 10 media organisations submitted an application for a public hearing. Critics, including civil rights groups, argue that compromising end-to-end encryption undermines privacy rights globally: Reuters

• Over 50 companies, including Fujitsu, Epic Games, and Incode, are competing to supply age verification tech for the Australian government’s under-16 social media ban. While critics argue the ban is hard to enforce, contenders like ShareRing and Incode are focusing on privacy-first solutions. Success could open doors to global markets as similar bans are being explored in the UK and US: Capital Brief

Want to tell us something? 

Reply to this email to tell us what we should cover.

New here?

👋 You’re in good company. You’re reading this alongside readers from HSF, KWM, Allens and Corrs. Sign up now for insights delivered directly to your inbox.