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Right here’s a Solution to Be taught if Facial Recognition Programs Used Your Pictures

As tech companies developed facial recognition systems that quickly resume government surveillance and compromise privacy, they may have received help from an unexpected source: your face.

Corporations, universities, and government laboratories have used millions of images obtained from a variety of online sources to develop the technology. Now researchers have created an online tool called Exposing.AI that allows users to search many of these collections of images for their old photos.

The tool, which compares images from the Flickr online photo-sharing service, provides a glimpse into the vast amounts of data required to build a wide variety of AI technologies, from facial recognition to online chatbots.

“People need to realize that some of their most intimate moments have been armed,” said one of its creators, Liz O’Sullivan, technology director for the Surveillance Technology Oversight Project, a privacy and civil rights group. She helped create Exposing.AI with Adam Harvey, a researcher and artist in Berlin.

Artificial intelligence systems don’t magically get intelligent. They learn by locating patterns in human-generated data – photos, voice recordings, books, Wikipedia articles, and all sorts of other materials. Technology just keeps getting better, but it can learn human prejudices against women and minorities.

People may not know that they are contributing to AI education. For some, that’s a curiosity. For others, it’s hugely scary. And it can be against the law. A 2008 Illinois law, the Biometric Information Privacy Act, imposes financial penalties if the facial scans are used by residents without their consent.

In 2006, Brett Gaylor, a documentary filmmaker from Victoria, British Columbia, uploaded his honeymoon photos to Flickr, a service popular at the time. Almost 15 years later, using an early version of Mr. Harvey’s Exposing.AI, he discovered that hundreds of these photos had invaded multiple data sets that may have been used to train facial recognition systems around the world.

Flickr, bought and sold by many companies over the years and now owned by the photo sharing service SmugMug, allowed users to share their photos under what is known as a Creative Commons license. This license, common on websites, meant that others could use the photos with certain restrictions, although those restrictions may have been ignored. In 2014, Yahoo, which at the time owned Flickr, used many of these photos in a data set that should be helpful when working on Computer Vision.

Mr. Gaylor, 43, wondered how his photos could have jumped from place to place. He was then told that the photos may have contributed to surveillance systems in the US and other countries, and that one of those systems was used to track the Uighur population in China.

“My curiosity turned to horror,” he said.

How honeymoon photos helped build surveillance systems in China is, in some ways, a story of unintended or unexpected consequences.

Years ago, AI researchers at leading universities and technology companies began collecting digital photos from a variety of sources, including photo sharing services, social networks, dating sites like OkCupid, and even cameras installed on college quads. You shared these photos with other organizations.

That was just the norm for researchers. They all needed data to feed into their new AI systems, so they shared what they had. It was usually legal.

One example was MegaFace, a dataset created by professors at the University of Washington in 2015. They were created without the knowledge or consent of the people whose pictures they folded into the huge pool of photos. The professors put it on the Internet for others to download.

MegaFace has been downloaded more than 6,000 times by corporations and government agencies around the world, according to a request by the New York Times for public records. These included US defense contractor Northrop Grumman; In-Q-Tel, the investment arm of the Central Intelligence Agency; ByteDance, the parent company of the Chinese social media app TikTok; and the Chinese surveillance company Megvii.

The researchers built MegaFace for use in an academic competition to advance the development of facial recognition systems. It was not intended for commercial use. But only a small percentage of those who downloaded MegaFace have publicly entered the competition.

“We are unable to discuss third-party projects,” said Victor Balta, a spokesman for the University of Washington. “MegaFace has been taken out of service and MegaFace data is no longer distributed.”

Some of those who downloaded the data used facial recognition systems. Megvii was blacklisted by the Ministry of Commerce last year after the Chinese government used its technology to monitor the country’s Uighur population.

The University of Washington took MegaFace offline in May and other organizations removed other records. However, copies of these files can be anywhere, and they are likely to provide new research.

Ms. O’Sullivan and Mr. Harvey spent years trying to develop a tool that would tell how all this data was used. It was more difficult than expected.

They wanted to accept someone’s photo and use facial recognition to instantly tell that person how often their face was in one of those records. However, they feared that such a tool would be poorly used – by stalkers or by corporations and nation states.

“The potential for harm seemed too great,” said Ms. O’Sullivan, who is also vice president of responsible AI at Arthur, a New York company that helps companies control the behavior of AI technologies.

In the end, they had to limit how users could search the tool and what results it produced. The tool as it works today is not as effective as they would like it to be. However, researchers feared they might not be able to uncover the breadth of the problem without making it worse.

Exposing.AI itself does not use face recognition. Photos are only located if you can already refer to them online, for example with an Internet address. Users can only search for photos that have been posted to Flickr, and they need a Flickr username, tag, or web address that can be used to identify those photos. (This provides the researchers with the right level of security and privacy protection.)

While this limits the utility of the tool, it is still an eye opener. Flickr images make up a significant portion of the facial recognition records that have been circulated across the internet, including MegaFace.

It’s not difficult to find photos that people have a personal relationship with. By simply searching old emails for Flickr links, The Times found photos that, according to Exposing.AI, were used in MegaFace and other facial recognition records.

Some belonged to Parisa Tabriz, a well-known security researcher at Google. She did not respond to a request for comment.

Mr. Gaylor is particularly concerned about what he discovered through the tool because he once believed that the free flow of information on the Internet was largely positive. He used Flickr because it gave others the right to use his photos under the Creative Commons license.

“I now live the consequences,” he said.

His hope – and the hope of Ms. O’Sullivan and Mr. Harvey – is that business and government will develop new standards, guidelines, and laws that will prevent the bulk collection of personal information. He’s making a documentary about the long, winding, and occasionally disruptive journey of his honeymoon photos to shed light on the problem.

Mr. Harvey firmly believes that something has to change. “We have to get rid of these as quickly as possible – before they cause more damage,” he said.

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All the things You Have to Know In regards to the GameStop Frenzy

It was like a hurricane. Amateur investors, targeting stocks that the professionals had written off as dead, offered stocks in a growing number of companies. By the end of the week, GameStop was up 400 percent while AMC Entertainment was up 280 percent. At the center of it all was a battle between big and small, Wall Street versus Main Street, Robinhood Army versus hedge funds.

The drama had caught the attention of the Securities and Exchange Commission, Alexandria Ocasio-Cortez, and Ted Cruz, and elected attorneys general in Texas and New York. It was bigger than the markets.

Find out more about our reporting here:

The Silicon Valley start-up that caused the chaos on Wall Street: Robinhood presented itself to investors as the antithesis of Wall Street. It wasn’t said that it relied solely on Wall Street either. Last week, the two realities collided.

The outsiders shake Wall Street:: They are young, they are fearless, and they force everyone to pay attention.

Robinhood, in need of cash, is raising $ 1 billion from its investors: The free trading app popular with young investors has been burdened by the high volume of trading in stocks like GameStop.

How to Stay Cool in the GameStop Market: Signs of irrational exuberance abound. Stay sober and invest long-term, says our columnist.

So you’ve just made a lot of money playing GameStop. Don’t forget taxes: Some investors may have made tens of thousands of dollars in profits. Depending on when they sell the stock, they could owe high capital gains taxes.

Behind the wild ride of the stock market: It wasn’t just GameStop. The stocks of AMC Entertainment, American Airlines, Nokia and Tootsie Roll Industries rose last week and fell briefly.

4 Things to know about GameStop Insanity: It was a strange time in the stock market when a video game retailer suddenly became the focus of attention.

How options trading could fuel a stock market bubble: An increase in individual investors is betting that stocks will rise. This craze has a growing impact on the regular stock market.

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The Week in Enterprise: GameStop’s Weird Saga

Hello everybody. Here’s your breakdown of the top business and tech news to get you ready for the week to come. – Charlotte Cowles

Who could have predicted that struggling video game retailer GameStop would hijack markets and cause Wall Street to collapse? The company’s shares rose a ridiculous 1,700 percent this month, but not because the company did something new or special. Instead, it became the focus of hordes of amateur traders – also known as retail investors – who banded together on Reddit message boards and propelled GameStop’s share price up by buying tons of its stock through apps like Robinhood and E-Trade. They followed similar tactics with outsiders like AMC Entertainment, BlackBerry, and American Airlines, and also increased their share prices. In doing so, they squeezed big Wall Street firms that were betting against the companies, forcing them to suffer huge losses.

GameStop versus Wall Street

Let us understand you

    • Stocks of GameStop, the video game retailer, have risen because amateur investors starting at Reddit have bet heavily on the company’s stock.
    • The wave gained momentum when large hedge funds short-sold GameStop stock – essentially betting against the company’s success.
    • Sudden demand pushed the stock price from less than $ 20 in December to nearly $ 200 on Thursday. At least on paper.
    • It’s not just GameStop. Amateur investors have supported other companies that many large investors have shunned, such as AMC and BlackBerry.
    • This bubble around GameStop can force large investors to raise funds to cover their losses or dump stocks in other companies.

All the bubbles eventually burst, but the question is when. GameStop’s stock began to temporarily dump on Thursday after Robinhood and similar apps restricted trading. The crackdown stabilized the markets but was criticized by lawmakers who accused the apps of targeting Wall Street hedge funds. GameStop’s investors weren’t happy either, and the backlash led Robinhood to reverse its decision and resume “limited” trading a day later. The Takeaway: Now that trading apps allow millions of ordinary people to quickly and easily buy stocks from their living room, this probably won’t be the last time they team up on Wall Street.

The latest report from the Commerce Department confirmed what you probably could have guessed: 2020 set a record for the worst economic decline in the country in a calendar year with at least one measure. The gross domestic product rose by only 1 percent in the last quarter, a significant slowdown compared to the last three months. Economists attributed that to dwindling tax support from the federal government at the end of the year and the recurrence of coronavirus cases during the holidays, which led to more business closings and closings. However, analysts also expect the country’s comeback to be more stable in 2021 as more government incentives are in sight and vaccine distribution is underway.

Better make sure your garage has enough electrical outlets. General Motors has pledged to phase out gas-powered vehicles and switch entirely to zero-tailpipe cars and trucks by 2035. This is part of the company’s plan to become carbon neutral by 2040, one of the most ambitious goals in the auto industry. The move sets a higher standard for other automakers and could encourage the Biden government to push for even more aggressive policies to encourage companies to fight climate change.

Leon Black, the executive director and chairman of Apollo Global Management, one of the world’s largest private equity firms, said he would step down from his leadership role by July after it was revealed he had sold more than $ 150 million to convicted sex offender Jeffrey Epstein have paid. Mr Epstein committed suicide in prison more than a year ago when he was charged with federal sex trafficking. However, many of his former employees continue to be affected by the proximity. An investigation found that Mr. Black’s payments were in compensation for consulting Mr. Epstein. They also explain how Mr Epstein was able to fund at least part of his extravagant lifestyle.

The Big Four tech giants have faced re-examination and legal threats from antitrust watchdogs in recent months. But will this affect their growth? Probably not, but we’ll learn more when Amazon and Alphabet, Google’s parent company, report their latest earnings in the coming week. Facebook earnings rose a whopping 53 percent in the last quarter, despite the company cracking down on a lawsuit filed by the Federal Trade Commission in December (kicking former President Donald J. Trump off the platform and many of his supporters as a result). The new iPhone 12 from Apple led to a sales increase of 21 percent and brought the company for the first time a quarterly sales of over 100 billion US dollars.

President Biden’s election for Secretary of the Treasury, former Federal Reserve Chairwoman Janet Yellen, was confirmed and sworn in. The Walgreens Boots Alliance has named Rosalind Brewer, now Chief Operating Officer at Starbucks, as its next chief executive officer and made her the only black woman currently running a Fortune 500 company. A small painting by Botticelli fetched $ 92.2 million at auction at Sotheby’s, a sign that the world’s richest are still ready to champion the visual arts.

And finally …

Has the pandemic forced any of your favorite local businesses to close? Tell us about it here. We collect stories about special neighborhood businesses that had to close last year and what this loss meant.

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A 10-Yr-Outdated GameStop Investor Cashed In. His Return? Over 5,000%

“All of a sudden I heard ‘ringing, ringing, ringing, ringing, ringing,” Ms. Carr, 31, said in an interview on Friday. “I packed my cell phone and looked at it, and it was $ 351. I was shocked, “I bought this thing for $ 6,” I thought, “there is no way this can be right.”

Ms. Carr, a nutritionist, quickly pulled her son out of virtual learning and asked him what he wanted to do. “I tried to explain to him that this was unusual,” she told mySanAntonio.com, a segment of the San Antonio Express News. “I asked him, ‘Do you want to stay or sell?'”

Jaydyn decided to sell his stock and made $ 3,200 – a return of more than 5,000 percent on an investment of around $ 60.

“I was shocked and excited at the same time,” he said in a telephone interview on Friday.

He said he decided to save $ 2,200 and invest the remaining $ 1,000, most likely in stocks of Roblox, a multiplayer gaming universe popular with young children, when the platform goes public.

“Long-term investing is important because that’s how I got that money,” said Jaydyn.

The surge sparked Jaydyn’s interest in amateur day trading. “He’s definitely ready to hit the market at full speed,” said his mother.

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How a Excessive-Rating Nissan Government Escaped His Personal Entice

The matter weighed on him. In 2010, Mr. Kelly directed Mr. Nada to begin the first of a series of secret plans to increase Mr. Ghosn’s benefits and compensation, according to court testimonies and internal Nissan documents.

Executive pay has been a dangerous political issue in France, Mr Nada testified earlier this month, and if Mr Ghosn’s true pay had been revealed, the French government – as Renault’s main shareholder – would have urged the company to fire him .

Nada, 56, joined Nissan in 1990 as a junior legal advisor and was extremely loyal to the company. He started his career in the UK and was a senior manager until 2010.

Keeping his work for Mr Ghosn a secret, he wrote in a draft statement to prosecutors that the Times reviewed, partly because Mr Kelly convinced him that his boss was a critical bulwark in his position as head of the Alliance’s endeavor the French government that Renault accepts Nissan, its junior partner.

For eight years, Mr. Nada worked “proactively and creatively” to implement Mr. Kelly’s instructions, he told the court and made arrangements to buy and hide the amount of his remuneration worldwide for Mr. Ghosn’s personal use.

His career advanced rapidly. In the spring of 2018, as the investigation into Mr. Ghosn merged, Mr. Nada had enormous power and controlled, among other things, Nissan’s legal, compliance, security and communications departments. He was a top advisor to the then CEO Hiroto Saikawa and Mr. Ghosn.

For years, Mr. Nada had fought off questions from internal and external auditors about his work for Mr. Ghosn. In 2018, a Nissan whistleblower complained to an auditor, Hidetoshi Imazu, about travel expenses for Mr Ghosn’s family. The problem, Mr Imazu later told Nissan lawyers, spurred him on to deal with Mr Ghosn’s affairs, including one of the secret firms that Mr Nada set up to acquire real estate.

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‘Justice League’ will debut March 18 on HBO Max

Justice League

Warner Bros. Pictures

The long-awaited “Snyder Cut” from the Justice League will hit HBO Max on March 18th.

On Friday, director Zack Snyder announced the news on Twitter. WarnerMedia followed up with additional information about the release, saying it would be a full-length film, not the four separate hour-long episodes that were originally planned.

When Justice League was released in 2017, it was tarnished by harsh critical reviews. While it grossed $ 658 million globally, it grossed just $ 230 million domestically. The budget was a whopping $ 300 million, on top of the $ 150 million marketing expense, the film was barely balanced.

The film was co-written and directed by Zack Snyder and Joss Whedon, although the couple did not work on it together. Whedon was brought on board after executives rejected Snyder’s first cut of the film. Snyder eventually left the project due to the death of his daughter.

Snyder’s first cut was 214 minutes long and featured dozens of scenes that worked out the characters’ backstories, developed the myth of the world set in “Justice League,” and teased the upcoming films. While the main plot of the film was retained, many of Snyder’s secondary storylines were cut into Whedon’s paraphrases to streamline the film.

Because Whedon’s version changed so much of Snyder’s vision, fans have asked the director to edit Justice League because they believe it is the purest version of the film.

In May 2020, WarnerMedia announced that it would invest in the repatriation of Snyder. The move was seen as a way to calm fans down and bolster signups for HBO Max.

According to initial estimates, the price was between 20 and 30 million US dollars, since most of the computer-generated images were not yet ready. However, recent estimates suggest that WarnerMedia could have spent $ 70 million or more on the project as Snyder brought back several actors to direct new material.

The re-shoots will add four to five minutes of new footage, Snyder said.

Earlier this week, AT&T announced that HBO Max activations had doubled to 17.2 million. While AT&T pointed to “Wonder Woman 1984” because of the surge in signups, much of the gains were likely due to WarnerMedia’s fourth-quarter arrangements to get the app on Roku devices and Amazon Fire TV.

The telecommunications company that owns WarnerMedia reported that HBO and HBO Max combined now have 41.5 million domestic subscribers, up 20% from 34.6 million last year.

Of the 37.7 million HBO Max eligible subscribers, 30 million were from wholesalers and 6.8 million were through retail channels. Retail subscribers are those who purchase the streaming service directly, not through a cable or other streaming subscription.

This means that nearly half of the HBO subscribers who were eligible to receive HBO Max haven’t signed up yet.

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‘Like Wartime’: Canadian Corporations Unite to Begin Mass Virus Testing

TORONTO – A consortium of some of the country’s largest companies has launched a rapid testing program to protect its 350,000 employees and publish a playbook for business Canada on how to safely reopen.

The program is considered the first of its kind in the group of 7 industrialized nations and has already attracted the attention of the Biden government.

The 12 companies, including Canada’s largest airline and grocery chain, have been working together for four months. Creation of a 400-page instruction manual for performing rapid antigen tests in various work settings. They started testing the tests in their workplaces this month and expect to expand the program to 1,200 small and medium-sized businesses.

They also plan to share their test results with state health officials to significantly increase the number of tests in the country and provide an informal study on the spread of the virus among asymptomatic people.

“It’s like wartime – people come together to do something that is in everyone’s interest,” said Marc Mageau, senior vice president of refining and logistics at Suncor Energy, the country’s largest oil producer, who conducted the tests this month introduced his employees.

The program faces some inherent challenges: After an outbreak last year in the White House, antigen tests were discovered that induce both false negative results and a false sense of security. They are also in short supply in Canada. Some experts feel that they should be reserved for schools and nursing homes rather than non-essential businesses.

While vaccines are considered the world’s best weapon to fight the pandemic, most experts believe it will take months, if not a full year, for Canada to reach the vaccination levels that will allow workplaces to safely return to their pre-Covid surgeries .

Canada is in a second wave of pandemics that has driven infections to record levels and deaths to around 19,800. In response, many parts of the country are on lockdown, restaurants, theaters, and non-essential retail stores are closed.

Canada’s economy contracted about 5 percent during the pandemic. Some industries such as real estate and manufacturing have performed well, but those that depend on public crowds, such as entertainment and hospitality, have seen employment decline.

“Think about downtown Toronto: nobody is there anymore. Entertainment – everything is stopped, ”said Joshua Gans, professor of strategic management at the University of Toronto who served as advisor to and is the author of the project “The Pandemic Information Gap: The Brutal Economy of Covid-19.”

“It is time to figure out how to actually reopen the closed sectors,” he said.

The consortium companies were brought together in the spring by Ajay Agrawal, founder of the University of Toronto’s Creative Destruction Lab. That helps science and technology start-ups. They were inspired by the most Canadian muses: Margaret Atwood, the author.

“How soon can we get a cheap, self-administered test at the drugstore?” Ms. Atwood asked business leaders and others who were tasked with brainstorming ideas for economic recovery during the pandemic during a virtual meeting last May.

The problem, the group noted, was the “information gap” – with no way of telling who an asymptomatic carrier might be, everyone was treated as a potential threat.

Ms. Atwood envisioned something like a home pregnancy test.

“That would be a game changer,” she said.

When the group realized that the government was overwhelmed by the health crisis, they decided to take on the task themselves and form a consortium led by the Creative Destruction Lab.

The group focused on antigen testing because of its speed, price, and utility: you can get results in minutes, don’t require a lab, and can cost anywhere from $ 5 to $ 20 in Canada.

Updated

Jan. 30, 2021, 8:47 p.m. ET

However, they are less accurate and produce more false negative results than the gold standard polymerase chain reaction or PCR tests, which can cost 20 times as much. The three antigen tests approved for use in Canada characterize between 84 percent and 96.7 percent of those infected with the virus.

In the UK, antigen tests used in a mass testing campaign identified only two-fifths of the coronavirus cases detected by PCR testing.

Because of this, many experts in Canada and elsewhere initially argued that it would be wiser to expand PCR testing. However, as the pandemic spread and the country failed to meet its testing goals, that thinking changed, said Dr. Irfan Dhalla, co-chair of the Canadian Advisory Panel on Testing and Screening for Covid-19, which recommended increasing the country’s use of rapid tests.

A rapid antigen test is clearly better than no test at all, as long as it is not used as a free pass, ”said Dr. Dhalla. “Whether it’s a job or a school, you still have to wear a mask and physically distance yourself as much as possible.”

In the long term, the members of the consortium hope that the testing program will help reduce infection rates enough to allow crowded restaurants and boardroom meetings to take place again. In the meantime, however, they plan to use the tests as an extra layer of protection – in addition to wearing masks, social distancing, and pre-screening of staff so those with symptoms can stay home.

The consortium companies also test their employees twice a week to increase the likelihood that positive cases will be picked up.

“Everyone is looking for a silver bullet. We realized that it doesn’t exist. It’s not, ”admitted Laura Rosella, professor of epidemiology at the University of Toronto and advisor to the project.

In September, more than 100 consortium employees began working together at the expense of their companies to come up with a plan. Two retired generals volunteered to manage the logistics.

The coronavirus outbreak>

Things to know about testing

Confused by Coronavirus Testing Conditions? Let us help:

    • antibody: A protein produced by the immune system that can recognize and attach to certain types of viruses, bacteria or other invaders.
    • Antibody test / serology test: A test that detects antibodies specific to the coronavirus. About a week after the coronavirus infects the body, antibodies start appearing in the blood. Because antibodies take so long to develop, an antibody test cannot reliably diagnose an ongoing infection. However, it can identify people who have been exposed to the coronavirus in the past.
    • Antigen test: This test detects parts of coronavirus proteins called antigens. Antigen tests are quick and only take five minutes. However, they are less accurate than tests that detect genetic material from the virus.
    • Coronavirus: Any virus that belongs to the Orthocoronavirinae virus family. The coronavirus that causes Covid-19 is known as SARS-CoV-2.
    • Covid19: The disease caused by the new coronavirus. The name stands for Coronavirus Disease 2019.
    • Isolation and quarantine: Isolation is separating people who know they have a contagious disease from those who are not sick. Quarantine refers to restricting the movement of people who have been exposed to a virus.
    • Nasopharyngeal smear: A long, flexible stick with a soft swab that is inserted deep into the nose to collect samples from the space where the nasal cavity meets the throat. Samples for coronavirus tests can also be obtained with swabs that do not go as deep into the nose – sometimes called nasal swabs – or with mouth or throat swabs.
    • Polymerase chain reaction (PCR): Scientists use PCR to make millions of copies of genetic material in a sample. With the help of PCR tests, researchers can detect the coronavirus even when it is scarce.
    • Viral load: The amount of virus in a person’s body. In people infected with the coronavirus, viral loads can peak before symptoms, if any.

The group was registered as a nonprofit called the CDL Rapid Screening Consortium in November, with each company contributing $ 230,000 in operating costs.

The employees work in teams Researched around 50 different antigen tests around the world, analyzed what was required for a screening program – from staff to number of dresses – and estimated the total cost.

The resulting 400-page user guide includes everything from an example of an employee invitation to participate in the program and a standard consent form, to a detailed shopping list of materials required to run a program.

One of the hurdles was getting tests. They had to get them from the government because they are not yet widely available in Canada and the demand from schools and nursing homes is high.

“Let’s do tests there first,” said Dr. Dhalla, referring to schools, nursing homes and important workplaces. “As we gain experience, we can talk about getting people back to work where working from home is an option.”

In January, five companies began testing the program in environments as diverse as pharmacies and radio stations. So far, around 400 employees have volunteered and nearly 1,900 tests have been carried out. According to Sonia Sennik, the executive director of the Creative Destruction Lab and avid quarterback of the project, only three have made positive returns.

“They didn’t go to work and they might spread something,” said Ms. Sennik. “We interrupted the transmission chain three times.”

The companies found the program reduced employees’ fear of not only getting to work but returning home every day, she said.

“I’m relieved,” said Mohamed Gaballa, an Air Canada official who took the test during a break at Toronto Pearson International Airport. This came up within 15 minutes by email: “Your screening result is negative. You can go on with your day. “

“This has been a missing piece in Canada for far too long,” said Dan Kelly, president and chief executive officer of Canadian Federation of Independent Businesses that represents 110,000 small and medium-sized businesses.

Small businesses face a lot more hurdles to implementing such a program, even if dodging a 400-page manual, he said. There is the cost of the tests, but more importantly the staff to manage them.

Mr. Kelly envisioned that the program would not work in restaurants and busy stores – places where unscreened customers far exceeded the number of employees screened unless they were planned to be tested. But in kitchens, small warehouses, small manufacturing facilities, and offices, “these tests could be very helpful,” he said.

“Under normal circumstances, the idea of ​​small businesses doing employee testing for everything would be a fantasy,” said Kelly, who sits on the federal government’s industry advisory group on Covid-19 testing. “But in this case, given the desperation to remain or remain open among small business owners, there is a potential appetite for it.”

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Level72 founder Steve Cohen leaves Twitter after household receives threats

Steven A. Cohen

Scott Eells | Bloomberg | Getty Images

Steve Cohen, the founder of Point72 hedge fund and owner of the New York Mets, turned off his Twitter account after his family received threats in the GameStop trading frenzy this week.

“I really enjoyed the back and forth with Mets fans on Twitter, which was unfortunately overtaken this week by misinformation unrelated to the Mets that resulted in our family receiving personal threats,” Cohen said in a statement on Saturday.

“So I’m taking a break for the time being. We have other options to listen to your suggestions and keep advocating,” he said.

Cohen’s hedge fund, which manages nearly $ 19 billion in assets, lost nearly 15% this year after small investors drove shares of video game retailer GameStop, a source familiar with the matter told the New York Times.

The losses at Point72 are mainly due to the company’s investment in the hedge fund Melvin Capital, which bet against GameStop and had to receive emergency money of nearly $ 3 billion from two outside investors, including Point72.

Cohen, who bought the Mets for about $ 2.5 billion in November, was faced with questions on Twitter about how Melvin’s losses would affect the baseball team.

Cohen also had a back-and-forth with Barstool Sports founder Dave Portnoy on Twitter Thursday after Portnoy accused Cohen of being involved in controversial trade restrictions in GameStop for apps like Robinhood.

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The Silicon Valley Begin-Up That Induced Wall Avenue Chaos

Die Online-Handels-App Robinhood wurde zu einem kulturellen Phänomen und zu einem Liebling des Silicon Valley mit dem Versprechen, den traditionellen Gatekeepern der Wall Street den Aktienmarkt abzuringen und „die Menschen handeln zu lassen“ – was es so einfach macht, Millionen von Dollar in Gefahr zu bringen, wie es ist einen Uber beschwören.

In der vergangenen Woche, mitten in einem Marktrummel zwischen Amateurhändlern und Hedge-Fonds-Bigwigs, begann dieses Furnier zu splittern. Wie sich herausstellte, war Robinhood genau der Branche ausgeliefert, deren Aufschwung er sich geschworen hatte.

Die Raserei verwandelte sich in eine Krise, als Legionen von Sesselinvestoren auf Robinhood, die Optionen und Aktien von GameStop, einem Einzelhändler für Videospiele, gekauft hatten, diese Wetten vergrößerten und auch große Geschäfte mit anderen Aktien, einschließlich AMC Entertainment, machten.

Als der Handelswahn zunahm, schalteten am Donnerstag die Risikominderungsmechanismen des Finanzsystems ein, die von unbekannten Unternehmen im Zentrum des Aktienmarkts, den sogenannten Clearinghäusern, verwaltet wurden, und zwangen Robinhood, Notgeld zu finden, um weiterhin handeln zu können. Es musste Kunden davon abhalten, eine Reihe stark gehandelter Aktien zu kaufen, und auf eine Kreditlinie von mehr als 500 Millionen US-Dollar zurückgreifen. Am Donnerstagabend nahm das Unternehmen seinen bestehenden Investoren eine Notfallinfusion von mehr als 1 Milliarde US-Dollar ab.

Ein hochfliegendes Start-up sah plötzlich wie eine überforderte, knarrende Firma aus.

“Vom Standpunkt des Marketings aus positionieren sie sich als neu, innovativ, cool”, sagte Peter Weiler, Co-Geschäftsführer des Makler- und Handelsunternehmens Abel Noser. “Ich denke, jeder wird vermisst, wenn man die Zwiebel zurückschält, sind sie nur ein stark reguliertes Geschäft.”

Die Not von Robinhood folgt einer vertrauten Erzählung: Ein Unternehmen aus dem Silicon Valley, das versprochen hat, eine Branche zu stören, wird letztendlich von den Kräften überwunden, die es freigesetzt hat, und muss von den Aufsichtsbehörden oder in diesem Fall von der Branche, die es zu ändern versprochen hat, eingedämmt werden. Sein Bogen unterscheidet sich nicht allzu sehr von Facebook und Google, die die Art und Weise verändert haben, wie Milliarden von Menschen Kontakte knüpfen und nach Informationen suchen, sondern jetzt im Fadenkreuz von Gesetzgebern und einer wütenden Öffentlichkeit gefangen sind.

“Sie versuchten, die Straßenregeln zu ändern, ohne zu verstehen, wie die Straße asphaltiert war, und ohne Rücksicht auf die vorhandenen Leitplanken”, sagte Chris Nagy, ehemaliger Handelsleiter bei TD Ameritrade und Mitbegründer der Healthy Markets Association , eine gemeinnützige Organisation, die Marktteilnehmer ausbilden will. “Es hat letztendlich ein Risiko für ihre Kunden und ein systemisches Risiko für den Markt im weiteren Sinne geschaffen.”

GameStop gegen Wall Street

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    • Die Aktien von GameStop, dem Einzelhändler für Videospiele, sind gestiegen, weil Amateurinvestoren, die bei Reddit anfangen, stark auf Aktien des Unternehmens gesetzt haben.
    • Die Welle gewann an Dynamik, als große Hedge-Fonds GameStop-Aktien leerverkauften – im Grunde wetteten sie gegen den Erfolg des Unternehmens.
    • Die plötzliche Nachfrage hat den Aktienkurs von weniger als 20 USD im Dezember auf fast 200 USD am Donnerstag erhöht. Auf dem Papier jedenfalls.
    • Es ist nicht nur GameStop. Amateurinvestoren haben andere Unternehmen unterstützt, die viele Großinvestoren gemieden hatten, wie AMC und BlackBerry.
    • Diese Blase um GameStop kann große Investoren dazu zwingen, Geld zu sammeln, um ihre Verluste zu decken, oder Aktien anderer Unternehmen zu entleeren.

Das Fiasko wird mit ziemlicher Sicherheit Konsequenzen für das Unternehmen haben. Die Securities and Exchange Commission gab am Freitag bekannt, dass sie alle Maßnahmen, die “die Anleger benachteiligen oder ihre Fähigkeit zum Handel mit bestimmten Wertpapieren auf andere Weise übermäßig behindern könnten”, genau prüfen werde. Der Gesetzgeber auf beiden Seiten des Ganges forderte Anhörungen wegen Beschwerden, dass Kunden vom Handel ausgeschlossen seien.

Nachdem Robinhood am Donnerstag den Handel eingeschränkt und der Kurs der Aktie gesunken war, überfluteten wütende Benutzer die Online-App-Stores mit kritischen Bewertungen, wobei einige Robinhood beschuldigten, das Gebot der Wall Street abgegeben zu haben. Andere verklagten das Unternehmen wegen der erlittenen Verluste. Die anhaltende Verwundbarkeit von Robinhood, selbst nach der Beschaffung von 1 Milliarde US-Dollar, wurde am Freitag deutlich, als der Handel mit mehr als 50 Aktien eingeschränkt wurde.

“Es war nicht, weil wir die Leute davon abhalten wollten, diese Aktien zu kaufen”, sagte Robinhood in einem Blog-Beitrag am Freitagabend. Das Start-up habe vielmehr den Kauf volatiler Aktien eingeschränkt, um die von seinen Clearingstellen auferlegten Einlagenanforderungen, die sich im Laufe der Woche verzehnfacht hätten, „bequem“ erfüllen zu können.

Nichts davon scheint sein Wachstum zu verlangsamen. Obwohl Robinhoods Aktionen bestehende Kunden verärgerten, gewann es neue. Laut Apptopia, einem Datenanbieter, wurde die App am Donnerstag mehr als 177.000 Mal heruntergeladen, doppelt so viel wie in der Vorwoche. Die mobile App hatte an diesem Tag 2,7 Millionen aktive Benutzer pro Tag, die höchste aller Zeiten. Das ist mehr als seine Konkurrenten – Schwab, TD Ameritrade, E * Trade, Fidelity und Webull – zusammen.

Kontroversen sind für Robinhood nicht neu.

Die beiden Stanford-Klassenkameraden, die das Unternehmen 2013 gegründet haben, sagten von Anfang an, dass ihr Fokus auf der „Demokratisierung der Finanzen“ liege, indem sie den Handel für jedermann verfügbar machten. Zu diesem Zweck hat das Unternehmen in Menlo Park, Kalifornien, wiederholt eine klassische Silicon Valley-Formel aus benutzerfreundlicher Software, dreistem Marketing und Missachtung bestehender Regeln und Institutionen angewendet.

Online-Broker hatten traditionell rund 10 US-Dollar für jeden Trade berechnet, aber Robinhood sagte, dass Kunden seiner Telefon-App kostenlos handeln könnten. Der Umzug zog Horden junger Investoren an.

Beim Aufbau seines Geschäfts ignorierte das Unternehmen akademische Untersuchungen, die zeigten, dass häufiger, reibungsloser Handel im Allgemeinen nicht zu guten finanziellen Ergebnissen für Investoren führt. Die Risiken für die Kunden wurden im vergangenen Sommer deutlich, als der Abschiedsbrief eines 20-jährigen College-Studenten einen sechsstelligen Handelsverlust für seinen Tod verantwortlich machte.

Robinhood hat auch den Optionshandel unter Anfängern populär gemacht. Eine Option ist im Allgemeinen billiger als der direkte Kauf einer Aktie, kann jedoch zu viel größeren und schnelleren Gewinnen und Verlusten führen, weshalb Regulierungsbehörden und Broker den Handel mit diesen Finanzkontrakten traditionell auf anspruchsvollere Händler beschränkt haben.

Das Marketing von Robinhood hat unterdessen die Tatsache dokumentiert, dass sein Geschäftsmodell und der freie Handel durch den Verkauf von Kundenaufträgen an Wall Street-Unternehmen in einem System bezahlt wurden, das als „Zahlung für den Auftragsfluss“ bekannt ist. Große Handelsunternehmen wie Citadel Securities und Virtu Financial zahlen Robinhood jedes Mal eine kleine Gebühr, wenn sie für ihre Kunden kaufen oder verkaufen, normalerweise einen Bruchteil eines Pennys pro Aktie. Diese Handelsunternehmen verdienen ihrerseits Geld, indem sie die als „Spread“ bezeichnete Differenz zwischen dem Kauf- und Verkaufspreis eines bestimmten Aktienhandels einstecken. Je mehr Trades sie abwickeln, desto größer sind ihre potenziellen Einnahmen. Viele andere Online-Broker verlassen sich auf ein ähnliches System, aber Robinhood hat verhandelt, für jeden Trade deutlich mehr zu sammeln als andere Online-Broker, so The Times.

Das Missverhältnis zwischen Robinhoods Marketing und den zugrunde liegenden Mechanismen führte letzten Monat zu einer Geldstrafe von 65 Millionen US-Dollar von der SEC. Die Agentur sagte, Robinhood habe Kunden in die Irre geführt, wie sie von Wall Street-Firmen für die Weitergabe von Kundengeschäften bezahlt wurden.

Robinhood hat auch gegen die Aufsichtsbehörden verstoßen, als es schnell neue Produkte herausbrachte. Im Dezember 2018 kündigte das Unternehmen an, ein Giro- und Sparkonto anzubieten, das von der Securities Investor Protection Corporation (SIPC) versichert wird und die Anleger schützt, wenn ein Maklerunternehmen ausfällt.

Der damalige Geschäftsführer von SIPC sagte jedoch, er habe nichts von Robinhoods Plan gehört, und er wies darauf hin, dass die SIPC keine einfachen Vanille-Sparkonten schützt – das wäre die Aufgabe der Federal Deposit Insurance Corporation. Es dauerte fast ein Jahr, bis Robinhood das Produkt wieder einführte und in einem Blog-Beitrag sagte, dass es mit seiner früheren Ankündigung „Fehler gemacht“ habe.

“Sie haben versucht, große Spritzer zu machen, und mussten oft wieder reingewickelt werden”, sagte Scott Smith, ein Brokerage-Analyst bei der Finanzfirma Cerulli Associates.

Die Ambitionen und der Amateurismus von Robinhood kollidierten in den letzten Wochen, als Kleininvestoren, von denen viele die Dominanz der Wall Street herausfordern wollten, ihre Freihandelsgeschäfte nutzten, um die Aktien von GameStop und anderen Unternehmen zu erhöhen. Zügellose Spekulationen über Optionskontrakte trugen dazu bei, den Anstieg der GameStop-Aktien von etwa 20 US-Dollar am 12. Januar auf fast 500 US-Dollar am Donnerstag voranzutreiben – eine Rallye, die Robinhood dazu zwang, seine eigenen Kunden zu bremsen.

Eine Institution, die Robinhood in der vergangenen Woche ausgelöst hat, ist eine Clearingstelle namens Depository Trust & Clearing Corporation. Das DTCC gehört seinen Mitgliedsfinanzinstituten, darunter Robinhood, und klärt und regelt den größten Teil des Aktienhandels. Dabei wird im Wesentlichen sichergestellt, dass das Geld und die Aktien in den richtigen Händen sind. (Optionsgeschäfte werden von einem anderen Unternehmen abgewickelt.)

Die Rolle des DTCC ist jedoch mehr als nur eine Büroarbeit. Clearingstellen sollen dazu beitragen, einen bestimmten Markt vor extremen Risiken zu schützen, indem sie sicherstellen, dass ein einzelner Finanzspieler keine Ansteckung verursacht, wenn er pleite geht. Um seine Arbeit zu erledigen, verlangt die DTCC von ihren Mitgliedern, ein Bargeldpolster aufzubewahren, das bei Bedarf zur Stabilisierung des Systems eingesetzt werden kann. Und wenn die Aktien wild schwanken oder es eine Menge Handel gibt, kann die Größe des Kissens, das von jedem Mitglied verlangt wird – bekannt als Margin Call – kurzfristig zunehmen.

Das ist am Donnerstagmorgen passiert. Der DTCC teilte seinen Mitgliedsunternehmen mit, dass das Gesamtpolster, das damals 26 Milliarden US-Dollar betrug, innerhalb weniger Stunden auf 33,5 Milliarden US-Dollar anwachsen musste. Da Robinhood-Kunden für so viel Handel verantwortlich waren, war Robinhood dafür verantwortlich, einen erheblichen Teil der Rechnung zu begleichen.

Die Forderung des DTCC ist nicht verhandelbar. Ein Unternehmen, das seinen Margin Call nicht erfüllen kann, ist praktisch aus dem Aktienhandelsgeschäft ausgeschieden, da DTCC seine Geschäfte nicht mehr abwickelt. “Wenn Sie einen Trade nicht abwickeln können, können Sie keinen Trade handeln”, sagte Robert Greifeld, ehemaliger Geschäftsführer von Nasdaq und derzeitiger Vorsitzender von Virtu Financial. „Du bist von der Insel weg. Du bist verbannt. “

Für erfahrene Spieler wie Citadel Securities und JPMorgan Chase war es kein Problem, kurzfristig zusätzliche Hunderte Millionen Dollar zu generieren. Aber für ein Start-up wie Robinhood war es ein tolles Durcheinander.

Während Robinhood das benötigte Bargeld aus seiner Kreditlinie und den Investoren zusammenschusterte, beschränkte es die Kunden darauf, GameStop, AMC und andere Aktien zu kaufen. Robinhood sagte in seinem Blogbeitrag, dass es seinen Anlegern gestattet wurde, diese volatilen Aktien zu verkaufen – aber nicht zu kaufen. Dies reduzierte das Risiko und half ihm, die Anforderungen für zusätzliches Bargeld zu erfüllen.

Letztendlich gelang es dem Unternehmen, einige seiner bestehenden Investoren, darunter die Venture-Unternehmen Sequoia Capital und Ribbit Capital, mit rund 1 Milliarde US-Dollar zusammenzubringen. Als Süßungsmittel hat Robinhood den Anlegern Sonderaktien ausgegeben, die ihnen bereits in diesem Jahr ein besseres Geschäft ermöglichen, wenn das Unternehmen an die Börse geht.

Aber der schnelle Deal ließ mehr als einen Beobachter am Kopf kratzen.

“Wie braucht ein Online-Broker eine Infusion von einer Milliarde Dollar über Nacht?” fragte Roger McNamee, ein langjähriger Investor, der die Private-Equity-Firma Elevation Partners mitbegründete. “Es gibt etwas, das besagt, dass jemand wirklich Angst vor dem hat, was los ist.”

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Robinhood says restrictions on GameStop on account of tenfold enhance in clearinghouse deposit necessities

The Robinhood application on a smartphone.

Bloomberg | Bloomberg | Getty Images

Online broker Robinhood announced that it has placed temporary purchase restrictions on a small number of stocks as the deposit requirements for stocks imposed by the Wall Street clearinghouse have increased tenfold.

The decision of Robinhood, a pioneer and app for free trade popular with retail investors, was scrutinized by its customers over the past week.

“It wasn’t because we wanted to stop people from buying these stocks,” Robinhood said in a blog post published late Friday.

“We did this because the amount required to deposit into the clearing house was so large – with individual volatile securities adding up to hundreds of millions of dollars in deposit requirements – that we had to take steps to purchase them limit volatile stocks to ensure this could comfortably meet our requirements, “it continued.

Amateur investors using Robinhood and other apps are offering sharply truncated stocks and have caused GameStop stocks to skyrocket 400% over the past week, causing significant losses for hedge funds, which have cut stocks .

Robinhood initially announced to investors that they could only sell, and not buy, new stock in certain companies that grab retailer attention on Reddit. With the online broker, customers can now only buy a single GameStop share. A total of 50 stocks are now limited to the stock trading app.