Morning Agenda: SoFi Chief Executive to Step Down

• A spokesman for SoFi said that the board had investigated a dispute between Mr. Cagney and a former employee and found no evidence of a romantic or sexual relationship. The company reached a settlement after the investigation.

• A former employee of SoFi filed a lawsuit in August saying that he had witnessed female employees being harassed by managers and was fired after he reported it. The lawsuit did not initially name Mr. Cagney, but he was added later as a defendant and accused of “empowering other managers to engage in sexual conduct in the workplace.” SoFi said in September that it was investigating the allegations.

• Mr. Cagney may have been overaggressive in expanding the business, skirting risk controls and compliance rules, according to people with knowledge of the situation. The SoFi spokesman disputed this.

• There were also questions about one of its initial products. The company said it had raised $90 million in debt financing for one of the loan products that it sold to investors in 2012, but that financing never took place. The issue was brought to the board, which made no changes. SoFi eventually bought the loans back from investors.

• Employees who spoke to The Wall Street Journal also described a culture in which they felt pressure to work extra hours for fear of being fired. One said that Mr. Cagney would tell workers that if they weren’t waking up twice a week in a cold sweat, they weren’t working hard enough. These employees also described angry executives breaking furniture and throwing telephones.

These kinds of problems have been far from rare in Silicon Valley.

Venture capitalists have faced questions about their behavior toward women entrepreneurs, while accusations of sexual harassment and questions about business tactics have led to an exodus of senior leaders at Uber.

(The ride-hailing company, which recently appointed a new chief executive after a year of turmoil, is said to be closer to selling a stake to SoftBank, according to Recode.)

Is Hurricane Price-Gouging Despicable?

On the face of it, yes.

But to some economists, price-gouging is a good thing.

Advocates of the Milton Friedman school of free-market theory contend that anti-gouging measures discourage people from conserving goods or suppliers from bringing in goods exactly when demand is highest.

Take hotel rooms, for example.

If a hotel were to double the price of a room during an emergency, a family might…

Read the full article from the Source…

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