  Not every Nightcap will have a cute animal in it, but tonight, it felt necessary. Let's get into it. 💰 TSK TSK  A Wall Street regulator ordered Robinhood to pay about $70 million for "systemic supervisory failures" and hurting investors by giving them "false or misleading information."
That's big. In fact, it's the largest penalty ever imposed by Wall Street's self-regulating body, the Financial Industrial Regulatory Authority, or FINRA.
THE BACKSTORY Robinhood's less than a decade old, but its "no-fee" model has fundamentally disrupted the investing world.
But the bigger it gets the bigger its headaches.
In total, FINRA said, customers suffered more than $7 million in losses "due to Robinhood's misstatements."
WHAT'S NEXT? Robinhood's gearing up for what some expect to be a blockbuster IPO this year. Now it can head into that without the specter of the FINRA sanctions hanging over it. But Robinhood is still facing scrutiny from regulators and politicians. CNN Business' Matt Egan has more.
🎭 NUMBER OF THE DAY $150 million The prestigious Yale Drama School is now tuition-free following a $150 million gift from Hollywood mogul David Geffen. Free! All right, y'all, I'm off to Connecticut to walk in Meryl Streep's path – it's been a blast, byeeeeeee.
📈 STATE OF STOCKS  The Biden-era stock market is well ahead of expectations. (Remember when President Trump said the stock market would "crash" if Joe won? Lol, good times.)
We're just half-way through the year, and the S&P 500 has already reached the target some analysts set for the entire year, my colleague Anneken Tappe writes. Check it out:
That's all despite serious concerns about inflation (which investors dislike because it saps corporate profits), tax hikes, and the increasingly worrying Delta variant of Covid-19.
WILL IT LAST? A lot of that will depend on the pandemic. Even though vaccination rates are up, coronavirus could still jeopardize the reopening of the economy. And there's a bit of tug-of-war happening over inflation: The Fed insists it's "transitory," but prices are still rising, and the central bank can't ignore that. It's only a matter of time – and no one knows how long it will be – before the Fed has to take its foot off the gas.
🏧 QUOTE OF THE DAY  Overdraft fees disproportionately harm lower-income residents, often minorities. If you want to address inequality, cutting out unfair, deceptive and abusive fees is a fair thing to do. New York Congresswoman Carolyn Maloney reintroduced legislation that would crack down on overdraft fees, making it illegal for banks to charge more than one fee per month. Each year, banks rake in more than $11 billion worth of overdraft and related fees when consumer accounts go negative.
WHAT ELSE IS GOING ON? 🚗Didi, China's massive ride-hailing service, went public Wednesday in the biggest US share offering by a Chinese company since Alibaba.
⚔️Amazon has requested that the new FTC chair, Lina Khan, be recused from all Amazon-related antitrust cases. The company claims that Khan lacks objectivity.
🇨🇳China is in the middle of a huge power crunch as extreme weather, surging demand for energy and strict limits on coal usage deliver a triple blow to the nation's electricity grid. It could last for months, and it has huge implications for global trade.
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