Welcome to this weekly roundup of stories from Insider’s Business co-Editor in Chief Matt Turner. Subscribe here to get this newsletter in your inbox every Sunday.
What we’re going over today:
What’s trending this morning:
A dozen current and former Oracle employees and executives said there was what one person described as a “culture of fear” at OCI — an environment at least partially created by hard-driving cloud boss Clay Magouyrk:
Magouyrk, a former Amazon software-development engineer who joined Oracle as an individual contributor in 2014, quickly impressed Chairman Larry Ellison and CEO Safra Catz with his ability to deliver results quickly, leading to his rapid ascent through the ranks.
But Magouyrk’s reign has raised questions about Oracle’s culture. His leadership style was cited in a pair of lawsuits filed by former vice presidents against the company and an executive, including an allegation that he once told an executive that his actions were “f—ing stupid” in front of all of OCI’s senior leaders.
Insiders said those comments were “tame” compared with others he had made.
Read our full report here:
Fahim Saleh’s body was found in his apartment, dismembered and decapitated. There was barely a trace of blood, his $2.25 million apartment so meticulously scrubbed that an official later described it as a “professional job.” But the accused killer wasn’t a professional. Police say it was his former assistant, Tyrese Haspil:
It was a sultry July week in New York City, and Haspil and his girlfriend, Marine, were in a celebratory mood. Haspil, then age 21, rented an $18,000-a-month Airbnb on the cobblestoned Crosby Street for a romantic staycation for Marine’s 22nd birthday.
For two days, from July 15 to July 17, 2020, the pair strolled through Manhattan’s NoHo neighborhood, arm in arm, shopping at Christian Louboutin and dining out.
Less than a 15-minute walk away, police discovered the body of Haspil’s former boss, Fahim Saleh. The 33-year-old tech entrepreneur had been decapitated and dismembered in the living room of his East Houston Street condo on Manhattan’s Lower East Side.
We dove deep into what went wrong:
Dozens of people have quit Bank of America’s mortgage business this year, according to four current and former bankers. Two of them suggested the resignations have now climbed above 100, and that more departures are expected at the end of June:
June is when the bank pays out its next quarterly bonuses, one of the people said.
The salespeople are leaving because they’re frustrated over a series of changes the bank made to its mortgage policies that have made it harder for some salespeople to make money and increased concerns about corporate surveillance, the people said.
The changes have also knocked Bank of America down several notches in the ranks of the biggest home-loan originators, according to data compiled by Inside Mortgage Finance. Bank of America’s 2008 purchase of Countrywide Financial Corp. briefly created the nation’s largest mortgage lender and servicer, though it also saddled the bank with years of problems and billions of dollars in fines and settlements over Countrywide ‘s lending practices.
Here’s what else you need to know about the recent departures:
By now you’ve probably heard about the big mystery in the US economy: Restaurants can’t find enough people to hire, even though millions of Americans remain out of work. Things are supposed to go back to normal in the fall — but what if job numbers don’t return so quickly to the status quo?:
A few economists are beginning to raise that possibility — that the pandemic’s effects will continue to batter the leisure and hospitality sector, which employs one in 10 American workers, well beyond the fall.
In a normal economy, it’s not a problem when workers change careers; other job seekers can come in to take their place. But an exodus, like the one we may be seeing now in hotels and restaurants, is different. It can take time for workers to find a job in an unfamiliar industry in which they have few connections. Their new positions could require them to move to another city or state. And inexperienced workers require training to build up the necessary skills.
Until all that happens, jobs go unfilled — keeping unemployment elevated, even though the demand for those jobs is there. Economists call it reallocation friction.
Why economists think it might be years until things return to normal:
Lastly, here are some headlines you might have missed last week.