Good morning from the Financial Times.
Today is Wednesday, January 14th, and this is your FT News Briefing.
Tree Calour senior executives appeared in court yesterday,
and can companies build data centers without passing on the costs to consumers?
Plus,
a venture capital company that hit the jackpot with Revolut proves sometimes small ball is the key to big wins.
If you can own a meaningful percentage of a rocket ship,
then it's going to work out pretty well for you.
I'm Mark Filipino and here's the news you need to start your day.
The former CEO and the former chief operating officer of Tree Calor Holdings pleaded not guilty in a New York court yesterday.
Federal prosecutors are accusing Daniel Chu and David Goodgame of fraud and financial crimes.
TreeKalore specialized in selling used cars and providing subprime financing to lower-income customers,
and it suddenly collapsed last year.
The indictment said TreeKalore borrowed more than a billion dollars from lenders,
including JP Morgan and Barclays, based on fabricated data and false statements.
The company's unraveling got people worried about lending standards and possible cracks in the debt market.
Chu and Good Game did not speak in court yesterday.
They declined to comment to the Financial Times.
The Trump administration has pushed artificial intelligence as a priority,
but the data centers that are crucial for AI use a lot of electricity and make electricity cost a lot more for everyone around them.