Breakingviews sizes up the banking industry’s cost of equity (currently pegged at around 10 percent) and asks just how well this barometer of a bank’s performance is really being measured – NYTimes

Meanwhile, some banking officials—including a BOE representative speaking in NYC yesterday—contend that the legal expenses related to financial misconduct enforcement actions and litigation (roughly $275 billion for global banks since 2008, or about $5 trillion in reduced lending capacity) is having a detrimental impact on global growth – WSJ

British American Tobacco has made a nonbinding offer to buy the rest of Reynolds American (it already owns over 40 percent) in a deal worth $47 billion – NYTimes and Bloomberg

Big trial court win for Barclays on a claim by a broker-dealer who asserted that the British bank misled its traditional customers about their exposure to HFT traders in its dark pool – Law360

2016’s shaping up to be another “bruising” year for hedge funds, and the $28 billion that investors have yanked from funds over the last quarter is Exhibit A.  Regulatory action against several prominent funds and generally mediocre performance aren’t helping their cause – NYTimes and Bloomberg

A speedy upgrade planned for the Nasdaq is threatening IEX’s speed bump-fairness model – WSJ

Online lenders—well aware that increased Washington scrutiny of their business will mean regulatory limits in a largely Wild West space—are working to self-police their industry to dissuade the Feds from getting too heavy handed – NYTimes

So long, Snoop.  It’s been a good ride – NYTimes and WSJ

Brought to the fore by Malia Obama’s decision to take a year off before heading to college, the Gap Year is on the minds of students and families these days. Those who have Gapped say it was a huge part of why they are where they are today – NYTimes

Have a great weekend.