Embarrassment of Something: IQ, PE, BX

The Money Stuff podcast explores the implications of JP Morgan's decision to replace traditional proxy advisors with an in-house AI system, Proxy IQ, for voting on shareholder proposals. Matt Levine suggests this move, driven by pressure from Republicans and companies, could lead to conflicts of interest, as JP Morgan might prioritize corporate relationships over maximizing shareholder value, potentially always voting with management. The conversation then shifts to on-cycle recruiting in private equity, where despite efforts to delay the process, firms continue to recruit analysts early, creating potential conflicts of interest and questions about job security. Finally, the hosts touch on Donald Trump's populist economic proposals, including banning institutional investors from buying single-family homes and restricting stock buybacks for defense contractors, highlighting the unexpected alignment of these ideas with traditionally left-leaning policies.