Brew Markets – Episode Summary

Podcast: Brew Markets
Host: Ann Berry
Air Date: January 14, 2026
Episode Title: Congressional Insider Trading & Saks’ Luxury Goes Bankrupt
Theme:
This episode dives into two of the day’s biggest market stories: Congress’s renewed attempts to police insider trading among its members, and the bankruptcy of Saks Global—the luxury conglomerate behind Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman. Ann Berry and producer John offer context on the legislative overhaul, scrutinize the downfall of a retail giant, and explore the ripple effects on competitors and investors.

1. Congressional Insider Trading – New Legislation & Old Problems

Background & Rules (00:32)

• Ann Berry opens with the ongoing debate over whether Congress members should be able to trade stocks while in office, citing concerns about conflicts of interest and access to non-public information.
• The STOCK Act of 2012 requires Congress members to publicly disclose any security transaction over $1,000, which became the basis for two ETFs tracking Congressional trades:
  • NANC (Democrats)
  • GOP (Republicans)
• In 2025, Congress traded more than 13,000 times—$635 million in value.
• Critics highlight flaws: weak rules, minimal enforcement, and the paltry $200 first-time offense fine (often waived).

Notable Quote:

"A violation of insider trading laws does not automatically bar a candidate from appearing on the ballot again."
– Ann Berry [03:39]

Public Sentiment & New Proposal (04:25)

• A 2023 University of Maryland survey showed broad, bipartisan support (80%+) for banning Congressional stock trading.
• The bipartisan Stop Insider Trading Act is proposed, aiming to:
  • Let members keep stocks they own when elected.
  • Require 7-day public notice before selling.
  • Allow continued trading in commodities, futures, and diversified funds.
  • Ban new stock buys for members, spouses, and dependents.
  • Raise fines to $2,000+ (or 10% of the value involved).
• Some Democrats argue it doesn’t go far enough—they want a total ban on ownership and stricter rules.

Notable Quote:

'"If you want to trade stocks, go to Wall Street, not Capitol Hill."'
– House Administration Committee Chair, quoted by Ann Berry [04:57]

2. Saks Global Bankruptcy – Luxury Retail’s Big Crack (05:55)

Deal Timeline & Strategy (07:16)

• Saks bought Neiman Marcus (with Bergdorf Goodman) for $2.7B in 2024, creating Saks Global. Amazon and Salesforce took minority stakes, hoping to transform luxury e-commerce.
• Amazon’s involvement marked a shift in luxury’s online strategy; many saw it as desperate, fearing loss of brand control.

Notable Quote:

"The stress was always, if we are building a luxury brand, how on earth do we translate that to an Amazon, which is the digital equivalent of pile it up and just sell it?"
– Ann Berry [08:05]

Failure Factors (09:03)

• Saks was already burdened by debt pre-acquisition. Financing added $2B in high-risk bonds.
• Moody’s called it “a recipe for disaster”: both companies had lackluster sales; the acquisition doubled down on weak cash flow.
• E-commerce, direct-to-consumer flagships, and luxury brands becoming both suppliers and competitors eroded department stores’ competitive edge.
• Loss of unique in-store “experience” and vendor trust after delayed payments further harmed the brand.

Notable Quote:

"Why did [department stores] exist? ... the idea that department stores act as the ultimate curator... Why go to the little teeny tiny version in a Saks? If you want to go to a Burberry, then just go to a Burberry."
– Ann Berry [11:11]

The Downfall Unfolds (11:47)

• Saks booked a $100M+ loss in 2024; vendors stopped shipments after delayed repayments; refund processing was slowed to conserve cash.
• Missed a $100M+ interest payment Dec 30; CEO Mark Metric resigned; control passes to lenders.
• Ex-CEO of Neiman Marcus, Jeffrey von Ramdong, now steps in; company secured $1.75B to fund operations in bankruptcy.

Notable Quote:

"Intentions are wonderful. What's the expression? The path to hell is paved with intentions."
– Ann Berry [13:52]

Vendor Fallout (14:05)

• Chanel leads the list seeking repayment: $136M owed.
• Kering SA (Gucci, Balenciaga): $60M; Capri Holdings (Michael Kors, Jimmy Choo): $30M+.
• Many more vendors waiting.

3. Market Implications: Who Gains from Saks’s Collapse?

Macy’s & Bloomingdale’s Opportunity (15:00)

• Macy’s (public, owns Bloomingdale’s) could benefit. CEO Tony Spring has attracted new high-end brands, delivered a 9% same-store sales increase in Q3 2025, and shares are up 80% in six months despite store closure news.

• Ann Berry urges Macy’s to leverage the opportunity:

  "[They] should be going out to all these fashion brands and encouraging them to, you know, ship in their most in demand products to get ahead of the curve and say, look, you don't know where our competitors are going to be six months from now. We're going to be strong and standing. Send us your best for the money, we're good for the money."
  – Ann Berry [16:04]

• Macy’s faces layoffs, fulfillment center closures; it’s unclear if today’s share drop is sentiment or general market decline.

Nordstrom/Dillard’s (17:18)

• Nordstrom (now private, Sycamore Capital) and Dillard’s (smaller, southern focus) may try to poach luxury brands.
• Dillard’s stock – recently strong, down 5% today.

Discount Retailers: T.J. Maxx (18:15)

• Likely “sleeper” winner: T.J. Maxx, with $1.8B net cash, may scoop up Saks’s luxury inventory for resale.
• Shares up 26% in six months, dipped 2% with the market.

4. Market News Briefs

• [19:25] Closing Bell:
  • S&P 500: -0.5%
  • Dow: -0.1%
  • NASDAQ: -1%
• Airbnb: New CTO, Ahmed Al Delay (ex-Meta AI lead); shares fell 6%.
• Warner Brothers Discovery/Netflix: Ongoing acquisition drama; Netflix may replace its cash+stock deal for Warner Bros. studios with an all-cash offer, as Netflix shares have fallen 25% since October.
• Tesla: Elon Musk moves FSD software (previously $8,000 one-time) to a $99/month subscription-only model. Markets generally like subscription revenue models, but the impact on Tesla’s bottom line remains to be seen.

5. Memorable Quotes

• “If you want to trade stocks, go to Wall Street, not Capitol Hill.”
  – House Administration Committee Chair (via Ann Berry) [04:57]

• “[The acquisition] was the fastest failure of an acquisition of this magnitude seen.”
  – Mickey Shada, Moody’s [10:17]

• "The path to hell is paved with intentions."
  – Ann Berry [13:52]

6. Timestamps for Key Segments

• [00:32] Congressional Insider Trading rules & proposals
• [05:55] Saks Global bankruptcy, deal history
• [09:03] Underlying causes of decline
• [11:11] Evolution of department store experience
• [13:16] Executive shakeups & bankruptcy financing
• [14:05] Vendor fallout: who’s left unpaid
• [15:00] Market impacts: Macy’s, Nordstrom, Dillard’s
• [18:15] Off-price winners: T.J. Maxx
• [19:25] Market wrap & headlines: Airbnb, Warner Brothers, Tesla

7. Closing Notes

Ann Berry teases an upcoming special with energy expert Alix Steel, promising a jargon-busting, in-depth take on the global energy sector.
For investors and market-watchers, today’s episode offers a brisk, clear-eyed tour through two stories with real implications for politics, luxury retail, and stock market trends.