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  • Jury says Trump must pay E. Jean Carroll $5 million for sexual abuse and defamation

    Jury says Trump must pay E. Jean Carroll $5 million for sexual abuse and defamation

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    A New York federal jury found former President Donald Trump liable on Tuesday for sexually abusing and forcibly touching the writer E. Jean Carroll at a department store in the 1990s, and for defaming her last fall when he denied her claim.

    The jury of six men and three women ordered Trump to pay Carroll $5 million in compensatory and punitive damages.

    The verdict in the civil trial came after less than three hours of deliberations in U.S. District Court in lower Manhattan.

    The jury notably did not find Trump liable for rape, as Carroll had alleged.

    “I have absolutely no idea who this woman is. This verdict is a disgrace,” Trump wrote in a post on his social media site Truth Social.

    A spokesman for his 2024 Republican presidential campaign said, “This case will be appealed, and we will ultimately win.”

    Former U.S. President and Republican presidential candidate Donald Trump rides a golf cart at Trump International Golf Links course, in Doonbeg, Ireland May 4, 2023.

    Damien Storan | Reuters

    Carroll’s lawyer Roberta Kaplan said, “We are very happy,” as she left the courthouse with her client. Carroll did not speak to reporters.

    The verdict is the latest legal blow against Trump, who leads early polls for the 2024 GOP nomination. In late March he was indicted by a Manhattan state Supreme Court grand jury on nearly three dozen counts of falsifying business records in connection with a 2016 hush money payment to porn star Stormy Daniels.

    Trump also faces pending federal criminal investigations related to his efforts to overturn his loss in the 2020 presidential election, and to his failure to surrender government documents when he left the White House in early 2021. He also faces possible indictment by a Georgia grand jury for his attempt to get officials there to reverse President Joe Biden’s victory in the 2020 election in that state.

    E. Jean Carroll exits the Manhattan Federal Court following the verdict in the civil rape accusation case against former U.S. President Donald Trump, in New York City, May 9, 2023.

    Brendan McDermid | Reuters

    Carroll, 79, claimed in her lawsuit that Trump raped her in a dressing room of the Bergdorf Goodman store in the mid-1990s.

    Trump cannot be prosecuted for the alleged rape because the statute of limitations for such a crime has long since passed.

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    But Carroll sued him with a civil claim of battery under a New York state law enacted in late 2022 that opened a one-year window for lawsuits alleging sexual assaults which otherwise would be barred by the statute of limitations.

    Carroll also claimed that Trump defamed her last fall when he said she had made up her account of being raped.

    Trump, 76, called the allegations “a complete con job,” and said that she was not his “type.”

    Despite that claim, Trump mistook Carroll for his second wife Marla Maples in a photo showing him and Carroll together in the 1980s.

    Former Elle magazine advice columnist E. Jean Carroll watches as a former U.S. president Donald Trump’s video deposition is played in court during a civil trial where Carroll accuses the former U.S. president in a civil lawsuit of raping her in a department store dressing room in the mid-1990s, and of defamation, in New York, U.S., May 4, 2023 in this courtroom sketch. 

    Jane Rosenberg | Reuters

    Trump did not testify during the trial.

    But portions of a video of his deposition taken last fall by Carroll’s lawyer were played for jurors during the trial, and during closing arguments on Monday.

    That deposition included Trump being asked about his comments in 2005 during a taping for the entertainment television show “Access Hollywood,” in which he boasted: “I’m automatically attracted to beautiful women — I just start kissing them, it’s like a magnet.”

    “Just kiss. I don’t even wait,” Trump said on that tape. “And when you’re a star, they let you do it. You can do anything,” he said, including “grab ’em by the p—-.”

    Trump told Carroll’s lawyer during the deposition that those comments were “locker room talk.”

    But he also said it has been “historically … true with stars” that they could grab women without their permission.

    “If you look over the last million years, I guess that’s been largely true,” Trump testified in his deposition. “Not always, but largely true. Unfortunately or fortunately.”

    Carroll took the witness stand.

    “I’m here because Trump raped me,” she testified.

    In her testimony, Carroll said she encountered Trump by chance in Bergdorf Goodman, where he recognized her as an advice columnist. She testified that when they ended up in the store’s lingerie department he ushered into a dressing room, where he shoved her against a wall and sexually assaulted her.

    Two friends of Carroll’s, Lisa Birnbach and Carol Marin, testified she had told them soon after the alleged incident that Trump had raped her.

    Two other women testified that Trump had kissed and groped them without their consent in incidents that occurred years apart.

    A spokesman for Trump’s 2024 presidential campaign said of the jury’s verdict, “The Democratic Party’s never-ending witch-hunt of President Trump hit a new low today.”

    “In jurisdictions wholly controlled by the Democratic Party our nation’s justice system is now compromised by extremist left-wing politics,” the spokesman said in a statement. “Make no mistake, this entire bogus case is a political endeavor targeting President Trump because he is now an overwhelming front-runner to be once again elected President of the United States.”

    Read: Trump jury verdict form

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  • Trump barred from making evidence public in Stormy Daniels hush money case

    Trump barred from making evidence public in Stormy Daniels hush money case

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    Former President Donald Trump boards his airplane after speaking at a campaign event in Manchester, New Hampshire, April 27, 2023.

    Jabin Botsford | The Washington Post | Getty Images

    A judge Monday barred former President Donald Trump from making public evidence and other material related to a pending criminal case against him in New York, where he is charged with falsifying business records related to a 2016 hush money payment to porn star Stormy Daniels.

    Judge Juan Merchan also barred Trump from viewing evidence in the case other than in the presence of his lawyers. The ex-president is not allowed to copy the material.

    The Manhattan District Attorney’s Office sought the protective order due to concerns Trump would “inappropriately” use the material or post the information on social media or elsewhere.

    A prosecutor at a hearing last week in Manhattan Supreme Court called that risk “substantial.”

    Trump’s lawyers opposed that request, which relates to so-called discovery material, the documents, correspondence and other items exchanged between opposing parties in a legal case before trial.

    Trump, who is the leading contender for the 2024 Republican presidential nomination, was arraigned in court last month in the case. He has pleaded not guilty.

    His former lawyer, Michael Cohen, shortly before the 2016 presidential election paid Daniels, whose legal name is Stephanie Clifford, $130,000 to keep her quiet about an alleged sexual tryst with Trump years earlier.

    Trump denies having sex with Daniels, but reimbursed Cohen for the payoff, which was claimed to be for legal expenses in business records.

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    In the prosecution’s motion for a protective order, assistant DA Catherine McCaw wrote, “Donald J. Trump has a longstanding and perhaps singular history of attacking witnesses, investigators, prosecutors, trial jurors, grand jurors, judges, and others involved in legal proceedings against him, putting those individuals and their families at considerable safety risk.”

    Merchan, in his order Monday, wrote all material provided by the DA’s office to Trump’s lawyers “shall be used solely for the purposes of preparing a defense in this matter.”

    “Any person who receives the Covered Materials shall not copy, disseminate, or disclose the Covered Materials, in any form or by any means, to any third party,” which includes posting the material on social media sites, Merchan wrote.

    The judge also said the names and identifying information of DA employees in the case, other than sworn members of law enforcement, assistant DAs and expert witnesses, would be delayed until the start of jury selection.

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  • Trump followed his ‘playbook’ for sexual assault on E. Jean Carroll, lawyer says in closing arguments

    Trump followed his ‘playbook’ for sexual assault on E. Jean Carroll, lawyer says in closing arguments

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    Magazine Columnist E. Jean Carroll arrives for her civil trial against former President Donald Trump at Manhattan Federal Court on May 08, 2023 in New York City.

    Stephanie Keith | Getty Images

    A lawyer for writer E. Jean Carroll told jurors on Monday that Donald Trump followed a “playbook” he had for kissing and groping women without their consent before he raped Carroll in a New York department store dressing room in the mid-1990s.

    “You must hold him to account for what he’s done,” Carroll’s lawyer Robert Kaplan said. She delivered closing argument to jurors in U.S. District Court in Manhattan for a civil trial in which Trump, the leading 2024 Republican presidential candidate, is accused of battery and defaming the writer.

    Kaplan showed jurors a snippet of the “Access Hollywood” tape, when Trump boasted in 2005 about touching women without their consent.

    “I just start kissing them. It’s like a magnet. Just kiss. I don’t even wait. And when you’re a star, they let you do it. You can do anything. Grab ’em by the p—y. You can do anything,” Trump said on the tape, recorded for an appearance on that entertainment show.

    Kaplan told jurors: “What is he doing here he is telling you in his own words his modus operandi, his MO…he kissed them without their consent.”

    “The evidence shows overwhelmingly he followed this playbook and in the dressing room there grabbed [Carroll] by the p—y,” she said.

    In his deposition in the case, Trump told Kaplan that “unfortunately or fortunately,” for “millions of years,” stars had been able to sexually grope women without asking permission first.

    Former Elle magazine advice columnist E. Jean Carroll watches as a former U.S. president Donald Trump’s video deposition is played in court during a civil trial where Carroll accuses the former U.S. president in a civil lawsuit of raping her in a department store dressing room in the mid-1990s, and of defamation, in New York, May 4, 2023 in this courtroom sketch.

    Jane Rosenberg | Reuters

    “He actually used the word ‘fortunately’ describing sexual assault,” Kaplan told jurors.

    “Who would say, ‘fortunately?’ Someone who thinks they are a star he thinks stars like him can get away with it,” Kaplan said.

    Carroll testified earlier in the trial that the former president had raped her in a dressing room of Bergdorf Goodman in Manhattan after they had a chance encounter at that store.

    Trump, 76, denies raping the now-79-year-old Carroll, and has accused her of making up the story for political and financial reasons.

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    He also has repeatedly said Carroll is “not my type.”

    But Kaplan on Monday showed jurors a video of Trump’s deposition last fall. He was asked about a photo of him, Carroll, her then-husband and Trump’s then-wife Ivana Trump at an event from the 1980s.

    “That’s Marla,” Trump says on that tape about the photo, identifying Carroll as his other ex-wife, Marla Maples.

    Kaplan told jurors Monday: “He pointed to Ms. Carroll who he says is not his type and mistook her for Marla Maples.”

    Carroll “is exactly his type and he repeated it twice and only changed when his lawyer pointed it out,” Kaplan said. “He made up an excuse for why he made a mistake, saying it was blurry, and you know it’s not at all blurry … E. Jean Carroll is a former cheerleader from Indiana, was exactly his type.”

    An image that was presented as an exhibit during the Carroll v. Trump civil trial where former Elle magazine advice columnist E. Jean Carroll accuses former U.S. President Donald Trump in a civil lawsuit of raping her in a department store dressing room in the mid-1990s and of defamation, which was obtained by Reuters on May 5, 2023. 

    EJ Carroll Legal Team Handout | Via Reuters

    Trump’s lawyer Joseph Tacopina is set to give his closing argument later Monday.

    Trump, unlike Carroll, has not appeared in person for the trial.

    The judge in the case had given Tacopina until Sunday afternoon to change his decision not to have Trump testify in his own defense. But that deadline passed without the lawyer telling the judge that Trump would take the stand Monday.

    Trump, who is the leading contender for the 2024 Republican presidential nomination, was criminally charged last month by the Manhattan District Attorney for allegedly falsifying business records related to a 2016 hush money payment his then-lawyer made to a porn star, Stormy Daniels, before the election that year.

    He has pleaded not guilty in that case.

    Trump also faces multiple criminal investigations for his efforts to overturn his loss in the 2020 election to President Joe Biden, and in connection with failing to surrender government records, many of them classified, when he left the White House.

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  • Biden plans to bolster U.S. airline consumer protections

    Biden plans to bolster U.S. airline consumer protections

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    Travelers look at a display board showing canceled and delayed flights at Orlando International Airport on New Year’s weekend, despite thousands of flight cancellations and delays across United States.

    Paul Hennessy | Lightrocket | Getty Images

    President Joe Biden will announce on Monday that the U.S. Transportation Department aims to write new rules requiring airlines to compensate passengers for significant flight delays or cancellations when carriers are responsible.

    It is the latest in a series of moves by the Biden administration to crack down on airlines and bolster passenger consumer protections.

    “When an airline causes a flight cancellation or delay, passengers should not foot the bill,” U.S. Transportation Secretary (USDOT) Pete Buttigieg said in a statement.

    USDOT said it plans to write regulations that will require airlines to cover expenses such as meals and hotels if carriers are responsible for stranding passengers. Most carriers voluntarily committed in August 2022 to providing hotels or meals but resisted providing cash compensation for delays.

    The Biden administration has objected to family seating fees, investigated 10 carriers for failing to provide refunds, pressed Southwest Airlines to do more after a holiday meltdown led to more than 16,000 flight cancellations and proposed other new consumer protections.

    USDOT will make clear starting Monday on a government website that no U.S. carriers have agreed to provide cash compensation for delayed or canceled flights under carriers’ control.

    The Biden administration has sparred with U.S. airlines over who was to blame for hundreds of thousands of flight disruptions last year.

    Airlines for America, a trade association representing Delta Air Lines, United Airlines, American Airlines, and others, said U.S. airlines “have no incentive to delay or cancel a flight and do everything in their control to ensure flights depart and arrive on time, but safety is always the top priority.”

    U.S. airlines note the Federal Aviation Administration (FAA) acknowledges it does not have enough air traffic control staff and is operating 10% fewer flights than in 2019 to reduce pressure on the system.

    In October, Reuters first reported major U.S. airlines opposed USDOT plans to update its dashboard to show whether carriers would voluntarily compensate passengers for lengthy delays within airlines’ control.

    USDOT said Monday the updated dashboard will show that one airline guarantees frequent flyer miles and two airlines guarantee travel credits or vouchers when cancellations or delays result in passengers’ waiting three hours. No airline guarantees cash compensation.

    There is no legal requirement for airlines to compensate U.S. passengers for delayed or canceled flights, but the European Union and some other countries require compensation of up to 600 euros ($663) for most significant delays.

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  • Suspect in Texas mall shooting identified as 33-year-old man

    Suspect in Texas mall shooting identified as 33-year-old man

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    Mall employees embrace as they greet each other the day after a shooting at Allen Premium Outlets on May 7, 2023 in Allen, Texas.

    Stewart F. House | Getty Images News | Getty Images

    The assailant who killed eight people at a Texas outlet mall was identified by authorities Sunday as a 33-year-old man who had been staying at a nearby motel.

    Three law enforcement officials who spoke to The Associated Press named the gunman as Mauricio Garcia, who was fatally shot by a police officer who happened to be near the suburban Dallas mall. The officials spoke on condition of anonymity in order to discuss details of an ongoing investigation.

    One of the officials said Garcia had been staying at a nearby motel. The official said investigators have been searching the motel and a home in the Dallas area connected to the suspect.

    The official said police also found multiple weapons at the scene after Garcia was fatally shot by a police officer. The weapons included an AR-15-style rifle and a handgun, according to the official.

    The gunman’s name emerged as the community of Allen mourned for the dead and awaited word on the seven people who were wounded.

    John Mark Caton, senior pastor at Cottonwood Creek Church, about two miles from the mall, offered prayers during his weekly service for victims, first responders and the shoppers and employees who “walked out past things they never should have seen.”

    “Some of our people were there. Some perhaps in this room. Some of our students were working in those stores and will be changed forever by this,” Caton said.

    Recalling phone conversations with police officers, he said: “There wasn’t an officer that I talked to yesterday that at some point in the call didn’t cry.”

    The church planned an evening prayer vigil in the aftermath of the shooting, which was the latest attack to contribute to the unprecedented pace of mass killings this year. Barely a week before, five people were fatally shot in Cleveland, Texas, after a neighbor asked a man to stop firing his weapon while a baby slept, authorities said.

    Residents return in an effort to retrieve their vehicles at the scene of a shooting the day before at Allen Premium Outlets on May 7, 2023 in Allen, Texas.

    Stewart F. House | Getty Images News | Getty Images

    Police did not immediately provide details about the victims at Allen Premium Outlets, a sprawling outdoor shopping center, but witnesses reported seeing children among them. Some said they also saw what appeared to be a police officer and a mall security guard unconscious on the ground.

    A 16-year-old pretzel stand employee, Maxwell Gum, described a virtual stampede of shoppers. He and others sheltered in a storage room.

    “We started running. Kids were getting trampled,” Gum said. “My co-worker picked up a 4-year-old girl and gave her to her parents.”

    Dashcam video circulating online showed the gunman getting out of a car and shooting at people on the sidewalk. More than three dozen shots could be heard as the vehicle that was recording the video drove off.

    Allen Fire Chief Jonathan Boyd said seven people, including the shooter, died at the scene. Two other people died at hospitals.

    Seven people remained hospitalized Sunday — three in critical condition and four in fair condition, the Allen Police Department said in a statement.

    An Allen police officer was in the area on an unrelated call when he heard shots at 3:36 p.m., the department wrote on Facebook.

    “The officer engaged the suspect and neutralized the threat. He then called for emergency personnel,” the post said.

    Mass killings have happened with staggering frequency in the United States this year, with an average of about one per week, according to a database maintained by The Associated Press and USA Today in partnership with Northeastern University.

    In a statement, President Biden said the assailant wore tactical gear and fired an AR-15-style weapon. He urged Congress to enact tighter restrictions on firearms and ammunition.

    “Such an attack is too shocking to be so familiar. And yet, American communities have suffered roughly 200 mass shootings already this year, according to leading counts,” said Biden, who ordered flags lowered to half-staff.

    Republicans in Congress, he said, “cannot continue to meet this epidemic with a shrug.”

    Republican Texas Gov. Greg Abbott, who has signed laws easing firearms restrictions following past mass shootings, called the mall attack an “unspeakable tragedy.”

    Video shared on social media showed people running through a parking lot amid the sound of gunshots.

    Fontayne Payton, 35, was at H&M when he heard gunshots through his headphones.

    “It was so loud, it sounded like it was right outside,” Payton said.

    People in the store scattered before employees ushered the group into the fitting rooms and then a lockable back room, he said. When they were given the all-clear to leave, Payton saw the store had broken windows and a trail of blood to the door. Discarded sandals and bloodied clothes lay nearby.

    Once outside, Payton saw bodies.

    “I pray it wasn’t kids, but it looked like kids,” he said. The bodies were covered in white towels, slumped over bags on the ground. “It broke me when I walked out to see that.”

    Further away, he saw the body of a heavyset man wearing all black. He assumed it was the shooter, Payton said, because unlike the other bodies it had not been covered.

    MacKenzie Bates (L), 17, of Allen, Texas, embraces her mother Rochelle where flowers were left at the scene of a shooting the day before at Allen Premium Outlets on May 7, 2023 in Allen, Texas.

    Stewart F. House | Getty Images News | Getty Images

    Tarakram Nunna, 25, and Ramakrishna Mullapudi, 26, said they saw what appeared to be three people motionless on the ground, including one who seemed to be a police officer and another who resembled a mall security guard.

    Another shopper, Sharkie Mouli, 24, said he hid in a Banana Republic. As he left, he saw someone who looked like a police officer lying unconscious next to another unconscious person outside the store.

    “I have seen his gun lying right next to him and a guy who is like passing out right next to him,” Mouli said.

    Stan and Mary Ann Greene were browsing in a Columbia sportswear store when the shooting started.

    “We had just gotten in, just a couple minutes earlier, and we just heard a lot of loud popping,” Mary Ann Greene told The Associated Press.

    Employees rolled down the security gate and brought everyone to the rear of the store until police arrived and escorted them out, the Greenes said.

    Eber Romero was at an Under Armour store when a cashier mentioned there was a shooting.

    As he left, the mall appeared empty and all the shops had their security gates down, Romero said. That is when he started seeing broken glass and victims of the shooting on the floor of the shopping center.

    Allen, a city of 105,000 residents, is about 25 miles (40 kilometers) north of downtown Dallas.

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  • Yellen warns of ‘economic chaos’ unless Congress raises the debt ceiling

    Yellen warns of ‘economic chaos’ unless Congress raises the debt ceiling

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    U.S. Treasury Secretary Janet Yellen holds a press conference at the US Treasury Department in Washington, DC, on April 11, 2023.

    Stefani Reynolds | AFP | Getty Images

    Treasury Secretary Janet Yellen on Sunday said that failure to raise the debt ceiling will cause a “steep economic downturn” in the U.S., and she reiterated her warning that the Treasury Department may run out of measures to pay its debt obligations by June.

    “Our current projection is that in early June, a day will come when we’re unable to pay our bills unless Congress raises the debt ceiling, and it’s something I strongly urge Congress to do,” Yellen told ABC’s “This Week.”

    Yellen said the U.S. has already been using “extraordinary measures” to avoid default, and it’s not something the Treasury Department can continue to do. She said Congress needs to take action to avoid “economic calamity.”

    “It’s widely agreed that financial and economic chaos will ensue,” Yellen said.

    Lawmakers have been trying to find a path forward to raise or suspend the debt ceiling, which would enable the U.S. to pay its bills on time. But they’re currently at an impasse, raising the prospect of default.

    Yellen has called for decisive action, and quickly. In a letter to House Speaker Kevin McCarthy, R-Calif., Monday, Yellen said new data on tax receipts forced the department to move up its estimate of when the Treasury Department “will be unable to continue to satisfy all of the government’s obligations” to potentially as early as June 1. This date is earlier than Wall Street economists were expecting.

    On Monday, President Joe Biden called the “big four” congressional leaders — Senate Majority Leader Chuck Schumer, D-N.Y., Senate Minority Leader Mitch McConnell, R-Ky., McCarthy and House Democratic Leader Hakeem Jeffries, N.Y. — to invite them to a May 9 meeting at the White House to discuss the debt limit, a White House official told NBC.

    Jeffries said Sunday that the meeting Biden has organized is “very important” and will help the U.S. find a way forward.

    “We have to avoid default, period,” he told NBC’s “Meet the Press.”

    But for Sen. James Lankford, R-Okla., the meeting about the debt ceiling should have happened much sooner. He said the issue was raised the week after the election in November, and that President Biden’s refusal to negotiate has been “stunning.”

    “Everyone knew this was coming and the president’s refused to be able to negotiate about it,” he told ABC’s “This Week” on Sunday.

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  • Here’s what the SEC will require under its strict new stock buyback disclosure rules

    Here’s what the SEC will require under its strict new stock buyback disclosure rules

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    U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler, testifies before the Senate Banking, Housing and Urban Affairs Committee during an oversight hearing on Capitol Hill in Washington, September 15, 2022.

    Evelyn Hockstein | Reuters

    WASHINGTON — As investors focused this week on earnings and regional banks, the Securities and Exchange Commission quietly adopted new rules that will require public companies to disclose far more information about stock buybacks than they ever have before.

    The new rules “will increase the transparency and integrity” of corporate stock repurchasing overall, and allow investors “to better assess issuer buyback programs,” SEC Chairman Gary Gensler said in a statement about the updated disclosures.

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    Gensler also noted the soaring rate at which U.S. corporate buybacks have grown in recent years, from a total of $950 billion worth in 2021, to more than $1.25 trillion worth last year.

    This year could be just as big. Google parent Alphabet announced last month that its board had approved $70 billion in stock buybacks this year, matching the amount the company spent repurchasing its own shares in 2022. This week, Apple announced plans to buy back even more stock than Google: $90 billion worth this year, on the heels of a previous $90 billion in 2022.

    The new disclosure rules will begin to apply when U.S. corporations report earnings for the fourth quarter of 2023, and to foreign issuers on a slightly longer timeline.

    What public companies will need to disclose

    • A daily log of share repurchase activity, disclosed at the end of each quarter as an exhibit in 10-Q reports and the annual 10-K report.
    • A description of the rationale behind each buyback, and the goals of that buyback. The issuer will also need to explain the criteria it used to determine how many shares to repurchase.
    • Whether certain directors or officers of the company bought or sold any of the shares in question within four days before or after the buyback.
    • More details about company stock trading agreements with their directors and officers, known as 10b5-1 plans. This includes the start and end dates, the total number of shares, and the material terms of these plans.

    Approved by a commission vote of 3-2 on Wednesday, the new rules mark the end of a yearslong battle over how much information the public and shareholders have a right to know about the increasingly common practice of companies repurchasing their own shares.

    They also reflect a bigger debate nationwide about share buybacks, which typically increase the value of a company’s shares by reducing the total number of shares in the market.

    With top executives’ compensation often linked to share price performance metrics, buybacks have emerged in the past decade as a relatively simple, quick means by which to raise a company’s stock price, much simpler in many cases than it is to grow sales, expand operations, or increase profits.

    Markets have also seen an increase in the practice of public companies issuing debt in order to buy back their own shares, a practice that some economists believe poses a threat to the long-term health of the U.S. economy.

    The changes approved Wednesday represent a softening of the SEC’s initial proposed disclosure rules, which would have required public companies to report trades by corporate insiders on a daily basis. The commission said its final decision was influenced by concerns raised in public comments, that daily reporting would be too expensive and time consuming.

    Public interest groups, many of which have become increasingly critical of widespread corporate buybacks, applauded the new rules.

    “Stock buybacks have grown substantially in recent years and increasingly they are used to enrich executives instead of re-investing capital to advance a company’s long-term productivity, profitability, and employee welfare,” said Stephen Hall, legal director at the nonprofit Better Markets. “This final rule will certainly increase the quantity, quality, and timeliness of reporting on these controversial transactions.”

    But industry advocates called the new rules onerous and unfair, and accused the SEC of trying to deter companies from repurchasing their own shares.

    “The commission’s attempt to discourage these commonplace, commonsense transactions via an overly complicated, expensive and unworkable disclosure mandate is … a departure from its mission to enhance capital formation and protect investors,” said Chris Netram, managing vice president of the National Association of Manufacturers.

    On Capitol Hill, bipartisan support for stricter buyback disclosure rules has been apparent since the start of the SEC’s rulemaking process, more than a year ago.

    Capital markets “provide the means by which companies raise capital and invest it productively for the good of their investors, workers, communities, and, ultimately, our country as a whole,” wrote Sens. Tammy Baldwin, D-Wisc., and Marco Rubio, R-Fla., in a letter to Gensler in 2022.

    The explosion of corporate buybacks, they wrote, represented a shift “toward transactions in securities for the purposes of financial engineering over raising capital to invest productively in trade and industry.”

    The SEC has repeatedly stated that it does not have a position on whether corporate share buybacks are good or bad, and that the new disclosure rules merely reflect the growing importance of buybacks as a key element of corporate strategy.

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  • House China committee targets top clothing brands in forced labor inquiry

    House China committee targets top clothing brands in forced labor inquiry

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    A shopper carries a bag of Nike merchandise along the Magnificent Mile shopping district on December 21, 2022 in Chicago, Illinois. 

    Scott Olson | Getty Images

    WASHINGTON — A House committee examining the U.S. government’s economic relationship with China is asking some of the world’s largest clothing companies for information about the use of forced labor during production — a potential violation of U.S. trade law.

    Lawmakers asked retailers Temu, Shein, Nike and Adidas North America about the use of materials and labor sourced from the Xinjiang Uyghur Autonomous region of China, according to letters sent to company leaders on Tuesday. Such practices would constitute violations of the 2021 Uyghur Forced Labor Prevention Act, according to the lawmakers.

    Congress passed the UFLPA with bipartisan support after the State Department determined China is “committing genocide against Uyghurs and other minority groups in Xinjiang.”

    The letters were sent to Rupert Campbell, president of Adidas North America; Qin Sun, president of Temu; Chris Xu, CEO of Shein and John Donahoe, president and CEO of Nike, Inc. They were signed by Reps. Mike Gallagher, R-Wisc., chair of the House Select Committee on the Chinese Communist Party, and Ranking Member Raja Krishnamoorthi, D-Ill.

    “Using forced labor has been illegal for almost a hundred years—but despite knowing that their industries are implicated, too many companies look the other way hoping they don’t get caught, rather than cleaning up their supply chains. This is unacceptable,” Gallagher in a statement. “American businesses and companies selling in the American market have a moral and legal obligation to ensure they are not implicating themselves, their customers, or their shareholders in slave labor.”

    The inquiries also follow a March hearing of the committee that included an expert assessment finding that U.S. companies finance “state-sponsored forced labor programs in the Uyghur region.”

    The lawmakers requested responses to their questions, including the identity of materials suppliers, supply chain policies and audit measures for suppliers, by May 16.

    Representatives for the companies did not immediately respond to requests for comment from CNBC.

    The latest inquiries follow a separate bipartisan effort earlier this week urging the Securities and Exchange Commission to require Shein to certify it does not use Uyghur labor before the company can expand into the U.S. market. Shein has denied the accusation.

    Chinese brands Shein and Temu, which is owned by Chinese parent company PDD Holdings, are also accused of capitalizing on a 90-year-old loophole to avoid tariffs on many goods sold directly to U.S. consumers, the lawmakers said Tuesday.

    The lawmakers say Shein and Temu rely heavily on the de minimus provision of Section 321 of the Tariff Act of 1930 to waive import tariffs if the fair retail value of in the country of shipment does not exceed $800.

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  • Billionaire Stephen Deckoff buys Jeffrey Epstein’s private islands

    Billionaire Stephen Deckoff buys Jeffrey Epstein’s private islands

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    Little St. James Island, one of the properties of financier Jeffrey Epstein, is seen in an aerial view near Charlotte Amalie, St. Thomas, U.S. Virgin Islands July 21, 2019.

    Marco Bello | Reuters

    An investment firm led by the billionaire Stephen Deckoff has bought two private islands in the U.S Virgin Islands previously owned by the late notorious sex criminal Jeffrey Epstein, Deckoff confirmed to CNBC on Wednesday.

    Forbes first reported that Deckoff, the founder of the private equity firm Black Diamond Capital Management, purchased the two islands for $60 million, less than half of their initial asking price.

    One of the islands was used by Epstein to sexually abuse young women for years, according to court filings.

    “Mr. Deckoff plans to develop a state-of-the-art, five-star, world-class luxury 25-room resort that will help bolster tourism, create jobs, and spur economic development in the region, while respecting and preserving the important environment of the islands,” according to a press release about the sale.

    SD Investments, which is led by Deckoff, announced the purchase.

    “A significant portion of the sale proceeds are being paid to the Government of the U.S. Virgin Islands under a previously announced settlement agreement between the government and Mr. Epstein’s estate,” the release said.

    Epstein’s estate and related entities in November agreed to pay the government of the Virgin Islands more than $105 million to settle claims of sex trafficking and child exploitation. That deal required the estate to pay the Virgin Islands half of the proceeds of the sale of the islands, Little St. James and Great St. James, and another $450,000 to address damages on Great St. James, where Epstein had razed the remnants of structures that were hundreds of years told to make room for development.

    During a brief phone interview with CNBC, Deckoff confirmed he had bought the islands.

    “No comment,” he said when asked about his plans for it.

    Deckoff then hung up.

    Little St. James covers more than 70 acres, and Great St. James is more than double the size of its neighbor.

    The purchase was reported on the same day that CNBC revealed that lawyers for the U.S. Virgin Islands and an accuser of Epstein’s will depose JPMorgan Chase CEO Jamie Dimon starting on May 26.

    The USVI and the anonymous woman accused JPMorgan in civil federal lawsuits of benefiting from Epstein’s sex trafficking of young women at his Virgin Islands property. Epstein was for years a customer of JPMorgan Chase, and had millions of dollars in deposits there.

    The bank denies the allegations in the lawsuits. But it kept Epstein as a customer until 2013, five years after he pleaded guilty to a Florida state court charge of soliciting sex for money from an underage girl.

    Multiple women have said they were raped or sexually assaulted on Little St. James, where Epstein had a mansion. They included Virginia Giuffre, who has alleged she was sexually abused there, and in other locations, by Prince Andrew, the younger brother of King Charles of Great Britain.

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    Andrew has denied her claim, but in February 2022 agreed to a confidential settlement with Giuffre to end a civil lawsuit against him in U.S. District Court in Manhattan.

    The USVI’s lawsuit against JPMorgan notes that Epstein “was a resident of the Virgin Islands and he maintained a residence on Little St. James, which he acquired in 1998 and in 2016 he also purchased Great St. James.”

    The islands were collectively valued at $86 million after Epstein’s death in August 2019, when the former friend of Donald Trump and Bill Clinton committed suicide in a Manhattan jail a month after being arrested on federal child sex trafficking charges.

    “The Epstein Enterprise in 1998 acquired Little St. James in the Virgin Islands as the perfect hideaway and haven for trafficking young women and underage girls for sexual servitude, child abuse and sexual assault,” the suit says.

    “Little St. James is a secluded, private island, nearly two miles from St. Thomas with no other residents,” the suit noted. “It can be visited only by private boat or helicopter … Epstein had easy access to Little St. James from the private airfield on St. Thomas, only 10 minutes away by his private helicopter, but the women and children he trafficked, abused, and held there were not able to leave without his permission and assistance, as it was too far and dangerous to swim to St. Thomas.”

    The lawsuit goes on to say that in 2016, Epstein used a straw purchaser to hide Epstein’s identity and bought Great St. James the nearest island to Little St. James.

    “By then, Epstein was a convicted sex offender,” the suit says. “The Epstein Enterprise purchased the island for more than $20 million because its participants wanted to ensure that the island did not become a base from which others could view their activities or visitors.”

    It adds: “By acquiring ownership and control of Great St. James to the exclusion of others, the Epstein Enterprise created additional barriers to prevent those held involuntarily on Little St. James from escaping or obtaining help from others.”

    Epstein’s former paramour and longtime procurer Ghislaine Maxwell was sentenced last June to 20 years in prison for recruiting and grooming teenage girls to be sexually abused by Epstein.

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  • Trump lawyers will not offer witnesses at E. Jean Carroll rape defamation trial

    Trump lawyers will not offer witnesses at E. Jean Carroll rape defamation trial

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    Joe Tacopina, lawyer of former U.S. President Donald Trump, questions former Elle magazine advice columnist E. Jean Carroll before U.S. District Judge Lewis Kaplan as Carroll’s deposition plays on a monitor, during a civil trial where Carroll accuses the former U.S. president in a civil lawsuit of raping her in a department store dressing room in the mid-1990s, and of defamation, in New York, May 1, 2023 in this courtroom sketch.

    Jane Rosenberg | Reuters

    A lawyer for former President Donald Trump said Wednesday said he will not present any witnesses at his civil trial for a lawsuit accusing him of raping the writer E. Jean Carroll in the mid-1990s and defaming her last fall when he again denied her claim.

    Trump’s attorney Joseph Tacopina told Judge Lewis Kaplan that the one expert witness he planned to call to the witness stand is unable to testify due to a health issue.

    On Tuesday, Tacopina said the 76-year-old Trump would not testify before the jury in U.S. District Court in Manhattan. Trump has not appeared in that court since the trial began last week.

    But the presumptive frontrunner for the 2024 Republican presidential nomination was in Scotland on Monday to break ground for a new golf course.

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    A videotape of Trump’s deposition for the case might be played later Wednesday for jurors.

    That tape includes footage from the so-called “Access Hollywood” tape, in which Trump bragged to that show’s then-host Billy Bush about groping and kissing women without their consent.

    “I’m automatically attracted to beautiful women — I just start kissing them, it’s like a magnet. Just kiss. I don’t even wait,” Trump says on that tape, recorded in 2005 when he was taping a segment of the television show “Access Hollywood.”

    “And when you’re a star, they let you do it. You can do anything. “Grab ’em by the p—-,” Trump said.

    Carroll’s sister, Cande Carroll, was due to take the witness stand, followed by Natasha Stoynoff, who claims Trump assaulted her at his Mar-a-Lago club in Palm Beach, Florida, in 2005.  

    Kaplan told jurors Wednesday that they will start deliberations in the case next week.

    Carroll’s lawyers expect to rest their case on Thursday.

    Carroll, 79, alleges that Trump raped her in a dressing room of the Bergdorf Goodman department store in Manhattan after a chance encounter with him there.

    He has denied raping her, or even being in the store with her that date. Trump has also said he would not have even had consensual sex with her because she was not his “type.”

    However, during questioning under oath by Carroll’s lawyer for his deposition, Trump mistook Carroll for his former wife Marla Maples in a photo that shows Carroll and her then-husband John Johnson with Trump and his then-wife Ivana Trump.

    From L-R: Donald Trump, E. Jean Carroll, John Johnson and Ivana Trump at an NBC party, late 1980s.

    Source: U.S. District Court in Manhattan

    Carroll’s lawsuit claims battery by Trump for the alleged rape.

    The criminal statute of limitations for rape has long passed, but a recently enacted New York state law allows adults alleging sexual misconduct to file civil claims within a one-year window if those claims otherwise are barred by the statute of limitations.

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  • Democrats harden their message on the debt ceiling while quietly paving the way for a deal

    Democrats harden their message on the debt ceiling while quietly paving the way for a deal

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    US Senate Majority Leader Chuck Schumer (D-NY) speaks to the press as US House Minority Leader Hakeem Jeffries (D-NY) (L) listens, after meeting with US President Joe Biden at the White House in Washington, DC, on January 24, 2023.

    Andrew Caballero-Reynolds | AFP | Getty Images

    WASHINGTON — Democrats responded to the news that the U.S. could default on its debt as early as June 1 by hardening their public positions, accusing Republicans of holding the nation’s economic welfare hostage to demands for federal budget cuts.

    But behind the scenes, President Joe Biden, Senate Majority Leader Chuck Schumer and House Democratic Leader Hakeem Jeffries have all taken steps in the past day that could pave the way for an 11th hour deal with a small group of Republicans to avert a default, by raising or suspending the nation’s debt limit.

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    The moves underscore a growing disconnect between the political rhetoric of the debt ceiling debate and the private reality of a potentially catastrophic U.S. default that now appears closer than it did just 24 hours ago.

    The White House insisted Tuesday that Biden will not use a meeting he set up with congressional leaders for May 9 to negotiate over the debt ceiling. “He’s going to make it very clear how it is Congress’s constitutional duty to act,” said White House press secretary Karine Jean-Pierre. “He is not going to negotiate on the debt ceiling, that is not going to change.”

    But the very fact that Biden is meeting with House Speaker Kevin McCarthy at all, however, signals a significant change. It comes after months of Biden and the White House demanding that McCarthy produce a Republican budget and agree to take debt default off the table, neither of which the speaker has done.

    Schumer’s maneuvers

    In the Senate, where Democrats have the majority, Schumer ripped a bill House Republicans passed last week. The measure would raise the debt ceiling in exchange for massive cuts to discretionary federal spending. It squeezed through the slim GOP-majority House despite opposition from every Democrat and four Republicans.

    Schumer said the Republican bill “would tear at the fabric of American society, impose dramatic cuts to our public security and cut law enforcement dramatically at a time when we need help from them.” He argued that it would result in the “abandonment of veterans [and] terrible job losses.”

    Yet moments before Schumer delivered his scathing condemnation of the House GOP bill, he entered that same bill onto the Senate calendar under a special rule that allows it to bypass the Senate committee process and move right to the floor for consideration.

    Schumer also moved a separate piece of legislation to the floor – a Democratic bill to suspend the debt limit through Dec. 31, 2024.

    There are two ways for Congress to avoid a looming debt default: The first is by voting to raise the statutory debt limit, currently set at $31.4 trillion. The second is by voting to suspend the limit for a set amount of time, essentially stopping the clock on default.

    For House and Senate Republicans who have promised constituents they will not vote to raise the debt limit without first securing major concessions from Democrats on spending, the option of voting to suspend the debt limit could offer them some room to maneuver without breaking their pledge to voters.

    Later in the day, Schumer told reporters that after the Senate passed a so-called “clean” debt ceiling suspension bill, “then we could use [the House GOP bill) for a proper discussion of the appropriations and budget process.”

    Jeffries and McConnell weigh in

    As Democrats explored their options, Republicans were largely muted on Tuesday. When Senate Minority Leader Mitch McConnell spoke on the Senate floor immediately after Schumer, he did not mention the debt ceiling.

    He later insisted that any negotiations must take place between McCarthy and Biden. “The ultimate solution will be between the Republican House and the president, and the sooner the president and the speaker get about it, the better off the country will be,” McConnell told reporters at a press briefing.

    Speaker of the House Kevin McCarthy (R-CA) speaks at the the New York Stock Exchange (NYSE) in New York City, U.S., April 17, 2023. 

    Brendan Mcdermid | Reuters

    On the House side, plans were also in motion Tuesday to begin work on a way for Democrats to move a bill to raise the debt limit to the floor without the support of GOP majority leadership using a legislative vehicle known as a discharge petition.

    Specifically, Jeffries said in a letter to his Democratic colleagues that Rep. Jim McGovern, D-Mass., “just filed a special rule that would allow for Floor consideration of a bipartisan measure to avoid a dangerous default.”

    “The filing of a debt ceiling measure to be brought up on the discharge calendar preserves an important option,” wrote Jeffries.

    A Democratic discharge petition would still face major hurdles, starting with challenge of convincing at least a half dozen House Republicans to abandon to dramatically cross the aisle to vote for a Democratic bill. If it were to pass the House, any bill would then face the 60-vote filibuster threshold in the Senate.

    Senate math will be further complicated by the ongoing absence of California Democrat Dianne Feinstein, who has been away from Washington since February on a medical absence, with no immediate plans to return.

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  • Sen. Wyden asks billionaire Harlan Crow for list of gifts to Supreme Court Justice Thomas

    Sen. Wyden asks billionaire Harlan Crow for list of gifts to Supreme Court Justice Thomas

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    Harlan Crow, chairman and chief executive officer of Crow Holdings LLC, sits for a photograph at the Old Parkland estate offices in Dallas, Texas, on Friday, Oct. 2, 2015.

    Chris Goodney | Bloomberg | Getty Images

    Sen. Ron Wyden, D-Ore., on Monday asked GOP megadonor Harlan Crow for a complete list of gifts to Supreme Court Justice Clarence Thomas and evidence that the billionaire real estate developer complied with federal tax law in connection with the long-undisclosed largesse to Thomas.

    “This unprecedented arrangement between a wealthy benefactor and a Supreme Court justice raises serious concerns related to federal tax and ethics laws,” Wyden, who heads the Senate Finance Committee, wrote in a six-page letter to Crow.

    Wyden’s letter was sent as Thomas and the Supreme Court itself face criticism following an April 6 report by ProPublica that the chairman of Crow Holdings for more than two decades has treated the conservative justice to luxurious trips worth at least hundreds of thousands of dollars.

    ProPublica also reported on April 13 that a Crow company in 2014 purchased three properties in Savannah, Georgia, from Thomas and his family, including a home where the justice’s mother has lived rent-free for more than a decade.

    The gifted trips to Thomas and his wife, Ginni, were to places such as Indonesia, New Zealand and Greece, with travel on Crow’s private jet and 162-foot superyacht Michaela Rose.

    Thomas had not disclosed any of the gifts from Crow, or the property purchases by him, until they were revealed by ProPublica.

    “The secrecy surrounding your dealings with Justice Thomas is simply unacceptable,” Wyden wrote in his letter to Crow.

    “The American public deserves a full accounting of the full extent of your largesse towards Justice Thomas, including whether these gifts complied with all relevant federal tax and ethics laws,” he wrote.

    Sen. Ron Wyden, D-Ore., speaks during a Senate Finance Committee nomination hearing on Feb. 23, 2021.

    Greg Nash | Pool | Reuters

    The letter asks for a list of all flights Thomas took on any of Crow’s jets, as well as details of those trips. Wyden requested similar details about the justice’s trips on the Michaela Rose and information about the Georgia property purchases.

    He concluded by writing, “Please list any additional gifts or payments with a value in excess of $1,000 made to Justice Thomas or members of his family since he was sworn into the Supreme Court that
    would not be captured by” the prior questions.

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    Wyden’s letter noted that federal tax law requires the giver of a gift to pay any applicable tax.

    “The IRS has long made clear the gift tax applies to the transferor of a gift, including in cases where
    the transferor provides for the ‘use of property’ without expecting to receive something of at
    least equal value in return,” Wyden wrote.

    In addition to asking Crow for evidence related to the possibility of gift taxes being owed by the business, Wyden asked whether Crow claimed business deductions or depreciation for his plane and yacht related to the trips by Thomas.

    Wyden is the ranking Senate Democrat on Congress’ Joint Committee on Taxation.

    Associate Supreme Court Justice Clarence Thomas arrives for the swearing-in ceremony of Judge Neil Gorsuch as an associate Supreme Court justice in the Rose Garden of the White House in Washington, April 10, 2017.

    Joshua Roberts | Reuters

    A spokesman for Crow did not immediately respond to a request for comment from CNBC about Wyden’s letter. Thomas did not immediately respond to a request for comment sent to the Supreme Court’s media affairs office.

    Last week, Sen. Dick Durbin, the Illinois Democrat who is chairman of the Senate Judiciary Committee, invited Supreme Court Chief Justice John Roberts to testify about ethics reform of the high court.

    Durbin’s letter to Roberts noted that “there has been a steady stream of revelations regarding Justices falling short of the ethical standards expected of other federal judges.”

    Roberts has yet to reply to that invitation, Durbin noted over the weekend.

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  • Supreme Court says abortion pill mifepristone will remain broadly available during legal battle

    Supreme Court says abortion pill mifepristone will remain broadly available during legal battle

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    Demonstrators rally in support of abortion rights at the US Supreme Court in Washington, DC, April 15, 2023. 

    Andrew Caballero-Reynolds | AFP | Getty Images

    The Supreme Court on Friday ordered the abortion pill mifepristone to remain broadly available as litigation plays out in a lower court.

    The high court’s decision came in response to an emergency request by the Department of Justice to block lower court rulings that would severely limit access to the medication even in some states where abortion remains legal. 

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    The case will now be heard in the U.S. 5th Circuit Court of Appeals. The appeals court has scheduled oral arguments for Wed., May 17 at 1 p.m. CT.

    Mifepristone has become the flashpoint in the legal battle over abortion since the Supreme Court last summer overturned Roe v. Wade, the landmark 1973 decision that guaranteed abortion nationwide as a constitutional right. 

    Mifepristone, used in combination with another drug called misoprostol, is the most common method to terminate a pregnancy in the U.S., accounting for about half of all abortions.

    President Joe Biden said the court’s decision keeps mifepristone available to women and FDA approved to terminate early pregnancies. Biden said his administration will fight to protect access to mifepristone in the ongoing legal battle in the 5th Circuit Court of Appeals.

    “I continue to stand by [the Food and Drug Administration’s] evidence-based approval of mifepristone, and my administration will continue to defend FDA’s independent, expert authority to review, approve, and regulate a wide range of prescription drugs,” the president said.

    Planned Parenthood President Alexis McGill Johnson said the reproductive health-care provider is relieved by the Supreme Court’s decision.

    But McGill Johnson warned that access to  mifepristone remains in jeopardy as the legal battle plays out in the appeals court.

    “While mifepristone’s approval remains intact and it stays on the market for now, patients and health care providers shouldn’t be at the mercy of the court system,” McGill Johnson said. “Medication abortion is very much still under threat — as is abortion and access to other sexual and reproductive health care.”

    Justices Samuel Alito and Clarence Thomas, both conservatives, opposed the court’s majority decision to grant the emergency request from the DOJ and Danco Laboratories, the distributor of the brand-name version of the drug, Mifeprex.

    The DOJ and Danco, in their emergency requests, told the Supreme Court the restrictions imposed by the lower courts would effectively take mifepristone off the market for months as the FDA adjusted the medication’s labelling to comply with the orders. This would deny women access to an FDA-approved drug that is a safe alternative to surgical abortions, they argued.

    Alito rejected that argument in his dissent. The justice said the FDA could simply use its enforcement discretion as the litigation played out and allow Danco to continue distributing mifepristone.

    The court’s majority decision to maintain the status quo means mifepristone remains available by mail delivery, and women can obtain the prescription medication without having to visit a doctor in person.

    However, in the dozen states that have effectively banned abortion over the past year, the drug will remain largely unavailable. Other states also have restrictions in place that are much tighter than FDA regulations.

    The national legal battle over mifepristone began with a lawsuit filed by a coalition of doctors who oppose abortion, the Alliance for Hippocratic Medicine. Those doctors sought to force the FDA to pull the medication from the U.S. entirely.

    Earlier this month, U.S. District Judge Matthew Kacsmaryk ruled in favor of the antiabortion doctors and issued a sweeping order that would have halted sales of mifepristone nationwide. 

    Days later, the U.S. Fifth Circuit Court of Appeals blocked part of Kacsmaryk’s order and allowed Mifeprex to remain on the market. But the appeals court judges imposed restrictions on the medication that would severely limit access.

    The appeals court blocked mail delivery of the drug, imposed doctors’ visits as a condition to get the medication, and reduced the length of time when women can take the pill to the seventh week of pregnancy. 

    The appeals court judges also suspended the 2019 approval of the generic version of mifepristone. The company that sells the generic version, GenBioPro, told the high court the majority of the nation’s supply of the medication would “disappear overnight” if the appeals court ruling went into effect. 

    GenBioPro said it supplies two-thirds of the mifepristone used in abortions in the U.S.

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  • McCarthy unveils debt ceiling bill that aims to cut big parts of Biden’s agenda

    McCarthy unveils debt ceiling bill that aims to cut big parts of Biden’s agenda

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    House Speaker Kevin McCarthy (R-CA) speaks at a rally marking the 100th day of Republican control of the House in Washington D.C. on April 17, 2023.

    Nathan Posner | Anadolu Agency | Getty Images

    WASHINGTON — House Speaker Kevin McCarthy, R-Calif., on Wednesday released his plan to raise the debt ceiling by $1.5 trillion for about a year while attempting to repeal major components of President Joe Biden’s agenda.

    McCarthy said the bill, called the Limit, Save, Grow Act of 2023, would save American taxpayers more than $4.5 trillion by limiting discretionary spending, retrieving unspent pandemic-related funds, eliminating Biden’s student loan forgiveness plan and cutting funds earmarked for the Internal Revenue Service.

    The cuts would be in exchange for a one-year debt ceiling increase. McCarthy called on Biden and Senate Majority Leader Chuck Schumer, D-N.Y., to “sit down, negotiate and address this crisis” but he did not mention whether the bill has enough support to pass. Biden has refused to negotiate over the debt limit. Extraordinary measures to avoid the first-ever U.S. sovereign debt default are on track to run out this summer.

    “Now that we’ve introduced a clear plan for a responsible debt limit increase, they have no more excuse and refuse to negotiate,” McCarthy said.

    McCarthy did not say when he would bring the bill to a vote in the House. It still wasn’t clear whether he had support within his own caucus to pass the bill. “I never give up, we’ll get them,” he told NBC News on Wednesday.

    Even if the House GOP passes it, the Democratic-controlled Senate would likely kill the measure.

    McCarthy’s announcement comes after days of speculation about the GOP proposal to temporarily raise the debt limit for certain cutbacks, such as a stall on non-defense discretionary spending.

    The House speaker also doubled down on proposals for stricter work requirements for adults without dependents, the repeal of “Biden’s army of 87,000 IRS agents” and the president’s student loan forgiveness program, which could be killed by the Supreme Court. Justices are expected to rule on the student loan program by early summer.

    McCarthy also argued the measures will protect Social Security and Medicare by driving more people into the workforce to pay for it. Yet Democrats say it will hurt millions.

    “Speaker McCarthy’s proposal is not about jobs,” Rep. Frank Pallone, D-N.J., ranking member of the House Energy and Commerce Committee, said after McCarthy’s announcement. “It is a Trojan Horse intended to use red tape and onerous paperwork to kick millions of people off their health insurance because Republicans do not believe in our nation’s social safety net. Republicans are creating a debt crisis to justify these cruel plans.”

    Republicans’ narrow majority in the House means McCarthy can only afford to lose a handful of GOP votes given Democrats’ opposition.

    “Let me be clear, this proposal is dead on arrival,” Pallone said on Wednesday.

    The White House has maintained it will not negotiate on the debt ceiling and that Congress should pass a clean increase and address any budgetary concerns separately. White House press secretary Karine Jean-Pierre on Wednesday said the administration was aware of McCarthy’s plans to release a proposal but condemned it as playing politics around something that is Congress’s “duty.”

    Biden also took on McCarthy’s strategy Wednesday. “MAGA Republicans in Congress are threatening to default on the national debt, the debt that took 230 years to accumulate overall, unless we do what they say,” the president said in a speech in Maryland.

    –CNBC’s Emma Kinery contributed to this report.

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  • Supreme Court says Halkbank not immune from U.S. prosecution for Iran sanctions violations under FSIA

    Supreme Court says Halkbank not immune from U.S. prosecution for Iran sanctions violations under FSIA

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    Halkbank in Istanbul, Turkey.

    Kemel Uzel | Bloomberg | Getty Images

    The Supreme Court ruled Wednesday that Halkbank, which is owned by the government of Turkey, is not immune from criminal indictment in New York federal court under the Foreign Sovereign Immunities Act of 1976 for allegedly violating U.S. economic sanctions on Iran.

    But the Supreme Court kicked back to a federal appeals court the question of whether Halkbank still can claim sovereign immunity from prosecution in the United States under common law.

    That raises the prospect that the Supreme Court will again be asked in the future to rule on the legality of the prosecution.

    The indictment in Manhattan federal court alleges that high-ranking Turkish and Iranian government officials participated in the sanctions evasion scheme with Halkbank and its officers.

    “On Halkbank’s view, a purely commercial business that is directly and majority-owned by a foreign state could engage in criminal conduct affecting U. S. citizens and threatening U. S. national security while facing no criminal accountability at all in U. S. courts,” Justice Brett Kavanaugh wrote in the majority opinion, in which he was joined by six other justices.

    “Nothing in the FSIA supports that result,” Kavanaugh wrote.

    However, the Supreme Court told the U.S. 2nd Circuit Court of Appeals to reconsider a request by Halkbank to toss out the prosecution based on an argument of common law immunity.

    The Supreme Court previously recognized that a civil lawsuit not governed by the FSIA law may still be barred under by foreign sovereign immunity under so-called common law.

    The U.S. government has argued that the bar would not apply to criminal prosecution of a commercial entity such as Halkbank.

    Halkbank did not immediately respond to a request for comment on the Supreme Court’s ruling.

    Justice Neil Gorsuch filed a separate opinion that concurred in part with the majority but also dissented in part. Justice Samuel Alito joined Gorsuch in his opinion, which says it disagreed with the majority’s ruling that “FSIA’s rules apply only in civil cases.”

    “The same statute we routinely use to analyze sovereign immunity in civil cases applies equally
    in criminal ones,” Gorsuch wrote.

    He added that the majority decision “overcomplicates the law for no good reason,” saying that he would have come to the same conclusion that the 2nd Circuit previously reached, “This case against Halkbank may proceed.”

    Halkbank was indicted in October 2019 by a grand jury in Manhattan federal court for allegedly conspiring for years to evade U.S. economic sanctions imposed on Iran by laundering billions of dollars of Iranian oil and gas money.

    At the time of the indictment, then-Assistant Attorney General for National Security John Demers said, “This is one of the most serious Iran sanctions violations we have seen, and no business should profit from evading our laws or risking our national security.”

    In October 2017, a Turkish-Iranian gold trader named Reza Zarrab pleaded guilty to seven criminal counts related to the scheme.

    In January 2018, former Halkbank Deputy General Manager Mehmet Hakan Atilla was convicted at trial of five of the six criminal counts he was charged with.

    Correction: Former Halkbank Deputy General Manager Mehmet Hakan Atilla was convicted In January 2018 at trial of five of the six criminal counts he was charged with. An earlier version misspelled his name.

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  • Trump faces deposition in New York AG Letitia James’ fraud lawsuit

    Trump faces deposition in New York AG Letitia James’ fraud lawsuit

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    Former US president Donald Trump arrives at Trump Tower in New York on April 12, 2023.

    Kena Betancur | AFP | Getty Images

    Donald Trump said he is being deposed Thursday in New York City as part of the state attorney general’s $250 million civil lawsuit alleging widespread fraud by the former president and his company.

    Trump announced on social media overnight that he had “just arrived in Manhattan for a deposition in front of” New York Attorney General Letitia James as part of the sweeping lawsuit.

    In another post Thursday morning, Trump said he was “heading downtown” to be deposed. He accused James of leaking that the appointment was scheduled at 9:30 a.m. ET.

    His trip marks the second time in less than two weeks that he has traveled to the Empire State to respond to court actions against him. The ex-president faces multiple criminal and civil proceedings as he makes a third bid for the Republican presidential nomination.

    Trump previously flew from his home state of Florida to New York to surrender to authorities following his indictment in a separate criminal case centered on hush money payments made before the 2016 presidential election. The former president pleaded not guilty to 34 counts of falsifying business records in that case, which is being prosecuted by Manhattan District Attorney Alvin Bragg.

    Trump is “not only willing but also eager to testify before the Attorney General today,” his attorney, Alina Habba, told CNBC in a statement. “He remains resolute in his stance that he has nothing to conceal, and he looks forward to educating the Attorney General about the immense success of his multi-billion dollar company.”

    James’ office did not immediately respond to a request for comment.

    James filed the civil fraud lawsuit last September against Trump, three of his adult children, the Trump Organization and others. The suit accuses Trump of repeatedly overstating the values of his assets in statements to banks, insurance companies and the IRS in order to obtain better loan and tax terms.

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    In addition to the hefty financial penalty, James wants to bar Trump’s companies from doing business in New York. She also wants to permanently stop Trump, Donald Trump Jr., Eric Trump and Ivanka Trump from serving as an officer of a company in the state.

    Last August, before James filed the fraud suit, Trump sat for a deposition with James’ office and invoked his Fifth Amendment right against self-incrimination more than 400 times.

    Trump’s social media posts ahead of the latest deposition railed against James, the first Black woman to hold her title, as a “racist” and a “lowlife” who was biased against him.

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  • Lawmakers meet with Apple, Disney CEOs as part of talks on competition with China

    Lawmakers meet with Apple, Disney CEOs as part of talks on competition with China

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    High-profile tech and media executives shared their experiences of working in and competing with China with lawmakers who visited California this week.

    A delegation of about 10 members of the House Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party made the trip west to meet with industry leaders and subject matter experts about key areas of concern when it comes to dealing with China.

    Over the three-day trip that kicked off on Wednesday, lawmakers were scheduled to meet with Disney CEO Bob Iger and Apple CEO Tim Cook, as well as high-level executives from Google, Microsoft, Palantir and Scale AI. Also on the agenda were events with a group of producers, screenwriters and former studio executives who have experience working with China, as well as with venture capitalists and Stanford University experts, according to a source close to the committee.

    The trip highlights the key role tech and media industries play in America’s increasingly complex relationship with China. While these industries often rely on the massive audiences and workforces available in China, dependence on the country raises concerns of human rights and free speech issues because of the government’s censorship controls, as well as supply chain risks.

    The trip comes on the heels of a historic meeting in California between House Speaker Kevin McCarthy, R-Calif., and Taiwanese President Tsai Ing-wen on Wednesday. That meeting, which former Speaker Nancy Pelosi, D-Calif., also praised, enraged the leadership of the Chinese Communist Party. The Chinese government called the meeting a “provocation” and promised “resolute actions.”

    In Hollywood, the group of lawmakers from the select committee learned about a range of topics related to competition with China. In a meeting with Disney’s Iger and later at a dinner with unnamed studio executives, censorship of creative content was a big focus, according to the source familiar with the committee’s activities. Executives discussed dealing with self-censorship to try to ensure a movie won’t offend the Chinese government even before filming begins, as well as edit requests they receive from the government in order to show films in the country.

    In Silicon Valley on Thursday, according to the source, Microsoft President Brad Smith gave a presentation about artificial intelligence, warning that there is a narrow gap between the U.S. and China in the development of generative AI, which has been made popular by tools such as ChatGPT. He also discussed rare earth mineral mining and processing, which make up key components in certain tech devices. Smith and executives from Google, Palantir and ScaleAI attended a luncheon with committee members.

    Lawmakers also met with experts from Stanford University, including those from the Gordian Knot Center for National Security Innovation, according to center founding member Steve Blank. In a phone call following the discussion Thursday, Blank said he communicated the need for a defense strategy that involves more public-private partnerships across different industries to get the U.S. up to speed with China. Blank said he was impressed by the bipartisanship and interest he saw from lawmakers in attendance.

    “In general, the questions they asked, you would have been very proud to be an American sitting in that room,” Blank said. “They were bipartisan, and they were to the point and they were very smart. These people understand the issues, and they’re trying to help the country be better.”

    Rep. Ro Khanna, D-Calif., a committee member who represents Silicon Valley, told CNBC in a phone interview ahead of the trip on Tuesday that he was excited for his colleagues to visit his home district. Khanna said it’s always valuable for lawmakers to spend time learning about cutting-edge technologies such as AI, quantum computing and climate tech to better understand how to both regulate and foster it.

    “I think it would be wise for every member of Congress to spend a week in Silicon Valley,” Khanna said. “Technology is going to define so many fields from the economy to national security to our issues of citizenship, and we need people to be immersed in it, at least understanding it.”

    Khanna and others have described the purpose of the trip as primarily a fact-finding mission. While the conversations will likely inform future policymaking and hearings, lawmakers entered the meetings aiming to learn from industry executives on the ground.

    The group was also slated to meet with venture capitalists on Thursday, including Andreessen Horowitz, Khosla Ventures and SV Angel. Khanna expected the VCs would discuss how the government could “better collaborate with the private sector” to stay ahead of China in key areas of emerging technology.

    On Friday, lawmakers were set to discuss cryptocurrency with experts at Stanford before traveling to Cupertino to meet with Cook at Apple’s headquarters, according to the source familiar with the committee’s plans.

    Khanna said he anticipated the business leaders would inform the policymakers of any progress they’ve made in diversifying their supply chains out of China and how they use export revenue from China to invest in the U.S. When it comes to the meeting with Apple’s CEO, Khanna said he expected Cook would “speak candidly about the supply chain issues,” including the complexities and progress of diversifying production outside of China.

    In a phone interview partway through the trip on Thursday, Rep. Haley Stevens, D-Mich., said she saw common themes between the sorts of challenges the tech and media industries face when it comes to China and those facing the automotive industry in her home state.

    “Every meeting we’ve been in, in my opinion, has related back to Michigan’s economy and our ability to manufacture as a country,” Stevens said. “One of the themes that I came into the committee with as a manufacturing champion and as someone who understands the interrelatedness between manufacturing and tech is: What else do we need to do to incentivize and grow industrial policy in the United States of America?” Stevens said. She pointed to the passage of the Chips and Science Act as an example of incentivizing domestic semiconductor manufacturing.

    “Now, we’re looking at other areas specific to supply chain vulnerabilities and weaknesses that are going to impact our economy and, aside from chips, we want to be competitive in quantum and artificial intelligence,” Stevens said.

    — CNBC’s Steve Kovach contributed to this report.

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  • McCarthy meets with Taiwan leader as China threatens ‘actions’ in response

    McCarthy meets with Taiwan leader as China threatens ‘actions’ in response

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    US Speaker of the House Kevin McCarthy (R-CA) (R) speaks with Taiwan President Tsai Ing-wen while arriving for a bipartisan meeting at the Ronald Reagan Presidential Library in Simi Valley, California, on April 5, 2023.

    Frederic J. Brown | Afp | Getty Images

    House Speaker Kevin McCarthy and a bipartisan congressional delegation are meeting Wednesday with Taiwanese President Tsai Ing-wen in Simi Valley, California, in a move that has increased simmering U.S. tensions with China.

    The Republican House speaker is the highest ranking U.S. official to meet with a leader of Taiwan on U.S. soil since 1979.

    Tsai’s meeting with McCarthy follows private meetings she held last week with small groups of U.S. lawmakers. On Friday, she met with three members of the Senate Armed Services Committee in New York City: Sens. Dan Sullivan, R-Alaska, Joni Ernst, R-Iowa, and Mark Kelly, D-Ariz.

    Also on Friday, Tsai met with House Minority Leader Rep. Hakeem Jeffries in his home state of New York.

    Unlike those low-key meetings, however, McCarthy’s afternoon of scheduled events with Tsai will include a group of House members and will feature a public joint appearance covered by the international media.

    Even portions of Wednesday’s meeting that were billed as private became public when McCarthy tweeted a photo of him and Tsai speaking one-on-one.

    The meeting has infuriated China’s Communist Party leadership and prompted veiled threats from Beijing to members of Congress who will be attending the events. China’s government said it planned to take “resolute actions” to respond to the “provocation.”

    In Los Angeles, the Chinese Consulate on Monday warned McCarthy not to “repeat disastrous past mistakes and further damage Sino-U.S. relations.” The consulate was referring to a visit by then-House Speaker Nancy Pelosi (D-Calif.) to Taiwan last August.

    That visit prompted furious condemnation from Beijing, including the launch of live-fire Chinese military drills in the Taiwan Strait just hours after Pelosi departed the self-ruling island, whose population exceeds 24 million people.

    When McCarthy’s predecessor, Nancy Pelosi, D-Calif., visited Taiwan in August, the first House speaker to do so in 25 years, China responded with unprecedented live-fire drills

    China views Taiwan as a province of the Chinese mainland, and it considers any attempt by Taiwan’s leaders to act independently of Beijing as a threat to Chinese sovereignty.

    Tsai’s weeklong trip to the United States is technically unofficial, and is referred to as a “transit,” rather than a visit. But in reality, Tsai’s packed schedule of high-level meetings with U.S. lawmakers would rival that of any official visit by a world leader.

    Tsai’s trip to the United States adds a new strain to the already fragile U.S.-China relationship, weakened in recent years by Beijing’s territorial expansion in the South China Sea and its aggressive effort to control Taiwan.

    Taiwan supporters hold signs during a rally in front of the Westin Bonaventure hotel where Taiwan President Tsai Ing-wen will spend the night ahead of meeting with Kevin McCarthy, in Los Angeles, April 4, 2023. 

    Frederic J. Brown | AFP | Getty Images

    In February, a Chinese reconnaissance balloon flying over the United States sparked a public outcry, until it was shot down by American fighter jets off the East Coast.

    The following month, a U.S. ban on government devices using the social media app TikTok, which is owned by China’s ByteDance, drew an angry rebuke from Beijing.

    This is a developing story, and will be updated throughout the day.

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  • Read the indictment against Donald Trump, details of payments to porn star, Playboy model

    Read the indictment against Donald Trump, details of payments to porn star, Playboy model

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    Former President Donald Trump is charged with 34 felony counts of falsifying business records in connection with a scheme that directed hush money payments to two women before the 2016 presidential election.

    The 16-page indictment against Trump was unsealed Tuesday as he became the first former U.S. president ever to be arraigned on criminal charges.

    “Not guilty,” Trump said from his seat to Judge Juan Merchan during the hearing in Manhattan Supreme Court.

    The indictment says those payments were part of a broader scheme to suppress claims by the women, porn star Stormy Daniels and Playboy model Karen McDougal, that they had sex with Trump, in a bid to keep their stories from affecting Trump’s chances against Democrat Hillary Clinton in the 2016 election.

    Follow CNBC.com‘s live coverage of former President Donald Trump’s surrender and arraignment at the Manhattan criminal courthouse.

    Prosecutors also said a Trump-friendly publishing company, American Media Inc., paid $30,000 to a former Trump Tower doorman who claimed to have a story about Trump fathering a child out of wedlock.

    All three payments were part of an alleged “catch and kill” effort by Trump and others, among them then-AMI chief David Pecker, from August 2015 to December 2017 “to identify, purchase, and bury negative information about him and boost his electoral prospects,” prosecutors said.

    Read the indictment against Trump

    Manhattan District Attorney Alvin Bragg at a press conference said each of the false statements in business records, which related to the payment to Daniels, were done to cover up other crimes related to the 2016 election.

    Those crimes included violations of New York state election law, and false statements to tax authorities, he said. Falsifying business records can be charged as a misdemeanor, but it also can be charged as a felony if done to cover up another crime.

    Merchan scheduled the next hearing in the case for Dec. 4. It is possible that the criminal case will not be resolved before the 2024 presidential election, where Trump is seeking the Republican nomination.

    Bragg in a statement said, “The People of the State of New York allege that Donald J. Trump repeatedly and fraudulently falsified New York business records to conceal crimes that hid damaging information from the voting public during the 2016 presidential election.”

    “Manhattan is home to the country’s most significant business market. We cannot allow New York businesses to manipulate their records to cover up criminal conduct,” Bragg said.

    A prosecutor told the judge that the DA’s office was concerned about comments Trump has made on social media that could threaten the DA’s office and the city.

    That included one post depicting Trump wielding a bat over the head of District Attorney Alvin Bragg.

    The judge said that he was taking the harsh rhetoric by Trump about the case very seriously.

    One of Trump’s lawyers, Todd Blanche, told Merchan that Trump has spoken forcefully, but that he was within his rights to do so.

    Before the arraignment, Trump’s son, Donald Trump Jr., posted a photo on Trump’s Truth Social site of Merchan’s daughter, who according to a Breitbart news article worked on the election campaign of President Joe Biden.

    “Seems relevant,” the younger Trump wrote. “The BS never ends folks.”

    Hush money payments

    Daniels received $130,000 from Trump’s then-lawyer and fixer Michael Cohen at Trump’s direction, 12 days before the 2016 election. Daniels, whose legal name is Stephanie Clifford, says she had sex with Trump one time in 2006, several months after his wife Melania Trump gave birth to their son Barron.

    Trump later reimbursed Cohen with a series of monthly checks, 11 in total. The checks first were issued by the Donald J. Trump Revocable Trust, while later ones came from Trump’s bank account, prosecutors said.

    Nine of the checks were signed by Trump, and “Each check was processed by the Trump Organization and illegally disguised as a payment for legal services rendered pursuant to a non-existent retainer agreement” with Cohen.

    Former U.S. President Donald Trump appears in court with his lawyer Joe Tacopina for an arraignment on charges stemming from his indictment by a Manhattan grand jury following a probe into hush money paid to porn star Stormy Daniels, in New York City, U.S., April 4, 2023. 

    Andrew Kelly | Reuters

    McDougal received $150,000 from AMI, the publisher of The National Enquirer, the supermarket tabloid that was allied with Trump. McDougal has said she had a long-term affair with Trump that began in 2006.

    Trump denies having sex with either Daniels or McDougal.

    Cohen pleaded guilty in 2018 to federal crimes, two of which were campaign finance violations for facilitating the payments to both Daniels and McDougal.

    The grand jury indicted Trump on Thursday. The charging document had remained sealed since then.

    The grand jury began hearing testimony in the case in late January.

    News of the proceedings came as a surprise, since a former prosecutor in the district attorney’s office last year had suggested the investigation into Trump was all but dead after Bragg declined to seek an indictment against Trump in connection with allegedly false financial statements involving real estate assets.

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    Trump separately is under criminal investigation by the Department of Justice and a state prosecutor in Georgia for efforts to reverse his 2020 election loss to President Joe Biden.

    The DOJ also is probing Trump for retaining government records after leaving the White House and for possible obstruction of justice.

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  • Janet Yellen says OPEC+ production cut is an ‘unconstructive act’

    Janet Yellen says OPEC+ production cut is an ‘unconstructive act’

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    U.S. Secretary of the Treasury Janet Yellen delivers opening remarks during an event highlighting “anti-corruption work as a cornerstone of a fair, accountable, and democratic economy” as part of the 2023 Summit for Democracy at the Treasury Department on March 28, 2023 in Washington, DC.

    Alex Wong | Getty Images

    WASHINGTON — Treasury Secretary Janet Yellen said the surprise OPEC+ oil production cut announced Sunday was an “unconstructive act,” which could hurt U.S. efforts to lower inflation.

    “I think it’s a regrettable action that OPEC decided to take. I’m not sure yet just what the price impact will be, I think we need to wait a little longer for, you know, to really assess that,” Yellen told reporters Monday following an event at Yale University in New Haven, Conn.

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    Yellen also said the production cuts could, in the future, merit a reassessment of the current $60 per barrel price cap on Russian oil shipped in Western tankers. But she said that raising the cap was not necessary for now.

    The voluntary cuts amount to more than 1 million barrels per day, beginning in May and running until the end of 2023, Saudi Arabia announced. The kingdom’s Energy Ministry called it a “precautionary measure” that aims to stabilize the oil market.

    In Washington, the Biden administration sharply criticized the cuts.

    “We don’t think cuts are advisable at this moment, given market uncertainty — and we’ve made that clear,” National Security Council spokesman John Kirby said Monday. He added that the United States received advance notice of the OPEC announcement.

    The OPEC cut follows Russia’s recent decision to trim oil production by 500,000 barrels per day until the end of 2023.

    — CNBC’s Kayla Tausche contributed to this report

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