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Tag: company strategy

  • Andrew Yang Fast Facts | CNN Politics

    Andrew Yang Fast Facts | CNN Politics



    CNN
     — 

    Here is a look at the life of Andrew Yang, entrepreneur and former 2020 Democratic presidential candidate.

    Birth date: January 13, 1975

    Birth place: Schenectady, New York

    Birth name: Andrew M. Yang

    Father: Kei-Hsiung Yang, researcher at IBM and GE

    Mother: Nancy L. Yang, systems administrator

    Marriage: Evelyn (Lu) Yang (2011-present)

    Children: Two sons

    Education: Brown University, B.A. in Economics, 1996; J.D. Columbia University School of Law, 1999

    Religion: Protestant

    His parents are originally from Taiwan.

    The primary proposal for his political platform was the idea of universal basic income (UBI). This “Freedom Dividend” would have provided every citizen with $1,000 a month, or $12,000 a year.

    Yang established Freedom Dividend, a pilot program to push for universal basic income, in which he personally funds monthly cash payments.

    Is featured in the 2016 documentary, “Generation Startup.”

    His campaign slogan was “MATH,” or “Make America Think Harder.”

    In 1992, he traveled to London as a member of the US National Debate Team.

    After graduating from Columbia, Yang practiced law for a short time before changing his career focus to start-ups and entrepreneurship.

    2002-2005Vice president of a healthcare start-up.

    2006-2011Managing director, then CEO, of Manhattan Prep, a test-prep company.

    2009Kaplan buys Manhattan Prep for more than $10 million.

    September 2011 Founds Venture for America, a non-profit which connects recent college graduates with start-ups. Leaves the company in 2017.

    2012 Is recognized by President Barack Obama as a “Champion of Change.”

    April 2012Ranks No. 27 on Fast Company’s list of 100 Most Creative People in Business.

    February 4, 2014 His book, “Smart People Should Build Things: How to Restore Our Culture of Achievement, Build a Path for Entrepreneurs, and Create New Jobs in America,” is published.

    May 11, 2015Obama names Yang an ambassador for global entrepreneurship.

    November 6, 2017 Files FEC paperwork for a 2020 presidential run.

    February 2, 2018Announces his run for president via YouTube and Twitter.

    April 3, 2018His book, “The War on Normal People,” is published.

    March 2019 Yang explores the possibility of using a 3D hologram to be able to campaign remotely in two or three places at once.

    January 4, 2020 – Launches a write-in campaign for the Ohio Democratic primary in March of 2020 after failing to fully comply with the state’s ballot access laws.

    February 11, 2020 – In New Hampshire, Yang suspends his presidential campaign.

    February 19, 2020 – CNN announces that Yang will be joining the network as a political commentator.

    March 5, 2020 – Launches Humanity Forward, a nonprofit group that will “endorse and provide resources to political candidates who embrace Universal Basic Income, human-centered capitalism and other aligned policies at every level,” according to its website. Yang also announces that he will launch a podcast.

    December 23, 2020 – Files paperwork to participate in New York’s 2021 mayoral race, according to city records.

    January 13, 2021 – Yang announces his candidacy for New York City mayor.

    June 22, 2021 Yang concedes the New York City mayoral race.

    October 4, 2021 – Yang announces in a blog post that he is “breaking up” with the Democratic Party and has registered as an independent

    July 27, 2022 – Yang, along with former New Jersey Gov. Christine Todd Whitman, and a group of former Republican and Democratic officials form a new political party called Forward.

    September 12, 2023 – Yang’s political thriller “The Last Election,” co-written with Stephen Marche, is published.

    2020 hopeful wants holograms to campaign in multiple cities

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  • Wilbur Ross Fast Facts | CNN Politics

    Wilbur Ross Fast Facts | CNN Politics



    CNN
     — 

    Here’s a look at the life of former Commerce Secretary Wilbur L. Ross Jr.

    Birth date: November 28, 1937

    Birth place: Weehawken, New Jersey

    Birth name: Wilbur Louis Ross Jr.

    Father: Wilbur Louis Ross Sr., a lawyer

    Mother: Agnes (O’Neill) Ross, a teacher

    Marriages: Hilary (Geary) Ross (October 9, 2004); Betsy (McCaughey) Ross (December 7, 1995-August 2000, divorced); Judith (Nodine) Ross (May 26, 1961-October 1995, divorced)

    Children: with Judith Nodine: Jessica and Amanda

    Education: Yale University, A.B., 1959, Harvard University, M.B.A., 1961

    He was called the “King of Bankruptcy,” as he built new companies from the assets of defaulted ones.

    Ross was known for investing in distressed companies in a wide range of industries including auto parts, steel, textiles and financial services.

    1976-2000 – Works for the investment bank Rothschild Inc. During his tenure, he becomes a top bankruptcy adviser.

    January 1998 – Pledges $2.25 million towards then-wife and Lt. Governor Betsy McCaughey Ross’ campaign for governor of New York. He withdraws the funding in September and files for divorce in November.

    2000 – Purchases a small fund he started at Rothschild and opens his own private equity firm, WL Ross & Co. LLC.

    2002 – Establishes the International Steel Group (ISG), with himself as chairman of the board, through a series of mergers and acquisitions starting with Bethlehem Steel Corp.

    December 2003 – ISG goes public.

    2004 – Forms the International Coal Group (ICG) after purchasing the assets of Horizon Natural Resources in a bankruptcy auction.

    October 2004 – Merges ISG with Mittal Steel for $4.5 billion.

    January 2, 2006 – Twelve miners are killed after an explosion at a West Virginia mine operated by an ICG subsidiary. Families of the dead and Randal McCloy, the lone survivor, sue ICG and WL Ross claiming negligence. All of the lawsuits are settled by November 2011.

    April 2010 – Purchases a 21% stake in Richard Branson’s Virgin Money. In November 2011, Ross helps Branson fund a successful bid for the British bank Northern Rock.

    August 2, 2010 – During an interview with Charlie Rose, Ross states that he’s fine with higher taxes on the wealthy as long as the government puts the money to good use.

    June 2011 – Arch Coal, Inc. acquires ICG for $3.4 billion.

    September 2011 – WL Ross is one of five US and Canadian companies that purchase a 34.9% stake in the Bank of Ireland. Ross’ share is reportedly 9.3%.

    March 21, 2016 – Nexeo Solutions, a chemical distribution company, announces their merger agreement with WL Ross Holding Corporation. The merger is valued at nearly $1.6 billion.

    August 24, 2016 – The Securities and Exchange Commission announces that WL Ross will pay a $2.3 million fine for failing to properly disclose fees it charged.

    November 30, 2016 – Ross announces in a CNBC interview that President-elect Donald Trump has asked him to serve as his commerce secretary.

    February 27, 2017 – The Senate confirms Ross as commerce secretary by a 72-27 vote. He is sworn in the next day.

    November 5, 2017 – The New York Times reports that Ross has financial ties to a shipping company whose clients include a Russian energy company co-owned by Russian President Vladimir Putin’s son-in-law. Another customer of the shipping company is Venezuela’s state-run oil company, which has been sanctioned by the US government. The information comes from the Paradise Papers, a release of 13.4 million leaked documents.

    November 7, 2017 – Two days after the Paradise Papers are released, Forbes reports that Ross inflated his net worth to be included in the magazine’s annual list of the world’s wealthiest individuals. His name is removed from the magazine’s website. An investigation by the magazine reveals that Ross has likely been providing inaccurate financial information since 2004. Ross claims that the magazine overlooked trusts for his family while tallying his fortune.

    March 2, 2018 – During an appearance on CNBC, Ross says the Trump administration’s steel and aluminum tariffs won’t hurt consumers. He holds up a can of Campbell’s soup as he explains that the price of soup will go up less than a penny due to the tariffs.

    March 26, 2018 – Ross announces that a citizenship question will be added to the 2020 census.

    July 12, 2018 – Ross admits to “errors” in failing to divest assets required by his government ethics agreement and says he will sell all his stock holdings. The admission comes after the Office of Government Ethics took Ross to task for what it said were inconsistencies in his financial disclosure forms.

    September 21, 2018 – A federal judge rules that Ross must sit for a deposition in a lawsuit regarding his department’s decision to include a question about citizenship in the 2020 census. The US Supreme Court later blocks the deposition.

    December 19, 2018 – The Center for Public Integrity reports that Ross failed to sell a bank stock holding within the required time frame after his 2017 confirmation and subsequently signed ethics documents indicating the holding had been sold.

    February 15, 2019 – Ross’ financial disclosure form is rejected by the Office of Government Ethics. Ross later releases a statement saying, “While I am disappointed that my report was not certified, I remain committed to complying with my ethics agreement and adhering to the guidance of Commerce ethics officials.”

    June 27, 2019 – The Supreme Court issues a 5-4 ruling that blocks the citizenship question from being added to the census.

    July 17, 2019 – The House votes to hold Ross in criminal contempt over a dispute related to the citizenship question on the census. Attorney General William Barr is also held in contempt. Ross releases a statement in which he dismisses the vote as a political stunt. “House Democrats never sought to have a productive relationship with the Trump Administration, and today’s PR stunt further demonstrates their unending quest to generate headlines instead of operating in good faith with our Department.”

    July 18, 2020 – A department spokesman says that Ross has been hospitalized for “minor, non-coronavirus related issues.” On July 27, the Commerce Department says Ross has been released from the hospital.

    September 28, 2020 – Ross announces that he intends to conclude the 2020 census on October 5. This is more than three weeks earlier than expected and against the October 31 court reinstated end date. Ross asks Census Bureau officials if the earlier date would effectively allow them to produce a final set of numbers during Trump’s current term in office, according to an internal email released the following day as part of a lawsuit.

    October 13, 2020 – The Supreme Court grants a request from the Trump administration to halt the census count while an appeal plays out over a lower court’s order that it continue. The Census Bureau announces that the count is ending on October 15.

    July 19, 2021 – According to a letter made public from Commerce Department Inspector General Peggy Gustafson to Democratic lawmakers, the Justice Department decides to decline prosecution of Ross for misrepresentations he made to Congress about the origins of the Trump administration’s failed push to add a citizenship question to the 2020 census.

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  • Screen Actors Guild Fast Facts | CNN

    Screen Actors Guild Fast Facts | CNN



    CNN
     — 

    Here’s a look at the Screen Actors Guild. In 2012, a merger was completed between the Screen Actors Guild (SAG) and the American Federation of Television and Radio Artists (AFTRA). The SAG-AFTRA labor union has more than 160,000 members.

    June 30, 1933 – Articles of incorporation are filed. The guild is formed to get better working conditions for actors.

    1935 – Granted an American Federation of Labor charter.

    May 1937 – In order to prevent a strike, producers sign a contract with the guild ensuring minimum pay and recognizing the guild.

    1943 – Actress Olivia de Havilland sues Warner Brothers studio for extending her contract. She later wins her case.

    1945 – The US Supreme Court hands down the “de Havilland decision,” which declares that studios may no longer hold contract players for more than seven years. This breaks up the system of the studio maintaining control over an actor’s career.

    1952 – The Guild signs its first contracts for filmed television programs.

    December 1, 1952-February 18, 1953 – The first SAG strike is over filmed television commercials. The strike ends with a contract that covers all work in commercials.

    August 5-15, 1955 – SAG holds its second strike. This time for increased television show residuals.

    March 7, 1960-April 18, 1960 – Third strike over residuals for feature films sold, licensed, or released to television.

    December 19, 1978-February 7, 1979 – SAG strikes for better residuals on television advertisements.

    July 21, 1980-October 23, 1980 – SAG strikes with the American Federation of Television and Radio Artists (AFTRA). This strike centers on the distribution of profits from pay television and video cassette production.

    March 21, 1988-April 15, 1988 – SAG and AFTRA television commercials strike. The strike is over payment for commercials appearing on cable TV.

    February 25, 1995 – The first annual Screen Actors Guild Awards show is held.

    May 1, 2000-October 30, 2000 – SAG and AFTRA strike against the advertising industry over commercial work compensation for basic cable and internet.

    July 1, 2008 – SAG’s TV/theatrical agreement expires.

    November 22, 2008 – Talks between SAG and the Alliance of Motion Picture & Television Producers (AMPTP) end after federal mediation fails to jumpstart a five-month stalemate.

    January 26, 2009 – SAG chief negotiator Doug Allen is fired in a bid by the union’s moderate faction to re-enter contract talks with the studios.

    April 19, 2009 – SAG leadership split 53% – 47% to accept a new two-year contract with AMPTP.

    June 9, 2009 – Members ratify the two-year contract covering television and motion pictures.

    January 29, 2012 – Ken Howard, president of the guild, announces during the SAG Awards, that the merger between SAG and AFTRA has been approved by both groups.

    March 30, 2012 – The merger of SAG and AFTRA is completed with more than 80% approval from both unions. The one union is named SAG-AFTRA.

    January 27, 2013 – The first SAG Awards are held under the union banner “SAG-AFTRA One Union.”

    March 23, 2016 – SAG-AFTRA President Ken Howard dies. Executive Vice President Gabrielle Carteris assumes his duties until the regularly scheduled national board meeting April 9.

    April 9, 2016 – Carteris is elected president. She will serve the balance of Howard’s unexpired term, which ends in 2017.

    August 24, 2017 – Carteris is elected to a two-year term as president.

    February 10, 2018 – SAG-AFTRA introduces new guidelines for members, called “Four Pillars of Change,” aimed at fighting sexual harassment in the workplace.

    September 2, 2021 – Actress Fran Drescher is elected to a two-year term as president.

    July 14, 2023 – SAG-AFTRA goes on strike after talks with major studios and streaming services have failed. It is the first time its members have stopped work since 1980. On November 8, SAG-AFTRA and the studios reach a tentative agreement, officially ending the strike.

    Ralph Morgan 1933, 1938-1940
    Eddie Cantor 1933-1935
    Robert Montgomery 1935-1938, 1946-1947
    Edward Arnold 1940-1942
    James Cagney 1942-1944
    George Murphy 1944-1946
    Ronald Reagan 1947-1952, 1959-1960
    Walter Pidgeon 1952-1957
    Leon Ames 1957-1958
    Howard Keel 1958-1959
    George Chandler 1960-963
    Dana Andrews 1963-1965
    Charlton Heston 1965-1971
    John Gavin 1971-1973
    Dennis Weaver 1973-1975
    Kathleen Nolan 1975-1979
    William Schallert 1979-1981
    Ed Asner 1981-1985
    Patty Duke 1985-1988
    Barry Gordon 1988-1995
    Richard Masur 1995-1999
    William Daniels 1999-2001
    Melissa Gilbert 2001-2005
    Alan Rosenberg 2005-2009
    Ken Howard 2009-2016
    Gabrielle Carteris-2016-2021
    Fran Drescher 2021-present

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  • Rite Aid is closing nearly 100 stores as part of its bankruptcy. See the list | CNN Business

    Rite Aid is closing nearly 100 stores as part of its bankruptcy. See the list | CNN Business


    New York
    CNN
     — 

    Rite Aid, which had filed for Chapter 11 bankruptcy protection, is now preparing to shed almost 100 stores nationwide as part of its restructuring efforts.

    The first tranche of stores to be sold — both leased and owned — is located in nine states, according to A&G Real Estate Partners, which is advising the drug store chain on its real estate portfolio. The states include California (17 stores), Maryland (4), Michigan (16), New Jersey (8), New York (17), Ohio (4), Oregon (2), Pennsylvania (17), New Hamphire (2) and Washington (10), Alabama (1), Idaho (1).

    The writing has been on the wall for some time for Rite Aid, the third-biggest standalone pharmacy chain in the US, as the entire drug store retail sector struggles to compete with Amazon and big-box chains like Walmart, Target and Costco moving deeper into the space and offering more customer-friendly alternatives to the nationwide pharmacy chains.

    Compounding its problems were legal troubles stemming from accusations of filing unlawful opioid prescriptions for customers.

    Rite Aid is in much worse financial shape than its competitors. Over the past six years, Rite Aid has tallied nearly $3 billion in losses.

    While it has secured $3.5 billion in financing and debt reduction agreements from lenders to keep the company afloat through its bankruptcy, Rite Aid said it would accelerate store closures and sell off some of its businesses, including prescription benefit provider Elixir Solutions. Bankruptcy could also help resolve the company’s legal disputes at a vastly reduced cost.

    As it reevaluates its portfolio of stores, these are the Rite Aid locations that are currently up for sale:

    • SEC Alabama Ave. & Pike St. in Monroeville, Alabama
    • 920 East Valley Blvd in Alhambra, California
    • 571 Bellevue Road in Atwater, California
    • 3029 Harbor Blvd. in Costa Mesa, California
    • 139 North Grand Ave. in Covina, California
    • 20572 Homestead Road in Cupertino, California
    • 24829 Del Pradoin Dana Point, California
    • 7859 Firestone Blvd. in Downey, California
    • 8509 Irvine Center Drive in Irvine, California
    • 15800 Imperial Hwy. in La Mirada, California
    • 30222 Crown Valley Pkwy. in Laguna Niguel, California
    • 4046 South Centinela Ave. in Los Angeles, California
    • 499 Alvarado St. in Monterey, California
    • 1670 Main St. in Ramona, California
    • 1309 Fulton Ave. in Sacramento, California
    • 901 Soquel Ave. in Santa Cruz, California
    • 19701 Yorba Linda Blvd. in Yorba Linda, California
    • 25906 Newport Road in Menifee, California
    • 1600 North Main St. in Meridian, Idaho
    • 5808 Ritchie Hwy. in Baltimore, Maryland
    • 5 Bel Air South Pkwy. in Bel Air, Maryland
    • 728 East Pulaski Hwy. in Elkton, Maryland
    • 7501 Ritchie Hwy. In Glen Burnie, Maryland
    • 35250 South Gratiot Ave. in Clinton Township, Michigan
    • 36485 Garfield Road. in Clinton Township, Michigan
    • 1900 East 8 Mile Road. in Detroit, Michigan
    • 25922 Middlebelt Road. in Farmington Hills, Michigan
    • 924 West Main St. in Fremont, Michigan
    • 715 South Clinton St. in Grand Ledge, Michigan
    • 3100 East Michigan Ave. in Jackson, Michigan
    • 15250 24 Mile Road in Macomb, Michigan
    • 1243 U.S. 31 South in Manistee, Michigan
    • 15181 Telegraph Road in Redford, Michigan
    • 320 N Main St. in Redford, Michigan
    • 51037 Van Dyke Ave. in Shelby Township, Michigan
    • 109 North Whittemore St. in St. Johns, Michigan
    • 102 North Centerville Road in Sturgis, Michigan
    • 9155 Telegraph Road in Taylor, Michigan
    • 47300 Pontiac Trail in Wixom, Michigan
    • 205-209 Main St. in Berlin, New Hampshire
    • Grove St. and Route 101 in Peterborough, New Hampshire
    • 37 Juliustown Road in Browns Mills, New Jersey
    • 1426 Mount Ephraim Ave. in Camden, New Jersey
    • 1636 Route 38, Suite 49 in Lumberton, New Jersey
    • 210 Bridgeton Pike in Mantua, New Jersey
    • 108 Swedesboro Road in Mullica Hill, New Jersey
    • Route 33 and Robbinsville- Edinburg Road in Robbinsville, New Jersey
    • 773 Hamilton St. in Somerset, New Jersey
    • 1434 South Black Horse Pike in Williamstown, New Jersey
    • 836 Sunrise Hwy. in Bay Shore, New York
    • 452 Main St. in Buffalo, New York
    • 15 Arnold St. in Buffalo, New York
    • 901 Merrick Road in Copiague, New York
    • 577 Larkfield Road in East Northport, New York
    • 2 Whitney Ave. in Floral Park, New York
    • 115-10 Merrick Blvd. in Jamaica, New York
    • 2453 Elmwood Ave. in Kenmore, New York
    • 3131 Hempstead Turnpike in Levittown, New York
    • 700-43 Patchogue-Yaphank in Medford, New York
    • 4188 Broadway in New York, New York
    • 195 8th Ave. in New York, New York
    • 1033 St. Nicholas Ave. in New York, New York
    • 593 Old Town Road in Port Jefferson, New York
    • 101 Main St. in Sayville, New York
    • 65 Route 111 in Smithtown, New York
    • 397 Sunrise Hwy. in West Patchogue, New York
    • 120 South Main St. in New Carlisle, Ohio
    • Euclid & Strathmore in East Cleveland, Ohio
    • 1204 Gettysburg Ave. in Dayton, Ohio
    • 2323 Broadview Road in Cleveland, Ohio
    • 981 Medford Center in Medford, Oregon
    • 4346 N.E. Cully Blvd. in Portland, Oregon
    • 2722 West 9th St. in Chester, Pennsylvania
    • 5990 University Blvd. in Coraopolis, Pennsylvania
    • 1709 Liberty Ave. in Erie, Pennsylvania
    • 6090 Route 30 in Greensburg, Pennsylvania
    • 301 Eisenhower Drive in Hanover, Pennsylvania
    • 1730 Wilmington Road in New Castle, Pennsylvania
    • 700 Stevenson Blvd. in New Kensington, Pennsylvania
    • 350 Main St. in Pennsburg, Pennsylvania
    • 5612 North 5th St. in Philadelphia, Pennsylvania
    • 2401 East Venango St. in Philadelphia, Pennsylvania
    • 3000-02 Reed St. in Philadelphia, Pennsylvania
    • 7941 Oxford Ave. in Philadelphia, Pennsylvania
    • 136 North 63rd St. in Philadelphia, Pennsylvania
    • 10 South Center St. in Pottsville, Pennsylvania
    • 351 Brighton Ave. in Rochester, Pennsylvania
    • 208 East Central Ave. in Titusville, Pennsylvania
    • SR 940 and Main St. in White Haven, Pennsylvania
    • 3620 Factoria Blvd SE in Bellevue, Washington
    • 11919 NE 8th St in Bellevue, Washington
    • 222 Telegraph Road in Bellingham, Washington
    • 1195 Boblett St. in Blaine, Washington
    • 17125 SE 272nd St. in Covington, Washington
    • 10103 Evergreen Way in Everett, Washington
    • 2518 196th St SW in Lynnwood, Washington
    • 3202 132nd St., S.E. in Mill Creek, Washington
    • 601 South Grady Way in Renton, Washington
    • 2707 Rainier Ave. in South Seattle, Washington

    – CNN’s David Goldman contributed to this story

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  • Biden heads to Vietnam in latest attempt to draw one of China’s neighbors closer to the US | CNN Politics

    Biden heads to Vietnam in latest attempt to draw one of China’s neighbors closer to the US | CNN Politics


    Hanoi, Vietnam
    CNN
     — 

    President Joe Biden will arrive at Chinese leader Xi Jinping’s doorstep on Sunday with a deal in hand to draw yet another one of China’s neighbors closer to the United States.

    In just the last five months, Biden has hosted the Philippines’ president at the White House for the first time in over a decade; he has fêted the Indian prime minister with a lavish state dinner; and he has hosted his Japanese and South Korean counterparts for a summit ripe with symbolism at the storied Camp David presidential retreat.

    At each turn, Biden’s courtship and his team’s steadfast diplomacy have secured stronger diplomatic, military and economic ties with a network of allies and partners joined if not by an outright sense of alarm at China’s increasingly aggressive military and economic posture, then at least by a growing sense of caution and concern.

    The latest page in the US’s Indo-Pacific playbook will come via the establishment of a “comprehensive strategic partnership” that will put the US on par with Vietnam’s highest tier of partners, including China, according to US officials familiar with the matter.

    “It marks a new period of fundamental reorientation between the United States and Vietnam,” a senior administration official said ahead of Biden’s arrival in Hanoi, saying it would expand a range of issues between the two countries.

    “It’s not going to be easy for Vietnam, because they’re under enormous pressure from China,” the official went on. “We realize the stakes and the President is going to be very careful how he engages with Vietnamese friends.”

    The US’ increasingly tight-knit web of partnerships in the region is just one side of the US’s diplomatic strategy vis-à-vis China. On a separate track, the Biden administration has also pursued more stable ties and improved communication with Beijing over the last year, with a series of top Cabinet secretaries making the trip to the Chinese capital in just the last few months.

    The latter part of that playbook has delivered fewer results thus far than Biden’s entreaties to China’s wary neighbors, a dichotomy that was on stark display as Biden attended the G20 in New Delhi, while Chinese leader Xi Jinping did not.

    The president did not appear overly concerned when questioned Saturday about his Chinese counterpart’s absence at the summit.

    “It would be nice to have him here,” Biden said, with Modi and a handful of other world leaders by his side. “But, no, the summit is going well.”

    As Biden and Xi jockey for influence in Asia and beyond, merely showing up can be seen as a power play and Biden sought to make the most of Xi’s absence, seizing the opening to pitch the United States’ sustained commitment both to the region and to developing nations around the world.

    In Vietnam, it’s not only China whose influence Biden is competing with. As he arrived, reports suggested Hanoi was preparing a secret purchase of weapons from Russia, its longtime arms supplier.

    On Monday, Biden plans to announce steps to help Vietnam diversify away from an over-reliance on Russian arms, a senior administration official said.

    As China’s economy slows down and its leader ratchets up military aggressions, Biden hopes to make the United States appear a more attractive and reliable partner. In New Delhi, he did so by wielding proposals to boost global infrastructure and development programs as a counterweight to China.

    Beijing and Moscow have both condemned a so-called “Cold War mentality” that divides the world into blocks. The White House insists it is seeking only competition, not conflict.

    Still, the desire to pull nations into the fold has been evident.

    Traffic whizzes through Hanoi's old quarter

    On Saturday, Biden held a photo op with the leaders of India, Brazil and South Africa – three members of the BRICS grouping that Xi has sought to elevate as a rival to US-dominated summits like the G20.

    If there is a risk in that approach, it is leaving nations feeling squeezed by rival giants. For Biden, however, there is an imperative in at least offering poorer nations an alternative to China when it comes to investments and development.

    But increasingly, China’s neighbors – like Vietnam – are seeking a counterweight to Beijing’s muscular and often unforgiving presence in the region, even if they are not prepared to entirely abandon China’s sphere of influence in favor of the US’.

    “We’re not asking or expecting the Vietnamese to make a choice,” the senior administration official said. “We understand and know clearly that they need and want a strategic partnership with China. That’s just the nature of the beast.”

    Days before Biden’s visit and the expected strategic partnership announcement, China sent a senior Communist Party official to Vietnam to enhance “political mutual trust” between the two communist neighbors, the official Chinese Xinhua news agency reported.

    Asked about Biden’s upcoming visit to Vietnam, China’s Foreign Ministry on Monday warned the US against using its relations with individual Asian countries to target a “third party.”

    “The United States should abandon Cold War zero-sum game mentality, abide by the basic norms of international relations, not target a third party, and not undermine regional peace, stability, development and prosperity,” ministry spokesperson Mao Ning told a daily briefing.

    Vietnam has also sought to maintain good ties with China. Its Communist Party chief was the first foreign leader to call on Xi in Beijing after the Chinese leader secured an unprecedented third term last October. In June, Vietnam’s prime minister met Xi during a state visit to China.

    Secretary of State Antony J. Blinken meets with Chairman of the Communist Party of Vietnam's Commission for External Relations Le Hoai Trung at the Department of State.

    But even as it seeks to avoid China’s wrath, Vietnam is increasingly pulled toward the US out of economic self-interest – its trade with the US has ballooned in recent years and it is eager to benefit from American efforts to diversify supply chains outside of China – as well as concern over China’s military build-up in the South China Sea.

    Experts say those tightened partnerships are as much a credit to the Biden administration’s comprehensive China strategy as it is a consequence of the way China has increasingly aggressively wielded its military and economic might in the region.

    “China has long complained about the US alliance network in its backyard. It has said that these are vestiges of the Cold War, that the US needs to stop encircling China, but it’s really China’s own behavior and its choices that have driven these countries together,” said Patricia Kim, a China expert at the Brookings Institution.

    “So in many ways, China’s foreign policy has backfired.”

    The upgrading of the US-Vietnam relationship carries huge significance given Washington’s complicated history with Hanoi.

    The two countries have gone from mortal enemies that fought a devastating war to increasingly close partners, even with Vietnam still run by the same Communist forces that ultimately prevailed and sent the US military packing.

    While the upgrading of that relationship has been a decade in the making, US officials say a concerted drive to take the relationship to new heights carried that years-long momentum over the line.

    A late June visit to Washington by Vietnam’s top diplomat, Chairman Le Hoai Trung, crystallized that possibility. During a meeting with national security adviser Jake Sullivan, the two first discussed the possibility of upgrading the relationship, according to a Biden administration official.

    As he walked back to his office, Sullivan wondered whether the US could be more ambitious than a one-step upgrade in the relationship – to “strategic partner” – and directed his team to travel to the region and deliver a letter to Trung proposing a two-step upgrade that would take the relations to their highest-possible level, putting the US on par with Vietnam’s other “comprehensive strategic partners”: China, Russia, India and South Korea.

    Sullivan would speak again with Trung on July 13 while traveling with Biden to a NATO summit in Helsinki.

    The conversation pushed the possibility of a two-step upgrade in a positive direction, but it wasn’t until a mid-August visit to the White House by Vietnam’s ambassador to Washington that an agreement was in hand. Inside Sullivan’s West Wing office, the two finalized plans to take the US-Vietnam relationship to new heights and for Biden and Vietnam’s leader, General Secreatary Nguyen Phu Trong, to shake hands in Hanoi.

    The trip was still being finalized when Biden revealed during an off-camera fundraiser that he was planning to visit. The remark sent the planning into overdrive.

    Still, US officials are careful not to characterize the rapprochement with Vietnam – or with the Philippines, India, Japan and Korea, or its AUKUS security partnership with Australia and the United Kingdom – as part of a comprehensive strategy to counter China’s military and economic heft in the Indo-Pacific.

    “I think that’s a deliberate design by the Biden administration,” said Yun Sun, the China program director at the Stimson Center. “You don’t want countries in the region or African countries to feel that the US cares about them only because of China because that shows a lack of commitment. That shows that, ‘Well, we care about you only because we don’t want you to go to the Chinese.’”

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  • US Steel receiving acquisition offers as company promises to maximize stockholder value | CNN Business

    US Steel receiving acquisition offers as company promises to maximize stockholder value | CNN Business


    New York
    CNN
     — 

    United States Steel Corp. (X) is considering a sale after fielding acquisition offers, according to a Sunday press release from the company.

    The steel producer is under a formal review process after “receiving multiple unsolicited proposals” for both specific assets and the entire firm, the release announced.

    “U. S. Steel’s Board and management team are committed to maximizing value for our stockholders, and to that end, we have commenced a comprehensive and thorough review of strategic alternatives,” wrote David Burritt, U. S. Steel’s CEO. “The Board is taking a measured approach to considering these proposals, including seeking more information in order to evaluate proposals that are preliminary and subject to ongoing due diligence and review.”

    There is currently no set timeline or end date for the review process.

    This is a developing story

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  • Neuralink, Elon Musk’s brain implant startup, raises $280 million from Peter Thiel’s VC fund | CNN Business

    Neuralink, Elon Musk’s brain implant startup, raises $280 million from Peter Thiel’s VC fund | CNN Business


    New York
    CNN
     — 

    Elon Musk’s biotechnology startup Neuralink raised $280 million in a fundraising round, the company announced Monday via X, the Musk-owned social media platform formerly known as Twitter.

    The Series D round was led by Founders Fund, a San Francisco-based VC firm established by Peter Thiel, the controversial billionaire who was also a cofounder at PayPal.

    “We’re extremely excited about this next chapter at Neuralink,” the company wrote.

    The brain chip startup wants to use implants to connect your brain to a computer, a goal Musk has been working on for five years. The company so far has only tested on animals and faced scrutiny after a monkey died in project testing in 2022 as part of efforts to get the animal to play Pong, a computer game.

    Macaque monkeys have been used in testing by Neuralink as the company has been developing Bluetooth-enabled implantable chips — inserted into the monkey’s brains — that ​the company says can communicate with computers via a small receiver.

    The funding news comes months after Musk announced the company was moving towards human trials. The billionaire said at a December recruiting event that Neuralink has submitted “most” of its paperwork to the US Food and Drug Administration and could begin testing on humans within six months.

    But employees have said the company is rushing to market, resulting in careless animal deaths and a federal investigation, according to a December report by Reuters.

    Before Neuralink’s brain implants are mass-produced and hit the broader market, they’ll need regulatory approval. The FDA put out a paper in 2021 mapping out the agency’s initial thoughts on brain-computer interface devices, noting the field is “progressing rapidly.”

    A tweet by Neuralink Monday announced they were hiring and invited those interested to “join in on engineering challenges to restore vision and mobility.”

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  • Microsoft gives ground on streaming in bid to remove UK block on Activision deal | CNN Business

    Microsoft gives ground on streaming in bid to remove UK block on Activision deal | CNN Business


    London
    CNN
     — 

    Microsoft has made a major concession to UK authorities in a bid to remove the last remaining regulatory obstacle to its huge takeover of Activision Blizzard.

    The companies have submitted a new proposal to the UK antitrust watchdog — the only regulator worldwide standing in the way of the $69 billion deal — that would see Activision’s (ATVI) cloud streaming rights outside the European Union and three other European countries sold to a rival, Ubisoft Entertainment. Microsoft President Brad Smith said in a blog post Tuesday that the companies believe the new proposal “presents a substantially different transaction” for the CMA to consider than its previous merger agreement.

    “We believe that this development is positive for players, the progression of the cloud game streaming market, and for the growth of our industry,” Smith said.

    The restructured deal, announced by the UK Competition and Markets Authority Tuesday, follows a decision by the CMA to block the acquisition on its original terms. That move put it at odds with EU regulators, which approved the plan in May. A US federal court also said in July that it would not block the deal from closing.

    CMA chief executive Sarah Cardell said the regulator would now consider the new proposal.

    “Our goal has not changed — any future decision on this new deal will ensure that the growing cloud gaming market continues to benefit from open and effective competition driving innovation and choice.”

    Under the restructured deal, Ubisoft — a French video game developer — will be able to license out Activision’s content to any cloud gaming provider outside the European Economic Area, including in the United Kingdom. Shares in Ubisoft jumped 7% in Paris Tuesday.

    “This will allow gamers to access Activision’s games in different ways, including through cloud-based multigame subscription services,” Cardell said.

    Microsoft and Activision agreed last month to extend their merger deadline by three months to October 18, to allow more time to come to an agreement with the CMA. October 18 is now also the statutory deadline for a CMA decision on the new merger proposal, and Microsoft said it expects the agency’s review process to be completed ahead of that date.

    Microsoft (MSFT) announced the planned acquisition of Activision early last year. The transaction was valued at $69 billion at the time, making it one of the tech industry’s largest deals.

    Activision Blizzard is one of the world’s biggest video game developers, producing games such as “Candy Crush,” “Call of Duty,” “World of Warcraft” and “Overwatch.”

    –CNN’s Clare Duffy contributed to this report.

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  • Neuralink, Elon Musk’s brain implant startup, set to begin human trials | CNN Business

    Neuralink, Elon Musk’s brain implant startup, set to begin human trials | CNN Business


    New York
    CNN
     — 

    Elon Musk’s controversial biotechnology startup Neuralink opened up recruitment for its first human clinical trial Tuesday, according to a company blog.

    After receiving approval from an independent review board, Neuralink is set to begin offering brain implants to paralysis patients as part of the PRIME Study, the company said. PRIME, short for Precise Robotically Implanted Brain-Computer Interface, is being carried out to evaluate both the safety and functionality of the implant.

    Trial patients will have a chip surgically placed in the part of the brain that controls the intention to move. The chip, installed by a robot, will then record and send brain signals to an app, with the initial goal being “to grant people the ability to control a computer cursor or keyboard using their thoughts alone,” the company wrote.

    Those with quadriplegia due to cervical spinal cord injury or amyotrophic lateral sclerosis (ALS) may qualify for the six-year-long study – 18 months of at-home and clinic visits followed by follow-up visits over five years. Interested people can sign up in the patient registry on Neuralink’s website.

    Musk has been working on Neuralink’s goal of using implants to connect the human brain to a computer for five years, but the company so far has only tested on animals. The company also faced scrutiny after a monkey died in project testing in 2022 as part of efforts to get the animal to play Pong, one of the first video games.

    In May, Neuralink tweeted that it had received FDA clearance for human clinical trials, with the approval acknowledged by the agency in a statement. The opening of human trials also comes over a month after the brain chip startup raised $280 million in a fundraising round led by Founders Fund, a San Francisco-based VC firm established by Peter Thiel, the controversial billionaire who was also a co-founder at PayPal.

    “We’re extremely excited about this next chapter at Neuralink,” the company wrote at the time on X, the Musk-owned social media platform formerly known as Twitter.

    Musk has forecast human trials at the startup at least four times since 2019, yet the company didn’t seek FDA approval until 2022. At that time, the agency rejected the bid, according to a March Reuters report, citing safety concerns about parts of the implant migrating to other parts of the brain and possible brain tissue damage when the devices are removed. Musk said at a December recruiting event that Neuralink has submitted “most” of its paperwork to the US Food and Drug Administration and could begin testing on humans within six months.

    But employees told Reuters in December that the company is rushing to market, resulting in careless animal deaths and a federal investigation.

    Neuralink did not respond to CNN’s request for comment.

    Before Neuralink’s brain implants hit the broader market, they’ll need regulatory approval. The FDA put out a paper in 2021 mapping out the agency’s initial thoughts on brain-computer interface devices, noting the field is “progressing rapidly.”

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  • Britain says may clear restructured Microsoft-Activision deal | CNN Business

    Britain says may clear restructured Microsoft-Activision deal | CNN Business

    Microsoft’s restructuring of its proposed $69 billion acquisition of Activision Blizzard “opens the door” to the biggest ever gaming deal being cleared, Britain’s antitrust regulator said Friday.

    Microsoft (MSFT) announced the deal in early 2022, but it was blocked in April by the UK competition regulator, which was concerned the US tech giant would gain too much control of the nascent cloud gaming market.

    Activision Blizzard (ATVI), which makes “Call of Duty,” agreed in August to sell its streaming rights to Ubisoft Entertainment in a new attempt to win over the Competition and Markets Authority (CMA).

    The Ubisoft divestment “substantially addresses previous concerns,” the Competition and Markets Authority said in a statement.

    “While the CMA has identified limited residual concerns with the new deal, Microsoft has put forward remedies which the CMA has provisionally concluded should address these issues,” the regulator said.

    Consummating the deal would turn Microsoft into the third largest video game publisher in the world, after Tencent and Sony.

    Microsoft said it was “encouraged by this positive development in the CMA’s review process.”

    “We presented solutions that we believe fully address the CMA’s remaining concerns related to cloud game streaming, and we will continue to work toward earning approval to close prior to the October 18 deadline,” Microsoft President Brad Smith said.

    Activision, which also makes “World of Warcraft,” “Overwatch” and “Candy Crush,” said the preliminary approval was great news for its future with Microsoft.

    The European Union waved the deal through in May after accepting Microsoft’s commitments to license Activision’s games to other platforms, the same remedies that Britain had rejected.

    The US Federal Trade Commission also opposes the deal, but it has failed to stop it. A federal judge ruled in July that the deal can close, a decision the FTC is appealing.

    The CMA’s decision to reopen the case was a radical departure from its play book, but it said on Friday it had been consistent and Microsoft had “substantially restructured the deal” to address its concerns.

    “It would have been far better, though, if Microsoft had put forward this restructure during our original investigation,” CMA Chief Executive Sarah Cardell said.

    “This case illustrates the costs, uncertainty and delay that parties can incur if a credible and effective remedy option exists but is not put on the table at the right time.”

    Equity analyst Sophie Lund-Yates at Hargreaves Lansdown said the loss of the cloud gaming rights was not an ideal concession for Microsoft to have to make, but it was necessary collateral if the deal were to be waved through.

    “This looks to be the final bump in the road,” she said.

    The CMA said there were “residual concerns” around the Ubisoft deal, but Microsoft has offered remedies to ensure the terms of the sale were enforceable by the regulator.

    It is now consulting on the remedies before making a final decision.

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  • 26-year-old tech CEO found dead in Baltimore with signs of blunt-force trauma | CNN Business

    26-year-old tech CEO found dead in Baltimore with signs of blunt-force trauma | CNN Business



    CNN
     — 

    The Baltimore Police Department has announced an arrest warrant for a suspect wanted for the murder of Pava LaPere, the 26-year-old CEO of startup EcoMap Technologies, who was found dead in a downtown Baltimore apartment Monday with signs of blunt-force trauma to her head.

    Police are looking for 32-year-old Jason Dean Billingsley, Acting Police Commissioner Richard Worley said during a news conference Tuesday.

    Officers responded to a call for service at an apartment complex in the 300 block of West Franklin Street at around 11:34 a.m. Monday, according to Baltimore police. Upon arriving, the officers found LaPere with severe injuries to her head. Police have not released any further information on her death.

    The medical examiner’s office took possession of the body, and an examination is pending, police said.

    Billingsley is wanted for first-degree murder, assault, reckless endangerment and additional charges. He should be considered armed and dangerous, police said.

    “This individual will kill and he will rape. He will do anything he can to cause harm,” Worley warned.

    Baltimore police said they do not believe LaPere and Billingsley knew each other.

    The police did not say how they identified Billingsley as a suspect.

    In a message to Billingsley, Worley urged him to turn himself in. “We will find you, so I would ask you to turn yourself in to any officer, any police station,” he said.

    EcoMap was founded by LaPere and Sherrod Davis while LaPere was a 21-year-old college student at Johns Hopkins, according to EcoMap’s website. With just over 30 employees, the startup is part of the artificial intelligence wave. It sells AI tools, including a customizable chatbot, that aim to make clients’ information easier to access and customer communications more seamless, the company says.

    The company confirmed LaPere’s passing to CNN.

    “With profound sadness and shock, EcoMap announces the tragic and untimely passing of our beloved Founder and CEO, Pava LaPere,” EcoMap said in a statement. “The circumstances surrounding Pava’s death are deeply distressing, and our deepest condolences are with her family, friends, and loved ones during this incredibly devastating time.”

    In August, the company said it had reached nearly $8 million in financing.

    Earlier this year, LaPere was named on the Forbes 30 under 30 list in the social impact category.

    “Pava was not only the visionary force behind EcoMap but was also a deeply compassionate and dedicated leader. Her untiring commitment to our company, to Baltimore, to amplifying the critical work of ecosystems across the country, and to building a deeply inclusive culture as a leader, friend, and partner set a standard for leadership, and her legacy will live on through the work we continue to do,” the company said.

    The CEO of Baltimore-based company Fearless, Delali Dzirasa, served as a mentor to LaPere and remembers her as being a determined leader who was highly regarded across the community.

    “There is no person on planet Earth that could tell Pava that she couldn’t do something,” Dzirasa said. “Even though she was a force, she always made space for other people,” he told CNN.

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  • Thousands of Americans are leaving homes in flood-risk areas. But where are they moving to? | CNN

    Thousands of Americans are leaving homes in flood-risk areas. But where are they moving to? | CNN



    CNN
     — 

    For more than four decades, the US government has been paying cities and states to move homeowners away from areas that are at high risk of severe flooding.

    When a hurricane or major flooding event devastates an area, a neighborhood can send a request for the local or state government to buy the impacted land and give residents money to start over someplace else.

    The Federal Emergency Management Agency’s buyout program is a form of so-called “managed retreat” – a long process that relocates people, businesses, homes and infrastructure to an area that’s safer from the impacts of climate change-fueled weather events. But until recently, little was known about where people ultimately moved and whether their new location actually reduced their flood risk.

    A new study published in the journal Environmental Research Letters — which coincides with a managed retreat conference unfolding in New York City this week — provides a clearer picture of these home buyouts.

    Data from thousands of home buyouts shows people aren’t moving that far from their original homes — and often they are moving within the same floodplain. But overall, their risk of flooding decreased after the move, a nod to the program’s success. Researchers also found that race has played a role in who is moving and where they’re relocating to.

    “As climate change and rising insurance costs increase the pressures to retreat from the coast and flooded areas, we need to pay more attention to where people are going,” James Elliott, a professor of sociology at Rice University and a co-author on the study, told CNN.

    The findings “point to how the program plays out differently in different types of communities and neighborhoods across the country,” he said.

    Using flood risk estimates, housing values, race and income data from the US Census Bureau, and FEMA relocation data between 1990 and 2017, researchers from Rice University built a nationwide database to map out where nearly 10,000 Americans sold their flood-prone homes and where they moved.

    They found people who have taken advantage of the FEMA buyouts typically did not move that far to reduce their risk, and usually stayed within the same floodplain.

    On average, buyout participants reduced their future flood risk by up to 65%, Elliott said. The average driving distance between their former homes and their new ones was around seven miles, with almost 74% of homeowners remaining within 20 miles of their old, flood-damaged homes.

    The findings were also racially segmented, Elliot said. About 96% of homeowners who relocated from a predominantly White neighborhood ended up moving to another majority White community.

    In contrast, residents of predominantly Black and Hispanic communities were far more likely to relocate to a new neighborhood with a different demographic: Only 48 percent of Black homeowners who go through the buyout moved to predominantly Black neighborhoods.

    The study also found that buyout areas with predominantly White homeowners had a nearly 90% chance of flooding by 2050, while majority-Black buyout areas had a roughly 50% chance, suggesting that White residents tend to only participate in buyouts when flood risk is much more intense.

    Though the data suggests that homeowners in White neighborhoods have a higher tolerance for flood risk, 80% of the people who took advantage of the FEMA program previously lived in majority-White neighborhoods. This could be because White communities “are more successful at winning the opportunity and money to participate” in the FEMA program, Elliott said.

    The home buyout program, which is the largest managed-retreat initiative in the country so far, is “disproportionately targeted toward Whiter residential areas,” Elliott said.

    “Communities of color and lower income areas just have fewer options to move nearby, so they are less likely to participate in the managed buyout,” Elliott said. In Houston, he found in a previous study that most of the people participating in buyouts in racially diverse communities tend to be White homeowners.

    “It’s sort of the last wave of White flight in those neighborhoods,” he added. And when “flood risks come, the final White residents begin to pull up stakes through the buyout program and move further out.”

    Alexander de Sherbinin, a senior research scientist at the Columbia Climate School and deputy manager of NASA’s Socioeconomic Data and Applications Center, said it’s not clear from the study that White homeowners are reluctant to move to racially diverse neighborhoods, and noted that there is evidence to the contrary.

    De Sherbinin pointed out that there is a process of “climate gentrification” playing out in areas that have experienced climate disasters, “whereby more affluent households are moving into ethnically diverse neighborhoods that are less at risk of flooding, and are even displacing local residents.”

    He pointed to Miami’s Little Haiti neighborhood as an example of this phenomenon, where higher ground helps protect the neighborhood from sea level rise and higher storm surges.

    “The research findings make sense in one regard, which is that whiter, more affluent neighborhoods are more likely to have the insurance coverage and resources to stay in place, despite rising risks,” de Sherbinin told CNN. “In other words, they’re able to rebuild, and possibly accommodate risks by raising their houses above flood lines.”

    As the climate crisis advances, more homeowners and businesses will be forced to relocate, adding stress and vulnerability to new regions. Previous research has shown that climate migration will become more likely as the planet warms and people seek places they consider safer and more stable.

    “We really need to think about how people relocate locally, what the options are, and how the ongoing racial segregation, especially in urban environments, is affecting those local retreats and people’s decisions and abilities not to retreat, because all we see are the people who actually say yes to the program,” Elliott said.

    “That’s the classic thing with climate change — it’s not about ‘if’ people have to move from these places, but ‘when and how’.”

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  • Silicon Valley Bank collapse renews calls to address disparities impacting entrepreneurs of color | CNN Business

    Silicon Valley Bank collapse renews calls to address disparities impacting entrepreneurs of color | CNN Business



    CNN
     — 

    When customers at Silicon Valley Bank rushed to withdraw billions of dollars last month, venture capitalist Arlan Hamilton stepped in to help some of the founders of color who panicked about losing access to payroll funds.

    As a Black woman with nearly 10 years of business experience, Hamilton knew the options for those startup founders were limited.

    SVB had a reputation for servicing people from underrepresented communities like hers. Its failure has reignited concerns from industry experts about lending discrimination in the banking industry and the resulting disparities in capital for people of color.

    Hamilton, the 43-year-old founder and managing partner of Backstage Capital, said that when it comes to entrepreneurs of color, “we’re already in the smaller house. We already have the rickety door and the thinner walls. And so, when a tornado comes by, we’re going to get hit harder.”

    Established in 1983, the midsize California tech lender was America’s 16th largest bank at the end of 2022 before it collapsed on March 10. SVB provided banking services to nearly half of all venture-backed technology and life-sciences companies in the United States.

    Hamilton, industry experts and other investors told CNN the bank was committed to fostering a community of minority entrepreneurs and provided them with both social and financial capital.

    SVB regularly sponsored conferences and networking events for minority entrepreneurs, said Hamilton, and it was well known for funding the annual State of Black Venture Report spearheaded by BLK VC, a nonprofit organization that connects and empowers Black investors.

    “When other banks were saying no, SVB would say yes,” said Joynicole Martinez, a 25-year entrepreneur and chief advancement and innovation officer for Rising Tide Capital, a nonprofit organization founded in 2004 to connect entrepreneurs with investors and mentors.

    Martinez is also an official member of the Forbes Coaches Council, an invitation-only organization for business and career coaches. She said SVB was an invaluable resource for entrepreneurs of color and offered their clients discounted tech tools and research funding.

    Minority business owners have long faced challenges accessing capital due to discriminatory lending practices, experts say. Data from the Small Business Credit Survey, a collaboration of all 12 Federal Reserve banks, shows disparities on denial rates for bank and nonbank loans.

    In 2021, about 16% of Black-led companies acquired the total amount of business financing they sought from banks, compared to 35% of White-owned companies, the survey shows.

    “We know there’s historic, systemic, and just blatant racism that’s inherent in lending and banking. We have to start there and not tip-toe around it,” Martinez told CNN.

    Asya Bradley is an immigrant founder of multiple tech companies like Kinley, a financial services business aiming to help Black Americans build generational wealth. Following SVB’s collapse, Bradley said she joined a WhatsApp group of more than 1,000 immigrant business founders. Members of the group quickly mobilized to support one another, she said.

    Immigrant founders often don’t have Social Security numbers nor permanent addresses in the United States, Bradley said, and it was crucial to brainstorm different ways to find funding in a system that doesn’t recognize them.

    “The community was really special because a lot of these folks then were sharing different things that they had done to achieve success in terms of getting accounts in different places. They also were able to share different regional banks that have stood up and been like, ‘Hey, if you have accounts at SVB, we can help you guys,’” Bradley said.

    Many women, people of color and immigrants opt for community or regional banks like SVB, Bradley says, because they are often rejected from the “top four banks” — JPMorgan Chase, Bank of America, Wells Fargo and Citibank.

    In her case, Bradley said her gender might have been an issue when she could only open a business account at one of the “top four banks” when her brother co-signed for her.

    “The top four don’t want our business. The top four are rejecting us consistently. The top four do not give us the service that we deserve. And that’s why we’ve gone to community banks and regional banks such as SVB,” Bradley said.

    None of the top four banks provided a comment to CNN. The Financial Services Forum, an organization representing the eight largest financial institutions in the United States has said the banks have committed millions of dollars since 2020 to address economic and racial inequality.

    Last week, JPMorgan Chase CEO Jamie Dimon told CNN’s Poppy Harlow that his bank has 30% of its branches in lower-income neighborhoods as part of a $30 billion commitment to Black and Brown communities across the country.

    Wells Fargo specifically pointed to its 2022 Diversity, Equity, and Inclusion report, which discusses the bank’s recent initiatives to reach underserved communities.

    The bank partnered last year with the Black Economic Alliance to initiate the Black Entrepreneur Fund — a $50 million seed, startup, and early-stage capital fund for businesses founded or led by Black and African American entrepreneurs. And since May 2021, Wells Fargo has invested in 13 Minority Depository Institutions, fulfilling its $50 million pledge to support Black-owned banks.

    Black-owned banks work to close the lending gap and foster economic empowerment in these traditionally excluded communities, but their numbers have been dwindling over the years, and they have far fewer assets at their disposal than the top banks.

    OneUnited Bank, the largest Black-owned bank in the United States, manages a little over $650 million in assets. By comparison, JPMorgan Chase manages $3.7 trillion in assets.

    Because of these disparities, entrepreneurs also seek funding from venture capitalists. In the early 2010s, Hamilton intended to start her own tech company — but as she searched for investors, she saw that White men control nearly all venture capital dollars. That experience led her to establish Backstage Capital, a venture capital fund that invests in new companies led by underrepresented founders.

    “I said, ‘Well, instead of trying to raise money for one company, let me try to raise for a venture fund that will invest in underrepresented — and now we call them underestimated — founders who are women, people of color, and LGBTQ specifically,’ because I am all three,” Hamilton told CNN.

    Since then, Backstage Capital has amassed a portfolio of nearly 150 different companies and has made over 120 diversity investments, according to data from Crunchbase.

    But Bradley, who is also an ‘angel investor’ of minority-owned businesses, said she remains “really hopeful” that community banks, regional banks and fintechs “will all stand up and say, ‘Hey, we are not going to let the good work of SVB go to waste.’”

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  • Tom Brady buys partial stake in WNBA’s Las Vegas Aces | CNN

    Tom Brady buys partial stake in WNBA’s Las Vegas Aces | CNN



    CNN
     — 

    Seven-time Super Bowl champion Tom Brady has acquired an ownership stake in the WNBA’s Las Vegas Aces, team owner Mark Davis announced Thursday.

    “I am very excited to be part of the Las Vegas Aces organization,” said Brady in a statement on Thursday. “I have always been a huge fan of women’s sports, and I admire the work that the Aces’ players, staff, and the WNBA continue to do to grow the sport and empower future generations of athletes. To be able to contribute in any way to that mission as a member of the Aces organization is an incredible honor.”

    Brady said his love for women’s sports grew out of watching his older sisters, who were “by far the best athletes in our house!”

    Brady announced his retirement from the NFL in February after 23 seasons with the New England Patriots and Tampa Bay Buccaneers. During his long career, the three-time league MVP set almost every passing record, including regular season passing yards (89,214) and passing touchdowns (649). He has also amassed the most wins of any player in NFL history (251).

    “Since I purchased the Aces, our goal has been to win on and off the court,” said Davis, who also owns the NFL’s Las Vegas Raiders. “Tom Brady is a win not only for the Aces, and the WNBA, but for women’s professional sports as a whole.”

    Davis purchased the WNBA franchise before the 2021 season. Brady’s partial acquisition of the team is subject to WNBA approval.

    The Aces enter the upcoming season as reigning WNBA champions. The team opens the season against the Seattle Storm on May 20 at Climate Pledge Arena in Washington.

    In October, Brady joined the ownership group of an expansion Major League Pickleball team, along with former tennis World No. 1 Kim Clijsters, who in December attended the draft to support their new squad, the Las Vegas Night Owls.

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  • Silicon Valley Bank left a void that won’t easily be filled | CNN Business

    Silicon Valley Bank left a void that won’t easily be filled | CNN Business

    A version of this story first appeared in CNN Business’ Before the Bell newsletter. Not a subscriber? You can sign up right here. You can listen to an audio version of the newsletter by clicking the same link.


    New York
    CNN
     — 

    It’s difficult to overstate the influence that Silicon Valley Bank had over the startup world and the ripple effect its collapse this month had on the global tech sector and banking system.

    While SVB was largely known as a regional bank to those outside of the tight-knit venture capital sphere, within certain circles it had become an integral part of the community – a bank that managed the idiosyncrasies of the tech world and helped pave the way for the Silicon Valley-based boom that has consumed much of the economy over the past three decades.

    SVB’s collapse was the largest bank failure since the 2008 financial crisis: It was the 16th largest bank in the country, holding about $342 billion in client funds and $74 billion in loans.

    At the time of its collapse, about half of all US venture-backed technology and life science firms were banking with SVB. In total, it was the bank for about 2,500 venture firms including Andreessen Horowitz, Sequoia Capital, Bain Capital and Insight Partners.

    But the influence of SVB went beyond lending and banking – former CEO Gregory Becker sat on the boards of numerous tech advocacy groups in the Bay Area. He chaired the TechNet trade association and the Silicon Valley Leadership Group, was a director of the Federal Reserve Bank of San Francisco and served on the United States Department of Commerce’s Digital Economy Board of Advisors.

    There’s no doubt that the failure of Silicon Valley Bank left a large void in tech. The question is how that gap will be filled.

    To find out, Before the Bell spoke with Ahmad Thomas, president and CEO of the Silicon Valley Leadership Group. The influential advocacy group is working to convene its hundreds of member companies – including Amazon, Bank of America, BlackRock, Google, Microsoft and Meta – to discuss what happens next.

    This interview has been edited for length and clarity.

    Before the Bell: What’s the feeling on the ground with tech and VC leadership in Silicon Valley?

    Ahmad Thomas: Silicon Valley Bank has been a key part of our fabric here for four decades. SVB was truly a pillar of the community and the innovation economy. The absence of SVB – that void – and coalescing leaders to fill that void is where my energy is focused and that is not a small task.

    I would say there was a fairly high level of unease a few days ago, and I believe the swift steps taken by leaders in Washington have helped quell a fair amount of that unease, but looking at Credit Suisse and First Republic just over the last couple of days, clearly we are in a situation that is going to continue to develop in the weeks and months ahead.

    So how do you fill it?

    We’re working to be a voice around stability, particularly about the fundamentals of the innovation economy. We can acknowledge the void given the absence of Silicon Valley Bank, but I do think we need voices out there to be very clear in highlighting that the fundamentals and the innovation infrastructure remains robust here in Silicon Valley.

    This is a moment where I think people need to take a step back, let cooler heads prevail, and understand that there are opportunities both from an investment standpoint, a community engagement standpoint and corporate citizenship standpoint for new leaders in Silicon Valley to step up.

    Are you working to advocate for more permanent regulation in DC?

    It’s far too early for that. But if there are opportunities to enhance access to capital to entrepreneurs to founders of color or in marginalized communities and if there are opportunities to try and drive innovation and economic growth, we will always be at the table for those conversations.

    Do you have any ideas about how long this crisis will continue for? What’s your outlook?

    The problem is twofold: A crisis of confidence and the set of economic conditions on the ground. The economic conditions remain volatile for a variety of reasons: The softening economy, inflationary pressures and the interest rate environment. But I think right now we need to focus on stabilizing confidence in the investor community, in our business executive community and in the broader set of stakeholders around the strength of the innovation economy. That is something we need to shore up near term.

    From CNN’s Mark Thompson

    Switzerland’s biggest bank, UBS, has agreed to buy its ailing rival Credit Suisse (CS) in an emergency rescue deal aimed at stemming financial market panic unleashed by the failure of two American banks earlier this month.

    “UBS today announced the takeover of Credit Suisse,” the Swiss National Bank said in a statement. It said the rescue would “secure financial stability and protect the Swiss economy.”

    UBS is paying 3 billion Swiss francs ($3.25 billion) for Credit Suisse, about 60% less than the bank was worth when markets closed on Friday. Credit Suisse shareholders will be largely wiped out, receiving the equivalent of just 0.76 Swiss francs in UBS shares for stock that was worth 1.86 Swiss francs on Friday.

    Extraordinarily, the deal will not need the approval of shareholders after the Swiss government agreed to change the law to remove any uncertainty about the deal.

    Credit Suisse had been losing the trust of investors and customers for years. In 2022, it recorded its worst loss since the global financial crisis. But confidence collapsed last week after it acknowledged “material weakness” in its bookkeeping and as the demise of Silicon Valley Bank and Signature Bank spread fear about weaker institutions at a time when soaring interest rates have undermined the value of some financial assets.

    Read more here.

    From CNN’s David Goldman

    A week after Signature Bank failed, the Federal Deposit Insurance Corporation said it has sold most of its deposits to Flagstar Bank, a subsidiary of New York Community Bank.

    On Monday, Signature Bank’s 40 branches will begin operating as Flagstar Bank. Signature customers won’t need to make any changes to do their banking Monday.

    New York Community Bank bought substantially all of Signature’s deposits and a total of $38.4 billion worth of the company’s assets. That includes $12.9 billion of Signature’s loans, which New York Community Bank purchased at a steep discount -— it paid just $2.7 billion for them. New York Community Bank also paid the FDIC stock that could be worth up to $300 million.

    At the end of last year, Signature had more than $110 billion worth of assets, including $88.6 billion of deposits, showing how the run against the bank two weeks ago led to a massive decline in deposits.

    Not included in the transaction is about $60 billion in other assets, which will remain in the FDIC’s receivership. It also doesn’t include $4 billion in deposits from Signature’s digital bank business.

    Read more here.

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  • FDIC sells most of failed Signature Bank to Flagstar | CNN Business

    FDIC sells most of failed Signature Bank to Flagstar | CNN Business


    New York
    CNN
     — 

    A week after Signature Bank failed, the Federal Deposit Insurance Corporation said it has sold most of its deposits to Flagstar Bank, a subsidiary of New York Community Bank.

    On Monday, Signature Bank’s 40 branches will begin operating as Flagstar Bank. Signature customers won’t need to make any changes to do their banking Monday.

    New York Community Bank bought substantially all of Signature’s deposits and a total of $38.4 billion worth of the company’s assets. That includes $12.9 billion of Signature’s loans, which New York Community Bank purchased at a steep discount -— it paid just $2.7 billion for them. New York Community Bank also paid the FDIC stock that could be worth up to $300 million.

    At the end of last year, Signature had more than $110 billion worth of assets, including $88.6 billion of deposits, showing how the run against the bank two weeks ago led to a massive decline in deposits.

    Not included in the transaction is about $60 billion in other assets, which will remain in the FDIC’s receivership. It also doesn’t include $4 billion in deposits from Signature’s digital bank business.

    As the banking crisis spreads, banks have grown increasingly wary of taking on risk. That’s likely why New York Community Bank was unwilling to take on all Signature’s assets.

    “We are unsurprised the FDIC retained loans as we would expect banks to be cautious on quickly buying loans without liability and loss protections,” said Jaret Seiberg, analyst at TD Cowan. “More broadly, we see it as positive for consumer confidence for the branches to be opening Monday as NYCB branches.”

    The FDIC said Sunday it expects to sell off those assets over time, and the total cost to the government will ultimately be about $2.5 billion.

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  • SVB collapse was driven by ‘the first Twitter-fueled bank run’ | CNN Business

    SVB collapse was driven by ‘the first Twitter-fueled bank run’ | CNN Business


    New York
    CNN
     — 

    The massive amount of customer withdrawals that led to the collapse of Silicon Valley Bank had all the hallmarks of an old-fashioned bank run, but with a new twist befitting the primary industry the bank served: much of it unfolded online.

    Customers withdrew $42 billion in a single day last week from Silicon Valley Bank, leaving the bank with $1 billion in negative cash balance, the company said in a regulatory filing. The staggering withdrawals unfolded at a speed enabled by digital banking and were likely fueled in part by viral panic spreading on social media platforms and, reportedly, in private chat groups.

    In the day leading up to the bank’s collapse, multiple prominent venture capitalists took to Twitter in particular, and used their large platforms to raise alarms about the situation, sometimes typing in all caps. Some investors urged startups to rethink where they kept their cash. Founders and CEOs then shared tweets about the concerning situation at the bank in private Slack channels, according to The Wall Street Journal.

    On the other side of a screen, startup leaders raced to withdraw funds online – so many, in fact, that some told CNN the online system appeared to go down. Still, the end result was a modern race to withdraw funds, which House Financial Services Chair Patrick McHenry later described in a statement as ” the first Twitter-fueled bank run.”

    “Even back in the ancient days, way before we had any form of modern communication, this stuff tended to be rumors that moved really fast. The reason it would happen is people would walk down the street and observe people standing outside of banks,” Andrew Metrick, Janet L. Yellen Professor of Finance and Management at the Yale School of Management, told CNN. “Now we don’t have that, but we have Twitter.”

    The experience of the bank run was also far removed from prior eras when a large number of customers would physically show up at a bank to withdraw funds (though some did line up outside Silicon Valley Bank locations, too.) Now, many could do so online or through mobile devices.

    “What made the Silicon Valley Bank run unique was (1) the ease with which its customers could execute withdrawals and (2) the speed with which news of Silicon Valley Bank’s impending demise spread,” Ben Thompson, an analyst who tracks the tech industry, wrote in a post on Monday. “It was the speed, fueled by zero distribution costs for both rumors and withdrawals, that was so destabilizing.”

    Silicon Valley Bank was arguably uniquely susceptible to those factors given its tech-focused customer base. Moreover, its clients, many of whom were venture-backed businesses, were far more likely than the average consumer to keep more than the standard maximum FDIC insured amount of $250,000 in their accounts.

    “The FDIC covers 250K, but am I going to recover my whole 8 figures?” one startup founder told CNN last week, after the bank had collapsed. Other large tech companies kept even larger sums with the bank. That likely made the bank’s customers even more susceptible to the panic spreading online.

    Some prominent tech figures, including Mark Suster, a partner at venture capital firm Upfront Ventures, urged those in the VC community to “speak out publicly to quell the panic” around Silicon Valley Bank last week and cautioned against creating “mass hysteria.”

    “Classic ‘runs on the bank’ hurt our entire system,” he wrote in a lengthy Twitter thread on Thursday. “People are making public jokes about this. It’s not a joke, this is serious stuff. Please treat it as such.”

    His calls for calm weren’t enough. The next day, the US Federal Deposit Insurance Corporation stepped in and took control of the bank, which only added to the viral panic on Twitter.

    “YOU SHOULD BE ABSOLUTELY TERRIFIED RIGHT NOW,” Jason Calacanis, a tech investor, wrote on Twitter Sunday. “THAT IS THE PROPER REACTION.”

    Hours later, the Biden administration stepped in and guaranteed the bank’s customers would have access to all their money starting Monday.

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  • The tech industry avoided an ‘extinction-level event,’ but it’s not unscathed | CNN Business

    The tech industry avoided an ‘extinction-level event,’ but it’s not unscathed | CNN Business



    CNN
     — 

    For much of the weekend, Silicon Valley scrambled to find a way through what one prominent tech investor described as an “extinction-level event for startups” after the collapse of a top lender in the industry.

    Startups raced to line up loans from venture funds and fintech firms to make payroll. Venture-backed retailers hosted last-minute sales to boost their cash reserves. And at least one prominent startup accelerator convinced thousands of CEOs and founders to sign an “urgent” petition calling for Treasury Secretary Janet Yellen and others to offer “relief.”

    Then, late Sunday, federal officials stepped in to guarantee that all customers of the failed Silicon Valley Bank would have access to their full deposits on Monday. The sense of relief was palpable throughout the tech sector.

    “Obviously, I’m quite relieved,” said Stefan Kalb, co-founder and CEO of Seattle-based startup Shelf Engine, who told CNN that his company would have had to shut down by the end of the week without the government intervention. “It was a very stressful weekend and I’m quite relieved with the news.”

    Parker Conrad, the CEO of HR platform Rippling, who had previously said some customers’ payrolls were being delayed by the bank failure, tweeted Sunday: “Anyone else breathing a sigh of relief and looking forward to a good night’s sleep tonight?”

    And Garry Tan, the CEO of tech startup accelerator Y Combinator who authored the petition to Yellen, praised the federal government for “decisive action.” Tan, the investor who had previously warned of “an *extinction level event* for startups” that would “set startups and innovation back by 10 years or more,” added his appreciation on Sunday for “everyone who helped us through a very very intense time.”

    But even as the tech industry enjoys a respite from a fearful weekend, unknowns remain. “You can feel the collective *sigh*,” Ryan Hoover, a tech founder and investor wrote on Twitter Sunday. “I’m still nervous,” he added. “Hard to predict the collateral effects.”

    It’s unclear how the aftershocks of the bank’s collapse will add to the startup industry’s growing challenges accessing capital. SVB’s collapse also risks changing how the world, and prospective recruits, think of Silicon Valley.

    For years, the term itself conjured an image of an enclave of bright, contrarian, libertarian engineers and thinkers who could see around corners and make big bets on the future. Now, that same industry is relying on the federal government to survive after failing to see the risk, or worse, contributing to it through a shared hysteria.

    In the chaotic days leading up to the bank’s collapse on Friday, some venture firms reportedly urged their portfolio companies to withdraw their money, which may have contributed to the bank failing.

    Then, over the weekend, many venture capitalists and tech founders banded together to try and lobby government and public goodwill towards saving the companies impacted by Silicon Valley Bank’s sudden collapse.

    While some VCs appeared to embrace fear-mongering on Twitter, much of the public messaging focused on the small businesses with exposure to Silicon Valley Bank that might be not be able to continue operating after losing access to the money in their bank account.

    “We are not asking for a bailout for the bank equity holders or its management; we are asking you to save innovation in the American economy,” the Y Combinator petition stated. “We ask for relief and attention to an immediate critical impact on small businesses, startups, and their employees who are depositors at the bank.”

    A separate coalition of more than a dozen venture capital firms, including Lightspeed Venture Partners and Upfront Ventures, released a joint statement late Friday supporting Silicon Valley Bank, given its unique and vital role in the startup economy. The bank worked with nearly half of all venture-backed tech and healthcare companies in the United States.

    “For forty years, it has been an important platform that played a pivotal role in serving the startup community and supporting the innovation economy in the US,” the statement read. “In the event that SVB were to be purchased and appropriately capitalized, we would be strongly supportive and encourage our portfolio companies to resume their banking relationship with them.”

    Even before the bank’s collapse, the startup industry was in a tough moment. Venture capital funding had dwindled amid rising interest rates and broader macroeconomic uncertainty; tech companies were cutting staff and ambitious projects; and some of the biggest private companies were reportedly slashing their valuations.

    The instability at a top tech lender, and the lingering questions about its impact on other regional banks and the broader financial system, risk making it even harder for money-losing startups to access the capital they need to survive.

    President Joe Biden emphasized in remarks Monday that “no losses will be borne by the taxpayers” related to the government’s intervention for Silicon Valley Bank. But some are already skeptical of that statement, including Democratic Sen. Elizabeth Warren of Massachusetts, who wrote in an op-ed Monday morning, “We’ll see if that’s true.”

    More immediately, there’s uncertainty around how long it will take for companies to get their money out of the bank.

    As of Monday, Kalb said the money in his Silicon Valley Bank account has not been transferred yet to the new JPMorgan Chase account he set up for Shelf Engine on Thursday. “I’ve been obsessively checking my email,” he said. “Hopefully the money will be able to be transferred shortly.”

    Ben Kaufman, the co-founder of venture-backed toy store and online retailer Camp, told CNN’s Poppy Harlow in an interview Monday morning that he and his team spent the weekend trying to “fight for survival,” including holding a last-minute 40% off sale, using the code “BANKRUN,” to raise capital over the weekend.

    “We did not know how long it was going to take for us to get our cash out … we still kind of don’t, they say today, we’ll see what happens,” he said, noting the bank held 85% of his company’s assets. “We hope we can, and we’re so grateful that the Fed stepped in, and the way they did.”

    When asked if the past week’s events would change how and where he stores his money, Kaufman said that is “going to have to be a consideration moving forward.”

    “I don’t want to do this again,” he said.

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  • Camp toy store pleads for help after Silicon Valley Bank collapse | CNN Business

    Camp toy store pleads for help after Silicon Valley Bank collapse | CNN Business


    New York
    CNN
     — 

    A toy company based in New York has gotten caught up in the collapse of Silicon Valley Bank and is pleading with customers for help keeping it afloat.

    Camp, a venture-backed retailer, sent an email to customers Friday announcing it was slashing prices and would use sales to help fund its continued operations after much of its money was tied up in the bank failure.

    “Unfortunately, we had most of our company’s cash assets at a bank which just collapsed. I’m sure you’ve heard the news,” co-founder Ben Kaufman said in an email to customers.

    He urged customers to use the code “BANKRUN” to save 40% off all merchandise, in an apparent nod to the run on the bank that may have helped bring down the Silicon Valley lender. Camp also said customers could pay full price, which it said would be appreciated.

    Kaufman said the company was “hopeful that this will be resolved soon.”

    CNN has not confirmed if Camp had funds with Silicon Valley Bank when the bank collapsed.

    Silicon Valley Bank was put under control of the US Federal Deposit Insurance Corporation on Friday, capping off a stunning 48 hour period during which fears of a liquidity crisis at the firm prompted some startups to weigh withdrawing funds.

    The sudden collapse of the Silicon Valley lender has pushed tech investors and startups to scramble to figure out their financial exposure to the bank, with founders worrying about getting their money out, making payroll and covering operating expenses.

    The rapidly unfolding fallout at Silicon Valley Bank comes at a challenging moment for startup and tech industries. Rising interest rates have eroded the easy access to capital that helped fuel soaring startup valuations and funded ambitious, money-losing projects.

    Kaufman, a former BuzzFeed executive, founded Camp in 2018. It has nine stores in California, Connecticut, Massachusetts, New York, New Jersey and Texas.

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  • Mental health startup exposes the personal data of more than 3 million people | CNN Politics

    Mental health startup exposes the personal data of more than 3 million people | CNN Politics


    Washington
    CNN
     — 

    A mental health startup exposed the personal data of as many as 3.1 million people online. In some cases, possibly sensitive information on mental health treatment was leaked, according to a company statement and a Department of Health and Human services filing.

    Cerebral, a California-based firm that connects people suffering from anxiety and depression with mental health professionals via video calls, said it discovered the “inadvertent” data exposure more than three years after it started using “pixels” – a common method that companies and advertisers use to track user behavior for marketing purposes.

    The company determined in January that tracking pixels had been sharing client and user data to “third-party platforms” and “subcontractors” that it didn’t name, according to a privacy notice near the bottom of its website.

    Cerebral said it was unaware of any misuse of the protected health information that was disclosed. But privacy advocates have for years warned that such data troves can be used to aggressively market products at consumers and infringe on their privacy.

    Some of the data potentially exposed in the Cerebral breach includes answers to online “self-assessments” about mental health that Cerebral asks prospective clients to fill out. That can include questions on whether someone is experiencing panic attacks, abusing alcohol or has a personality disorder, CNN’s review of the online assessments found.

    Cerebral said in a statement to CNN on Friday that it was “committed to correcting historical errors and leading the industry in privacy standards moving forward.”

    Cerebral notified the Department of Health and Human Services (HHS), which said in a filing this month that the breach affects over 3.1 million users. The department investigates potential violations of the Health Insurance Portability and Accountability Act (HIPAA), a law that requires medical providers to safeguard patient data.

    Rachel Seeger, a spokesperson for the HHS Office for Civil Rights, said the office typically “does not comment on open or potential investigations.”

    Cerebral said in its public statement that it had disabled the tracking pixels on its platforms and stopped sharing data with subcontractors “not able to meet all HIPAA [Health Insurance Portability and Accountability Act] requirements.”

    “It is important to note that Cerebral never impermissibly transmitted clinician generated notes or clinician communications,” the company told CNN.

    Cerebral spokesperson Chris Savarese did not respond to emailed questions about which and how many platforms and contractors to which the company disclosed the client health information.

    Some analysts argue that the broader market for data tracking tools is out of control. A group of conservative Catholics has spent millions of dollars to buy mobile data that identified priests who used gay dating and hookup apps, the Washington Post reported this week.

    Andrea Downing, who has done extensive research on pixel tracking and privacy, said patients are often unaware of how much personal data health care startups collect and potentially transmit to other parties.

    “What is in the fine print or the details of how data is being shared for advertising is not apparent to us when we’re going through the trauma of a diagnosis and seeking knowledge,” said Downing, who is co-founder of Light Collective, a digital rights nonprofit.

    “The only thing that is incentivizing change right now is the threat of liability,” Downing told CNN.

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