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Tag: government departments and authorities

  • Justice Department convinces federal judge Trump used his attorney in furtherance of a crime in classified docs probe | CNN Politics

    Justice Department convinces federal judge Trump used his attorney in furtherance of a crime in classified docs probe | CNN Politics

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    CNN
     — 

    The Justice Department has convinced a federal judge that former President Donald Trump used one of his defense attorneys in furtherance of a crime or fraud related to the existence of classified documents at Mar-a-Lago, sources familiar with the matter told CNN.

    The finding – part of a major ruling Friday from Judge Beryl Howell of the DC District Court – makes clear for the first time that the Justice Department is arguing it has evidence that Trump may have committed a crime. And Howell ruled that prosecutors met the burden to overcome Trump’s right to shield discussions with his lawyers normally protected under attorney-client privilege.

    The evidence would likely be significant in the obstruction probe being pursued by special counsel Jack Smith’s team. It also underscores how critical the testimony of Trump’s defense lawyers would be in the federal grand jury investigation.

    ABC News first reported the development.

    The revelation comes as the former president continues to face a number of notable investigations and lawsuits, including a separate yearslong investigation into his alleged role in a scheme to pay hush money to an adult film star. There are signs that case is nearing an end and Trump and his advisers are awaiting a potential indictment.

    Trump has not been charged in the documents case, but is still under investigation by the grand jury in Washington. Prosecutors had relied on surveillance videos in arguing their case to Howell, one source said.

    A spokesman for the special counsel’s office did not immediately respond to CNN’s request for comment.

    The Justice Department is still seeking testimony from Trump defense attorney Evan Corcoran, after he cited attorney-client privilege, as well as from another Trump lawyer, Jennifer Little, CNN has learned.

    CNN has reached out to Corcoran and Little for comment.

    Corcoran’s critical testimony in the Mar-a-Lago classified documents investigation is now in the hands of the US DC Circuit Court of Appeals.

    CNN was first to report the action at the DC Circuit Court of Appeals on Tuesday referred to in anonymized court records and confirmed by CNN, following Trump’s loss on Friday before Howell.

    A three-judge panel – Judges Nina Pillard, Michelle Childs and Florence Pan – at the appeals court now is positioned to decide whether to put on hold a lower-court ruling that Corcoran must provide additional testimony to the grand jury about his conversations with Trump. Trump’s team has argued those conversations are covered by attorney-client privilege and should be shielded in the investigation.

    Howell, in her sealed ruling, determined prosecutors were able to show Corcoran’s legal services were used in furtherance of a crime, so attorney-client privilege didn’t apply, sources told CNN.

    What happens next is crucial because the Justice Department has successfully argued that Corcoran’s conversations with Trump would reveal Trump was trying to advance a crime – but the grand jury hasn’t yet heard from Corcoran directly about those conversations.

    If the appeals court sides with the Justice Department, Corcoran could be forced to testify again to a federal grand jury within days, ushering the investigation into the handling of classified documents and obstruction of justice toward a conclusion.

    The extremely tight deadlines – a turnaround essentially unheard of in this court – indicates the seriousness of the matter.

    The DC Circuit judges also mentioned documents involved in the dispute, asking that Trump’s side “specify” them. The court order doesn’t explain any further what’s happened with documents. But Corcoran also was ordered to hand over a number of documents, including handwritten notes and notes transcribed of a verbal conversation.

    Trump sent a statement to his supporters Tuesday night criticizing ABC and calling the details “illegally leaked false allegations.”

    When Corcoran first testified to the grand jury in January, he was asked about what happened in the lead up to the August search of Trump’s Mar-a-Lago residence.

    Corcoran had drafted a statement in June 2022 that attested Trump’s team had done a “diligent search” of boxes moved from the White House to Florida and that all classified documents had been returned. Christina Bobb, the attorney who signed the letter, added the caveat, “to the best of my knowledge.”

    After that, the FBI searched Mar-a-Lago and found hundreds of government records, including classified material, raising questions about the lawyer’s attestation.

    This headline and story have been updated with additional reporting.

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  • Biden White House closely watching Federal Reserve following bank failures | CNN Politics

    Biden White House closely watching Federal Reserve following bank failures | CNN Politics

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    CNN
     — 

    All eyes are trained on the Federal Reserve as it prepares to announce another potential interest rate hike Wednesday afternoon – exactly 10 days after the Biden administration stepped in with dramatic emergency actions to contain the fallout from two bank failures.

    Biden White House officials will be closely watching the highly anticipated rate decision – and monitoring every word of Fed Chairman Jerome Powell’s public comments – for any telling clues on how the central bank is processing what has emerged one of the most urgent economic crises of Joe Biden’s presidency.

    The moment creates a complex, if carefully observed, dynamic for the administration’s top economic officials who have spent much of the last two weeks engaged in regular discussions and consultations with Powell and Fed officials as they’ve navigated rapid and acute risks to the banking system.

    The Fed’s central role in not only supervising US banks and the stability of the financial system, but also in serving as a liquidity backstop in moments of systemic risk, has once again thrust the central bank back to center stage in the government’s effort to stabilize rattled markets.

    But Biden has made the central bank’s independence on monetary policy an unequivocal commitment – and has repeatedly underscored that he has confidence in the Fed’s central role in navigating inflation that has weighed on the US economy for more than a year and remained stubbornly persistent.

    Even as some congressional Democrats have directed fire at Powell for the rapid increase in interest rates and the risks the effort poses to a robust post-pandemic economic recovery, White House officials have taken pains not to shed light on their views publicly.

    Officials stress nothing in the last week has changed that mandate from Biden – and note that the widespread uncertainty about what action the Fed will take on rates only serves to underscore that reality.

    It’s a reality that comes at a uniquely inopportune time for a banking system that has shown clear signs of stabilizing in the last several days, but is still facing a level of anxiety among market participants and depositors about the durability of that shift.

    “I do believe we have a very strong and resilient banking system and all of us need to shore up the confidence of depositors that that’s the case,” Treasury Secretary Janet Yellen said during remarks Tuesday in Washington.

    Yellen said a new emergency lending facility launched by the Fed, along with its existing discount window, are “working as intended to provide liquidity to the banking system.”

    But prior to the closures of Silicon Valley Bank and Signature Bank, analysts had widely predicted that the Fed would unveil a half-point rate hike. But after the sudden collapse of the two banks that sent shockwaves across the global economy, there has been a growing belief among Wall Street analysts that the central bank will pull back, and only raise rates by a quarter-point – in part to try to alleviate concerns that the Fed’s historically aggressive rate hikes over the past year were precisely to blame for this month’s financial turmoil.

    But there are also concerns that a dramatic pullback, like choosing to forgo any rate increases altogether until a later meeting, would bring its own risks of signaling to the market that there are deeper systemic problems.

    It’s a conundrum top Fed officials started grappling with in the first of their two-day Federal Open Market Committee meeting on Tuesday. How they choose to navigate the path ahead will remain behind closed doors until their policy statement is released Wednesday afternoon.

    Powell is scheduled to speak to reporters shortly after.

    For officials inside the Biden White House, Wednesday is poised to offer critical insight into how the central bank is grappling with its urgent priority of bringing down inflation, while at the same time, minimizing the risk of additional dominoes falling in the US banking sector.

    Those two imperatives – bringing prices down and maintaining stability across the US financial sector – are urgent priorities for the Biden White House, particularly as the president moves closer to a widely expected reelection announcement and the health of the economy remains the top issue for voters.

    Yet the Fed’s decision will come at a moment of accelerating political pressure on the Fed itself – and Powell specifically.

    Massachusetts Democratic Sen. Elizabeth Warren, a member of the Senate Banking Committee, slammed Powell, saying he has failed at two of his main jobs, citing raising interest rates and his support of bank deregulation.

    “I opposed Chair Powell for his initial nomination, but his re-nomination. I opposed him because of his views on regulation and what he was doing to weaken regulation, but I think he’s failing in both jobs, both as oversight manager of these big banks which is his job and also what he’s doing with inflation,” Warren said on NBC’s “Meet the Press.”

    White House officials have made clear – with no hesitation – that Biden’s long-stated confidence in Powell is unchanged. Powell, who was confirmed for his second four-year term as Fed chair last year, announced last week that the Fed would launch a review into the failure of Silicon Valley Bank.

    Treasury and Fed officials, along with counterparts at other federal regulators and their international counterparts, have continued regular discussions this week as they’ve monitored the system in the wake of the weekend collapse, and eventual sale, of European banking giant Credit Suisse.

    US officials viewed the Credit Suisse collapse as unrelated to the crisis that took down the US banks a weekend prior, although they acknowledged it posed broader risks tied to confidence, or the potential lack thereof, in the system.

    In recent days, White House officials have begun to cautiously suggest that they see signs of the US economy stabilizing, following the turbulent aftermath of the closures of Silicon Valley Bank and Signature Bank. Biden, for his part, has credited the sweeping steps his administration announced – namely, the backstopping of all depositors’ funds held at the two institutions and the creation of an emergency lending program by the Federal Reserve – as having prevented a broader financial meltdown.

    He has also called on US regulators and lawmakers to strengthen financial regulations, though it is not yet clear what specific actions the president may ultimately throw his weight behind.

    Press secretary Karine Jean-Pierre declined to comment Tuesday afternoon at the White House press briefing on how she and other officials were watching the Fed’s upcoming decision.

    “The Fed is indeed independent. We want to give them the space to make those monetary decisions and I don’t want to get ahead of that,” Jean-Pierre said. “I don’t even want to give any thoughts to what Jerome Powell might say tomorrow.”

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  • Lawmakers say TikTok is a national security threat, but evidence remains unclear | CNN Business

    Lawmakers say TikTok is a national security threat, but evidence remains unclear | CNN Business

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    CNN
     — 

    As TikTok CEO Shou Zi Chew prepares for his first congressional grilling on Thursday, much of the focus will undoubtedly be on the short-form video app’s potential national security risks.

    Concerns about TikTok’s connections to China have led governments worldwide to ban the app on official devices, and those fears have factored into the increasingly tense US-China relationship. The Biden administration has threatened TikTok with a nationwide ban unless its Chinese owners sell their stakes in the company.

    But more than two years after the Trump administration first issued a similar threat to TikTok, security experts say the government’s fears, while serious, currently appear to reflect only the potential for TikTok to be used for foreign intelligence, not that it has been. There is still no public evidence the Chinese government has actually spied on people through TikTok.

    TikTok doesn’t operate in China. But since the Chinese government enjoys significant leverage over businesses under its jurisdiction, the theory goes that ByteDance, and thus indirectly, TikTok, could be forced to cooperate with a broad range of security activities, including possibly the transfer of TikTok data.

    “It’s not that we know TikTok has done something, it’s that distrust of China and awareness of Chinese espionage has increased,” said James Lewis, an information security expert at the Center for Strategic and International Studies. “The context for TikTok is much worse as trust in China vanishes.”

    When Rob Joyce, the National Security Agency’s director of cybersecurity, was asked by reporters in December to articulate his security concerns about TikTok, he offered a general warning rather than a specific allegation.

    “People are always looking for the smoking gun in these technologies,” Joyce said. “I characterize it much more as a loaded gun.”

    Technical experts also draw a distinction between the TikTok app — which appears to operate very similarly to American social media in the amount of user tracking and data collection it performs — and TikTok’s approach to governance and ownership. It’s the latter that’s been the biggest source of concern, not the former.

    The US government has said it’s worried China could use its national security laws to access the significant amount of personal information that TikTok, like most social media applications, collects from its US users.

    The laws in question are extraordinarily broad, according to western legal experts, requiring “any organization or citizen” in China to “support, assist and cooperate with state intelligence work,” without defining what “intelligence work” means.

    Should Beijing gain access to TikTok’s user data, one concern is that the information could be used to identify intelligence opportunities — for example, by helping China uncover the vices, predilections or pressure points of a potential spy recruit or blackmail target, or by building a holistic profile of foreign visitors to the country by cross-referencing that data against other databases it holds. Even if many of TikTok’s users are young teens with seemingly nothing to hide, it’s possible some of those Americans may grow up to be government or industry officials whose social media history could prove useful to a foreign adversary.

    Another concern is that if China has a view into TikTok’s algorithm or business operations, it could try to exert pressure on the company to shape what users see on the platform — either by removing content through censorship or by pushing preferred content and propaganda to users. This could have enormous repercussions for US elections, policymaking and other democratic discourse.

    Security experts say these scenarios are a possibility based on what’s publicly known about China’s laws and TikTok’s ownership structure, but stress that they are hypothetical at best. To date, there is no public evidence that Beijing has actually harvested TikTok’s commercial data for intelligence or other purposes.

    Chew, the TikTok CEO, has publicly said that the Chinese government has never asked TikTok for its data, and that the company would refuse any such request.

    If there’s a risk, it’s primarily concentrated in the relationship between TikTok’s Chinese parent, ByteDance, and Beijing. The main issue is that the public has few ways of verifying whether or how that relationship, if it exists, might have been exploited.

    TikTok has been erecting technical and organizational barriers that it says will keep US user data safe from unauthorized access. Under the plan, known as Project Texas, the US government and third-party companies such as Oracle would also have some degree of oversight of TikTok’s data practices. TikTok is working on a similar plan for the European Union known as Project Clover.

    But that hasn’t assuaged the doubts of US officials, likely because no matter what TikTok does internally, China would still theoretically have leverage over TikTok’s Chinese owners. Exactly what that implies is ambiguous, and because it is ambiguous, it is unsettling.

    In congressional testimony, TikTok has sought to assure US lawmakers it is free from Chinese government influence, but it has not spoken to the degree that ByteDance may be susceptible. TikTok has also acknowledged that some China-based employees have accessed US user data, though it’s unclear for what purpose, and it has disclosed to European users that China-based employees may access their data as part of doing their jobs.

    Multiple privacy and security researchers who’ve examined TikTok’s app say there aren’t any glaring flaws suggesting the app itself is currently spying on people or leaking their information.

    In 2020, The Washington Post worked with a privacy researcher to look under the hood at TikTok, concluding that the app does not appear to collect any more data than your typical mainstream social network. The following year, Pellaeon Lin, a Taiwan-based researcher at the University of Toronto’s Citizen Lab, performed another technical analysis that reached similar conclusions.

    But even if TikTok collects about the same amount of information as Facebook or Twitter, that’s still quite a lot of data, including information about the videos you watch, comments you write, private messages you send, and — if you agree to grant this level of access — your exact geolocation and contact lists. TikTok’s privacy policy also says the company collects your email address, phone number, age, search and browsing history, information about what’s in the photos and videos you upload, and if you consent, the contents of your device’s clipboard so that you can copy and paste information into the app.

    TikTok’s source code closely resembles that of its China-based analogue, Douyin, said Lin in an interview. That implies both apps are developed on the same code base and customized for their respective markets, he said. Theoretically, TikTok could have “privacy-violating hidden features” that can be turned on and off with a tweak to its server code and that the public might not know about, but the limitations of trying to reverse-engineer an app made it impossible for Lin to find out whether those configurations or features exist.

    If TikTok used unencrypted communications protocols, or if it tried to access contact lists or precise geolocation data without permission, or if it moved to circumvent system-level privacy safeguards built into iOS or Android, then that would be evidence of a problem, Lin said. But he found none of those things.

    “We did not find any overt vulnerabilities regarding their communication protocols, nor did we find any overt security problems within the app,” Lin said. “Regarding privacy, we also did not see the TikTok app exhibiting any behaviors similar to malware.”

    TikTok has faced claims that its in-app browser tracks its users’ keyboard entries, and that this type of conduct, known as keylogging, could be a security risk. The privacy researcher who performed the analysis last year, Felix Krause, said that keylogging is not an inherently malicious activity, but it theoretically means TikTok could collect passwords, credit card information or other sensitive data that users may submit to websites when they visit them through TikTok’s in-app browser.

    There is no public evidence TikTok has actually done that, however. TikTok has said the keylogging function is used for “debugging, troubleshooting, and performance monitoring,” as well as to detect bots and spam. Other research has shown that the use of keyloggers is extremely widespread in the technology industry. That does not necessarily excuse TikTok or its peers for using a keylogger in the first place, but neither is it proof positive that TikTok’s product, by itself, is any more of a national security threat than other websites.

    There have also been a number of studies that report TikTok is tracking users around the internet even when they are not using the app. By embedding tracking pixels on third-party websites, TikTok can collect information about a website’s visitors, the studies have found. TikTok has said it uses the data to bolster its advertising business. And in this respect, TikTok is not unique: the same tool is used by US tech giants including Facebook-parent Meta and Google on a far larger scale, according to Malwarebytes, a leading cybersecurity firm.

    As with the keylogging tech, the fact TikTok uses tracking pixels does not on its own transform the company into a national security threat; the risk is that the Chinese government could compel or influence TikTok, through ByteDance, to abuse its data collection capabilities.

    Separately, a report last year found TikTok was spying on journalists, snooping on their user data and IP addresses to find out when or if certain reporters were sharing the same location as company employees. TikTok later confirmed the incident and ByteDance fired several employees who had improperly accessed the TikTok data of two journalists.

    The circumstances surrounding the incident suggest it was not the type of wide-scale, government-directed intelligence effort that US national security officials primarily fear. Instead, it appeared to be part of a specific internal effort by some ByteDance employees to hunt down leaks to the press, which may be deplorable but hardly uncommon for an organization under public scrutiny. (Nevertheless, the US government is reportedly investigating the incident.)

    Joyce, the NSA’s top cyber official, told reporters in December that what he really worries about is “large-scale influence” campaigns leveraging TikTok’s data, not “individualized targeting through [TikTok] to do malicious things.”

    To date, however, there’s no public evidence of that taking place.

    TikTok may collect an extensive amount of data, much of it quietly, but as far as researchers can tell, it isn’t any more invasive or illegal than what other US tech companies do.

    According to security experts, that’s more a reflection of the broad leeway we’ve given to tech companies in general to handle our data, not an issue that’s unique or specific to TikTok.

    “We have to trust that those companies are doing the right thing with the information and access we’ve provided them,” said Peiter “Mudge” Zatko, a longtime ethical hacker and Twitter’s former head of security who turned whistleblower. “We probably shouldn’t. And this comes down to a concern about the ultimate governance of these companies.”

    Lin told CNN that TikTok and other social media companies’ appetite for data highlights policy failures to pass strong privacy laws that regulate the tech industry writ large.

    “TikTok is only a product of the entire surveillance capitalism economy,” Lin said. “And governments around the world are ignoring their duty to protect citizens’ private information, allowing big tech companies to exploit user information for gain. Governments should try to better protect user information, instead of focusing on one particular app without good evidence.”

    Asked how he would advise policymakers to look at TikTok instead, Lin said: “What I would call for is more evidence-based policy.”

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  • Asia Pacific stocks rise as investor worries about global banking turmoil ease | CNN Business

    Asia Pacific stocks rise as investor worries about global banking turmoil ease | CNN Business

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    Hong Kong
    CNN
     — 

    Stocks in the Asia Pacific region rose Tuesday as concerns about the global banking sector eased in response to a whirlwind of intervention by policymakers and industry players.

    The S&P/ASX 200 in Australia jumped 1.3%, boosted by its AXFJ index, a measure of banking stocks, which surged 1.7%.

    In Hong Kong, the Hang Seng Index

    (HSI)
    opened up 0.8%. China’s Shanghai Composite was 0.3% higher at the start of its trading session.

    South Korea’s Kospi ticked up 0.8%. Japanese markets were closed for a public holiday. Singapore’s Straits Times Index gained 1.1%.

    US stock futures were flat in Asian trade Tuesday, with Dow futures, S&P 500 futures and Nasdaq futures little changed.

    That followed a sunnier day on Wall Street, as investors became more confident in the outlook for the general banking sector, sending shares up.

    On Monday, central banks across Asia Pacific moved to quell concerns about the finance industry, with authorities in Australia, Hong Kong, Singapore and the Philippines assuring the public that their money was safe following the emergency bailout of Credit Suisse over the weekend.

    That did little to stop stocks from slumping initially, though analysts had predicted global markets could see calm later on Monday as investor nerves settled and relief set in. The landmark rescue of Credit Suisse

    (CS)
    by bigger Swiss rival UBS

    (UBS)
    on Sunday was followed by a coordinated move by major central banks to boost the flow of US dollars through financial markets.

    Shares of UBS rose about 3.3% in an intraday reversal on Monday, following a drop of as much as 15% earlier in the session.

    Still, recession fears continue to dog investors ahead of the US Federal Reserve’s meeting, which is set to conclude Wednesday. Traders see about a 73% probability of the central bank raising interest rates by 25 basis points.

    US regional banks also aren’t out of the woods yet. Shares of First Republic

    (FRC)
    , the struggling California bank bailed out by a consortium of banks last week, fell to an intraday record low Monday before ending the session down about 47% in another day of steep losses for the company.

    The Dow

    (INDU)
    closed 1.2% higher, while the S&P 500

    (SPX)
    gained about 0.9%. The Nasdaq Composite

    (COMP)
    climbed 0.4%.

    — CNN’s Krystal Hur contributed to this report.

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  • UBS is buying Credit Suisse in bid to halt banking crisis | CNN Business

    UBS is buying Credit Suisse in bid to halt banking crisis | CNN Business

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    London
    CNN
     — 

    Switzerland’s biggest bank, UBS, has agreed to buy its ailing rival Credit Suisse 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

    (CS)
    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.

    Shares in the 167-year-old bank fell 25% over the week, money poured from investment funds it manages and at one point account holders were withdrawing deposits of more than $10 billion per day, the Financial Times reported. An emergency loan of nearly $54 billion from the Swiss National Bank failed to stop the bleeding.

    But it did “build a bridge” to the weekend, to allow the rescue to be pieced together, Swiss officials said Sunday night.

    “This acquisition is attractive for UBS shareholders but, let us be clear, as far as Credit Suisse is concerned, this is an emergency rescue,” UBS chairman Colm Kelleher told reporters.

    “It is absolutely essential to the financial structure of Switzerland and … to global finance,” he told reporters.

    Desperate to prevent the meltdown spreading through the global financial system on Monday, Swiss authorities initiated the search for a private sector solution, with limited state support, while reportedly considering Plan B — a full or partial nationalization.

    “Given recent extraordinary and unprecedented circumstances, the announced merger represents the best available outcome,” Credit Suisse chairman Axel Lehmann said in a statement.

    “This has been an extremely challenging time for Credit Suisse and while the team has worked tirelessly to address many significant legacy issues and execute on its new strategy, we are forced to reach a solution today that provides a durable outcome.”

    The emergency takeover was agreed to after a days of frantic negotiations involving financial regulators in Switzerland, the United States and United Kingdom. UBS

    (UBS)
    and Credit Suisse rank among the 30 most important banks in the global financial system, and together they have almost $1.7 trillion in assets.

    Financial market regulators around the world cheered UBS’ action to take over Credit Suisse.

    US authorities said they supported the action and worked closely with the Swiss central bank to assist the takeover.

    “We welcome the announcements by the Swiss authorities today to support financial stability,” said US Treasury Secretary Janet Yellen and Federal Reserve Chair Jerome Powell, in a joint statement. “The capital and liquidity positions of the US. banking system are strong, and the US financial system is resilient.”

    Christine Lagarde, President of the European Central Bank, said the banking sector remains resilient but the ECB stands at the ready to help banks maintain enough cash on hand to fund their operations if the need arises.

    “I welcome the swift action and the decisions taken by the Swiss authorities,” Lagarde said. “They are instrumental for restoring orderly market conditions and ensuring financial stability.

    The Bank of England said it welcomed the measures taken by the Swiss authorities “to support financial stability.”

    “We have been engaging closely with international counterparts throughout the preparations for today’s announcements and will continue to support their implementation,” it said in a statement. “The UK banking system is well capitalized and funded, and remains safe and sound.”

    The global headquarters of UBS and Credit Suisse are just 300 yards apart in Zurich but the banks’ fortunes have been on very different paths recently. Shares of UBS have climbed 15% in the past two years, and it booked a profit of $7.6 billion in 2022. It had a stock market value of about $65 billion on Friday, according to Refinitiv.

    Credit Suisse shares have lost 84% of their value over the same period, and last year it posted a loss of $7.9 billion. It was worth just $8 billion at the end of last week.

    Dating back to 1856, Credit Suisse has its roots in the Schweizerische Kreditanstalt (SKA), which was set up to finance the expansion of the railroad network and industrialization of Switzerland.

    In addition to being Switzerland’s second biggest bank, it looks after the wealth of many of the world’s richest people and offers global investment banking services. It had more than 50,000 employees at the end of 2022, 17,000 of those in Switzerland.

    The Swiss National Bank said it would provide a loan of 100 billion Swiss francs ($108 billion) to UBS and Credit Suisse to boost liquidity.

    UBS Chief Executive Ralph Hamers will be CEO of the combined bank, and Kelleher will serve as chairman.

    The takeover will reinforce the position of UBS as the world’s leading wealth manager with $5 trillion of invested assets, and boost its ambition to grow in the Americas and Asia. UBS said it expects to generate cost savings of $8 billion per year by 2027. Credit Suisse’s investment bank is in the crosshairs.

    “Let me be clear. UBS intends to downsize Credit Suisse’s investment banking business and align it with our conservative risk culture,” Kelleher said.

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  • New Zealand joins US push to curb TikTok use on official phones with parliament ban | CNN Business

    New Zealand joins US push to curb TikTok use on official phones with parliament ban | CNN Business

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    Hong Kong
    CNN
     — 

    New Zealand will ban TikTok on all devices with access to its parliament by the end of this month, becoming the latest country to impose an official bar on the popular social media platform owned by a Beijing-based tech conglomerate.

    Led by the United States, a growing number of Western nations are imposing restrictions on the use of TikTok on government devices citing national security concerns.

    Rafael Gonzalez-Montero, chief executive of New Zealand’s parliamentary service, said in a Friday statement that the risks of keeping the video-sharing app “are not acceptable.”

    “This decision has been made based on our own experts’ analysis and following discussion with our colleagues across government and internationally,” he wrote.

    “On advice from our cyber security experts, Parliamentary Service has informed members and staff the app TikTok will be removed from all devices with access to the parliamentary network,” he added.

    But those who need the app to “perform their democratic duties” may be granted an exception, he said.

    CNN has reached out to TikTok and its Beijing-based owner ByteDance for comment.

    In an email to members of parliament seen by CNN, Gonzalez-Montero told lawmakers that the app would be removed from their corporate devices on March 31, after which they would not be able to re-download it.

    He also instructed legislators to uninstall the app from their private devices adding that failure to comply may render them unable to access the parliamentary network.

    New Zealand lawmaker Simon O’Connor, who is also a co-chair of the Inter-Parliamentary Alliance on China (IPAC), told CNN that he welcomed the decision, calling it “a good one”.

    “I – and IPAC as a whole – have had serious concerns about data privacy for some time,” he said, adding that TikTok’s replies to his previous enquiries about data security had been “unsatisfactory”.

    IPAC is a cross-border group formed by legislators from democratic countries that is focused on relations with China and is often critical of Beijing’s leaders.

    New Zealand’s decision came on the heels of similar actions already taken by its Western allies, despite the country’s track record of a more cautious approach when it comes to dealing with Beijing, in part because China is such a significant trade partner.

    The United States, UK and Canada have ordered the removal of the app from all government phones, citing cybersecurity concerns.

    All three countries are part of the the so-called “Five Eyes” alliance that cooperates with each other on intelligence gathering and sharing. Australia and New Zealand make up the five.

    The Chinese video-sharing app is also barred in all three of the European Union’s main government institutions.

    Tik Tok has become one of the world’s most successful social media platforms and is hugely popular among younger people.

    The short video sharing app has more than 100 million users in the United States alone.

    New Zealand’s latest move came just hours after TikTok acknowledged that the Biden administration had threatened to ban its operation nationwide unless its Chinese owners agreed to spin off their share of the social media platform.

    US officials have raised fears that the Chinese government could use its national security laws to pressure TikTok or its parent company ByteDance into handing over the personal information of TikTok’s US users, which might then benefit Chinese intelligence activities or influence campaigns.

    China has accused the United States of “unreasonably suppressing” TikTok and spreading “false information” about data security.

    FBI Director Christopher Wray told the US Senate Intelligence Committee earlier this month that he feared the Chinese government could use TikTok to sway public opinion in the event that China invaded Taiwan, the self-ruled island that Beijing claims sovereignty over despite never having ruled it.

    TikTok has repeatedly denied posing any sort of security risk and has said it is willing to work with regulators to address any concerns they might have.

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  • There’s a new chief judge in DC who could help determine the fate of Donald Trump | CNN Politics

    There’s a new chief judge in DC who could help determine the fate of Donald Trump | CNN Politics

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    CNN
     — 

    A new chief judge in the federal courthouse in Washington, DC, is poised to take over as that position has become one of the most influential in the nation’s capital, playing a key role in deciding issues that could factor into whether former President Donald Trump is indicted.

    Chief Judge Beryl Howell, who has served in that role since 2016, has repeatedly green-lit Justice Department requests to pursue information about Trump’s actions, from his top advisers and lawyers and even inside the White House. She’ll be succeeded by James “Jeb” Boasberg, a fellow Barack Obama appointee and one-time Brett Kavanaugh law school roommate who’s well-known in Washington.

    While presiding over the highly secretive Foreign Intelligence Surveillance Court in 2020 and 2021, Boasberg encouraged the declassification of information so that the public could read proceedings related to the FBI’s probe into possible collusion between Trump and Russia.

    If the Justice Department were to indict Trump, the case would be randomly assigned to one of the district court’s judges, meaning the chief could handle the case but may not. Still, the chief judge has unusual sway over the pace and scope of investigations as the Justice Department attempts to enforce its grand jury subpoenas, obtain warrants and access evidence it has collected by arguing to the chief judge in sealed proceedings.

    “This court would be ready,” Howell said in a recent interview with CNN, when asked about the historic possibility of a Trump indictment. She added any judge on that court “would do it justice.”

    Howell, who steps down from the position on Friday, may conclude her tenure by issuing decisions in sealed cases related to special counsel Jack Smith’s investigations into Trump’s efforts to overturn the 2020 election and his handling of classified material at Mar-a-Lago. Already, she granted Kash Patel – a former administration official – immunity for testimony he provided the grand jury investigation. She also held off a Justice Department request to place Trump in contempt for his alleged failure to turn over subpoenaed classified documents.

    The DC federal courthouse has embraced its role in major criminal investigations of politicians in the past. A framed Time Magazine is displayed outside the courthouse with the District Court’s Watergate-era Chief Judge John Sirica on the cover. Howell, in recent years, has nodded to Sirica, who allowed federal investigators access to records related to then-President Richard Nixon that hastened his resignation.

    Sirica embraced an unusually public role in one of the most fraught criminal investigations ever in Washington. Howell and Boasberg prefer working behind the scenes.

    “Neither of us will be Time’s person of the year,” Boasberg told CNN.

    Much of Howell’s work on those cases remains under seal, but details have trickled out on approximately 10 cases related to Smith’s investigation. Those include ongoing challenges around a grand jury subpoena of former Vice President Mike Pence and the Justice Department’s attempt to force Trump defense attorney Evan Corcoran to answer potentially incriminating questions about his interactions with Trump on classified records at Mar-a-Lago.

    Still, the chief judge’s role generates attention because the cases before the court in recent years have been so politically charged – and sometimes criticized publicly by Trump himself.

    Fan social media accounts sprung up about Howell, with one TikTok user getting tens of thousands of views. The posts generally highlight Howell’s no-nonsense quips and vivid facial expressions in public speeches.

    Howell said she and other judges were shocked to discover the clips of her on TikTok.

    “I just do my job. We’re all pretty much a bunch of nerds,” she said. “For a nerdy lawyer, getting novel, important cases is a dream.”

    Howell said she’s been surprised and at times uncomfortable with being the focus of attention in the investigations around Trump. Still, she regularly pens searing opinions allowing for public and congressional access to grand jury-related matters.

    Following the January 6, 2021, attack on the US Capitol, Howell became one of the most cutting voices in the federal government’s response, handling several proceedings of rioter defendants early on. She also had to manage a courthouse in lockdown during the Covid-19 pandemic, as it faced an influx of new criminal cases like it never had before.

    The courthouse was closed on January 6, but Howell recognized as she watched the rioters overwhelm the Capitol building that the DC District Court would handle the brunt of cases. She called the senior judges who had largely reduced their case loads and asked them if they would take on more criminal rioter cases.

    “We’re going to be very busy,” Howell remembers telling them. Nearly all agreed to take on full criminal dockets – a testament to the DC bench’s camaraderie.

    Later, in a riot defendant’s proceeding that the public was able to listen to by calling in on a phone line, Howell spoke furiously about how she could see armed guards from her chambers’ window overlooking the National Mall.

    “We’re still living here in Washington, DC, with the consequences of the violence that this defendant is alleged to have participated in,” she said at the hearing in 2021.

    In the known cases during the Robert Mueller special counsel investigation and the current Smith probe, Howell has repeatedly sided with investigators seeking confidential information in their probes.

    In her last weeks as chief, Howell has made clear in her orders that she is trying to make public as much as she can – though there are severe limitations from higher courts that protect the secrecy of the grand jury in ongoing investigations.

    She allowed the Justice Department access to GOP Rep. Scott Perry’s phone contents in the election interference investigation, a ruling now under appeal at the DC Circuit Court of Appeals. Howell also ruled against Trump in attempts he made to protect presidential communications with former White House Counsel Pat Cipollone, Deputy Patrick Philbin and vice presidential advisers Greg Jacob and Marc Short, eliciting their testimony.

    Yet she is denying requests from journalists for access to grand jury records from the ongoing Trump January 6 investigation.

    One of those opinions railed against the DC Circuit precedent that severely limits when judges, including her, can allow grand jury materials to be released.

    “If public interest in a significant and historical event or high-level government officials could serve as the sole ground to justify the disclosure of grand jury matters in exceptional circumstances, the petitioners’ case here would be incredibly strong,” Howell wrote. “Unfortunately for petitioners, that is not the standard for disclosure of grand jury material.”

    Boasberg recently told CNN that he hopes to keep a similar approach to Howell on transparency around sealed proceedings – doing what he can to make public information under the law, when it’s possible.

    Chief U.S. District Judge for the District of Columbia Beryl A. Howell

    At the FISA court, Boasberg released redacted orders he wrote, chastising the FBI for relying on applications to the court that contained misleading information, including when the investigators sought to surveil Carter Page, a former Trump adviser who was criminally investigated after the 2016 campaign but never charged.

    In one partially redacted opinion, Boasberg wrote that the “frequency and seriousness of these errors in a case that, given its sensitive nature, had an unusually high level of review at both DOJ and the Federal Bureau of Investigation have called into question the reliability of the information proffered in other FBI applications.”

    More recently, Boasberg had before him the Justice Department’s lawsuit seeking to compel GOP megadonor Steve Wynn to register as a foreign agent for his alleged efforts to lobby the Trump administration on behalf of the Chinese. Boasberg agreed with Wynn to dismiss the case, and it is now on appeal before the DC US Circuit Court of Appeals.

    Like Howell, Boasberg did not hide his concerns about appeals court precedent that he said constrained his approach. He also showed his sense of humor. The Wynn opinion included multiple references to lyrics by the 1990s hip hop band the Fugees, as a member of the band was accused of having connections to the alleged influence scheme.

    Boasberg was confirmed to the federal bench in 2011, after receiving a nod from President George W. Bush for a position on the DC Superior Court eight years prior. The local DC Court is where the former college basketball player cut his chops as assistant US attorney, specializing in homicide prosecutions.

    In DC legal circles, he’s earned a reputation for being friendly with a wide social circle and grew up with several prominent Washingtonians.

    “Jeb is so social and Beryl is very reserved,” said Amy Jeffress, a prominent Washington defense lawyer whose spouse, Christopher “Casey” Cooper, is also a judge in the DC District Court.

    Boasberg is currently the president of the Edward Bennett Williams Inn of Court, a professional advancement organization for DC attorneys that regularly brings together top prosecutors and defense lawyers.

    As a student at Yale Law School, Boasberg lived in a house with now-Justice Kavanaugh and six other law students. The group of former roommates still remain close and organize annual trips together.

    “Fairness is very important to him,” said Jim Brochin, an attorney who lived with Boasberg in the eight-person Yale Law house.

    Brochin pointed to Boasberg’s experience as a prosecutor trying murder cases, including some of the “hardest” cases his office had at the time, as well as his time as a judge leading the FISA court.

    “He is not afraid of tackling hard subjects,” Brochin said. “Nothing fazes him.”

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  • US to pay $6.5 million in lost wages owed to Mexican migrant workers | CNN

    US to pay $6.5 million in lost wages owed to Mexican migrant workers | CNN

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    CNN
     — 

    Some 13,000 Mexican migrant workers are owed $6.5 million in unpaid wages, according to a tweet from the United States Department of Labor’s Bureau of International Labor Affairs, which announced a joint effort with Mexico to locate and compensate the workers.

    “This program will return millions of dollars in back wages to Mexican nationals who participated in US temporary foreign worker programs,” tweeted Ken Salazar, the United States Ambassador to Mexico, on Tuesday.

    The Mexican ministry and the United States Department of Labor’s Bureau of International Labor Affairs is launching the H-2A Workers’ Wages Recovery Program to ensure the workers can collect their compensation, Salazar added.

    Skilled foreign farm workers are the backbone of US agriculture and are often in the US on H-2A seasonal visas. It is unclear who these workers were employed by when they failed to receive their full wages, and what years they were employed.

    The money owed to these thousands of workers was recovered by the US Department of Labor after it failed to locate the individuals in order to deliver their checks, according to a press release from Mexico’s Ministry of Labor and Social Welfare.

    The partnership will attempt to locate the migrant workers who are believed to have “received less than the legally established salary from their employers in the United States,” according to a press release by Mexico’s Ministry of Labor and Social Welfare.

    The US is expected to send Mexico a list with names of workers who are “owed wages and overtime.” Mexico will then look up the workers in government databases and inform them of their checks.

    “Together, we watch over labor rights,” tweeted Luisa Alcalde, Mexico’s Minister of Labor and Social Welfare, on Tuesday.

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  • US sues Rite Aid for missing opioid red flags | CNN Business

    US sues Rite Aid for missing opioid red flags | CNN Business

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    CNN
     — 

    The Justice Department on Monday filed a lawsuit against Rite Aid for allegedly violating the Controlled Substances Act, alleging that the company “knowingly filled unlawful prescriptions for controlled substances.”

    In a statement, Attorney General Merrick Garland said the Department of Justice is “using every tool at our disposal” to hold Rite Aid accountable for contributing to the opioid epidemic.

    Associate Attorney General Vanita Gupta said “Rite Aid’s pharmacists repeatedly filled prescriptions for controlled substances with obvious red flags, and Rite Aid intentionally deleted internal notes about suspicious prescribers. These practices opened the floodgates for millions of opioid pills and other controlled substances to flow illegally out of Rite Aid’s stores.”

    In the complaint, The Justice department alleges that from May 2014 to June 2019, Rite Aid filled thousands of unlawful combinations of prescriptions known as “the trinity” which included prescriptions for “excessive quantities of opioids, such as oxycodone and fentanyl.”

    Rite Aid pharmacists were accused of ignoring obvious signs of misuse and intentionally deleting some pharmacists’ internal warnings about suspicious prescribers, such as “cash only pill mill???”

    “These practices opened the floodgates for millions of opioid pills and other controlled substances to flow illegally out of Rite Aid’s stores,” Associate Attorney General Vanita Gupta said.

    The Justice Department said the prescriptions, who were issued illegally, “lacked a legitimate medical purpose, were not for a medically accepted indication, or were not issued in the usual course of professional practice.”

    Rite Aid is one of the country’s largest pharmacy chains, with more than 2,330 stores in 17 US states. It did not immediately respond to requests for comment.

    The Justice Department accused Rite Aid of violating the federal False Claims Act by submitting false prescription claims to government health care programs such as Medicare and Medicaid.

    It joined a whistleblower lawsuit filed in 2019 by two pharmacists and a pharmacy technician from Rite Aid stores in Pennsylvania, North Carolina and West Virginia.

    The Justice Department occasionally joins whistleblower cases it considers stronger.

    It has also sued Walmart and drug distributor AmerisourceBergen Corp over their alleged roles in the nation’s opioid crisis.

    More than 500,000 people died from drug overdoses in the United States from 1999 to 2020, including more than 90,000 in 2020 alone, according to the US Centers for Disease Control and Prevention.

    Reuters contributed to this report.

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  • Taiwan says soldier who went missing has been found in China | CNN

    Taiwan says soldier who went missing has been found in China | CNN

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    Taipei, Taiwan
    CNN
     — 

    A Taiwanese soldier who went missing last week from an island near the Chinese coast has been found in mainland China, a Taiwan official said on Monday, raising the possibility of a highly unusual defection amid heightened tensions across the Taiwan Strait.

    Speaking to reporters, Chiu Tai-san, minister of Taiwan’s Mainland Affairs Council, said China had notified Taiwan that the soldier, surnamed Chen, is currently in mainland China.

    Chen was reported missing on Erdan island following a roll call, the Taiwanese Defense Ministry said in a statement Thursday, adding it had set up a special task force to locate him.

    Erdan, part of the Taipei-controlled Kinmen islands, is located less than 5 kilometers (3.1 miles) from the Chinese port city of Xiamen in southeastern Fujian province.

    In recent years, Beijing has ramped up economic, diplomatic and military pressure on Taiwan – a self-ruling democracy the Chinese Communist Party claims as its own despite having never governed it.

    China’s People’s Liberation Army (PLA) frequently sends aircraft and warships close to Taiwan, in a campaign aimed at intimidating the island and wearing down its equipment.

    On Monday, Chiu said the Taiwanese Defense Ministry has existing mechanisms to determine whether the soldier should be identified as a deserter.

    He added that the Taiwanese and Chinese sides have communication channels to handle emergency situations and combat crime. “The defense ministry and coast guard administration are actively understanding the relevant progress and situation,” Chiu said.

    CNN has reached out to Taiwan’s Defense Ministry for comment.

    While defection between the two sides has been rarely heard of in recent years, it used to be a more common occurrence.

    In 2002, Taiwan’s then-minister of defense said the Taiwanese military saw 20 cases of defections to China between 1949 and 1989.

    Defectors from both sides were seen as huge propaganda wins – and sometimes rewarded in cash.

    In 1981, China paid a reward of $370,000 to a Taiwanese Air Force major who defected to the mainland with an American-built reconnaissance plane – a valuable asset for the PLA at the time.

    Other defectors would swim between China and Kinmen. The closest distance between the main island of Kinmen and the Chinese coast, at low tide, is less than 2 kilometers (1.6 miles).

    In 1979, Justin Lin, a Taiwanese ground force captain and company commander, swam across that channel to defect to China. He went on to study at the prestigious Peking University and become a high-profile economist.

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  • Mississippi man sentenced to more than 3 years in prison for burning a cross to intimidate Black family | CNN

    Mississippi man sentenced to more than 3 years in prison for burning a cross to intimidate Black family | CNN

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    CNN
     — 

    A Mississippi man has been sentenced to 3 1/2 years in prison for burning a cross in his front yard to intimidate a Black family, according to a news release from the US Justice Department.

    Axel Cox, 24, was sentenced to 42 months in connection to the cross burning, which happened in December 2020 and violated the Fair Housing Act, the release said, adding Cox “admitted that he lit the cross on fire because the victims were Black and that he intended to scare them into moving out of the neighborhood.”

    Justice Department leaders condemned Cox’s actions, with Assistant Attorney General Kristen Clarke of the DOJ’s Civil Rights Division calling them “an abhorrent act that used a traditional symbol of hatred and violence to stoke fear and drive a Black family out of their home.”

    According to the Justice Department, Cox “wedged two pieces of wood together to form a cross, placed it in clear view of the victims’ residence,” following a dispute with the victims and “doused it in oil and set it alight. During this incident, Cox yelled threats and racial slurs toward the occupants of the house.”

    In September 2022, a federal grand jury indicted Cox for interfering with the victims’ housing rights and using fire to commit a federal felony. An attorney for Cox, who did not immediately response to a request for comment Sunday, filed a notice of intent to change his plea in November 2022, and court documents indicate Cox pleaded guilty to the first count.

    Cox’s prison term is set to be followed by three years of supervised release, per the Justice Department. He was also ordered to pay $7,810 in restitution.

    “While one might think cross-burnings and white supremacist threats and violence are things of the past, the unfortunate reality is that these incidents continue today,” Clarke said.

    “This sentence demonstrates the importance of holding people accountable for threatening the safety and security of Black people in their homes because of the color of their skin or where they are from.”

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  • China’s new defense minister is a general the US sanctioned for buying Russian weapons | CNN

    China’s new defense minister is a general the US sanctioned for buying Russian weapons | CNN

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    CNN
     — 

    China on Sunday appointed a US-sanctioned general as its new defense minister.

    The country’s rubber-stamp legislature unanimously confirmed the appointment of General Li Shangfu, a veteran of the People’s Liberation Army’s modernization drive, during a session on Sunday.

    Experts said the appointment would be closely watched by Washington given Li’s background, even though the post is viewed as largely diplomatic and ceremonial.

    In 2018, the administration of former US President Donald Trump sanctioned Li and China’s Equipment Development Department – which he was in charge of at the time – for purchasing Russian weapons, including a Su-35 combat aircraft and a S-400 surface-to-air missile system.

    His appointment was one of a series confirmed by China’s National People’s Congress during its Sunday sitting. Other senior appointments included four new vice premiers – Ding Xuexiang, He Lifeng, Zhang Guoqing, and Liu Guozhong.

    Following their nomination by the new premier Li Qiang, all four will serve as vice premiers on the State Council, the body responsible for reviving China’s economy after three years of strict zero-Covid restrictions.

    The appointment of Li Shangfu as defense minister comes at a time of increasingly strained relations between Beijing and Washington.

    Defense experts told Reuters that his appointment likely reflected a reward for his work in modernizing China’s military.

    In 2016, Li was named deputy commander of the PLA’s then-new Strategic Support Force, an elite body tasked with accelerating the development of China’s space and cyber warfare capabilities. He was then appointed head of the Equipment Development Department of the Central Military Commission (CMC), China’s governing defense body, headed by the country’s leader Xi Jinping, Reuters reported.

    Defense experts said Li’s history as a technocrat and aerospace engineer who worked in China’s satellite program would play a key part in his new role.

    “The operational and technological background of the next Chinese defense minister is especially pertinent given that the PLA aims to become a world-class military by 2049,” James Char from Singapore’s S. Rajaratnam School of International Studies told Reuters.

    “I think he has been elevated to this position because he’s delivered for Xi Jinping in key areas of modernisation,” Singapore-based security analyst Alexander Neill from Hawaii’s Pacific Forum think-tank told Reuters.

    “This is someone who will have to hold their own in front of an international audience.”

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  • NSA chief warns TikTok could censor videos as part of Chinese influence operations | CNN Business

    NSA chief warns TikTok could censor videos as part of Chinese influence operations | CNN Business

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    Washington
    CNN
     — 

    US national security officials are concerned that TikTok could use its vast global reach to shape public opinion by either suppressing certain videos or promoting others, the head of the National Security Agency and US Cyber Command told lawmakers on Tuesday.

    “It’s not only the fact that you can influence something, but you can also turn off the message as well when you have such a large population of listeners,” Gen. Paul Nakasone said in testimony before the Senate Armed Services Committee.

    TikTok’s collection of data and its control over the algorithm that serves user content are also concerning, Nakasone said.

    Nakasone’s comments follow a directive from the White House that gives US federal agencies 30 days to remove TikTok from government-issued devices. And they come amid a major policy debate in Washington about what to do about one of the most popular apps among American youth.

    US officials have for years accused TikTok – and its Chinese parent firm ByteDance – of collecting data that could enable surveillance by the Chinese government. TikTok denies the allegations and has called on the Biden administration to finalize a national security deal that would allow TikTok to continue operating in the US in exchange for greater US government visibility into how it collects and stores data on Americans.

    A TikTok spokesperson said that the company has been working with the US government to address national security concerns.

    “Our status has been debated in public in a way that is divorced from the facts of that agreement and what we’ve achieved already. We will continue to do our part to deliver a comprehensive national security plan for the American people,” Brooke Oberwetter from TikTok said in statement.

    Some House lawmakers have pushed legislation that could effectively force the Biden administration to impose an outright ban on TikTok, but the prospects of that bill becoming law are slim.

    A bipartisan Senate bill that Virginia Democrat Mark Warner and South Dakota Republican John Thune are expected to unveil on Tuesday would give the Commerce Department authority to develop “mitigation measures,” up to and including a ban, to meet the risk posed by foreign-linked technologies.

    Like the US government push to ban hardware and other gear made by Huawei, another Chinese technology giant, US officials are often short on specifics when asked to show public proof of collusion between the Chinese government and ByteDance.

    “People are always looking for the smoking gun in these technologies,” NSA Cybersecurity Director Rob Joyce told reporters in December. “I characterize it much more as a loaded gun.”

    “I would not expect individualized targeting through [TikTok] to do malicious things,” Joyce said. “Where I’m concerned is the overall ability to do large-scale influence.”

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  • ‘Y’all ain’t never been to Mexico.’ How a road trip over the border took a deadly turn | CNN

    ‘Y’all ain’t never been to Mexico.’ How a road trip over the border took a deadly turn | CNN

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    CNN
     — 

    Four South Carolinians in a white minivan pulled out the parking lot of a Motel 6 surrounded by palmettos and onto an expressway in Brownsville, Texas – zooming past strip malls lined with taquerias, auto repair shops and law offices with Spanish names – for the short drive to the Mexican border city of Matamoros.

    At one of the busiest border crossings in the country, the American citizens that Friday morning joined other motorists and pedestrians on trips for work or to see family, cheaper medical procedures and medications, or margarita lunches at brightly painted restaurants where menu prices are listed in pesos and dollars.

    About 9:20 a.m., LaTavia Washington McGee, a 33-year-old mother of six, and her three friends from South Carolina crossed the Brownsville and Matamoros Express International Bridge. They were already running late for Washington McGee’s appointment for a medical procedure.

    Around that time, the minivan moves along a rundown section of Matamoros, according to a livestream video taken by one of the minivan’s occupants that was obtained and analyzed by CNN.

    “Y’all ain’t never been to Mexico,” said one of the men inside the van. “Y’all don’t know what it’s like in Mexi.”

    Moments later, the man said, “Hola,” and there was laughter during a road trip that would soon take a deadly turn in the lawless border town.

    In broad daylight, at 11:45 a.m., the van was intercepted and fired upon. All occupants were shot except for Washington McGee. A Mexican woman was killed by a stray bullet about a block and a half away.

    Video showed the attackers, armed with rifles and wearing protective vests, tossing Washington McGee – “like trash” in the words of her mother, Barbara McLeod Burgess – onto the bed of a pickup.

    The gunmen, believed to be connected to the Gulf drug cartel, dragged the other victims onto the truck. Two appeared limp, leaving a trail of blood on the ground of the busy intersection. The abductors then drove away.

    Within days Mexican security forces found two of the Americans – Shaeed Woodard and Zindell Brown dead in a small wooden shack on a desolate road leading to Playa Bagdad, near the spot where the Rio Grande meets the Gulf of Mexico. Another man, Eric Williams, was wounded. And Washington McGee was found alive following a violent kidnapping that has become a flash point between neighboring countries and brought international attention to a Mexican border city where little-noticed killings and disappearances are part of everyday life.

    “If they were Mexicans this would not have happened with such speed,” Guadalupe Correa-Cabrera, an expert on smuggling who is a professor at George Mason University and has lived and worked in near Brownsville border, said of the rescue. “It would not have happened at all. It doesn’t happen with Mexicans, particularly in that state.”

    By Friday, a week after the kidnappings, Mexican authorities announced that five people had been arrested for the attack. A day earlier, the Gulf cartel purportedly issued a letter of apology and handed over five members to local authorities, according to online images and a version of the letter obtained by CNN from an official familiar with the ongoing investigation. A sixth man, who authorities said had been guarding the hostages, was arrested when the Americans were found on Tuesday.

    The four Americans that Friday morning drove into a country where authorities have struggled for small victories in a long and deadly battle against drug cartels. The conflict has claimed the lives of thousands of Mexicans, from innocent bystanders to journalists to government officials and political candidates.

    It’s unclear how much the friends in the rented minivan knew about the crime-ridden border city, where factions of the powerful Gulf cartel have been warring for turf, along with control of human trafficking, kidnapping and extortion rackets. Matamoros is in the northeast state of Tamaulipas, where an explosion of homicides, kidnappings and disappearances rarely make international news.

    “I know her,” said Washington McGee’s best friend, Cheryl Orange, who traveled with the group from South Carolina to Texas on March 2 but stayed behind because she did not have proper identification to cross the border. “She’s not going to travel to danger.”

    The trip was Washington McGee’s second to Mexico for a medical procedure, according to her mother. She had surgery across the border two or three years ago, Barbara Burgess said.

    Matamoros, with a population of more than 500,000 people, sits just across the Rio Grande from Brownsville. The US State Department in October issued a “Level 4: Do Not Travel” advisory for US citizens visiting Tamaulipas, citing gun battles, kidnapping and forced disappearances.

    Cheryl Orange vpx 01

    Friend of Americans kidnapped in Mexico recounts the moments before they went missing

    On the day of the kidnappings, Tamaulipas authorities issued a warning to parents to keep their children home from school in Matamoros because of shootings. The US embassy and consulates in Mexico warned staff to avoid downtown Matamoros.

    The Americans are believed to have been targeted by mistake and were not the intended victims, according to a US official with knowledge of the investigation. Authorities believe cartel members likely mistook them for Haitian smugglers, the official said. US authorities have not identified any concerning criminal history on the part of the Americans.

    On Friday, Mexican President Andrés Manuel López Obrador alluded to the purported “criminal background in the United States” of the Americans but did not elaborate on how that related to the deadly kidnapping. López Obrador’s “hugs not bullets” anti-crime policy – focusing on social programs rather than confrontation with criminal gangs – has come under fire at home and abroad.

    CNN is looking into López Obrador’s claims about the criminal history of the US citizens.

    US Ambassador to Mexico Ken Salazar on Friday declined comment on the motivation behind the kidnappings.

    Asked what she wanted people to know about her friends, Orange said: “I want the world to leave us alone and stop being mean. I want them to have a heart because everyone has a past.”

    The disappearance of the four Americans has become an international incident.

    The FBI launched an investigation and announced a $50,000 reward for their return and the arrest of those involved. The White House and State Department condemned the abduction and killings. Some Republicans in Congress called for a US military invasion of Mexico to combat the cartels. Others called for the US to designate the cartels as “terrorist organizations.”

    Orange said she and the other four Americans embarked on their journey from South Carolina on Thursday.

    “It was a road trip,” she said. They tagged along with Washington McGee, who was scheduled to have a medical procedure across the border, Orange told Brownsville police when she reported her friends missing a day after the kidnapping.

    Mexico is the second most popular destination for medical tourism globally, with an estimated 1.4 million to 3 million patients traveling into the country for inexpensive treatment in 2020, according to Patients Beyond Borders, an international healthcare consulting company.

    Woodard, who was killed in the kidnapping, would have celebrated his 34th birthday on Thursday, according to his father, James Woodard.

    Washington McGee and Shaeed Woodard were cousins – “like two peas in a pod” – and she invited him on the trip to Mexico for an early birthday celebration, James Woodard said.

    “They loved each other,” he said of the cousins.

    Orange said the men were expected to drop off Washington McGee at the doctor’s officer in Matamoros and return to the hotel about 15 minutes later. She fell asleep after taking a shower at the Motel 6. “I was exhausted, you know, from the long hours, from the long ride,” she said.

    She woke up about 5 p.m. and they hadn’t returned. Orange told police she tried calling her friends but couldn’t get through.

    latavia mother mexico vpx

    Victim’s mom reveals what daughter told her about killings

    The four friends never arrived at the doctor’s office for Washington McGee’s 7:30 a.m. appointment. One of them called the office that Friday morning to say they were running late.

    At some point after 11 a.m. a gray Volkswagen Jetta is seen following their minivan, according to surveillance video obtained by Mexican prosecutors.

    About 40 minutes later several vehicles appear to be trailing the minivan and, at 11:45 a.m., the Americans were intercepted by gunmen.

    Burgess said her daughter later told her by phone that the minivan was struck by another vehicle before the shooting started.

    In video that circulated online after the kidnapping, McGee Washington is seen sitting on the ground next to the white minivan. A bullet appeared to pierce the middle of driver’s side window. Three other people can be seen on the road as cars on the busy intersection start steering away from the danger.

    McGee Washington is shoved onto the back of a pickup before her three friends were lifted and tossed beside her.

    “She said the others tried to run and they got shot at the same time,” Burgess said her daughter told her after the Americans were found on Tuesday.

    “She watched them die,” Burgess said of Woodard and Zindell Brown.

    Burgess watched the video, she said, and “I thought she was done,” referring to her daughter.

    In the wee hours after reporting her friends missing, Orange watched the widely circulated video of the abduction.

    “My body clenched up. I dropped the phone. My stomach was in knots and I just began praying for the return of them,” she said.

    James Woodard was also pained by the video he saw on television.

    “That was so hard for me to see,” he said. “He was a baby and for him to be taken from me like that was very hurtful.”

    The missing Americans' van at the scene where they were last seen.  Video shows the four being loaded into the back of a pickup truck.  Their current whereabouts are unknown.

    Shocking video shows moment kidnapped Americans were loaded into pickup truck

    In the days after the kidnapping, Mexican authorities combed through surveillance video from the downtown intersection. They contacted US authorities after discovering documents in the rented minivan with North Carolina plates, which were traced by officials across the border. Mexican investigators also managed to identify the truck used by the gunmen.

    Investigators processed vehicles, and obtained ballistics and fingerprint data. They also collected biological samples for genetic profiles, Mexican officials said.

    After identifying the truck used by the gunmen, several unsuccessful searches were conducted by heavily armed Mexican security forces from various agencies.

    The Americans had been moved to several places “to create confusion and avoid rescue efforts,” Tamaulipas Gov. Américo Villarreal said.

    Burgess said her daughter told her the abductors moved the four Americans “from place to place” and finally hid them in “a little place and it stank.”

    “All of them were hustled in and were staying together,” she said.

    At 10:15 a.m. on Tuesday morning, the Americans were found in a small red wooden shack in a field outside the city. Mexican authorities arrested a man who they said was guarding the house. Images from the scene showed McGee barefoot and covered in dirt, with streaks of blood on her left leg.

    Mexico dispatched hundreds of security forces to Matamoros in what the defense ministry said was a move to safeguard “the well-being of citizens.”

    The swift response by authorities to the Americans’ kidnapping raised eyebrows in a country where desperate relatives of people who have gone missing over the years have banded together to conduct their own investigations. More than 100,000 Mexicans and migrants have disappeared in the country over the years, with no explanation of their fate.

    After the frantic rescue, Orange said hearing Washington MaGee’s voice on the phone was “music to my ears.”

    “This lady was facing death damn near and she said, ‘I was worried about you,’” Orange recalled.

    The bodies of Woodard and Brown were turned over to US authorities on Thursday.

    Washington McGee told CNN Saturday she is grateful to be back home with her family in South Carolina.

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  • Parents of sailor who died by suicide urge Pentagon to implement mental health measure named in his honor that became law over a year ago | CNN Politics

    Parents of sailor who died by suicide urge Pentagon to implement mental health measure named in his honor that became law over a year ago | CNN Politics

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    CNN
     — 

    More than a year after Congress signed into law a bill meant to help service members struggling with severe mental health problems, the Pentagon still has not issued guidance to the services to put the bill into practice.

    “We hear the rhetoric all the time, but we need action,” said Democratic Rep. Seth Moulton, who co-sponsored the Brandon Act. “They’ve been sitting on their hands and more Americans die every day as a result.”

    The Brandon Act is named after Brandon Caserta, a young sailor whose parents described him as a “very charismatic and upbeat young man” who “always helped everyone he could.”

    But in June 2018, Caserta took his own life at Naval Air Station Norfolk, Virginia. In letters to his parents and to his friends, Caserta said he was constantly hazed and bullied in the Navy, and he saw no other way out.

    He notified his commanders he was depressed but they took no action and showed no sympathy, according to Brandon Caserta’s father Patrick, who served 22 years in the Navy.

    “They said, ‘Suck it up and get back to work,’” Patrick Caserta told CNN. “You can’t have that. That’s now how you deal with it.”

    The Brandon Act was included in the 2022 National Defense Authorization Act. If a service member seeks mental health services or self-reports a problem, the Act requires a mental health evaluation. It also allows service members to seek confidential help outside the chain of command.

    “His letter led us to this,” Teri Caserta, Brandon’s mother, told CNN. “He wanted us to do something about suicide and the toxicity that happens in our military system. That’s why we created the Brandon Act.”

    But 15 months after it was passed the law has not been implemented and the Defense Department hasn’t followed through its requirements and issued guidance for the military. Therefore, the mental health evaluations and the confidential reporting required by the law are still not available to service members.

    In 2021, the latest year for which numbers are available, 519 US service members died by suicide. Though a slight decrease from the previous year’s 582 suicides, the trend over the last decade and more has been increasing.

    Last year, three sailors assigned to the USS George Washington died by suicide in a single week. Then, in December, four sailors at a faculty in Norfolk, Virginia died by suicide in one month.

    “DoD needs to do this,” said Moulton bluntly. “Active-duty service members don’t have a way to report mental health issues outside the chain of command because DoD just hasn’t gotten out of their own bureaucratic way to implement this act. It just requires the Secretary of Defense and his department to do their job.”

    The issue of military suicides has plagued the Department of Defense for decades. According to a 2021 study from Brown University, more than 30,000 active-duty personnel and veterans died by suicide during the 20-year War on Terror, which is more than four times the number of combat deaths in Iraq and Afghanistan combined.

    The Defense Department is currently working on implementing the requirements of the Brandon Act, according to a spokesperson.

    “Due to the complexity of the requirement, publication of policy to establish self-initiated referrals for a mental health evaluation via a commander or supervisor is currently in development,” said Cmdr. Nicole Schwegman, who stressed that there are mental health services available for members of the military seeking help or an evaluation.

    “A full continuum of mental health and wellness support is available worldwide to ensure access to care,” Schwegman said, including specialty and primary care clinics, as well as virtual health platforms.

    Last month, the Pentagon’s Suicide Prevention and Response Independent Review Committee unveiled 127 recommendations to combat military suicides, including a waiting period for gun purchases on base and raising the minimum age for buying firearms on base.

    The Pentagon said it would review the recommendations closely.

    “Even one suicide is too many, and we will exhaust every effort to promote the wellness, health, and morale of our total force,” said Pentagon press secretary Brig. Gen. Pat Ryder after the release of the recommendations.

    But for the parents of Brandon Caserta, the committee’s recommendations and the Pentagon’s promises to review its report smack of more waiting and less action.

    “As painful as this has been, had someone else done this before us, our son would still be alive,” said Patrick Caserta. “We want to be that person that saves lives later on.”

    Editor’s Note: If you or a loved one have contemplated suicide, call The National Suicide and Crisis Lifeline at 988 or 1-800-273-TALK (8255) to connect with a trained counselor.

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  • When China shot down five U-2 spy planes at the height of the Cold War | CNN

    When China shot down five U-2 spy planes at the height of the Cold War | CNN

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    Seoul, South Korea
    CNN
     — 

    When a Chinese high-altitude balloon suspected of spying was spotted over the United States recently, the US Air Force responded by sending up a high-flying espionage asset of its own: the U-2 reconnaissance jet.

    It was the Cold-War era spy plane that took the high-resolution photographs – not to mention its pilot’s selfie – that reportedly convinced Washington the Chinese balloon was gathering intelligence and not, as Beijing continues to insist, studying the weather.

    In doing so, the plane played a key role in an event that sent tensions between the world’s two largest economies soaring, and shone an international spotlight on the methods the two governments use to keep tabs on each other.

    Until now, most of the media’s focus has been on the balloon – specifically, how a vessel popularly seen as a relic of a bygone era of espionage could possibly remain relevant in the modern spy’s playbook. Yet to many military historians, it is the involvement of that other symbol of a bygone time, the U-2, that is far more telling.

    The U-2 has a long and storied history when it comes to espionage battles between the US and China. In the 1960s and 1970s, at least five of them were shot down while on surveillance missions over China.

    Those losses haven’t been as widely reported as might be expected – and for good reason. The Central Intelligence Agency (CIA), which was responsible for all of America’s U-2s at the time the planes were shot down, has never officially explained what they were doing there.

    Adding to the mystery was that the planes were being flown not by US pilots nor under a US flag, but by pilots from Taiwan who, in a striking parallel to today’s balloon saga, claimed to be involved in a weather research initiative.

    That the CIA would be tight-lipped over what these American-built spy planes were doing is hardly surprising.

    But the agency’s continued silence more than 50 years later – it did not respond to a CNN request for comment on this article – speaks volumes about just how sensitive the issue was both at the time and remains today.

    The US government has a general rule of 25 years for automatic declassification of sensitive material. However, one of its often-cited reasons for ignoring this rule is in those cases where revealing the information would “cause serious harm to relations between the US and a foreign government, or to ongoing diplomatic activities of the US.”

    Contemporary accounts of what the planes were doing – by the Taiwan pilots who were shot down, retired US Air Force officers and military historians among them – leave little doubt as to why it would have caused a stir.

    The planes – according to accounts by the pilots in a Taiwan-made documentary film and histories published on US government websites – had been transferred to Taiwan as part of a top-secret mission to snoop on Communist China’s growing military capabilities, including its nascent nuclear program, which was receiving help from the Soviet Union.

    The newly developed U-2, nicknamed the Dragon Lady, appeared to offer the perfect vessel. The US had already used it to spy on the Soviet’s domestic nuclear program as its high-altitude capabilities – it was designed in the 1950s to reach “a staggering and unprecedented altitude of 70,000 feet,” in the words of its developer Lockheed – put it out of the range of antiaircraft missiles.

    Or so the US had thought. In 1960, the Soviets shot down a CIA-operated U-2 and put its pilot Gary Powers on trial. Washington was forced to abandon its cover story (that Powers had been on a weather reconnaissance mission and had drifted into Soviet airspace after blacking out from oxygen depletion), admit the spy plane program, and barter for Powers to be returned in a prisoner swap.

    “Since America didn’t want to have its own pilots shot down in a U-2 the way Gary Powers had been over the Soviet Union in 1960, which caused a major diplomatic incident, they turned to Taiwan, and Taiwan was all too willing to allow its pilots to be trained and to do a long series of overflights over mainland China,” Chris Pocock, author of “50 Years of the U-2,” explained in the 2018 documentary film “Lost Black Cats 35th Squadron.”

    A mobile chase car pursues a U-2 Dragon Lady as it prepares to land at Beale Air Force Base in California in June 2015.

    Like the U-2, Taiwan – also known as the Republic of China (ROC) – seemed a perfect choice for the mission. The self-governing island to the east of the Chinese mainland was at odds with the Communist leadership in Beijing – as it remains today – and at that time in history had a mutual defense treaty with Washington.

    That treaty has long since lapsed, but Taiwan remains a point of major tensions between China and the United States, with Chinese leader Xi Jinping vowing to bring it under the Communist Party’s control and Washington still obligated to provide it with the means to defend itself.

    Today, the US sells F-16 fighter jets to Taiwan as part of that obligation. In the 1960s, Taiwan got the US-made U-2s.

    The island’s military set up a squadron that would officially be known as the “Weather Reconnaissance and Research Section.”

    But its members – pilots from Taiwan who had been trained in the US to fly U-2s – knew it by a different name: the “Black Cats.”

    The author Pocock and Gary Powers Jr., the son of the pilot shot down by the Soviets and the co-founder of the Cold War Museum in Washington, DC, explained the thinking behind the squadron and its mission in the 2018 documentary film.

    The other CIA unit in Taiwan

  • Coinciding with the Black Cat Squadron, the Black Bat Squadron was formed under the cooperation of the Central Intelligence Agency and Taiwan’s air force, according to a Taiwan Defense Ministry website.
  • While the Black Cats were in charge of high-altitude reconnaissance missions, the Black Bats conducted low-altitude reconnaissance and electronic intelligence gathering missions over mainland China from May 1956. It also operated in Vietnam in tandem with the US during the Vietnam War.
  • Between 1952 to 1972, the Black Bats lost 15 aircraft and 148 lives, according to the website.

“The Black Cats program was implemented because the American government needed to find out information over mainland China – what were their strengths and weaknesses, where were their military installations located, where were their submarine bases, what type of aircraft were they developing,” said Powers Jr.

Lloyd Leavitt, a retired US Air Force lieutenant general, described the mission as “a joint intelligence operation by the United States and the Republic of China.”

“American U-2s were painted with ROC insignia, ROC pilots were under the command of a ROC (Air Force) colonel, overflight missions were planned by Washington, and both countries were recipients of the intelligence gathered over the mainland,” Leavitt wrote in a 2010 personal history of the Cold War published by the Air Force Research Institute in Alabama.

One of the first men to fly the U-2 for Taiwan was Mike Hua, who was there when the first of the planes arrived at Taoyuan Air Base in Taiwan in early 1961.

“The cover story was that the ROC (air force) had purchased the aircraft, that bore the (Taiwanese) national insignia. … To avoid being confused with other air force organizations stationed in Taoyuan, the section became the 35th Squadron with the Black Cat as its insignia,” Hua wrote in a 2002 history of the unit for the magazine Air Force Historical Foundation.

At the Taiwan airbase, Americans worked with the Taiwan pilots, helping to maintain the aircraft and process the information. They were know as Detachment H, according to Hua.

“All US personnel were ostensibly employees of the Lockheed Aircraft Company,” Hua wrote.

The ROC air force and US representatives inked an agreement on the operation, giving it the code name “Razor,” Hua wrote.

He described the intelligence gained by the flights as “tremendous” and said it was shared between Taipei and Washington.

“The missions covered the vast interior of the Chinese mainland, where almost no aerial photographs had ever been taken,” he wrote. “Each mission brought back an aerial photographic map of roughly 100 miles wide by 2,000 miles long, which revealed not only the precise location of a target, but also the activities on the ground.”

Other sensors on the spy planes gathered information on Chinese radar capabilities and more, he said.

Between January 1962 and May 1974, according to a history on Taiwan’s Defense Ministry’s website, the Black Cats flew 220 reconnaissance missions covering “more than 10 million square kilometers over 30 provinces in the Chinese mainland.”

When asked for further comment on the Black Cats, the ministry referred CNN to the published materials.

“The idea was that black cats go out at night, and the U-2 would usually launch in the darkness. Their cameras were the eyes, and it was very stealthy, quiet, and hard to get. And so combining the two stories, they became known as the Black Cats,” the author Pocock said in the documentary.

The squadron even had its own patch, reputedly drawn by one of its members, Lt. Col. Chen Huai-sheng, and inspired by a local establishment frequented by the pilots.

But the Black Cats, like Powers Sr. two years before, were about to find out their U-2s were not impervious to antiaircraft fire.

On September 9, 1962, Chen became the first U-2 pilot to be shot down by a People’s Liberation Army antiaircraft missile. His plane went down while on a mission over Nanchang, China.

Sailors assigned to Explosive Ordnance Disposal Group 2 recover a high-altitude surveillance balloon off the coast of Myrtle Beach, South Carolina, Feb. 5, 2023. (U.S. Navy Photo by Mass Communication Specialist 1st Class Tyler Thompson)

See photos showing US Navy recovering spy balloon from water

In the following years, three more Black Cat U-2 pilots were killed on missions over China as the PLA figured out how to counter the U-2 missions.

“The mainland Chinese learned from their radars where these flights were going, what their targets were, and they began to build sites for the missiles but move them around,” Pocock said.

“So they would build a site here, occupy that site for a while but if they thought the next flight would be going over here, they would move the missiles. It was a cat-and-mouse game, literally a black cat and mouse game between the routines from the flights from Taiwan and those air defense troops of the (Chinese) mainland, working out where the next flight would go.”

In July 1964, Lt. Col. Lee Nan-ping’s U-2 was shot down by a PLA SA-2 missile over Chenghai, China. According to the Taiwan Defense Ministry he was flying out of a US naval air station in the Philippines and trying to gain information on China’s supply routes to North Vietnam.

In September 1967, a PLA missile hit the U-2 being flown by Capt. Hwang Rung-pei over Jiaxin, China, and in May 1969, Maj. Chang Hsieh suffered a “flight control failure” over the Yellow Sea while reconnoitering the coast of Hebei province, China. No trace of his U-2 was ever found, according to Taiwan’s Defense Ministry.

A U-2 Dragon Lady, from Beale Air Force Base, lands at Joint Base Pearl Harbor-Hickam, Hawaii, in 2017.

Two other Taiwanese U-2 pilots were shot down but survived, only to spend years in Communist captivity.

Maj. Robin Yeh was shot down in November 1963 over Jiujiang, Jiangxi province.

“The plane lost control when the explosion of the missile took out part of the left wing. The plane spiraled down. Lots of shrapnel flew into the plane and hit both of my legs,” Yeh, who died in 2016, recalled in “The Brave in the Upper Air: An Oral History of The Black Cat Squadron” published by Taiwan’s Defense Ministry.

He said that following his capture Chinese doctors removed 59 pieces of shrapnel from his legs, but couldn’t take it all out.

“It didn’t really affect my daily life, but during winter my legs would hurt, which affected my mobility. I guess this would be my lifelong memory,” Yeh said.

Maj. Jack Chang’s U-2 was hit by a missile over Inner Mongolia in 1965. He, too, suffered dozens of shrapnel injuries and bailed out, landing on a snowy landscape.

“It was dark at the time, preventing me from seeking help anyway, so I had to wrap myself up tightly with the parachute to keep myself warm … After ten hours when dawn broke, I saw a village of yurts afar, so I dragged myself and sought help there. I collapsed as soon as I reached a bed,” he recalled in the oral history.

Neither Yeh nor Chang, who were assumed killed in action, would see Taiwan again for decades. The pilots were eventually released in 1982 into Hong Kong, which at the time was still a British colony.

However, the world into which they emerged had changed greatly in the intervening years. The US no longer had a mutual defense treaty with Taiwan and had formally switched diplomatic recognition from Taipei to Beijing.

Though the Cold War US-Taiwan alliance was no longer, the CIA brought the two pilots to the US to live until they were finally allowed to return to Taiwan in 1990.

Members of the 5th Reconnaissance Squadron

Indeed, by the time of their release CIA control of the U-2 program had long since ceased. It had turned the planes over to the US Air Force in 1974, according to a US Air Force history.

Two years later, the Air Force’s 99th Strategic Reconnaissance Squadron and its U-2s moved into Osan Air Base in South Korea. Commander Lt. Col. David Young gave the location the “Black Cat” moniker.

Today, the unit is known as the 5th Reconnaissance Squadron.

But US U-2s continue to be involved in what might be characterized as “cat-and-mouse” activities and their activities continue to make waves occasionally in China. In 2020, Beijing accused the US of sending a U-2 into a no-fly zone to “trespass” on live-fire exercises being conducted by China below.

The US Pacific Air Forces confirmed to CNN at the time that the flight had taken place, but said it did not violate any rules.

Meanwhile, for those involved in the original Black Cats, there are few regrets – even for those who were captured.

Yeh told the documentary makers he had fond memories of life at 70,000 feet.

“We were literally up in the air. The view we had was also different; we had the bird’s eye view. Everything we saw was vast,” he said.

Chang too felt no bitterness.

“I love flying,” he said. “I didn’t die, so I have no regrets.”

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  • Exclusive: China’s ‘attacks’ unite region against Beijing, US ambassador to Japan says | CNN

    Exclusive: China’s ‘attacks’ unite region against Beijing, US ambassador to Japan says | CNN

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    Tokyo
    CNN
     — 

    China should not be surprised Washington and its allies in Asia are deepening military ties given Beijing’s aggressive behavior toward many of its neighbors, the US ambassador to Japan said Wednesday in an exclusive interview with CNN.

    “You look at India, you look at the Philippines, you look at Australia, you look at the United States, Canada or Japan. They (China) have had in just the last three months a military or some type of confrontation with every country. And then they’re shocked that countries are taking their own steps for deterrence to protect themselves. What did they think they were going to do?” Ambassador Rahm Emanuel said in the interview at his residence in Tokyo.

    The US envoy listed a string of what he said were aggressive military actions by China, including “attacks” against India along their shared Himalayan border, Chinese coast guard ships aiming lasers at Philippine vessels in the South China Sea, the firing of missiles into Japan’s exclusive economic zone and the harassment of US, Canadian and Australian aircraft by People’s Liberation Army ships and planes.

    Beijing has denied being an aggressor in all those instances and accused Washington of being the primary instigator of heightened tensions in the region.

    On Tuesday, China’s new Foreign Minister Qin Gang warned that “conflict and confrontation” with the US is inevitable if Washington does not change course.

    “The US claims it seeks to compete with China but does not seek conflict. But in reality, the so-called ‘competition’ by the US is all-round containment and suppression, a zero-sum game of life and death,” he said during his first news conference in the new post.

    “Containment and suppression will not make America great, and the US will not stop the rejuvenation of China,” Qin said.

    Emanuel countered on Wednesday that military buildups and exercises by the US and its partners in the Indo-Pacific are not acts of containment, as Beijing charges, but acts of deterrence against further – and possibly more dangerous – Chinese aggression.

    “They’ve come together to realize that (Chinese aggression) can’t continue as is, so every country is taking steps, both within an alliance (and) also within their own self-interest of creating a comprehensive coalition of deterrence. That’s what’s going on,” Emanuel said.

    He praised Japan for doubling its defense budget and taking on a leadership role in the region, citing plans for it to operate joint South China Sea patrols with the Philippines and its agreement with South Korea just this week to settle grievances dating back to before World War II concerning Japan’s colonial rule in Korea.

    And he praised both Japanese Prime Minister Fumio Kishida and South Korean President Yoon Suk Yeol for putting the future before history and taking a stance that has prompted domestic backlash in both Tokyo and Seoul.

    “I do think that both leaders showed a braveness and a boldness to look to the 21st century and make the most of that rather than being tied by 20th century,” Emanuel said.

    “To me the test of leadership is to be idealistic enough to know why you’re doing what you’re doing. And then tough enough to get it done,” he said, adding that both Kishida and Yoon had passed that test.

    The US ambassador also contrasted the countries Japan has been partnering with, including South Korea, the Philippines, Australia, India and even the United Kingdom, with countries with whom China works, including Russia, North Korea and Iran.

    “There’s a phrase in America, you’re known by the company you keep,” Emanuel said.

    Over the past 18 months, the Biden administration has been keeping good company, too, he said, noting its record in uniting allies and partners.

    Emanuel cited multilateral agreements like the Quad – the informal alliance of the US, Japan, Australia and India – and the AUKUS deal for nuclear-powered submarines between the US, Australia and the UK as well as other economic, diplomatic and military initiatives.

    “I think that has given our allies confidence, like Japan, to increase the defense budget, to be more active on the diplomatic arena and stage,” he said, giving credit to Tokyo for getting eight of the 10 members of the Association of Southeast Asian Nations (ASEAN) to vote to condemn Russia’s invasion of Ukraine in a March 3 United Nations General Assembly vote.

    Countries around the world will respond to Japan, or South Korea, or the US for a simple reason that China doesn’t understand, “the gravitational pull of freedom,” Emanuel said.

    “A rules-based system that upholds respect both for the individual and in trying to uphold freedom has its own, I don’t know how else to say it, but seductive gravitational pull.”

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  • What’s changed since Powell last headed to Capitol Hill | CNN Business

    What’s changed since Powell last headed to Capitol Hill | CNN Business

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    Minneapolis
    CNN
     — 

    Federal Reserve Chair Jerome Powell is set to appear before the Senate Banking Committee Tuesday to deliver the first part of his two-day semiannual monetary policy testimony before Congress.

    It’s his first appearance before the committee since June last year, when inflation was on its way to 9%.

    Powell is expected to speak to the progress the US central bank has made in its yearlong campaign to rein in high inflation by ratcheting up its benchmark interest rate from near zero to between 4.5% to 4.75%.

    Inflation has slowed in recent months, measuring 6.4% in January after hitting a 40-year high of 9.1% in June. However, the battle is not yet won, and Powell and other Fed officials have cautioned that disinflation will be bumpy and there’s a long “ways to go.”

    Fed policymakers have warned in recent weeks that interest rates will likely have to remain higher for longer in order for inflation to settle down to the central bank’s 2% target.

    This time last year, Powell’s congressional address came on the heels of Russia’s invasion of Ukraine, surging gas prices and a significant escalation in US inflation. The economy continuing to rebound and repair itself from the lingering effects of the pandemic — including the disruptions of the Omicron variant.

    Faced with a strong labor market, uncertain geopolitical developments and surging inflation, Powell told members of Congress then that he’d likely propose a quarter-point rate hike at the central bank’s forthcoming meeting.

    It’s now March 2023, and the central bank is faced with an “extraordinarily strong” labor market, ongoing geopolitical uncertainty and stubborn inflation. However, there are signals that some inflationary pressures have eased: China’s economic growth was recently downgraded; and supply chain disruptions are easing, the Federal Reserve Bank of New York reported Monday.

    The markets are currently expecting the Fed to make another quarter-point rate hike during its next meeting two weeks from now: The CME FedWatch Tool is showing a 69.4% probability of such a hike. However, the perceived chances of a half-point increase (at 30.6%) have grown considerably during the past few weeks. One month ago, the probability for a half-point increase was 3.3%, according to the CME FedWatch Tool.

    Still, several major pieces of economic data — including the latest labor turnover report, monthly jobs report, Consumer Price Index, Producer Price Index, and retail sales — are all due ahead of the Fed’s next policymaking meeting on March 21-22.

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  • China’s new foreign minister warns of conflict with US, defends Russia ties | CNN

    China’s new foreign minister warns of conflict with US, defends Russia ties | CNN

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    CNN
     — 

    China’s new Foreign Minister Qin Gang warned Tuesday that “conflict and confrontation” with the United States is inevitable if Washington does not change course, delivering a stern and wide-ranging rebuke of US policies for his first press conference in the new role.

    Qin, who was until recently China’s ambassador to the US, built up a reputation for being careful and accomplished diplomat while overseas.

    But he struck a far more combative tone in his first appearance as foreign minister at China’s annual parliamentary meeting, warning of the “catastrophic consequences” of what he described as a “reckless gamble” by Washington in how it treats its fellow superpower.

    “If the United States does not hit the brakes, but continues to speed down the wrong path, no amount of guardrails can prevent derailing, and there will surely be conflict and confrontation,” Qin said on the sidelines of the National People’s Congress in Beijing.

    At the highly scripted event, Qin set the tone for China’s foreign policy for the coming year and beyond, berating the US for rising bilateral tensions and defending Beijing’s close partnership with Moscow.

    Ties between the world’s two largest economies are at their worst in decades, and tensions soared further last month after a suspected Chinese spy balloon floated over North America and was then shot down by US fighter jets.

    On Tuesday, Qin accused the US of overreacting in its response, which he said created “a diplomatic crisis that could have been avoided.”

    The incident, Qin said, shows “the US perception and views of China are seriously distorted. It regards China as its primary rival and the biggest geopolitical challenge.”

    “The US claims it seeks to compete with China but does not seek conflict. But in reality, the so-called ‘competition’ by the US is all-round containment and suppression, a zero-sum game of life and death,” he said.

    “Containment and suppression will not make America great, and the US will not stop the rejuvenation of China,” Qin said.

    The great power rivalry between the US and China has intensified in recent years.

    Under leader Xi Jinping, China has become increasingly authoritarian at home and assertive abroad, taking a more aggressive approach to exert its influence and counter the West.

    And Washington has pushed back.

    Under the Biden administration, the US has shored up ties with allies and partners to contain Beijing’s rising influence, including in its backyard.

    It has also pushed to decouple from China in emerging technologies, recently banning the export of advanced chips to the fury of Beijing.

    Qin lashed out at Washington for its Indo-Pacific strategy, accusing it of forming exclusive blocks to provoke confrontation, advocating for decoupling and plotting an “Asia-Pacific version of NATO.”

    “The real purpose of the Indo-Pacific strategy is to contain China,” Qin said. “No Cold War should be repeated in Asia, and no Ukraine-style crisis should be repeated in Asia.”

    China’s refusal to condemn Russia for the invasion of Ukraine and its growing partnership with Moscow have further strained its relations with the West. While Beijing has sought to cast itself as a neutral peace broker, it has also defended its “rock-solid” ties with Russia.

    On Tuesday Qin said the Sino-Russian relationship “does not pose a threat to any country in the world, nor will it be interfered or sowed discord in by any third party.”

    “The more unstable the world becomes, the more imperative it is for China and Russia to steadily advance their relations,” he said.

    Qin highlighted the issue of Taiwan as the “bedrock of the political foundation of Sino-US relations and the first red line that must not be crossed.”

    The Chinese Communist Party claims the self-governing democracy of Taiwan as part of its territory, despite having never controlled it, and refuses to rule out the use of force to “reunify” it with mainland China.

    On Tuesday, Qin urged the US not to “interfere in China’s internal affairs” and questioned Washington’s different responses to the issues of Ukraine and Taiwan.

    “Why does the US talk up respecting sovereignty and territorial integrity on the Ukraine issue, but does not respect China’s sovereignty and territorial integrity on the issue of Taiwan? Why does the US ask China not to provide weapons to Russia while keeps selling arms to Taiwan?” Qin said.

    Qin’s remarks come amid reports of a potential meeting between Taiwan’s President Tsai Ing-wen and US House Speaker Kevin McCarthy in April – a face to face that will most certainly draw the ire of Beijing.

    The Financial Times reported Monday that Tsai will meet McCarthy in California, rather than in Taiwan as the US Speaker had initially indicated.

    A US State Department spokesperson said Monday he is “not aware of any confirmed travel” by the Taiwanese President.

    Taiwan’s Foreign Ministry said it had no information to share regarding Tsai’s potential US visit at this point.

    Defying Beijing’s threats of retaliation, McCarthy’s Democratic predecessor Nancy Pelosi visited Taipei in August in the first visit by a US Speaker in 25 years.

    Beijing responded by staging unprecedented military exercises around Taiwan and cutting off key lines of communication with the US.

    China’s Foreign Ministry has since warned McCarthy not to visit Taiwan.

    Wen-Ti Sung, a political scientist with the Australia National University’s Taiwan Studies Program, said Tsai’s potential meeting with McCarthy in California is not necessarily a “replacement or downgrade.”

    Instead, it could be an “add-on,” he said, suggesting McCarthy could always visit Taiwan at a later date.

    While Taiwan wants to normalize high-level visits by American officials to Taiwan, it also needs to be seen by its Western partners that it is being a responsible stakeholder in the process.

    “Some may think that there is better timing than this current moment to be pursing another US speaker visit to Taiwan,” Sung said.

    A meeting in the US, he added, could serve as “a very visual deliverable in the short term to show continued US support for Taiwan, regardless of change of party leadership in the legislature.”

    Tsai has transited in the US before on her visits to Taipei’s diplomatic allies.

    She last visited the US in 2019 and gave a speech in New York – a trip that angered Beijing.

    To China, Tsai’s potential meeting with McCarthy will be provocative no matter where it takes place, Sung said.

    “Beijing is going to be very unhappy and protest vigorously regardless. So I guess for them it will be a difference in intensity, but not a difference in kind. Beijing won’t like any such high level exchange be it taking place on Taiwan or US soil.”

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  • US imposes visa sanction on Syrian military official over massacre that killed at least 41 unarmed civilians | CNN Politics

    US imposes visa sanction on Syrian military official over massacre that killed at least 41 unarmed civilians | CNN Politics

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    CNN
     — 

    The US State Department on Monday imposed a visa sanction on a Syrian military official whom it says killed at least 41 unarmed civilians in a neighborhood of Damascus in April 2013.

    Amjad Yousef, a military intelligence officer for the regime of Syrian leader Bashar al-Assad, and his immediate family will be blocked from entering the United States, Secretary of State Antony Blinken said in a statement.

    Video evidence of the massacre in Tadamon, which Blinken described as being “carried out coldly and methodically,” publicly emerged in 2022 “after a long and comprehensive investigation by independent researchers.”

    “Today, we are taking action to promote accountability for this atrocity,” the top US diplomat said.

    The announcement of the visa restriction comes as a growing number of countries have renewed at least some level of contact directly with the Assad regime, particularly in the wake of last month’s devastating earthquake in Turkey and Syria.

    “The footage of this massacre, coupled with the ongoing killing and abuse of countless Syrians, serves as a sobering reminder for why countries should not normalize relations with the Assad regime absent enduring progress towards a political resolution,” Blinken said.

    “The United States calls on the Assad regime to cease all violations and abuses of human rights, including but not limited to extrajudicial killings, arbitrary detention, enforced disappearance, and torture,” he said.

    Blinken noted that March “marks the twelfth year of conflict in Syria during which the Assad regime has committed innumerable atrocities, some of which rise to the level of war crimes and crimes against humanity.”

    In an April 2022 article published in “New Lines Magazine,” the two researchers who helped expose the massacre said that the videos, which were “already shocking for their atrociousness, stand out in their brevity and callousness among the thousands of hours of footage that we have examined throughout our respective careers as researchers of mass violence and genocide in Syria and elsewhere.”

    “Particularly shocking about the Tadamon videos is the fact that the intelligence officers who committed the massacre were on duty and in uniform; they report to President Bashar al-Assad himself, and yet they chose to show their faces in the incriminating footage. At several points during the video, they looked straight into the camera seemingly relaxed and smiling. In documenting their own actions, they used HD video quality,” Annsar Shahhoud and Uğur Ümit Üngör wrote.

    Yousef, the official who was sanctioned by the State Department Tuesday, “is focused, stoic and precise, and he works efficiently toward completing the task within a matter of 25 minutes,” the researchers wrote.

    “After a few months, we confronted him with the massacre and let him know that we had seen the footage,” the researchers described.

    “First, he denied it was him in the video. Then, he said he was just arresting someone,” they wrote. “Finally, he settled on the justification that it was his job and expressed his content: ‘I am proud of my deeds.’”

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