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Tag: regulators

  • Ted Cruz blasts FCC chair’s ‘mafioso’ tactic to bench Kimmel | Fortune

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    Senator Ted Cruz has become the most prominent Republican to criticize Federal Communications Commission Chair Brendan Carr, saying President Donald Trump’s top media regulator resorted to “mafioso” behavior to pressure Disney Corp.’s ABC to remove late night host Jimmy Kimmel. 

    Cruz, the chairman of the Commerce Committee and a frequent defender of the Trump administration, took to his podcast in the wake of Kimmel’s indefinite suspension this week to describe Carr’s actions as “dangerous.” 

    Carr earlier in the week implied on another podcast that ABC could face serious consequences from the government over Kimmel’s remarks about the shooting of conservative activist Charlie Kirk. Only hours later, ABC pulled Kimmel’s show. 

    Cruz said he doesn’t believe the government should punish media companies over political disagreements. 

    “I like Brendan Carr, he’s a good guy,” Cruz said on his podcast, which was taped late Thursday. “But what he said there is dangerous as hell.” 

    “That’s right outta ‘Goodfellas,’ that’s right out of a mafioso going into a bar saying, ‘Nice bar you have here, it’d be a shame if something happened to it,’” Cruz said, using the iconic New York accent associated with the Mafia. “If the government gets in the business of saying ‘We don’t like what you the media have said, we’re going to ban you from the airwaves if you don’t say what we like,’ that will end up bad for conservatives.”

    Throughout the podcast, Cruz emphasized he disagreed with Kimmel’s comments, which he called “reprehensible.” But he said a defamation case would have been a better approach than Carr’s intervention.

    “It might feel good right now to threaten Jimmy Kimmel, but if it is used to silence every person in America, we will regret it,” Cruz said. “I like Brendan Carr but we should not be in this business.”

    Trump rejected Cruz’s criticism of the FCC chair.

    “I think Brendan Carr is a great American patriot. So I disagree with Ted Cruz,” Trump told reporters later Friday during an event in the Oval Office.

    Cruz and Kimmel have their own history. 

    The Texas US senator challenged Kimmel to a one-on-one basketball game after the comedian mocked his appearance during a show. Kimmel accepted, with the proceeds from the 2018 event going to charities the two men chose.

    In a brief interview in the US Capitol on Friday, Cruz noted the FCC falls under his committee’s jurisdiction even as he took a swing at the other party. 

    “When the Democrats had the majority they did not engage in oversight,” he said. “We will do our job and engage in oversight.” 

    Republican Senator Thom Tillis, a moderate who is not running for reelection in the swing state of North Carolina, applauded Cruz for taking a stand on what he called “unacceptable” behavior from the administration. 

    Cruz “showed a lot of courage, and he will be on the right side of history and he’s definitely on the right side of the law,” Tillis said. 

    Most Republican lawmakers, including Senate Majority Leader John Thune, have spent days insisting Disney made its own financial decision by suspending Kimmel and declining to criticize Carr. Carr said the company made its own decision but said there will be more changes to the media ecosystem ahead.

    Democrats have uniformly said Carr has violated the First Amendment and have called on Republicans to push back. 

    “Republican senators should not want to see a weaponized FCC that can go after conservative commentators by some future administration,” said Senator Adam Schiff of California.

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    Emily Birnbaum, Steven T. Dennis, Bloomberg

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  • Trump wants to end a half-century-old mandate on how companies report earnings | Fortune

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    President Donald Trump wants corporations to “no longer be forced” to report earnings every quarter.

    In a Truth Social post on Monday, he said companies should instead only be required to post earnings every six months, pending the U.S. Securities and Exchange Commission’s approval. This change would break a quarterly reporting mandate that’s been in place since 1970. 

    “This will save money, and allow managers to focus on properly running their companies,” Trump wrote.

    Trump added that China has a “50 to 100 year view on management of a company,” as opposed to U.S. companies required to report four times in a fiscal year. China’s Hong Kong Stock Exchange (HKEX) allows companies to submit voluntary quarterly financial disclosures, but only requires them to report their financial results twice a year.

    During his first term, Trump publicly asked the SEC on X, then still known as Twitter, to study shifting company disclosures from a quarterly to semiannual basis, stating business leaders felt less frequent reporting would allow for greater flexibility and long-term planning. 

    He told reporters at the time that he got the idea from CEOs.

    “It made sense to me because, you know, we are not thinking far enough out,” Trump said in 2018. “We’ve been accused of that for a long time, this country. So we’re looking at that very, very seriously.”

    No change came from the SEC.

    A revived debate

    “President Trump has revived an old idea emphasizing the costs of quarterly filings, the distraction from long-term goals, and how they reinforce Wall Street’s obsession with beating short-term expectations,” Usha Haley, a professor at the Barton School of Business at Wichita State University, told Fortune.

    For his part, SEC Chair Paul Atkins has explicitly called for more transparency as he’s taken control of the regulatory body this year.

    But companies keep pushing back. Last week, the San Francisco-based Long Term Stock Exchange said it planned to petition the SEC to end its quarterly reporting requirement. The exchange lists companies focused on long-term goals.

    Critics of the move argue that it might reduce transparency for investors.

    Chad Cummings, a CPA and attorney at Cummings & Cummings Law, told Fortune semiannual reporting enables companies to hide “red flags” like deteriorating cash flows or abrupt changes in auditor language, which can lead to unsavory practices like concealment of liquidity crises, accounting fraud, and whistleblower retaliation.

    “Removal of quarterly earnings sabotages valuation models and tilts power to insiders,” Cummings, who has active bar admissions in the U.S. Tax and Bankruptcy courts, added.

    SEC approval would face internal resistance, statutory barriers, and potential litigation, as the SEC’s investor protection mandate requires “reasonably current” disclosure, Cummings said.

    If regulators stopped requiring companies to report earnings every quarter without having clear legal authority, the decision could be challenged in court under the Administrative Procedure Act, a federal law that governs how U.S. administrative agencies create regulations, he warned.

    Meanwhile, Haley also said Trump’s nod to China’s financial disclosure mandates misses the point.

    “The United States is not China,” she said. “Our markets derive their strength and global dominance through transparency, investor protections, and a long tradition of disclosures… Weakening those guardrails, while invoking efficiency risks, undermines investors’ confidence, the foundation of U.S. capital markets, which China does not have.”

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    Nino Paoli

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  • Star fund manager takes leave amid accusations of cherry picking

    Star fund manager takes leave amid accusations of cherry picking

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    Ken Leech, the longtime Western Asset Management chief investment officer, left that role amid probes from the Justice Department and Securities and Exchange Commission into whether some clients were favored over others in allocating gains and losses from derivatives trades.

    Leech, who manages some of the largest bond strategies in the US, will take an immediate leave of absence after receiving a Wells notice from the SEC, the company said in a filing Wednesday. Federal prosecutors in New York are conducting a criminal probe into the practice known as “cherry-picking,” where winning trades are credited to favored accounts, according to people familiar with the matter. 

    “The company launched an internal investigation into certain past trade allocations involving treasury derivatives in select Western Asset-managed accounts,” the firm said. “The company is also cooperating with parallel government investigations.”

    Western Asset said Wednesday it’s closing its $2 billion Macro Opportunities strategy and named Michael Buchanan as sole CIO. Shares of parent company Franklin Resources Inc. tumbled 13% to $19.78, the most since October 2020, extending their decline this year to 34%.

    Western Asset, with $381 billion in assets, is one of the original California bond giants and once rivaled Pacific Investment Management Co. and BlackRock Inc. in size. Its key funds have struggled in recent years amid the rise in interest rates, leading to outflows in its flagship strategy, which Leech helped run.

    Franklin, which has about $1.6 trillion in assets overall, acquired Western as part of the 2020 purchase of Legg Mason. Leech has worked at Western Asset for more than 30 years, serving as CIO for the bulk of that time.

    A Wells notice, which isn’t a formal allegation or finding of misconduct, provides a chance to respond to the agency and try to dissuade it from filing a case.

    Leech was a star for years. He co-managed the company’s Core Plus fund as it trounced its peers, though it also stumbled in 2018 when the Fed was raising rates. Since 2021, it has been battered by wagering on a pivot by the central bank.

    The $19 billion mutual fund, which is up 2.4% this year, is trailing more than 90% of rivals over the last three and five year periods, and investors have yanked money.

    That pullback from Western Asset’s fund stands in contrast to rival ones managed by the likes of Pimco, Capital Group Inc. and BlackRock Inc., which have taken in cash this year as the Federal Reserve prepares to cut interest rates.

    “At Franklin, it’s somewhat problematic as the whole reason for buying Legg Mason was to help offset the loss of commission-based sales to drive flows,” Greggory Warren, a strategist at Morningstar, said in a phone interview. “Buying Legg was seen helping provide then with more fixed income and institutional client exposure and being less exposed to fee pressures.”

    Western had quietly named Buchanan co-chief investment officer alongside Leech in August 2023. John Bellows, who co-managed Core Plus since 2018, abruptly left at the start of May. A spokesperson for Western earlier said that the firm thanked Bellows for his contributions. 

    Jim Hirschmann, Western’s president and chief executive officer, said in the statement that Buchanan “has played an integral role in Western Asset’s strategy and growth, and we look forward to having him lead the next chapter of our storied investment team.”

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    Silla Brush, Bloomberg

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  • Elon Musk says a Trump presidency ‘would be devastating’ to Tesla’s competitors

    Elon Musk says a Trump presidency ‘would be devastating’ to Tesla’s competitors

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    Tesla CEO Elon Musk is firmly in former President Donald Trump’s corner politically, but what a potential Trump Administration could mean for the electric vehicle maker that pays Musk billions is unclear—even to Musk himself.

    During a call with financial analysts on Tuesday, Wells Fargo director Colin Langan asked Musk to explain the impact of a Trump win and the potential wipeout of a federal $7,500 tax credit for electric vehicles.

    “I guess there would be some impact,” said Musk. “It would be devastating for our competitors, and it would hurt Tesla slightly.”

    The CEO also noted that because Trump has promised heavy tariffs on vehicles produced in Mexico, Tesla would pull back on investing in a factory it had planned to open in Monterrey in 2026. “If that’s going to be the case, we kind of need to see how things play out politically,” he said. Yesterday, Musk denied reports that he would pump $45 million per month into Trump’s campaign.

    Speaking on CNBC before the earnings call, Wedbush Securities tech analyst Dan Ives said that a Trump presidency could be negative for the overall EV market because Trump could eliminate the Inflation Reduction Act and with it the tax credits for EVs and certain plug-in hybrids. That would mean an administration under Kamala Harris, the presumptive Democratic party nominee, could be a positive for the EV industry.

    Yet, Trump might be better for the regulatory agenda needed to promote full-self driving and autonomy, which is a key component of Tesla’s growth strategy, said Ives.

    “Musk has been background noise under the Biden Administration and in a Trump administration, is that something that will be more front and center?” said Ives. “That’s why I would say Tesla is part of that Trump trade.”

    Musk dismissed the notion that regulators might balk at a fleet of Tesla-made, self-driving robotaxis without steering wheels and pedals. An analyst asked Musk to explain why regulatory risk wasn’t an issue for Tesla, when General Motors had paused production of its Origin vehicle that doesn’t have a steering wheel, in favor of its Chevrolet Bolt, in part because of regulation. The Cruise Origin autonomous vehicle would need approval from the National Highway Traffic Safety Administration because it doesn’t have traditional manual controls like a steering wheel and pedals, which are required by current safety regulations, and were written for cars with human drivers and not fully autonomous vehicles.

    “The main reason with switching from the Origin to the Bolt is we extinguish the regulatory risk,” GM CEO Mary Barra said, according to a Reuters report.

    “The real reason they canceled it is because GM can’t make it work,” said Musk, adding that the automaker’s technology “is not up to par.” He said blaming regulators was “misleading.”

    Jim Cain, an executive director at GM, told Fortune Musk is flat wrong.

    “All of those statements are categorically false,” said Cain, who listened to Musk’s comments during the earnings call. “The Origin vehicle faced a lot of hurdles getting certified because it doesn’t have a steering wheel, it doesn’t have a brake pedal, and it has a unique seating layout that requires a federal motor vehicle safety waiver—full stop.”

    Cain said Cruise technology improves every day because of the way it leverages its data set with AI. “And so far, they have driven more than 5 million fully autonomous miles and Tesla has driven exactly zero.”

    Musk has an unshakeable faith in Tesla’s power to “solve autonomy,” which he reiterated Tuesday, even as Tesla reported financial results showing net profits dropped 45%, marking its second quarter of sluggish growth and fourth straight quarter of falling quarterly earnings. Car industry data also showed that Tesla continues to lose popularity in California, where sales fell 24% in the second quarter. Meanwhile, Trump has pledged to end what he referred to as the “green new scam,” promising to abolish “the electric-vehicle mandate on day one.”

    According to Ives, if autonomy is the strategic future of Tesla, it might be more beneficial for Tesla to have less regulation, which is likelier under a Trump presidency versus a Harris presidency.

    “The cherry on top of what could be the sundae” for investors is how the company will impact the robotics market and its efforts on full-self driving and autonomy, said Ives. Ultimately, that’s how the company could potentially reach a $1 trillion or even $2 trillion valuation, he added.

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    Amanda Gerut

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  • Ex-deputy says he was fired after refusing to affiliate with alleged deputy gang

    Ex-deputy says he was fired after refusing to affiliate with alleged deputy gang

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    A former Los Angeles County sheriff’s deputy says he was fired after refusing to take part in law enforcement gang activity, according to a lawsuit filed in Los Angeles County Superior Court.

    Federico Carlo, the ex-lawman behind the suit, alleges he was wrongly accused of giving a Nazi salute and sharing a sexually explicit photo, then “abruptly terminated” by a “tattooed Regulator deputy gang member” who is now the acting commander overseeing training and personnel.

    The acting commander, Capt. John Pat Macdonald, did not respond to a request for comment, and the department did not answer questions about whether he has or had a Regulator tattoo.

    “The department has not officially received this claim but strives to provide a fair and equitable working environment for all employees,” officials wrote in an emailed statement to The Times. “Any act of retaliation, harassment, and discrimination will not be tolerated and is a violation of the department’s policy and values.”

    Neither Carlo nor his attorney offered comment for this story. Carlo sued the county and is asking for unspecified damages.

    The Los Angeles County Sheriff’s Department has long been plagued by allegations that some of its highest-ranking officials sport tattoos representing exclusionary deputy subgroups. Last month, former Undersheriff Tim Murakami admitted under oath that he once had a tattoo associated with an East Los Angeles Station group known as the Cavemen.

    Last year, the news site Capital & Main reported that current Undersheriff April Tardy admitted to having a station tattoo that some in the department said signified the V Boys deputy gang. And in 2022, Larry Del Mese, chief of staff to former Sheriff Alex Villanueva, publicly admitted membership in the Grim Reapers.

    Yet last week sheriff’s officials told The Times the issue is “not reflective of the entire department” and pointed out that there are “multiple investigations related to deputy gangs” currently underway, and that a new anti-gang policy is being negotiated with the deputy labor unions.

    For decades, the Sheriff’s Department has been bedeviled by allegations about gangs of deputies running roughshod over certain stations and floors of the jail. The groups are known by monikers such as the Executioners, the Vikings and the Regulators, and their members often bear the same sequentially numbered tattoos.

    The group at the center of Carlo’s lawsuit, the Regulators, is typically affiliated with the Century Sheriff’s Station in Lynwood. It is one of the older deputy subgroups in the department, and it is commonly represented by the symbol of a skeleton in a cowboy hat. In recent years there have been some indications — including in a Rand Corp. study commissioned by county lawyers — that the group is no longer actively adding new members. Late last year, though, oversight officials spotted a Regulators sticker outside the Century Regional Detention Facility next door to the station.

    The suit filed in late February traces Carlo’s problems back to 2005, when, he alleges, a deputy who was then the leader of the Regulators labeled him a “rat” because he refused to lie on probable cause reports.

    A few years later, the suit says, two other alleged Regulators flunked Carlo out of training for the airborne division, which, he alleges, “had everything to do” with the fact that he “was not a member of a deputy gang and refused to violate the law.”

    By mid-2019, Carlo was working at the department’s Emergency Vehicle Operations Center in Pomona as an instructor. He clashed with some of the other instructors who he said were risking safety by cutting corners to save time. After he complained and asked to be moved to another shift, tension started building between him and some of the other instructors — one of whom challenged him to a fight, according to the lawsuit. Later, that same deputy allegedly created disturbances, once by disrupting a class Carlo was teaching and another time by nearly crashing a patrol car into another deputy.

    Eventually, Carlo reported the problems to his superiors. During a meeting with his lieutenant in 2022, Carlo allegedly told him that there had been “numerous vehicle collisions” caused by instructors, and that he’d even been hurt in one such crash himself. According to the lawsuit, when Carlo questioned why the lieutenant hadn’t done more to supervise the training, the lieutenant ordered him to rewrite the unit’s safety guidelines and give a briefing to the whole unit on them.

    That March, according to the lawsuit, Carlo found out that a complaint had been filed against him alleging he’d made a Nazi salute when speaking about a sergeant with a German-sounding name.

    A few weeks later, the suit says, Carlo was temporarily transferred out of the unit, as officials investigated the complaint. Near the end of summer, Carlo’s lieutenant called to tell him he’d be coming back to the training center — only to reverse course a few days later because another complaint had been filed against him, this time for sexual harassment.

    It emerged that after the unit briefing that Carlo’s lieutenant instructed him to do earlier that year, two of the deputies who attended started talking and allegedly realized Carlo had shown them both an explicit picture on his phone. They said he’d implied it was an image of him and a female sergeant, according to the lawsuit. One of the deputies was the instructor who’d previously challenged Carlo to a fight.

    “This was false,” the suit said. “No such photo ever existed.”

    Though in 2022 officials closed the complaint about the Nazi salute — an accusation Carlo also denied — they kept investigating the sexual harassment complaint, according to the suit. In 2023, after what the lawsuit described as “years of retaliation, harassment [and] discrimination,” Carlo was fired.

    “On April 13, 2023, plaintiff was terminated under false pretenses,” the suit says. “Captain Pat [Macdonald], the supervisor who made the decision on plaintiff’s termination, is a tattooed Regulator deputy gang member.”

    Department officials confirmed to The Times that Carlo “separated from the department” last April after an internal investigation. But they did not comment on the accusations about Macdonald’s alleged Regulators tattoo, and they did not answer questions as to whether he is still believed to have it.

    The Regulators have long been the subject of misconduct allegations. Nearly two decades ago, The Times reported on allegations that members of the group extorted money from other deputies, acted like gang members and controlled shift scheduling and administration at the station.

    At the time, some in the department compared the Regulators to the earlier Lynwood Vikings, a now-defunct group once described by a federal judge as a “neo-Nazi white supremacist gang.”

    Deputies with Regulators tattoos told The Times then that they didn’t do anything inappropriate and had been unfairly maligned. They said their ink represented a close-knit group of deputies who worked hard.

    “It’s like the all-stars of a baseball team,” one tattooed deputy said at the time. “You get the best.”

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    Keri Blakinger

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  • American consumers deserve the same food labeling standards as Europeans

    American consumers deserve the same food labeling standards as Europeans

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    America’s life expectancy is falling annually–and improper or inadequate nutrition is a major cause. A study in The Lancet from The Institute of Health and Metrics concludes that as many as 11 million deaths worldwide are attributable to a poor diet. That’s more than the 8 million deaths caused by tobacco use.

    The chief culprit? Primarily, it’s processed foods filled with salt, sugar, fats, and other additives. Those formulations may alter the taste or extend shelf life, but those foods lack the necessary whole grains, fiber, nutrients, and fruits that experts recommend. What’s more, the lower fiber content decreases satiety and contributes to the secretion of hormones that trigger hunger. It’s a formula for long-term health risks and complications.

    How can we turn this situation around? It starts with an informed consumer, a shopper who can properly assess a food product’s ingredients and their impact on health. Honesty is the best policy, and consumers want clearer nutritional information about the foods they–and their families–are eating.

    They also want to know that additives may be lurking in their food–which is why improved FDA labeling is key. Too often, food manufacturers “greenwash” their products by hiding the true composition of the product, for example, by using green-colored packaging that implies a product is natural/organic when it is absolutely not or is even highly processed.

    FMI-Nielsen found that an overwhelming 72% of shoppers report that more transparent product information and labeling are important to them. They want complete ingredient listings in plain English and more complete nutritional information than current labeling provides. And those consumers will speak with their wallets: FMI-Nielsen’s study also found that 64% of buyers would switch to a new brand that provides more and clearer nutritional information.

    That transparency leads to greater trust from consumers as well as purchasing decisions that can improve population health. That’s why the FDA must redouble its efforts to improve the clarity and completeness of food labeling.

    A new food labeling framework

    Unfortunately, food labeling initiatives in the U.S. have stagnated. For 30 years, the U.S. Food & Drug Administration (FDA) has required food manufacturers to provide ingredient and product information on packaging using the Standard Ingredient Label. But it’s becoming increasingly clear that this standard format needs to be reformatted to make it easier to read about the health effects of food. Is there too much salt or sugar? Are there additives that could be bad for my physical or mental health? Today’s consumers want direct, clear, readable labels to guide their purchasing decisions. The FDA must implement a more intuitive system that helps consumers identify healthier food options.

    What would new and improved labels look like? U.S. regulators can draw inspiration for a new and improved labeling framework from Europe’s Nutri-Score system to give buyers a more comprehensive view of nutrition. The Nutri-Score (also known as the “5-Colour Nutrition Label” or 5-CNL) was first implemented in France in 2017 to simplify the descriptions of the overall nutritional value of food products. It rates foods using a letter from A (best) to E (worst) as well as colors from green to red. This sort of scoring regimen would be an ideal complementary extension to the FDA’s Nutrition Facts labels, improving both public health and consumer satisfaction.

    The Nutri-Score factors in components such as calories, saturated fat, sugars, and salt, as well as fiber, proteins, nuts, fruit, and vegetables. Each food product earns color and letter based on the resulting score (calculated per 100g or 100ml).

    Fortunately, frameworks such as Nutri-Score and similar front-of-package labeling (FoPL) can make a meaningful difference. According to The International Journal of Behavioral Nutrition and Physical Activity, “approximately 3.4% of all deaths from diet-related non-communicable diseases was estimated to be avoidable when the Nutri-Score FoPL was used.” That’s more than 8,000 avoidable deaths.

    What’s more, the presence of stronger and clearer FoPLs can have a direct impact on the quality of foods as it encourages manufacturers to reformulate their products and switch up their ingredients and recipes to achieve higher scores and fend off competitors who rank higher. That’s because, among consumers who are familiar with the logo, more than 33% said they had already changed their purchasing habits by opting instead for products with a better score. What’s more, nearly 90% believe the Nutri-Score should appear on all packaging, and 70% believe the improved labeling has a positive impact on the brand.

    Good food is good business

    Some food processors will predictably resist with lobbying efforts to minimize labeling changes and seek loopholes and exceptions. However, forward-thinking manufacturers will recognize that enhanced labeling presents a business opportunity. Market research firm IRI found that products with Nutri-Score rankings of A and B saw their cumulative market share increase by 0.7 points over the period (+0.3 for A and +0.4 for B). Conversely, at the bottom of the scale, products with E ratings saw their market share decline by -0.5 points.

    It’s clear: Enhanced food labeling that provides more nutritional understanding can promote healthier eating habits, extend lifespans, improve health outcomes, reduce healthcare costs, and improve the quality of life for all demographic segments. In the U.S., regulators and public health advocates would be wise to explore the development and adoption of a FoPL strategy.

    Julie Chapon is a co-founder of Yuka.

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    Julie Chapon

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  • Connecticut Flower Supply Remains Spotty – Cannabis Business Executive – Cannabis and Marijuana industry news

    Connecticut Flower Supply Remains Spotty – Cannabis Business Executive – Cannabis and Marijuana industry news

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    Connecticut Flower Supply Remains Spotty – Cannabis Business Executive – Cannabis and Marijuana industry news




























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    Tom Hymes

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  • What Overturning Chevron Could Mean for Cannabis – Cannabis Business Executive – Cannabis and Marijuana industry news

    What Overturning Chevron Could Mean for Cannabis – Cannabis Business Executive – Cannabis and Marijuana industry news

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  • A skeleton and a smoking gun: Why a newly elected deputy union board member’s tattoo is sparking concern

    A skeleton and a smoking gun: Why a newly elected deputy union board member’s tattoo is sparking concern

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    A union representing Los Angeles County sheriff deputies recently elected to its board of directors a veteran lawman who has a controversial tattoo and was involved in two fatal shootings that cost the county $4 million in legal payouts, sparking concern among oversight officials and justice advocates.

    Incoming Assn. of Los Angeles Deputy Sheriffs board member Jason Zabala previously described his tattoo under oath, saying it depicted a skeleton in a cowboy hat with a smoking rifle and the number 140. He called the stark combination of imagery a “station tattoo,” but others described it as the symbol of a deputy gang known as the Regulators.

    Zabala has previously denied being part of the group, saying that the number simply meant he was the 140th person to get that same design, and describing the tattoo as a proud mark of camaraderie among fellow deputies. This week he did not respond to a request for comment.

    Union president Richard Pippin defended Zabala in an emailed statement Thursday, calling him a “family oriented guy with a big heart” who has dedicated his life to helping others.

    Still, advocates — such as James Nelson, campaign and program manager for the community coalition Dignity and Power Now — worried Zabala’s election would not bode well for the department’s efforts to rein in deputy gangs and gang tattoos.

    “It’s a bad sign,” Nelson said. “It isn’t the sheriff that runs the department — it’s the unions.”

    For decades, the Sheriff’s Department has been plagued by gangs of deputies running roughshod over certain stations and floors of the jail. The groups are known by monikers such as the Executioners, the Vikings and the Regulators, and their members often bear the same sequentially numbered tattoos.

    During his swearing-in ceremony nearly a year ago, Sheriff Robert Luna spoke of the need to “eliminate deputy gangs” from the department. Though he created a new office to do that, the department has not yet settled on a policy banning gangs or gang tattoos.

    One hurdle to clear before implementing any sweeping new policy is the back-and-forth of the bargaining process with labor leaders, including ALADS.

    “We’ve been hearing that the reason we can’t move forward with passing an anti-gang policy — which is the first step in making good on the pledge to get rid of them — is because the sheriff has to negotiate with ALADS,” said Sean Kennedy, who chairs the Civilian Oversight Commission.

    “Those sessions are taking much longer than we anticipated,” Kennedy said. “And then, when we hear that he’ll be meeting and conferring with an organization with a tattooed Regulator on the board of directors, it makes everyone believe that we’re engaged in a futile process.”

    Pippin disputed that, saying the election outcome “will not change” the organization’s mission and values when it comes to the bargaining process.

    “We remain committed to working with the department and the county to achieve the best possible outcomes, not only for our members, but also for members of the communities they serve,” he said.

    He did not address the nature or significance of Zabala’s tattoo.

    County records show Zabala first started working for the Sheriff’s Department in 2002. Nine years later, he was involved in an on-duty crash that left a woman with spinal injuries. The case settled for $80,000 before trial, according to the news site Knock LA.

    Then in 2013, Zabala and his partner stopped a man riding a bicycle and ended up shooting him as he lay face down in his backyard. Prosecutors said the man — Terry Laffitte — had been resisting, so they deemed the shooting lawful. After Laffitte’s family filed suit, the county settled the case for $1.5 million.

    The year after that, Zabala was involved in the killing of Johnny Martinez, a 28-year-old man with schizophrenia who was shot 36 times by deputies outside his Vermont Knolls home. Prosecutors also deemed that shooting justified, though in 2018 a civil lawsuit on behalf of the Martinez family ended with a hefty $2.5 million settlement.

    It was the 2013 shooting that brought Zabala’s ink to the fore. In connection with the civil lawsuit, Zabala was deposed three times in 2015 and 2016 and asked to describe his tattoo.

    Over the course of those depositions he offered additional details about the ink, including that in addition to a smoking gun, the skeleton is holding a “memorial stone” with “CEN” — for Century Station — written on it, along with the Roman numerals XXI. According to Kennedy, those are all key elements of a Regulators’ tattoo.

    “The tombstone in the background with the letters for Century Station is some of the main iconography for the Regulators,” he told The Times.

    In Zabala’s tattoo, there are also flames along the bottom of the tattoo along with the words “Beati Pacifici,” which he said under oath translates to “Blessed are the Peacemakers.” The entire tattoo is 5 to 6 inches high, on the lower part of his left leg.

    At the time, Zabala said in depositions that the Old West style of his tattoo honored the Sheriff’s Department’s founding in 1850 and that skeletons are “an icon of the peace officer.” A Loyola Marymount University report later described Zabala’s ink as “Regulators tattoo #140.”

    The district attorney’s office later investigated whether Zabala committed perjury when he described the significance of the number 140 on his tattoo.

    Ultimately prosecutors declined to pursue the case, saying it wasn’t clear that Zabala committed perjury. Even if he did lie about his tattoo, they said, it would not have made a difference in the outcome of the case.

    “It is unlikely that a false statement about one aspect of one tattoo, among several, would probably influence the outcome of the wrongful death lawsuit,” prosecutors wrote.

    When lawyers for the county agreed to settle the lawsuit in 2017, records show they told a Sheriff’s Department investigator that the allegation of perjury was a factor in their decision.

    In this year’s union election, Zabala was one of eight candidates for four open seats. He will be sworn in to the seven-member board at Friday morning’s meeting, along with Julian Stern, John Perez and Tony Meraz.

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    Keri Blakinger

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  • U.S. stocks close lower Tuesday as Treasury yields climb

    U.S. stocks close lower Tuesday as Treasury yields climb

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    U.S. stocks ended modestly lower on Tuesday, as Treasury yields rose, keeping pressure on the rate-sensitive Nasdaq Composite Index. The Dow Jones Industrial Average DJIA shed about 37 points, or 0.1%, ending near 32,394, while the S&P 500 index SPX fell 0.2% and the Nasdaq COMP closed 0.5% lower, according to preliminary data from FactSet. Stocks fell, but ended off the session lows, as the 2-year Treasury rate BX:TMUBMUSD02Y climbed 10.5 basis points to 4.06%. Bond yields and prices move in the opposite direction. Tuesday also saw a raft of relatively upbeat economic data and increased expectations by traders in fed-funds…

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  • Western Alliance and First Republic clobbered as regional bank jitters persist despite Fed backstops

    Western Alliance and First Republic clobbered as regional bank jitters persist despite Fed backstops

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    Trading in shares of First Republic Bank and Western Alliance Bancorp ended sharply lower in a tough day of trading for regional banks as fears over bank solvency persisted following the failures of Silicon Valley Bank, Signature Bank and Silvergate Capital.

    Stocks were periodically halted or paused for trading amid the bank stock bloodbath, which saw many suffering percentage declines well into the double digits. Typically, bank stocks are stable compared with sectors such as technology, with daily moves above 5% being relatively…

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  • Canada: OLG looks for potential new operator of Windsor’s casino | Yogonet International

    Canada: OLG looks for potential new operator of Windsor’s casino | Yogonet International

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    The Ontario Lottery and Gaming Corporation (OLG) released a Request for Pre-Qualification (RFPQ) for those companies wishing to operate Windsor’s casino. The RFPQ enables the corporation to prequalify potential proponents based on their previous experience operating a large gaming resort. The RFPQ process will close on May 25. 

    OLG’s announcement for the RFPQ is the first stage in the procurement process to select a service provider to handle the day-to-day gaming operations in Windsor. Those that prequalify will proceed to the Request for Proposal (RFP) phase of the procurement.

    Caesars has long held the rights as operator of the local casino, but its contract is nearing an end in 2025. It is believed the corporation, which operates casinos across North America, wishes to remain in Windsor.

    Duncan Hannay

    Duncan Hannay, OLG’s CEO, said: “OLG is advancing plans that will support the long-term vibrancy and excitement of the casino experience in Ontario.”

    “Releasing the RFPQ for the Windsor casino is the first step in selecting a highly-qualified service provider that will ensure the long-term competitiveness of the site while continuing to generate economic benefits for the local community and for Ontario.”

    While the eventual winning proponent will handle the day-to-day gaming operations of the Windsor casino, OLG will continue to conduct and manage gaming in Windsor, the agency said in a press release.

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  • Gambling Commission named one of UK’s best workplaces | Yogonet International

    Gambling Commission named one of UK’s best workplaces | Yogonet International

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    The Gambling Commission has been recognized as one of the UK’s best employers by global authority on workplace culture Great Place to Work.

    The Commission has been commended in a variety of areas, including how it has adapted to embrace a hybrid working approach whilst making full use of new technology, events, and digital communities to bring staff together.

    It was also praised for the way it uses data and insights when working on internal programs and initiatives, which play a role in briefing colleagues on key issues affecting the gambling sector.

    Andrew Rhodes, Commission Chief Executive, said: This accolade isn’t easy to achieve and wouldn’t have been possible without the hard work and dedication from all colleagues here at the Commission.”

    “We pride ourselves on putting people first and doing the right thing by focusing on areas such as personal development. I’m delighted that this has led to us being recognized as one of the country’s best places to work over the past 12 months,” he added.


    Andrew Rhodes, Commission Chief Executive

    According to a press release, Great Place to Work performed rigorous evaluations of hundreds of employee survey responses alongside Culture Audit submissions from leaders at each company to create the 2023 UK’s Best Workplaces list.

    These data insights were used to benchmark the effectiveness of companies’ employee value propositions against the culture their employees actual experience.

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  • Electronic pull tabs expansion prompts regulatory concerns in North Dakota | Yogonet International

    Electronic pull tabs expansion prompts regulatory concerns in North Dakota | Yogonet International

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    The rapid proliferation of electronic pull tab machines, commonly known as e-tabs, in North Dakota has raised significant questions about the future of charitable gambling in the state and the necessity for robust regulation of these Las Vegas-style devices.

    E-tabs, which function akin to traditional slot machines, made their debut in 2018 following approval by the Republican-controlled Legislature. As per a report by the Associated Press (AP), the explosive growth of e-tabs, with approximately 4,700 machines now statewide, has brought to the forefront several pressing issues.

    One primary concern is the locations where these machines can be found, including gas stations and convenience stores. Lawmakers have also expressed worries about minors accessing e-tabs. Furthermore, the expansion of these devices has prompted discussions about their impact on tribal nations, whose casinos are economic drivers, as well as the need for effective regulation and the potential for money laundering.

    “I think we’ve seen certain things go astray a little bit, where the cattle have gotten out of the corral, and it’s beyond what the intent of our laws are,” Republican state Sen. Janne Myrdal was quoted as saying in the report. Myrdal is the chair of an interim legislative committee that initiated a yearlong investigation into North Dakota’s charitable gambling concerns. This initiative is part of a broader bill aimed at tackling issues related to e-tabs.

    Speaking to AP, Myrdal said she would like the study to present “palatable answers” in the next legislative session in 2025 including recommendations regarding the permissible locations for these machines.

    Deb McDaniel, Director of North Dakota’s Gaming Division, views the study as an opportunity to educate lawmakers. “This has become huge, and they need to understand how it works,” McDaniel told AP.

    In the fiscal year ending on June 30, e-tabs generated nearly $2 billion in gross proceeds from cash and replayed winnings, contributing $205 million to charities, including just over $72 million designated for charitable purposes. Players poured more than $687 million in cash into these machines during fiscal 2023.

    While state law does not prescribe specific locations for charitable gambling, it has traditionally been associated with bars. In recent years, a broad interpretation of the term “alcoholic beverage establishment” led to e-tabs appearing in a handful of gas stations and convenience stores.

    The bill mandating the current study redefines this term, specifically excluding gas stations, convenience stores, grocery stores, and liquor stores, while grandfathering in the four gas stations and convenience stores currently housing e-tabs. However, this new definition does not address other establishments that may not be conventional bars but are capable of serving and dispensing alcohol, such as hair salons and indoor golf centers.

    North Dakota’s constitution grants nonprofits the privilege to conduct charitable gambling, and the state’s intention is to prevent it from becoming a thriving gaming industry. To date, McDaniel’s office has licensed more than 320 charitable organizations to conduct gambling activities, including public safety, fraternal and veterans groups, and broadly defined “public-spirited organizations.”

    However, according to McDaniel, the legal definition of a “public-spirited organization” remains broad. She noted that recent license applicants have included organizations that organize community events and appear to have more of a business-oriented focus than a charitable one.

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  • BGC hosts parlamentarians to share insights into the UK’s regulated betting and gaming industry | Yogonet International

    BGC hosts parlamentarians to share insights into the UK’s regulated betting and gaming industry | Yogonet International

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    Members of Parliament from various political affiliations gained a deeper understanding of the regulated betting and gaming industry, and its contributions to employment, economic growth, and local communities, at informative sessions held by the Betting and Gaming Council during the conference season.

    During the Conservative Party Conference, the BGC hosted Stuart Andrew MP, the DCMS Minister responsible for Gambling, at Metropolitan Gaming’s Manchester235 Casino, where he had the opportunity to meet staff.

    At the Labour Party Conference, the BGC welcomed newly appointed Shadow Minister for Gambling Stephanie Peacock MP at Rank’s Grosvenor Casino in Liverpool, to hear more about the casino sector.

    Meanwhile, the BGC also attended the Liberal Democrat Party Conference to take part in a series of roundtables on support for SMEs, the importance of the high street, and combatting fraud.

    The Minister and Shadow Minister also had the opportunity to meet other members of the BGC representing retail bookmakers on high streets and the online sector to learn more about the industry, which the council notes supports 110,000 jobs nationwide.


    Michael Dugher

    Michael Dugher, BGC CEO, said: “It was fantastic to host Stuart Andrew MP and Stephanie Peacock MP during conference season, where we were able to once again showcase the terrific contribution our members are making across the nation.”

    “There is a danger that the voice of people who work in the industry, as well as the millions of ordinary punters, can get lost. So, it was great to see ministers, shadow ministers, and other parliamentarians engaging with the BGC at the party conferences ahead of a general election in the next year,” he added.

    The conference events took place at casinos, which the BGC described as “timely” given that these establishments are awaiting the “mission-critical modernization proposals” outlined in April’s White Paper, including allowing sports betting at venues and changes to the rules governing the number of gaming machines casinos can offer.

    The council notes casinos play a vital pillar in the tourism and hospitality sector, employing more than 10,000 people and catering to over 16 million customer visits every year. They contribute £300 million ($316.1 million) annually in taxes and an estimated £800 million ($843.1 million) a year Gross Value Added to the economy, as per BGC data.

    However, some have struggled to rebound from the pandemic and the current tough economic headwinds, which have seen closures and job losses. In 2005 there were 160 casinos in the UK while now there are 118, including three casinos that have closed in recent months.

    Each month, around 22.5 million adults bet in Great Britain on sports, and online as well as in bookmakers, bingo, and casinos. Across the industry, including the online sector and bookmakers on high streets, regulated betting and gaming supports 110,000 jobs, raises £4.2 billion ($5.08 billion) in taxes, and contributes £7.1 billion ($8.6 million) to the economy, BGC data reveals.

    “The debate around betting and gaming is often noisy, ill-informed, and misleading. So it is vital the BGC and our members engage with MPs so they can see for themselves what our operators offer and the lengths they go to ensuring betting continues to be a safe and entertaining hobby for the many millions who enjoy it responsibly,” Dugher added.

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