ReportWire

Tag: U.S. Virgin Islands

  • A tiny island was just ranked safest in the Caribbean — here’s why travelers love it

    [ad_1]

    NEWYou can now listen to Fox News articles!

    If safety is at the top of your vacation checklist, one tiny Caribbean island just earned top honors for peace, calm beaches — and a world-class food scene.

    Anguilla, a British Overseas Territory just north of St. Maarten and east of the Virgin Islands, was named the safest destination in the Caribbean, according to a 2025 ranking from World Population Review, which evaluates crime, policing and political stability based on data from the Global Peace Index.

    “Anguilla crime rates are the lowest in the Caribbean, with very few violent or petty crimes to mar its reputation as a tropical oasis,” the report found. “Tourists can feel safe and at ease in tranquil Anguilla.”

    URGENT ADVISORY FOR EXOTIC DESTINATION WARNS OF ‘CRIMINAL GANGS’ AND ‘VIOLENT CRIME’

    While the review noted that drug-related offenses are “moderate,” it added that such crimes rarely affect visitors.

    Anguilla, a British territory in the eastern Caribbean, was named the region’s safest destination in new global rankings. (iStock)

    The U.S. Department of State also lists Anguilla at a Level 1 travel advisory — the lowest possible risk level — advising tourists to simply exercise normal precautions.

    “Here, peace isn’t found, it’s felt,” the Anguilla Tourist Board wrote on social media after the report was released. “From 33 beaches to the warmth of our community, safety is simply part of island life on Anguilla.”

    AMERICA’S WEALTHY ARE QUIETLY BUYING THEIR WAY OUT WITH ‘GOLDEN’ VISAS

    Following Anguilla in the World Population Review’s safety ranking were Barbados, St. Barts, Martinique, the Cayman Islands and Aruba.

    John Rose, chief risk adviser for ALTOUR, a global travel management company, said Anguilla’s ranking stems from several distinct advantages. “Its isolation and limited access points also reduce cross-border criminal activity, and tourism is managed in a more controlled, boutique environment,” Rose told Fox News Digital.

    The designation is a meaningful recognition not only for traveler confidence but also from a tourism economics perspective, he added.

    AMERICANS IN ONE VACATION HOT SPOT MAY SEE MORE MILITARY THAN MARGARITAS

    It’s also not the first time Anguilla has earned international praise for its appeal.

    Group of people seen snorkeling and scuba diving in Little Bay, off the island of Anguilla in the West Indies in January 1992, seen from above swimming near boat.

    Crystal-clear water and powdery beaches make Anguilla a vacation favorite. (Slim Aarons/Hulton Archive)

    Anguilla was also recognized by Travel + Leisure’s 2025 World’s Best Awards as one of the top islands globally — and the highest-ranked in the Caribbean — earning praise for its friendly hospitality, diverse cuisine and luxury resorts.

    Experts and travel blogs often highlight Anguilla as a remote, exclusive escape free of shopping malls, cruise ships and high-rises where travelers can soak up crystal-clear waters, white sand beaches and fresh seafood feasts.

    TEST YOURSELF WITH OUR LATEST LIFESTYLE QUIZ

    According to Encyclopedia Britannica, the island “is noted for its easy-going atmosphere and magnificent beaches and waters.”

    Erin Schroeder, an Atlanta-based travel adviser and founder of Major Traveler, told Fox News Digital she agrees that Anguilla stands out as one of the best destinations in the Caribbean.

    Father and son seen from above holding hands and snorkeling in crystal-clear waters in Anguilla.

    Anguilla is beloved for its white-sand beaches and turquoise waters. (iStock)

    “The island of Anguilla being named the safest country in the Caribbean is an incredible win,” Schroeder told Fox News Digital. “Safety in the Caribbean is a top-three deciding factor when travelers are weighing various islands.”

    CLICK HERE TO SIGN UP FOR OUR LIFESTYLE NEWSLETTER

    In addition to safety, travelers also seek destinations that offer easy transportation and walkability — both of which Anguilla has, she added.

    “I personally love the ability to walk along the beach at night to local restaurants, or exercise on the island’s flat roads, knowing that it’s safe to do so,” Schroeder said.

    CLICK HERE FOR MORE LIFESTYLE STORIES

    She noted that Anguilla’s exclusive, off-the-beaten-path appeal also makes it a little harder to reach, with only one direct flight option from the United States. “There’s a high price of entry, as travelers have to fly to St. Maarten and take a boat, which costs about $115 per person each way for a shared ferry,” she said.

    Couple seen eating at Anguilla restaurant, palm trees and water behind them

    Peaceful shores and welcoming locals have helped Anguilla earn the title of the Caribbean’s safest destination. (iStock)

    Rose offered additional travel tips — take a “layered” approach to safety by reviewing local advisories, checking with hosts or advisers for up-to-date information, and practicing common-sense precautions such as limiting displays of wealth and using registered transportation.

    CLICK HERE TO GET THE FOX NEWS APP

    “Safety is dynamic, not static,” he said. “The best travelers prepare by gathering accurate information before they go, monitoring while they’re there and staying ready to respond if something changes. That’s how you travel smart, not scared.”

    Deirdre Bardolf is a lifestyle writer with Fox News Digital.

    [ad_2]

    Source link

  • US Powerball prize soars to $1.7 billion after 41 draws without winner

    [ad_1]

    DES MOINES, Iowa: The Powerball jackpot has soared to a staggering US$1.7 billion after no one won the top prize in the September 3 drawing.

    The winning numbers drawn that night were 3, 16, 29, 61, 69, and the Powerball number 22. But once again, no ticket matched them all. This marks the 41st consecutive drawing without a jackpot winner since May 31.

    The next drawing will take place on the night of September 6, and the prize is now projected to be the third-largest lottery jackpot in U.S. history.

    Powerball is known for its incredibly tough odds — just 1 in 292.2 million for the jackpot. Those odds are intentional, designed to keep rolling the prize higher and higher until someone finally wins. While the top prize is difficult to hit, lottery officials point out that the chances are much better for the game’s smaller prizes, which are awarded regularly. Drawings are held three times a week.

    For the draw on September 4, the jackpot was estimated at $1.4 billion for a winner who chose the annuity option, which pays out in 30 installments over 29 years. Most winners, however, pick the cash option, which would have been worth about $634.3 million.

    Powerball tickets cost $2 each and are sold in 45 states, Washington, D.C., Puerto Rico, and the U.S. Virgin Islands.

     

    [ad_2]

    Source link

  • Mega Millions tickets will climb to $5, but officials promise bigger prizes and better odds

    Mega Millions tickets will climb to $5, but officials promise bigger prizes and better odds

    [ad_1]

    DES MOINES, Iowa (AP) — The cost of buying a Mega Millions jackpot dream will soon more than double, but lottery officials said they’re confident players won’t mind paying more after changes that will lead to larger prizes and more frequent winners.

    Lottery officials announced Monday that it will cost $5 to play Mega Millions, beginning in April, up from the current $2 per ticket. The price increase will be one of many changes to Mega Millions that officials said will result in improved jackpot odds, more frequent giant prizes and even larger payouts.

    “Spending 5 bucks to become a millionaire or billionaire, that’s pretty good,” said Joshua Johnston, director of the Washington Lottery and lead director of the group that oversees Mega Millions.

    Mega Millions and its lottery compatriot Powerball are sold in 45 states, as well as Washington, D.C., and the U.S. Virgin Islands. Powerball also is sold in Puerto Rico.

    Powerball officials said they have no plans to change that game’s odds or the $2 price for most tickets.

    Mega Millions’ hope is that by increasing ticket revenue and rejiggering the odds — now set at 1 in 302.6 million — to something less stratospheric, more people will win jackpots even as prizes grow extraordinarily high, which attracts more players. The goal is to increase revenue and provide more money to state lotteries, which in turn spend it on a variety of government services.

    Mega Millions will introduce changes at a time when fewer people are buying tickets and jackpots need to reach ever-higher figures before sporadic players notice and opt to buy a ticket or two. Whereas a $500 million jackpot once prompted lines out convenience store doors, top prizes of $1 billion now often draw more of a ho-hum response.

    Those much-hyped jackpot numbers also could take a hit as interest rates fall. That’s because on billboards or other advertisements, state lotteries emphasize the annuity payout for jackpots, distributed over decades from an investment fund. As interest rates have been high, the annuity jackpots have more than doubled the cash prizes that winners nearly always choose.

    With an expectation that interest rates will drop, those annuity jackpot figures will decline, so the advertised jackpot won’t seem quite so massive.

    Johnston said expected declines in interest rates were not a factor in the upcoming changes.

    The biggest motivation was to differentiate Mega Millions from Powerball and attract customers who might now pass on both games, Johnston said.

    More than doubling the ticket price is a big move, but Johnston said research shows people feel comfortable spending at least $5 when they buy scratch tickets or chances at the draw games, like Mega Millions. It is the second price increase since the game was created in 2002.

    “You pay 5 bucks for your Starbucks,” Johnston noted.

    Lottery officials will announce more specifics about the changes in the coming months, he said.

    [ad_2]

    Source link

  • Mega Millions jackpot soars to an estimated $800 million

    Mega Millions jackpot soars to an estimated $800 million

    [ad_1]

    BOSTON (AP) — The Mega Millions jackpot has risen to an estimated $800 million with a cash option of $401.8 million for Tuesday’s drawing after no one matched all the winning numbers for Friday night’s drawing.

    The jackpot was last won in Illinois on June 4 with a ticket valued at $552 million.

    Only two Mega Millions jackpots have been won so far this year. Before the Illinois winning ticket, a $1.1 billion winning ticket was purchased in New Jersey in March. That prize is still unclaimed. Winners in New Jersey have one year to claim their winnings.

    Tickets are sold in 45 states, Washington, and the U.S. Virgin Islands. Drawings are conducted at 11 p.m. Tuesdays and Fridays in Atlanta, Georgia. Tickets are $2 each. Half of the proceeds from the sale of each Mega Millions ticket remains in the state where the ticket was sold.

    The odds of winning the jackpot are one in more than 302 million. The overall odds of winning any Mega Millions prize are 1 in 24.

    The top Mega Millions jackpot ticket — $1.6 billion — was sold in Florida in August of last year.

    [ad_2]

    Source link

  • JPMorgan Chase settles Jeffrey Epstein sex trafficking suit by U.S. Virgin Islands for $75 million

    JPMorgan Chase settles Jeffrey Epstein sex trafficking suit by U.S. Virgin Islands for $75 million

    [ad_1]

    JPMorgan Chase said Tuesday it will pay $75 million to settle a lawsuit by the U.S. Virgin Islands alleging that the huge American bank facilitated and benefited from sex trafficking of young women by its longtime customer Jeffrey Epstein.

    JPMorgan did not admit any wrongdoing in the settlement, which will give $55 million to Virgin Islands charities and the American territory’s anti-trafficking efforts.

    The remaining $20 million will cover attorneys’ fees incurred by the Virgin Islands as part of the litigation in federal court in New York.

    The Virgin Islands said the deal “includes several substantial commitments by JPMorgan Chase to identify, report, and cut off support for potential human trafficking, including establishing and implementing comprehensive policies and procedures.”

    Jeffrey Epstein and Ghislaine Maxwell attend de Grisogono Sponsors The 2005 Wall Street Concert Series Benefitting Wall Street Rising, with a Performance by Rod Stewart at Cipriani Wall Street on March 15, 2005 in New York City.

    Joe Schildhorn | Patrick McMullan | Getty Images

    The territory said that $10 million of the money received would be used to create a fund to provide mental health services for Epstein’s victims.

    JPMorgan also said Tuesday that it had reached a settlement with Jes Staley, a former executive at the bank who had been friends with Epstein, to resolve claims by JPMorgan that he was responsible for any civil damages and costs associated with Epstein-related litigation.

    The terms of the agreement with Staley are confidential.

    JPMorgan said that it “deeply regrets” its association with Epstein, who was a client from 1998 until 2013.

    Virgin Islands Attorney General Ariel Smith said the agreement settles what was the first enforcement action against a bank for facilitating and profiting from human trafficking.

    “As part of the settlement, JPMorgan has agreed to implement and maintain meaningful anti-trafficking measures, which will help prevent human trafficking in the future,” Smith said in a statement.

    “This settlement is an historic victory for survivors and for state enforcement, and it should sound the alarm on Wall Street about banks’ responsibilities under the law to detect and prevent human trafficking.”

    Jes Staley, former chief executive officer of Barclays Plc, arrives at the offices of Boies Schiller Flexner LLP in New York, US, on Sunday, June 11, 2023. Staley has faced his first day of testimony about his relationship with Jeffrey Epstein as part of lawsuits alleging the bank enabled the late financier’s sex-trafficking. Photographer: Stephanie Keith/Bloomberg via Getty Images

    Bloomberg | Bloomberg | Getty Images

    The deals come months after a separate $290 million settlement by JPMorgan with victims of the now-dead predator. That earlier deal ended a similar lawsuit by one of those victims in U.S. District Court in Manhattan.

    As with that prior agreement, the new pacts let the bank avoid a trial on the Virgin Islands’ allegations in that same court, which was due to start Oct. 23.

    The territory had said it would ask jurors at that trial to award it at least $190 million in damages from JPMorgan.

    The Virgin Islands previously obtained a $105 million settlement from Epstein’s estate, and another $62.5 million from billionaire investor Leon Black to resolve potential claims related to Epstein.

    CNBC Politics

    Read more of CNBC’s politics coverage:

    JPMorgan CEO Jamie Dimon and other top bank executives had been questioned by lawyers for the Virgin Islands as part of its suit against the firm.

    Related court filings and hearings have led to a stream of embarrassing headlines about the bank since the case was filed in late 2022, more than three years after Epstein killed himself in a Manhattan jail following his arrest on federal child sex trafficking charges.

    The Virgin Islands claimed JPMorgan effectively ignored repeated red flags that Epstein was trafficking women to his private island in the territory because it wanted to retain his business and that of his wealthy and powerful friends.

    Among those red flags was Epstein’s 2008 guilty plea in Florida to a state charge of soliciting sex from an underage girl, a conviction that led to a 13-month jail stint.

    In late August, a JPMorgan attorney told Judge Jed Rakoff that after Epstein died, the bank notified the Treasury Department that it since had identified more than $1 billion in transactions related to “human trafficking” by him dating back 16 years.

    But the bank also had alleged in court filings that the Virgin Islands was complicit in Epstein’s crimes, saying he gave high-ranking territory officials money, advice, and favors in exchange for their allowing him to traffick women there unhindered.

    NBC archive footage shows Trump partying with Jeffrey Epstein in 1992

    In a press release announcing the new agreement with the Virgin Islands, JPMorgan said it “believes this settlement is in the best interest of all parties, particularly for those who can benefit from efforts to combat human trafficking, and for survivors who suffer unimaginable abuse at the hands of these criminals.”

    “While the settlement does not involve admissions of liability, the firm deeply regrets any association with this man, and would never have continued doing business with him if it believed he was using the bank in any way to commit his heinous crimes,” the statement said.

    “The firm will continue to work with law enforcement to combat human trafficking and help to identify improper money movement into the global payments systems.”

    JPMorgan said that under the deal a large portion of the money will got to the Virgin Islands “to enhance the infrastructure and capabilities of law enforcement to prevent and combat human trafficking and other crimes in their territories.”

    The bank said it will pay millions more”to support USVI charitable organizations whose work is aimed at addressing social ills, including fighting human trafficking and other sex crimes, and to support survivors on their paths to healing.”

    With the remaining money going to attorneys’ fees, JPMorgan is paying the same amount, $75 million, that Deutsche Bank agreed to pay Epstein victims to settle a third Manhattan federal court lawsuit that alleged that bank facilitated his sex trafficking when he was a customer from 2013 through 2018.

    Deutsche Bank had taken on Epstein as a customer after JPMorgan ended its relationship with him when Staley left the bank.

    Epstein for years socialized with high-profile people such as former President Donald Trump and Bill Clinton, Britain’s Prince Andrew, and had business relationships with billionaires such as Black and former L. Brands CEO Les Wexner.

    Ghislaine Maxwell, a British socialite who once was Epstein’s girlfriend, was convicted at a federal criminal trial in Manhattan in December 2021 of procuring underage girls to be sexually abused by him.

    Maxwell later was sentenced to 20 years in prison.

    Staley, the former JPMorgan executive has denied claims of wrongdoing, including an allegation that he sexually assaulted a woman identified as “Jane Doe,” whose class action suit led to the prior settlement with the bank.

    In November 2021, Staley stepped down as CEO of Barclays after an investigation by British bank regulators into how he had characterized his relationship with Epstein.

    This is breaking news. Check back for updates.

    [ad_2]

    Source link

  • JPMorgan legal fees in Jeffrey Epstein sex traffic cases near $14 million, former exec reveals

    JPMorgan legal fees in Jeffrey Epstein sex traffic cases near $14 million, former exec reveals

    [ad_1]

    Jeffrey Epstein in Cambridge, MA in 1984.

    Rick Friedman | Corbis News | Getty Images

    JPMorgan Chase has racked up nearly $14 million in legal fees defending itself against two lawsuits alleging it abetted the sex trafficking by its longtime customer Jeffrey Epstein, according to lawyers for a former top executive who says he is being scapegoated by the huge bank.

    Attorneys for former JPMorgan executive Jes Staley revealed the fee total in a filing late Wednesday in U.S. District Court in Manhattan.

    Staley’s filing was later removed from public view on the court docket.

    On Thursday, his lawyers filed a new version of the document that redacted the reference to the bank’s legal fees.

    The filing challenges JPMorgan’s use of three financial experts to support its legal claims that Staley, a former friend of Epstein, should be responsible for paying the bank hundreds of millions of dollars to cover costs related to the lawsuits.

    Staley’s lawyers did not immediately reply to a request for comment.

    JP Morgan spokeswoman Patricia Wexler declined to comment on the bank’s purported legal costs from the suit.

    But in a statement to CNBC, Wexler noted, “Both plaintiffs have accused Jes of unspeakable acts that had nothing to do with his job or responsibilities at our firm.”

    “Indeed, Jane Doe herself has directly accused him of horrific sexual misconduct. If these allegations are true, he must be held accountable,” said Wexler, using the pseudonym for the plaintiff in one of the suits.

    JPMorgan was sued last year by “Doe” in a would-be class action case on behalf of herself and other young women who were trafficked by the late money manager Epstein.

    The bank separately was sued by the government of the U.S. Virgin Islands, where Epstein had maintained a residence on a private island, where he sexually abused women.

    CNBC Politics

    Read more of CNBC’s politics coverage:

    Both suits claim that the bank facilitated and profited Epstein’s trafficking of women when he was a customer from 1998 through 2013.

    A lawyer for the Virgin Islands during a court hearing this month said that after Epstein killed himself in 2019, JPMorgan notified the Treasury Department of more than $1 billion in transactions related to “human trafficking” by Epstein dating back 16 years.

    JPMorgan in July agreed to pay $290 million to victims of Epstein to settle the first lawsuit.

    But the bank, which denies any wrongdoing is continuing to fight the suit by the Virgin Islands. That case is set to begin trial in late October.

    Source: Court filings by attorneys for former JPMorgan executive Jes Staley

    In March, JPMorgan sued Staley, its former chief of investment banking, alleging that he is legally responsible for “the entire amount” of any damages it incurs from both lawsuits. The bank also is seeking to claw back more than $80 million in compensation it paid Staley over the years.

    Staley, 66, is opposing the bank’s claim. He also has denied an allegation Doe that he sexually assaulted her.

    In their filing Wednesday, Staley’s lawyers wrote, “The one constant in these related cases has been JPMorgan’s attempt to pin the entirety of its problems with Jeffrey Epstein on its former executive Jes Staley.”

    “Consistent with this theme, the three experts whom the bank has retained to support its third-party claims against Mr. Staley are focused on a single question: How much should Mr. Staley have to pay?” the filing said.

    One expert, the accountant Edith Wong, has said JPMorgan’s $290 settlement was “reasonable,” the filing said.

    And “Shelley Chapman, a retired bankruptcy judge, opines that JPMorgan’s $13.8 million in legal fees in the Jane Doe and USVI cases was ‘reasonable,’ ” according to Staley’s filing.

    The third expert, an accountant named Carlyn Irwin, added up how much Staley earned at JPMorgan to assess how much might be clawed back by the bank if it wins its suit against Staley.

    Staley’s lawyers wrote that “none of these experts’ opinions meets” a standard for the admissibility of expert opinions in federal court.

    JPMorgan is being represented by attorneys from the law firm Wilmer Hale, including partner Felicia Ellsworth, who in 2020 co-edited an updated legal guide on human trafficking for attorneys “to represent victims and continue to make a difference.”

    The firm’s website includes a statement on “modern slavery,” declaring, “We do not tolerate slavery, human trafficking or abusive or unfair treatment in any part of our business or in any part of our supply chain.”

    Epstein, a former friend of Donald Trump and Bill Clinton, killed himself in a New York jail at age 66 in August 2019, a month after he was arrested on federal child sex trafficking charges.

    [ad_2]

    Source link

  • CNBC Daily Open: Why did the unemployment rate and jobs rise in tandem?

    CNBC Daily Open: Why did the unemployment rate and jobs rise in tandem?

    [ad_1]

    A hiring sign is pictured at a McDonald’s restaurant in Garden Grove, California on July 8, 2022.

    Robyn Beck | Afp | Getty Images

    This report is from today’s CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

    What you need to know today

    More jobs but higher unemployment
    U.S.     nonfarm payrolls for August increased by 187,000, above the 170,000 estimate. However, the unemployment rate jumped from 3.5% last month to 3.8%, the highest since February 2022. Average hourly earnings increased 4.3% year on year, below the forecast of 4.4%. Combined with the downwardly revised figures for June and July, those are clear signs the U.S. jobs market is slowing.

    Positive outlook for markets
    U.S. stocks cheered the moderate jobs report and mostly inched up Friday, giving major indexes their best week in months. Asia-Pacific markets rose Monday, with Hong Kong’s Hang Seng index popping as much as 2.6%. That’s thanks to Hong Kong-listed property stocks, which surged after creditors allowed Country Garden Holdings to delay payment for an onshore bond.

    Electric vehicle moves
    Tesla shares slid 5% Friday after the company cut prices on its electric vehicles in both the U.S. and China. Meanwhile in Germany, BMW and Mercedes revealed EV concepts, representing their biggest push yet into the EV market. But that might not be enough to stop China’s dominance. Chinese EV companies all delivered enough vehicles in August to keep pace with their third-quarter guidance.

    JPMorgan Chase and Jeffrey Epstein
    JPMorgan Chase notified the U.S. Treasury Department of more than $1 billion in transactions related to “human trafficking” by Jeffrey Epstein, a lawyer for the U.S. Virgin Islands told a federal judge. Those transactions dated back 16 years and were only reported after Epstein was arrested and killed himself in jail in 2019, said Mimi Liu, an attorney for the Virgin Islands.

    [PRO] Slow start to September
    U.S. markets are closed Monday for Labor Day and economic data coming out this week is on the light side. The heavy hitters, like the consumer and producer price indexes, will only be released later in the month. So keep an eye out for these signs that will indicate whether stocks will fall prey to the September seasonality — the month’s historically been the weakest for stocks.

    The bottom line

    The U.S. economy added more jobs than expected in August, but the overall unemployment rate rose. This may sound counterintuitive since it’s natural to assume an increase in the number of jobs will lead unemployment going down. But there’s a simple explanation for that.

    By definition, the unemployment rate is the number of unemployed people (people without a job but are actively looking for one), divided by the labor force (the sum of people both employed and unemployed), expressed as a percentage.  

    If the unemployment rate goes up, that means the proportion of people looking for a job compared with the total labor force has grown. That’s straightforward enough. For the unemployment rate to go up even as there were 187,000 more jobs in August means there were more people who started looking for a job than people who secured one. The implication: The total labor force grew in August. Indeed, 597,000 people without work experience sought employment last month, according to the report.

    A growing labor force is a looser jobs market. That probably contributed to the lower-than-expected wage growth last month. As Bank of America U.S. economist Stephen Juneau wrote, “The broad message here seems to be that we are nearing full employment, with supply and demand coming more into balance.”

    That will come as a relief to Federal Reserve officials worried about a hot jobs market contributing to inflation. Investors, too, cheered the jobs report. They think there’s a 93% chance the Fed will keep rates unchanged at its September meeting and a 65.3% chance at its November meeting, according to the CME FedWatch Tool. That’s up from 80% and 44.5% a week ago, respectively.

    Major indexes rose in response to the jobs report as well. The S&P 500 climbed 0.18% Friday, giving it a 2.5% increase for the week — its best weekly performance since June. The Dow Jones Industrial Average added 0.33% to close 1.4% higher for the week. The Nasdaq Composite was essentially flat, but ended the week up 3.3%. That was both indexes’ best showing since July.

    U.S. markets are closed today, so we’ll have to wait to see if they can sustain this momentum and defy September’s reputation as the worst month for stocks.

    — CNBC’s Jeff Cox contributed to this report

    [ad_2]
    Source link

  • CNBC Daily Open: Why did the unemployment rate rise even as jobs were added?

    CNBC Daily Open: Why did the unemployment rate rise even as jobs were added?

    [ad_1]

    A Chipotle restaurant advertises it is hiring in Cambridge, Massachusetts, August 28, 2023.

    Brian Snyder | Reuters

    This report is from today’s CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

    What you need to know today

    More jobs but higher unemployment
    U.S.     nonfarm payrolls for August increased by 187,000, above the 170,000 estimate. However, the unemployment rate jumped from 3.5% last month to 3.8%, the highest since February 2022. Average hourly earnings increased 4.3% year on year, below the forecast of 4.4%. Combined with the downwardly revised figures for June and July, those are clear signs the U.S. jobs market is slowing.

    Winning week for markets
    U.S. stocks cheered the moderate jobs report and mostly inched up Friday, giving major indexes their best week in months. European markets traded mixed. The regional Stoxx 600 closed flat, the U.K.’s FTSE 100 added 0.34% but other major bourses ended the day in the red. For August, the Stoxx 600 lost 2.8%.

    Tesla’s price cut hits shares
    Tesla shares slid 5% after the company cut prices on its electric vehicles in both the U.S. and China. Additionally, the price of Tesla’s Full Self-Driving software, its premium driver assistance option, was reduced by $3,000. CEO Elon Musk previously said the price would only ever go up. Despite the fall, Tesla shares are still up almost 100% this year.

    JPMorgan Chase and Jeffrey Epstein
    JPMorgan Chase notified the U.S. Treasury Department of more than $1 billion in transactions related to “human trafficking” by Jeffrey Epstein, a lawyer for the U.S. Virgin Islands told a federal judge. Those transactions dated back 16 years and were only reported after Epstein was arrested and killed himself in jail in 2019, said Mimi Liu, an attorney for the Virgin Islands.

    [PRO] Slow start to September
    U.S. markets are closed Monday for Labor Day and economic data coming out this week is on the light side. The heavy hitters, like the consumer and producer price indexes, will only be released later in the month. So keep an eye out for these signs that will indicate whether stocks will fall prey to the September seasonality — the month’s historically been the weakest for stocks.

    The bottom line

    The U.S. economy added more jobs than expected in August, but the overall unemployment rate rose. This may sound counterintuitive since it’s natural to assume an increase in the number of jobs will lead unemployment going down. But there’s a simple explanation for that.

    By definition, the unemployment rate is the number of unemployed people (people without a job but are actively looking for one), divided by the labor force (the sum of people both employed and unemployed), expressed as a percentage.  

    If the unemployment rate goes up, that means the proportion of people looking for a job compared with the total labor force has grown. That’s straightforward enough. For the unemployment rate to go up even as there were 187,000 more jobs in August means there were more people who started looking for a job than people who secured one. The implication: The total labor force grew in August.

    A growing labor force is a looser jobs market. That probably contributed to the lower-than-expected wage growth last month. As Bank of America U.S. economist Stephen Juneau wrote, “The broad message here seems to be that we are nearing full employment, with supply and demand coming more into balance.”

    That will come as a relief to Federal Reserve officials worried about a hot jobs market contributing to inflation. Investors, too, cheered the jobs report. They think there’s a 93% chance the Fed will keep rates unchanged at its September meeting and a 65.3% chance at its November meeting, according to the CME FedWatch Tool. That’s up from 80% and 44.5% a week ago, respectively.

    Major indexes rose in response to the jobs report as well. The S&P 500 climbed 0.18% Friday, giving it a 2.5% increase for the week — its best weekly performance since June. The Dow Jones Industrial Average added 0.33% to close 1.4% higher for the week. The Nasdaq Composite was essentially flat, but ended the week up 3.3%. That was both indexes’ best showing since July.

    U.S. markets are closed today, so we’ll have to wait to see if they can sustain this momentum and defy September’s reputation as the worst month for stocks.

    — CNBC’s Jeff Cox contributed to this report

    Correction: This article has been updated to reflect the correct month of the jobs report.

    [ad_2]
    Source link

  • USVI says JPMorgan notified Treasury of more than $1 billion in suspicious Jeffrey Epstein transactions after he died: Report

    USVI says JPMorgan notified Treasury of more than $1 billion in suspicious Jeffrey Epstein transactions after he died: Report

    [ad_1]

    Jeffrey Epstein in Cambridge, MA in 1984.

    Rick Friedman | Corbis News | Getty Images

    JPMorgan Chase notified the Treasury Department of more than $1 billion in suspicious transactions by Jeffrey Epstein dating back 16 years after the notorious sex predator killed himself in 2019, a lawyer for the U.S. Virgin Islands told a federal judge at a hearing Thursday, reports said.

    “Epstein’s entire business with JPMorgan and JPMorgan’s entire business with Epstein was human trafficking,” Mimi Liu, an attorney for the Virgin Islands told Judge Jed Rakoff in U.S. District Court in Manhattan, according to The Daily Beast.

    Liu cited the bank’s notification to the Treasury Department as she argued that Rakoff should issue a summary judgment against JPMorgan, which is being sued by the Virgin Islands government for allegedly facilitating sex trafficking by Epstein of young women when he was a customer of the bank from 1998 through 2013.

    CNBC Politics

    Read more of CNBC’s politics coverage:

    The attorney, referring to a $9 million block of transfers to women and suspicious withdrawals from Epstein’s accounts at JPMorgan, said it related to “facilitating” more than 20,000 sexual acts, the Daily Beast reported, given Epstein’s habit of paying several hundred dollars for each sexual encounter.

    “JPMorgan was a full-service bank for Jeffrey Epstein’s sex trafficking,” Liu said at the hearing, Bloomberg reported.

    “The only reason that JPMorgan after 16 years reported the $1 billion in suspicious transactions was because he was arrested and then he was dead,” said Liu, according to Bloomberg.

    She has accused the bank of continuing to do business with Epstein for years despite repeated red flags internally and his 2008 guilty plea to a Florida sex crime, the report said.

    Epstein, 66, killed himself in a New York jail in August 2019, a month after he was arrested on federal child sex trafficking charges. In addition to a residence in Manhattan, Epstein owned a private island in the Virgin Islands, where he was accused of sexually abusing women.

    A lawyer for JPMorgan, which denies wrongdoing in the case, pushed back against the Virgin Islands claims that it should be found liable for abetting Epstein’s abuse of women.

    The Virgin Islands is seeking at least $190 million in damages in the case, which will go to trial on Oct. 23 if Rakoff does not grant summary judgment to either side.

    The bank’s lawyer, Felicia Ellsworth, told Rakoff that the Virgin Islands had presented “not a scintilla” of evidence that JPMorgan violated laws about sex trafficking, according to The Daily Beast.

    Ellsworth also argued that the Virgin Islands lacked the legal standing to sue the bank. JPMorgan has said the American territory can only sue to vindicate the rights of residents, and that there is no proof that any of Epstein’s victims were residents of the Virgin Islands.

    “There is hotly disputed testimony and evidence,” Ellsworth told Rakoff, according to Bloomberg.

    A JPMorgan spokeswoman declined to comment to CNBC about the Virgin Islands’ claims that the bank notified the Treasury Department of more than a $1 billion in suspicious transactions by Epstein.

    JPMorgan in July agreed to pay $290 million in a settlement with victims of Epstein to resolve a similar lawsuit filed by one of the accusers in Manhattan federal court.

    In June, Deutsche Bank, which had taken Epstein on as a client after he was forced out by JPMorgan in 2013, agreed to pay $75 million to Epstein’s victims to settle a third suit in the same court.

    [ad_2]

    Source link

  • Jeffrey Epstein referred Obama White House counsel to JPMorgan as potential customer

    Jeffrey Epstein referred Obama White House counsel to JPMorgan as potential customer

    [ad_1]

    Kathy Ruemmler, former White House Counsel, appears on “Meet the Press” in Washington, D.C., June 29, 2014.

    William B. Plowman | NBCUniversal | Getty Images

    Sex predator Jeffrey Epstein was involved in establishing a client relationship between Obama White House counsel Kathryn Ruemmler and JPMorgan Chase in February 2019, four months before he was arrested on federal child sex trafficking charges, a bombshell court filing revealed Tuesday.

    Ruemmler, who is now general counsel for Goldman Sachs, was touted by Epstein’s personal assistant to JPMorgan as an ideal customer, the filing shows.

    The suggestion that JPMorgan take Ruemmler on as a client — which the bank warmly embraced — came almost six years after JPMorgan said it had effectively fired Epstein as a client after internal controls repeatedly raised red flags about him.

    And it came five months before Epstein killed himself in August 2019 in a Manhattan federal jail, where he was being held without bail pending trial.

    Ruemmler declined to comment through a Goldman Sachs spokesman.

    CNBC separately emailed her to ask how she knew Epstein, and what knowledge she had of his history of being convicted in 2008 of a sex crime in Florida.

    The Manhattan federal court filing detailing her connection to Epstein was filed by the government of the U.S. Virgin Islands, which is suing JPMorgan.

    The American territory alleges that JPMorgan enabled and benefited from Epstein’s sex trafficking of young women to the Virgin Islands, where he had a home, during the years he maintained accounts at the bank, from 1998 through 2013.

    JPMorgan denies any wrongdoing in the case, where the territory is seeking at least $190 million in damages.

    The bank last month agreed to settle a similar lawsuit in the same court by an Epstein accuser, paying $290 million to her and other Epstein victims.

    The case is scheduled to go to trial in late October.

    “Even after his exit right up until his arrest in 2019, JPMorgan continued to work with Epstein,” the Virgin Islands said in its filing.

    The filing says that JPMorgan admits “Epstein was involved in the establishment of a customer relationship with Kathryn Ruemmler,” who was the longest-serving White House general counsel under former President Barack Obama

    The filing says that in February 2019 Epstein’s assistant, Leslie Groff, offered to introduce Mary Erdoes, a top JPMorgan executive, to Ruemmler, because she wanted to open an account with JPMorgan and Epstein thought the two of them “would bond.”

    “Erdoes escalated the referral to Stacey Friedman, JPMorgan’s General Counsel, who responded ‘she is a rock star litigator at Latham. . . . I would think she would be a great client,'” the Virgin Islands said in its filing.

    Ruemmler at the time worked at the law firm Latham & Watkins.

    In 2020 she joined Goldman Sachs as a partner, and now is Goldman’s chief legal officer and general counsel. 

    The filing also said that Epstein at one time referred as a potential JPMorgan client Nicholas Ribis, a gaming advisor who for decades ran casinos for former President Donald Trump.

    Ribis did not immediately respond to requests for comment.

    JPMorgan claims in court filings that the Virgin Islands was itself “complicit in the crimes of Jeffrey Epstein,” arguing that he gave high-ranking government officials money, advice and favors in exchange for looking the other way when he trafficked young women.

    JPMorgan also argues that its former executive Jes Staley, who was friends with Epstein when he was a client of the bank, is responsible for any civil liability of the bank due to its business relationship with the sex offender.

    On Tuesday, newly unsealed court filings by the bank show that Epstein was asked by former U.S. Virgin Islands Gov. John de Jongh Jr. for a loan of $215,000 after de Jongh was arrested on embezzlement charges that were later dismissed.

    Epstein’s company also paid de Jongh’s wife, Cecile, a $300,000 lump sum severance payment after Epstein killed himself in a federal jail while awaiting trial on child sex trafficking charges in August 2019, JPMorgan’s documents say. She had worked for Epstein at his Southern Trust Company.

    The documents also say that another Epstein employee who worked for him in the Virgin Islands was granted a U.S. Customs and Border Protection security seal, which allowed that worker to “escort passengers through” customs screening areas.

    The bank in other court filings has said that Epstein paid for the school tuitions of the children of the de Jonghs, and that Cecile had made efforts to obtain student visas and a work license for young women connected to Epstein.

    A spokesman for the Virgin Islands’ Attorney General’s Office told CNBC that Epstein’s loan to former Gov. de Jongh occurred after he left office in 2015. The charges against de Jongh were dropped in early 2016 by the Virgin Islands Department of Justice after he agreed to a separate monetary settlement.

    CNBC has reached out to comment from John de Jongh via an asset management company where he is a director.

    The Virgin Islands spokesman also said that “it was the federal government and not the Virgin Islands government that granted the ‘U.S. Customs and Border Protection security seal.’ “

    The Virgin Islands has said that JPMorgan’s leadership kept Epstein as a client for years despite multiple warnings about him being raised internally at the bank, which included payments to young women, and a 2008 sex crime conviction in Florida which led to a jail term.

    In its new court filing on Tuesday, the Virgin Islands cited a July 2011 email between Epstein and Erdoes, after JPMorgan’s rapid response team decided that Epstein should be off-boarded as a client, and after JPMorgan’s general counsel told Erdoes that Epstein was “not a person we should do business with — period.”

    Erdoes and Epstein emailed after he and the bank agreed to settle his lawsuit against JPMorgan related to money he said he was owed by Bear Stearns, the investment bank taken over by JPMorgan.

    “On July 26, 2011, Epstein wrote to Erdoes, ‘lets [sic] move on , [sic] and make some real money,’ ” the filing said.

    “Erdoes responded, ‘Onwards and upwards, on so many fronts,’ ” the filing said.

    Epstein was not severed as a JPMorgan client for another two years.

    The new Virgin Islands filing said that Staley, in his deposition for the lawsuit, disclosed the names of people and companies that Epstein had referred to the bank as potential clients. An unsealed portion of Staley’s deposition was made public Tuesday.

    CNBC Politics

    Read more of CNBC’s politics coverage:

    Among the high-powered names listed in the court filing are Google co-founder Sergey Brin, Sultan Ahmed bin Sulayem of Dubai, former Microsoft CEO Bill Gates, former Treasury Department Secretary Larry Summers and television journalist Katie Couric.

    Staley, who had been head of the bank’s asset and wealth management division, testified that he met all those people at Epstein’s townhouse on the Upper East Side of Manhattan.

    The deposition also shows that Staley said he had spoken to JPMorgan CEO Jamie Dimon in 2006 when Epstein was arrested on Florida state charges of procuring a minor for prostitution, and solicitation of a prostitute.

    JPMorgan has denied that claim. “Staley admits that in 2006 Jamie Dimon communicated with him regarding Epstein’s arrest,” the Virgin Islands said in the court filing.

    “Staley also testified that on or about July 26, 2006, he spoke to Dimon about Epstein’s indictment because Dimon was his boss and the indictment of Epstein, a client of the bank, ‘was a very public event.'”

    Elsewhere in the deposition, Staley answered questions about going to see Epstein after an article was published in 2006 that said, “Jeffrey Epstein craved big homes, elite friends — and, investigators say, underage girls.”

    The article also stated that two of “Epstein’s former employees told investigators that young looking girls showed up to perform massages two or three times a day when Epstein was in town.”

    The Virgin Islands filing said, “On July 25, 2006, Staley met with Epstein in person at Epstein’s home. In that visit, Epstein admitted to the alleged “conduct of engaging in sex for money with young women” — only denying the ‘ages.'”

    Staley afterward wrote Erdoes: “I went and saw him last night. I’ve never seen him so shaken. He also adamantly denies the ages,” Staley wrote Erdoes, the filing notes.

    In his deposition, Staley was asked: “The conduct that he was being accused of, he was admitting that he did it.  He was just denying that he knew the ages of the victims, right?”

    Staley replied, “Correct.”

    “And you were reporting that back to the bank, that what was being denied is the ages, right?” a lawyer for the Virgin Islands said.

    Staley said, “Right.”

    He then conceded that the bank knew that Epstein had admitted to engaging in sex for money with young women, while denying they were underage.

    The lawyer then asked, “And so when the bank is receiving that information, they now know what you know, which is, this is the type of conduct that our client is engaging in, and the only dispute that he has about the allegations are the ages of the victims, right?”

    Staley replied, “That’s correct.”

    [ad_2]

    Source link

  • JPMorgan moved $1.1 million from Jeffrey Epstein to ‘women or girls’ after terminating client relationship, USVI alleges

    JPMorgan moved $1.1 million from Jeffrey Epstein to ‘women or girls’ after terminating client relationship, USVI alleges

    [ad_1]

    Jeffrey Epstein attends Launch of RADAR MAGAZINE at Hotel QT on May 18, 2005.

    Patrick McMullan | Getty Images

    JPMorgan Chase handled more than $1.1 million in payments from Jeffrey Epstein to “girls or women” after the giant bank says it fired the sex offender as a client, a lawyer for the U.S. Virgin Islands told a judge Monday.

    Many of the girls or women had Eastern European surnames, the attorney, Linda Singer, wrote to Manhattan federal Judge Jed Rakoff.

    And more than $320,000 of the payments were made to “numerous individuals for whom JPMorgan had no previously identified payments,” Singer wrote in the letter.

    The letter accuses JPMorgan of failing to disclose the payments until after the end of discovery, the period during which the bank and the Virgin Islands exchanged evidence as part of an ongoing lawsuit.

    Singer asked Rakoff to impose monetary sanctions on JPMorgan for not turning over the information when the Virgin Islands said it should have been disclosed, and to order the bank to turn over “all financial records for any newly disclosed girls or women to whom Epstein made payments.”

    The Virgin Islands in its suit alleges that JPMorgan facilitated and financially benefited from sex trafficking by Epstein of young women during the years when he was a client.

    Epstein maintained a residence on a private island in the American territory where he sexually abused scores of women, and during that time kept tens of millions of dollars on deposit at JPMorgan.

    JPMorgan says it cut ties to Epstein in 2013. But Monday’s court filing challenges the bank’s timeline.

    The bank, which denies any wrongdoing related to Epstein, had no immediate comment on the letter.

    Singer wrote that documents recently turned over by JPMorgan contained information that had been previously sought by the Virgin Islands during the discovery period.

    That information was assembled internally by the bank in October 2019, more than three months after Epstein was arrested on federal child sex trafficking charges. Epstein killed himself in jail in August 2019.

    “There is no legitimate reason for JPMorgan failing to identify payments to girls or women the bank itself identified as being related to Epstein — and potential evidence of Epstein’s sex trafficking venture — years before receiving the USVI’s discovery requests,” the attorney wrote.

    The letter says that a spreadsheet prepared by JPMorgan listing the dates and beneficiaries of more than 9,000 transactions payable to Epstein-related persons between 2005 and 2019 “had a combined value of over $2.4 billion.”

    “Many of the entries reflected accounts and payments, numbering in the thousands and totaling in the hundreds of millions of dollars in value, of which USVI had no prior knowledge or information from JPMorgan’s responses and productions during the fact discovery period,” Singer wrote.

    The letter says that JPMorgan has argued the information was not disclosed earlier “because it was not in a custodial production and/or did not relate to individuals specifically identified by the USVI as related to Epstein.”

    But Singer noted, “The USVI has repeatedly made clear that its discovery requests are not limited to individuals it specifically identified as being related to Epstein.”

    “The USVI specifically identified the individuals it knew were related to Epstein to make its discovery requests clearer — not relieve JPMorgan of its duty to produce known relevant documents,” the lawyer wrote.

    Singer told Rakoff that it remains unclear whether JPMorgan has now disclosed all of the payments from Epstein to girls and women.

    The lawyer asked the judge to order JPMorgan to produce, within five days, all documents and information concerning its 2019 review of its business with Epstein, and “all financial records for any newly disclosed girls or women to whom Epstein made payments.”

    [ad_2]

    Source link

  • U.S. Virgin Islands seeks at least $190 million from JPMorgan Chase in Jeffrey Epstein case

    U.S. Virgin Islands seeks at least $190 million from JPMorgan Chase in Jeffrey Epstein case

    [ad_1]

    The government of the U.S. Virgin Islands in a court filing Friday estimated that it will seek damages of at least $190 million from JPMorgan Chase in a lawsuit accusing the big bank of facilitating sex trafficking by its former long-time customer Jeffrey Epstein.

    The Virgin Islands also said it wants an order requiring JPMorgan to take a series of steps to protect young women and girls from other predators in the future.

    “These sets of recommendations aim to address the same core problem: JPMorgan’s knowledge of
    and failure to report Epstein’s trafficking because it lacked the economic incentive and motivation
    to place compliance with the law and prevention of trafficking ahead of its own profits,” the filing in U.S. District Court in Manhattan says.

    The American territory also said it will seek further compensatory damages specifically for victims of Epstein beyond the nearly $300 million JPMorgan agreed to pay victims last month to settle a lawsuit by one of his accusers. The filing did not give an amount for those additional damages from the bank, which has staunchly denied any wrongdoing.

    The new filing came in response to a request last week by Judge Jed Rakoff that the territory detail the damages it seeks in the case as it heads toward a scheduled Oct. 23 trial.

    The Virgin Islands’ suit accuses JPMorgan of benefiting from Epstein’s trafficking of young women to be abused by him and others during the 15 years he was a client of the bank, which is the largest in the United States.

    The complaint alleges JPMorgan allowed Epstein to keep many millions of dollars in accounts at the bank, which he used to fund his trafficking of women, despite multiple red flags about him raised by bank employees over the years.

    “We are pursuing this enforcement action because JPMorgan Chase’s institutional failure enabled Jeffrey Epstein’s sex trafficking, and JPMorgan Chase must make significant changes to detect, report and stop human trafficking,” said U.S. Virgin Islands Attorney General Ariel Smith in a statement Friday.

    “Financial penalties, as well as conduct changes, are important to make sure that JPMorgan Chase knows the cost of putting its own profits ahead of public safety,” said Smith.

    She said that if the Virgin Islands wins its suit, it will uses the monetary damages it receives “to support efforts to strengthen, inform, and expand local law enforcement and enhance the Virgin Islands’ services for victims of human trafficking and other victims of crime.”

    A JPMorgan spokeswoman, when asked for comment about the filing, indicated for what appears to be the first time that the bank’s attorneys have discussed a possible settlement of the lawsuit with lawyers for the Virgin Islands, which would avoid a trial.

    “This document does not reflect the nature of settlement conversations,” said the spokeswoman, Patricia Wexler. ” As for the USVI’s misdirected damages theories, they are not well founded and are being challenged by JPM in court.”

    It is common in civil litigation for cases to be settled without trial.

    The filing says the Virgin Islands wants at least $150 million in civil penalties alone. The filing also says that it wants JPMorgan to disgorge at least another $40 million in fees that Epstein generated for the bank, and that JPMorgan received from “many ultra-high net worth clients” he referred to the bank.

    Those people, the filing said, included Google co-founder Sergey Brin, Microsoft founder Bill Gates, Lex Wexner, the founder of Limited Brands, and the billionaire Glenn Dubin.

    A spokesperson for Gates contacted CNBC after this article first was published, and in an email, “Mr. Gates was never a client of JP Morgan.”

    In addition to the monetary damages, the Virgin Islands also is asking JPMorgan be compelled “to implement new policies, including separating its business and compliance functions and designating an independent compliance consultant, to prevent human trafficking,” according to a press release by Smith’s office.

    JPMorgan in its own court filings has accused the Virgin Islands itself of being “complicit in the crimes of Jeffrey Epstein.”

    The bank alleges Epstein gave high-ranking officials there money, advice and favors in exchange for looking the other way when he trafficked young women to be abused there.

    Epstein had a residence on a private island in the territory, where accusers say he and other people sexually abused them.

    Last month in the same court where the Virgin Islands is suing the bank JPMorgan agreed, without admitting wrongdoing, to pay $290 million to victims of Epstein to settle a suit by one of his accusers.

    In May, Deutsche Bank agreed to pay Epstein victims $75 million to settle a separate lawsuit by an accuser who accused that back of abetting his sex trafficking of her and others. Deutsche Bank took on Epstein as a customer after JPMorgan severed ties with him in 2013, years after bank employees first voiced concerns about him.

    Deutsche Bank previously agreed to pay New York state’s Department of Financial Services a $150 million penalty for failure to detect or prevent millions of dollars of suspicious transactions related to Epstein, which included “payments to Russian models and to numerous women with Eastern European surnames,” the filing Friday by the Virgin Islands noted.

    Epstein, who had been a friend to former Presidents Donald Trump and Bill Clinton, as well as Prince Andrew of Great Britain, pleaded guilty in 2008 to a Florida state charge of soliciting sex from an underage girl. He served 13 months in jail, but spent much of that time on work release each day.

    Epstein, then 66, killed himself in a federal jail in New York in August 2019, a month after he was arrested on federal child sex trafficking charges.

    [ad_2]

    Source link

  • CNBC Daily Open: Tech is loving the possible rate pause

    CNBC Daily Open: Tech is loving the possible rate pause

    [ad_1]

    Tim Cook, chief executive officer of Apple Inc., beside an Apple Vision Pro mixed reality (XR) headset during the Apple Worldwide Developers Conference at Apple Park campus in Cupertino, California, US, on Monday, June 5, 2023.

    Philip Pacheco | Bloomberg | Getty Images

    This report is from today’s CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

    What you need to know today

    • China’s economy and stocks aren’t doing as hot as Japan’s. The Shanghai Composite fell around 0.1% and the yuan hit a 6-month low as the People’s Bank of China cut a short-term borrowing rate in an attempt to boost liquidity. Analysts think it’s a signal that the central bank will cut its medium-term and loan prime rate in the weeks ahead.
    • Goldman Sachs CEO David Solomon told CNBC that commercial real estate’s in such a bad shape that his bank will write down bad loans and drop valuations in its real estate investments. Still, Solomon said he’s “surprised” by the resilience of the U.S. economy.
    • JPMorgan Chase’s prepared to pay $290 million to settle a lawsuit brought against it by a victim of late sexual predator Jeffrey Epstein, a source told CNBC. However, the bank’s litigation with the U.S. Virgin Islands and its claims against Jes Staley, a former executive who was friends with Epstein, are still pending.

    The bottom line

    Hopes for a pause in interest rates helped to send stocks higher Monday. The technology sector, which is more sensitive to rate fluctuations, especially benefitted. (Higher rates today lower the value of tech’s growth tomorrow.)

    Traders are betting there’s a 72% chance the Federal Reserve will keep rates unchanged at this week’s meeting, according to the CME Group’s FedWatch tool. That’s because economists think the consumer price index, coming out later today, will show May’s inflation slowing to just 0.1% from the previous month, or 4% year over year. That’s a “headline number [that] is going to feel good,” said Mark Zandi, chief economist at Moody’s Analytics.

    Big Tech stocks mostly rose at least 1%; Apple even hit an all-time high of $183.79 per share. Meanwhile, Oracle’s better-than-expected earnings report pushed its shares 3% higher in extended trading.

    The Nasdaq popped 1.53% to reach its highest level since April. The S&P 500 added 0.93%, further adding to the gains it’s accumulated over the past few days, and the Dow Jones Industrial Average climbed 0.56%.

    Despite those big moves, it was a relatively light trading day. On an average day, 80.6 million shares of the SPDR S&P 500 ETF Trust, a tracker of the broad S&P 500 index, are traded. Yesterday, only 31.5 million exchanged hands. That’s probably wise, considering inflation data coming out tomorrow and the Fed meeting happening right after that. Tech greatly benefits from lower interest rates, but remember that the converse applies too.

    [ad_2]
    Source link

  • CNBC Daily Open: Everyone’s expecting inflation to slow down

    CNBC Daily Open: Everyone’s expecting inflation to slow down

    [ad_1]

    The Nasdaq MarketSite in New York, US, on Friday, June 9, 2023. T

    Michael Nagle | Bloomberg | Getty Images

    This report is from today’s CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

    What you need to know today

    • Goldman Sachs CEO David Solomon told CNBC his bank will write down bad loans and dropping valuations in Goldman’s commercial real estate holdings. That’ll have a negative impact on the bank’s earnings report in the current quarter.

    The bottom line

    Hopes for a pause in interest rates helped to send stocks higher Monday. The technology sector, which is more sensitive to rate fluctuations, especially benefitted. (Higher rates today lower the value of tech’s growth tomorrow.)

    Traders are betting there’s a 72% chance the Federal Reserve will keep rates unchanged at this week’s meeting, according to the CME Group’s FedWatch tool. That’s because economists think the consumer price index, coming out later today, will show May’s inflation slowing to just 0.1% from the previous month, or 4% year over year. That’s a “headline number [that] is going to feel good,” said Mark Zandi, chief economist at Moody’s Analytics.

    Big Tech stocks mostly rose at least 1%; Apple even hit an all-time high of $183.79 per share. Meanwhile, Oracle’s better-than-expected earnings report pushed its shares 3% higher in extended trading.

    The Nasdaq popped 1.53% to reach its highest level since April. The S&P 500 added 0.93%, further adding to the gains it’s accumulated over the past few days, and the Dow Jones Industrial Average climbed 0.56%.

    Despite those big moves, it was a relatively light trading day. On an average day, 80.6 million shares of the SPDR S&P 500 ETF Trust, a tracker of the broad S&P 500 index, are traded. Yesterday, only 31.5 million exchanged hands. That’s probably wise, considering inflation data coming out tomorrow and the Fed meeting happening right after that. Tech greatly benefits from lower interest rates, but remember that the converse applies too.

    [ad_2]
    Source link

  • Wife Of Former U.S. Virgin Islands Governor Complicit In Epstein Crimes, Court Filing Says

    Wife Of Former U.S. Virgin Islands Governor Complicit In Epstein Crimes, Court Filing Says

    [ad_1]

    JPMorgan Chase, the nation’s largest bank, alleged in a new court filing Thursday that the wife of the U.S. Virgin Islands’ former governor and other officials in the territory helped Jeffrey Epstein dodge sex offender laws and helped him procure his alleged victims.

    The bank’s new filing in a U.S. District Court is part of an ongoing civil lawsuit that the Virgin Islands filed last year accusing the company of financially benefiting from Epstein’s alleged sex trafficking operation in the Virgin Islands, where he owned a small island, and failing to report his suspicious financial activity.

    JPMorgan Chase, which denies any liability in Epstein’s alleged schemes, fired back at the U.S. territory this week, saying in its filing that Cecile de Jongh, wife of former Gov. John de Jongh, facilitated a “quid pro quo relationship” between Epstein and the island’s most powerful figures while she first lady from 2007 to 2015.

    “Epstein’s primary conduit for spreading money and influence throughout the USVI government was First Lady de Jongh,” Thursday’s filing alleges, saying she “drove donations from Epstein to support her husband and allies.” He also paid her $200,000 in 2007 alone for management work at his companies and paid the school tuition for her and the governor’s children, the bank claimed in its filing.

    In exchange, JPMorgan Chase’s lawyers say, de Jongh used her influence with high-ranking public officials to help Epstein ― who was convicted in 2008 of procuring a child for prostitution ― obtain student visas for three women involved in his alleged sex trafficking ring, arrange for their enrollment at a local university, find employment for them and coordinate their travel to the territory.

    “In sum, in exchange for Epstein’s cash and gifts, USVI made life easy for him,” the filing says. “The government mitigated any burdens from his sex offender status. And it made sure that no one asked too many questions about his transport and keeping of young girls on his island.”

    Epstein was arrested in 2019 on charges of sex trafficking minors but died by suicide in his Manhattan jail cell ahead of his trial.

    A spokesperson for the attorney general of the Virgin Islands called JPMorgan Chase’s new filing “an obvious attempt to shift blame.”

    De Jongh has not returned media inquiries about the allegations against her.

    [ad_2]

    Source link

  • JPMorgan CEO Jamie Dimon testifies he had no involvement with Jeffrey Epstein account, bank says

    JPMorgan CEO Jamie Dimon testifies he had no involvement with Jeffrey Epstein account, bank says

    [ad_1]

    JPMorgan Chase CEO Jamie Dimon talks to reporters as he leaves the U.S. Capitol after an unannounced meeting with U.S. Senate Majority Leader Schumer that was reportedly about the possibility of the U.S. defaulting on its debt, outside the U.S. Capitol in Washington, May 17, 2023.

    Evelyn Hockstein | Reuters

    JPMorgan Chase CEO Jamie Dimon testified at a deposition in New York on Friday that he had no involvement in the accounts of longtime customer Jeffrey Epstein, the bank said.

    Dimon was being deposed for lawsuits accusing JPMorgan of facilitating and profiting from Epstein’s sex trafficking of young women, which he financed with money he had on deposit there.

    “At today’s deposition, our CEO repeatedly confirmed that he never met with him, never emailed him, does not recall ever discussing his accounts internally, and was not involved in any decisions about his account,” said a bank spokeswoman. ”There are millions and millions of emails and other documents that have been produced in this case and not one comes close to even suggesting that he had any role in decisions about Epstein’s accounts.”

    The spokeswoman added: ”As we have said, we now know that Epstein’s behavior was monstrous, and his victims deserve justice. In hindsight, any association with him was a mistake and we regret it, but these suits are misdirected as we did not help him commit his heinous crimes.”

    Dimon gave his deposition at JPMorgan’s headquarters in Manhattan. The bank earlier lost an effort to dismiss the suits by the plaintiffs – the government of the U.S. Virgin Islands and an anonymous Epstein accuser.

    The suits claim that JPMorgan, the biggest bank in the United States, kept Epstein as a customer even after learning he was being investigated for sexually abusing underage girls in Florida and after he pleaded guilty in a state charge there in 2008 to paying for sex from a minor.

    The bank is accused in the complaints in U.S. District Court in Manhattan of doing so in order to keep Epstein, who kept tens of millions of dollars in accounts there, despite internal concerns about his slimy reputation.

    The Virgin Islands says Epstein used frequent cash withdrawals he made from those accounts to pay for young women to travel to the American territory so that he and others could abuse them at his residence on a private island he owned.

    “Human trafficking was the [principal] business of the accounts Epstein maintained at JPMorgan,” the Virgin Islands’ suit says.

    Dimon’s deposition is being taken in private. The questions he is asked and the answers he gives would only become public if they are used in court filings and proceedings, or if they are leaked.

    JPMorgan didn’t immediately respond to CNBC’s request for comment.

    CNBC Politics

    Read more of CNBC’s politics coverage:

    In addition to questioning Dimon under oath, the Virgin Islands has issued a flurry of subpoenas seeking documents related to Epstein and JPMorgan from a number of high-profile people the government suspects Epstein tried to recruit as fellow clients of the bank.

    They include Tesla CEO Elon Musk, Google co-founders Larry Page and Sergey Brin, former Disney executive Michael Ovitz, Hyatt Hotels executive chairman Thomas Pritzker and Mort Zuckerman, the billionaire real estate investor.

    Dimon’s deposition comes more than a week after Deutsche Bank agreed to pay $75 million to Epstein victims to settle a would-be class action lawsuit by one of his accusers. Deutsche Bank had taken on Epstein as a customer after JPMorgan severed ties with him in 2013, after keeping him as a client for 15 years.

    JPMorgan has said Dimon had not reviewed Epstein’s accounts when he was a client there from 1998 through 2013, the year that JPMorgan severed its relationship with him.

    Epstein died six years later from suicide in a New York jail a month after federal authorities charged him with trafficking girls for sex.

    JPMorgan pushes back

    JPMorgan, in a related complaint, has said that any civil liability it would have from Epstein’s conduct is the responsibility of its former executive Jes Staley, who was a friend of Epstein and his main business contact at the bank.

    Staley, who also denies any wrongdoing, earlier this week lost a bid to dismiss JPMorgan’s complaint against him, which among other things seeks to recoup $80 million in compensation from him.

    In addition to trying to shift blame to Staley, JPMorgan this week in a court filing accused the Virgin Islands of being “complicit in the crimes of Jeffrey Epstein.”

    The filing said the Virgin Islands looked the other way as Epstein trafficked young women because he was giving high-ranking officials there money, advice and favors.

    The filing specifically says that Epstein paid tuition for the children of John de Jongh and his wife, Cecile, when John served as Virgin Islands governor and when Cecile worked for Epstein managing his companies in the territory.

    Cecile also allegedly made efforts to secure student visas for young women connected to Epstein, and was his “primary conduit for spreading money and influence throughout the USVI government.”

    The Washington Post on Friday published details of a deposition earlier taken of Mary Erdoes, who runs JPMorgan’s asset and wealth management division.

    “Oh boy,” Erdoes wrote in a 2011 email to another bank executive after she found out Epstein’s status as a sex offender as a result of his Florid conviction had been affirmed, The Washington Post reported.

    The newspaper said that was “at least the sixth time Erdoes … had been alerted to Epstein’s criminal or civil legal trouble for sex crimes.”

    [ad_2]

    Source link

  • JPMorgan Chase says Jeffrey Epstein paid tuition for kids of U.S. Virgin Islands governor

    JPMorgan Chase says Jeffrey Epstein paid tuition for kids of U.S. Virgin Islands governor

    [ad_1]

    Sex offender Jeffrey Epstein paid school tuition for the children of then-governor of the U.S. Virgin Islands, whose wife made efforts to secure student visas and a work license for young women connected to Epstein, according to an updated court filing Thursday by JPMorgan Chase.

    Those tuition payments, whose duration and amounts were not revealed, allowed then-Gov. John de Jongh Jr. “to funnel additional money to his political campaigns,” JPMorgan said in the filing in U.S. District Court in Manhattan.

    Epstein also “offered to fund Governor de Jongh’s defense in the Governor’s criminal case,” where the then-governor was charged in 2015 in connection with the use of public funds to make security improvements at his private residence, according to the filing. Those charges were dropped in early 2016 by the Virgin Islands Department of Justice.

    JPMorgan alleges Epstein’s generosity was part of his broader effort to build sway on the islands.

    The filing is part of the bank’s defense of a civil lawsuit by the U.S. Virgin Islands alleging JPMorgan facilitated Epstein’s sex trafficking of young women. Epstein, who was a JPMorgan customer between 1998 and 2013, owned two private islands in the territory and abused multiple young women at his residence on one of those islands.

    JPMorgan denies wrongdoing in the case.

    JPMorgan CEO Jamie Dimon is due to be deposed Friday for the Virgin Islands’ lawsuit, as well as for a similar one filed against the bank by an accuser of Epstein.

    “Lest there be doubt that Epstein’s goal was to gain influence, First Lady [Cecile] de Jongh explicitly advised Epstein on how to buy control of the USVI political class,” the filing says.

    The document also refers to one time when Cecile de Jongh was “asking Epstein what visas the ‘ladies’ have and trying to arrange English as a Second Language classes for them.”

    Former Gov. de Jongh served as Virgin Islands governor between 2007 and 2015.

    Cecile de Jongh worked for Epstein, managing his companies in the territory. She made $200,000 in 2007 alone, the filing notes.

    CNBC has reached out to the de Jonghs for comment through an asset management firm in the Virgin Islands where the former governor is a director.

    The filing was first docketed Tuesday with extensive redactions, but it was refiled Thursday, with some details about former Gov. de Jongh and Cecile now visible. Also visible are allegations related to current Virgin Islands Gov. Albert Bryan Jr. and his immediate predecessor in that office, Kenneth Mapp.

    Bryan, who is due to be deposed June 6 in the case, suggested schools to which Epstein should donate $50,000, the filing said. Bryan also asked $30,000 go to the Virgin Islands Little League, according to the document.

    Portions of the filing that were visible Tuesday said the government of the Virgin Islands was “complicit in the crimes of Jeffrey Epstein.”

    JPMorgan said Epstein — who died in 2019 by a jailhouse suicide while awaiting trial on federal sex trafficking charges — gave top officials in the territory money, advice and favors as they looked the other way when he trafficked young women there.

    A spokesperson for the Office of the Attorney General of the Virgin Islands, in an emailed statement responding to the updated filing, said, “JPMorgan Chase facilitated Jeffrey Epstein’s abuse, and should be held accountable for violating the law.”

    “This is an obvious attempt to shift blame away from JPMorgan Chase, which had a legal responsibility to report the evidence in its possession of Epstein’s human trafficking, and failed to do so,” the spokesperson said.

    The document calls Cecile de Jongh, who managed Epstein’s companies there when she was first lady, “a ready partner” in helping Epstein transport young women to exploit in the Virgin Islands, where he maintained a home.

    The bank alleged Cecile de Jongh was “Epstein’s primary conduit for spreading money and influence throughout the USVI government.” The filing said she emailed him in 2011 proposed language for a bill in the Virgin Islands legislature that would update sex offender monitoring laws.

    “This is the suggested language; will it work for you?” she asked in that email, according to the filing.

    The document also said Epstein, who was a registered sex offender due to his conviction in Florida state court in 2008 for soliciting sex from a minor, replied, “We should add out of country for more than 7 days, otherwise I could not go for a day trip to Tortola, at the last minute.”

    JPMorgan alleged Epstein, despite receiving “lucrative tax incentives” and “lax enforcement” of his sex offender status from the Virgin Islands, “still could not freely transport and exploit young women without assistance from USVI government officials.”

    The filing said Cecile de Jongh “arranged for Epstein to meet with a local immigration lawyer to assist at least one” young woman who needed a visa to visit the American territory.

    Cecile de Jongh also “contacted the University of the Virgin Islands … to find out whether three young women could enroll there to obtain student visas,” according to the filing.

    “Perhaps cognizant of the risk in having a registered sex offender sign the letter, First Lady de Jongh wrote to Epstein that he should think about whether ‘[he] should sign [the letter] or one of us,'” the document said.

    “Ultimately UVI structured a bespoke class to enroll victims and provide cover for their presence in the territory — the same year Epstein donated $20,000 to the university through one of his companies,” the filing said.

    “In addition to visas, some of the young women Epstein brought to the island also needed
    employment,” the filing noted.

    The document said when one of those women needed a dental license, “First Lady de Jongh reached out to the Director for the Office of Professional Licensure and Health Planning at the USVI Department of Health regarding a ‘new practice act’ that would have ‘significant changes and allowances for reciprocity.'”

    “The Director wrote to Ms. de Jongh that once the act went before the Senate Committee she would have a ‘clearer idea on what [the young woman’s] options are moving forward,'” it said.

    The filing alleged Cecile de Jongh also reached out to contacts in the attorney general’s office and solicitor general’s office about the new rules.

    “Ultimately, First Lady de Jongh was successful,” the filing said. “The young woman eventually set
    up a local dental practice in the USVI and shared an office with Epstein’s companies.”

    In detailing claims Cecile advised Epstein on how to use his money to control politicians in the Virgin Islands, the filing says Epstein, at her suggestion, “explored paying monthly retainers to USVI politicians to ensure their ‘loyalty and access.'”

    “First Lady de Jongh suggested that Epstein ‘consider putting Celestino [White] on some sort of monthly retainer. That is what will get you his loyalty and access,'” said the document.

    White was a Virgin Islands senator.

    The filing also details how Epstein met often with the leadership of the Virgin Islands Port Authority, which leased hangar space to him at its airport, where women were brought in for Epstein.

    Cecile de Jongh at one point asked Epstein, on behalf of her husband, the governor, “if he would support” the bid by then-Sen. Carlton Dowe to return to the Port Authority, the filing said.

    Dowe, according to the message from Cecile, would be a “good person for us” there, the filing said.

    “Based on his government connections, when traveling through the USVI’s airport accompanied by young women as a registered sex offender, Epstein could count on his ‘great relationship’ with the officials there to avoid scrutiny or detection,” the filing said.

    “In sum, in exchange for Epstein’s cash and gifts, USVI made life easy for him,” JPMorgan’s filing said.

    The document added, “The government mitigated any burdens from his sex offender status. And it made sure that no one asked too many questions about his transport and keeping of young girls on his island.”

    [ad_2]

    Source link

  • Former JPMorgan exec Jes Staley loses bid to dismiss suit over Jeffrey Epstein ties

    Former JPMorgan exec Jes Staley loses bid to dismiss suit over Jeffrey Epstein ties

    [ad_1]

    Jes Staley, former CEO, Barclays.

    Justin Solomon | CNBC

    A federal judge Wednesday denied a bid by former JPMorgan Chase executive Jes Staley to dismiss a complaint by the bank that seeks to hold him legally liable for sex trafficking by former JPMorgan customer Jeffrey Epstein.

    The ruling in U.S. District Court in Manhattan came two days before JPMorgan CEO Jamie Dimon is scheduled to be deposed in lawsuits by the government of the U.S. Virgin Islands and an Epstein accuser against the bank over its relationship with the late predator.

    The Virgin Islands alleges in its suit filed in December that JPMorgan facilitated and financially benefited from the trafficking of young women by Epstein to his private island in the American territory to be sexually abused by him and others there.

    Epstein was a client of the bank from 1998 until 2013.

    In March, as part of its legal response to the Virgin Islands’ lawsuit and the similar one by the Jane Doe accuser, JPMorgan filed a so-called third-party complaint against Staley.

    That action argues if the Virgin Islands proves its allegations, “Staley is solely liable to the USVI, or liable to JPMC for all sums awarded to the USVI and against JPMC, if any, at trial.” The suit also seeks to claw back more than $80 million in compensation Staley received from the bank, where he worked for three decades.

    Staley, who had been a main point of contact at the bank for Epstein, last month asked Judge Jed Rakoff to toss out the complaint against him by JPMorgan.

    Rakoff in a brief order denied Staley’s motion in full.

    “An opinion explaining the reasoning behind this ruling will follow in due course,” the judge wrote.

    Staley’s lawyers did not immediately respond to a request for comment.

    Staley has denied knowing about Epstein’s sex trafficking.

    He served as CEO of Barclays from 2015 until late 2021, when he quit after British financial regulators investigated his ties to Epstein.

    Epstein died from suicide in a Manhattan jail in August 2019, weeks after being arrested on federal child sex trafficking charges.

    [ad_2]

    Source link

  • JPMorgan Chase blasts U.S. Virgin Islands as ‘complicit’ in Jeffrey Epstein sex trafficking

    JPMorgan Chase blasts U.S. Virgin Islands as ‘complicit’ in Jeffrey Epstein sex trafficking

    [ad_1]

    Albert Bryan Jr., governor of the U.S. Virgin Islands, speaks during the SelectUSA Investment Summit in National Harbor, Maryland, on May 2, 2023.

    Ting Shen | Bloomberg | Getty Images

    JPMorgan Chase in a court filing Tuesday called the U.S. Virgin Islands “complicit in the crimes of Jeffrey Epstein,” saying the sex predator gave high-ranking officials there money, advice and favors in exchange for looking the other way when he trafficked young women to be abused on his island getaway.

    “For two decades, and for long after JPMC exited Epstein as a client, the entity that most directly failed to protect public safety and most actively facilitated and benefited from Epstein’s continued criminal activity was the plaintiff in this case — the USVI government itself,” the bank said in the Manhattan federal court filing.

    “Rather than stop him, they helped him,” JPMorgan said, citing millions of dollars in tax incentives and other benefits the territory gave Epstein.

    That claim comes as JPMorgan defends itself against a civil lawsuit by the Virgin Islands, which alleges that the bank knowingly enabled Epstein’s sex trafficking and benefited from it when he was a customer from 1998 through 2013.

    A spokesman for theVirgin Islands’ attorney general’s office told CNBC on Tuesday, “JPMorgan Chase facilitated Jeffrey Epstein’s abuse, and should be held accountable for violating the law.”

    “This is an obvious attempt to shift blame away from JPMorgan Chase, which had a legal responsibility to report the evidence in its possession of Epstein’s human trafficking, and failed to do so,” the spokesman said.

    The bank’s filing Tuesday asked Judge Jed Rakoff to deny a motion by the Virgin Islands that would preclude JPMorgan from raising certain so-called affirmative defenses to the lawsuit.

    “USVI’s motion seeks to strike only those specific defenses that threaten to expose its relationship with Epstein,” the filing said.

    In a footnote, the filing said the Virgin Islands had three governors over the past 16 years: John de Jongh, Kenneth Mapp and current governor Albert Bryan Jr.

    “As detailed herein, Epstein had close ties to each of them,” that footnote said.

    Earlier Tuesday, another court filing for the first time revealed that Bryan is scheduled to be deposed June 6 for the lawsuit. A source familiar with the situation told CNBC that JPMorgan requested the deposition of Bryan, who has been governor since 2019.

    JPMorgan CEO Jamie Dimon is scheduled to be deposed in the suit Friday in New York.

    Rakoff last week authorized the Virgin Islands to serve a subpoena for Tesla CEO Elon Musk on his electric car company, seeking documents that Musk may have showing any communications involving him, Epstein and JPMorgan.

    That subpoena is based on suspicion by the territory that Epstein may have referred Musk or tried to refer him to the bank as a client.

    CNBC Politics

    Read more of CNBC’s politics coverage:

    Epstein, a former friend of Donald Trump and Bill Clinton, maintained a home on a private island in the territory where he sexually abused many young women over the years. He used money from his JPMorgan accounts to pay women and fly them there.

    In its filing Tuesday, JPMorgan noted that when Epstein was released from a Florida jail after pleading guilty to procuring a minor for sex, he tried to arrange for his parole to be transferred from that state to the Virgin Islands, where he registered as a sex offender. He also maintained his primary residence in the territory, which “put him under USVI law enforcement’s direct jurisdiction and supervision,” the filing said.

    The bank alleges there was a “decades-long quid pro quo between Epstein and the USVI government” that took three forms.

    “First, high-ranking USVI officials spent years courting and gladly accepting Epstein’s influence in the form of gifts, favors, and political donations,” the filing said.

    “Second, in exchange, USVI granted Epstein preferential treatment in the form of more than $ [amount redacted] million in tax incentives, among other benefits. Third, and most troublingly, USVI protected Epstein, fostering the perfect conditions for Epstein’s criminal conduct to continue undetected.”

    Specifically, the filing says Epstein supported the candidacy of Stacey Plaskett, the Virgin Islands delegate to the U.S. House of Representatives, after she worked for the USVI Economic Development Authority, which awarded Epstein “massive tax benefits.” Plaskett had also worked at a law firm that represented him in business affairs, the filing says.

    Epstein and his employees donated more than $30,000 to Plaskett’s congressional races, according to the bank.

    The filing said that Epstein’s “primary conduit for spreading money and influence through” Virgin Islands government was then-first lady Cecile de Jongh, the wife of former Gov. de Jongh, who served from 2007 through 2015.

    And “despite her public role and official duties, First Lady de Jongh managed Epstein’s USVI-based companies … receiving from Epstein a salary, bonuses and other benefits,” the filing said.

    Jeffrey Epstein’s former home on the island of Little St. James in the U.S. Virgin Islands.

    Emily Michot | Miami Herald | Getty Images

    Much of the details of the claims related to Cecile de Jongh are redacted in the filing, but in one section the bank says that in addition to working for his companies she “extensively lobbied on his behalf with government officials, including the governor.”

    In another heavily redacted section, the filing says the Virgin Islands “aided Epstein’s criminal activity.” The specific allegations as to how the government did that is blacked out.

    Almost completely redacted is a section of the filing entitled, “Epstein exerted influence over USVI sex offender legislation and received lax monitoring.” In one unredacted section, the bank’s lawyers wrote, “While the USVI did conduct site visits of Epstein’s residences, those inspections were cursory at best.”

    “Despite the direct infusions of lucrative tax incentives, [redacted] and lax enforcement, Epstein still could not freely transport and exploit young women without assistance from USVI government officials,” the filing said.

    “In exchange for Epstein’s cash and gifts, USVI made life easy for him,” the filing said. “The government mitigated any burdens from his sex offender status. And it made sure that no one asked too many questions about his transport and keeping of young girls on his island.”

    The lawsuit against JPMorgan was filed in late December by then-Virgin Islands Attorney General Denise George, who a month earlier had obtained a $105 million settlement from Epstein’s estate. Days after she filed that suit, Bryan fired George, who had been attorney general for four years.

    The governor fired George reportedly because she failed to alert him that she planned to sue JPMorgan, which is the largest bank in the United States.

    Despite George’s firing, the Virgin Islands has continued to aggressively pursue its litigation against the bank.

    On Tuesday, there was another in a series of private telephone conferences with Rakoff over the case.

    A public docket entry summarized the outcome of that conference, which included lawyers for the Virgin Islands, JPMorgan, former JPMorgan executive Jes Staley and an Epstein accuser who has a separate, similar lawsuit pending against the bank. JPMorgan is trying to shift any legal liability it may have in the suit to Staley, who was a point of contact for Epstein at the bank.

    “The deposition of Albert Bryan, Jr. is ordered to proceed on June 6,” that docket entry says.

    The entry also says that “all parties other than JP Morgan are ordered to contact former officers and directors of JP Morgan only through counsel.”

    CNBC requested comment from lawyers for the Virgin Islands and from JPMorgan about the conference Tuesday.

    Charges against Jeffrey Epstein were announced on July 8, 2019 in New York City. Epstein will be charged with one count of sex trafficking of minors and one count of conspiracy to engage in sex trafficking of minors.

    Stephanie Keith | Getty Images News | Getty Images

    Epstein, 66, died by suicide in a Manhattan jail in August 2019, a month after he was arrested and charged in Manhattan federal court with child sex trafficking.

    Epstein pleaded guilty in 2008 to a Florida state charge of soliciting sex from an underage girl and was sentenced to 13 months in jail.

    His prior criminal case and stint in jail, which were known to JPMorgan at the time, came in the middle of his tenure as a customer of the bank, where he maintained accounts from 1998 until the bank severed its relationship with him in 2013.

    Epstein became a customer of Deutsche Bank after that.

    Deutsche Bank last week agreed to settle a Manhattan federal court lawsuit filed by another Epstein accuser who alleged that bank enabled and benefited from his sex trafficking. Deutsche Bank will pay Epstein victims $75 million in that deal.

    Deutsche Bank in 2020 agreed to pay a $150 million fine to New York’s financial regulator for its dealings with Epstein and other issues.

    “We acknowledge our error onboarding Epstein in 2013, and the weaknesses in our processes, and have learnt from our mistakes and our shortcomings,” bank spokesman Dylan Riddle said last week.

    — CNBC’s Eamon Javers contributed to this report.

    Correction: Some previous headlines for this story were updated to reflect the correct spelling of Jeffrey Epstein’s name.

    [ad_2]

    Source link

  • Elon Musk subpoena in Epstein-JPMorgan lawsuit can be served to Tesla, judge rules

    Elon Musk subpoena in Epstein-JPMorgan lawsuit can be served to Tesla, judge rules

    [ad_1]

    Ghislaine Maxwell and Elon Musk attend the 2014 Vanity Fair Oscar Party Hosted By Graydon Carter on March 2, 2014 in West Hollywood, California.

    Kevin Mazur | vf14 | Wireimage | Getty Images

    A federal judge ruled Wednesday that the U.S. Virgin Islands can serve a subpoena for Elon Musk to his electric car company Tesla, as part of the government’s lawsuit against JPMorgan Chase over the bank’s ties to dead sexual trafficker Jeffrey Epstein.

    The ruling came days after lawyers for the USVI government told Judge Jed Rakoff they had been unable to serve the Tesla CEO personally with the subpoena demanding documents related to Epstein and JPMorgan.

    The Virgin Islands is suing JPMorgan in U.S. District Court in Manhattan for allegedly enabling and financially benefiting from Epstein’s sex trafficking of young women. The late financier and sex criminal had been a customer of the bank from 1998 through 2013. JPMorgan denies any wrongdoing.

    On April 28, the USVI issued a subpoena to Musk because of suspicion that Epstein “may have referred or attempted to refer” Musk as a client to JPMorgan, according to a court filing Monday.

    That subpoena demands that Musk turn over any documents showing communication involving him, JPMorgan and Epstein, as well as “all Documents reflecting or regarding Epstein’s involvement in human trafficking and/or his procurement of girls or women for consensual sex.”

    CNBC Politics

    Read more of CNBC’s politics coverage:

    The USVI said in a court filing Monday that an investigative firm it had retained had been unable to locate Musk to serve him in person with the subpoena, as is the norm.

    The filing also said that a lawyer for Musk did not reply to a request that the attorney accept the subpoena for his client.

    Rakoff, in his order Wednesday, authorized the USVI to “arrange alternative service of its Subpoena to Produce Documents by serving Elon Musk via service upon Tesla Inc.’s registered agent.”

    Musk didn’t immediately respond to a request for comment.

    The USVI also has issued similar subpoenas for documents related to Epstein and JPMorgan to Google co-founders Larry Page and Sergey Brin, former Disney executive Michael Ovitz, Hyatt Hotels executive chairman Thomas Pritzker and Mort Zuckerman, the billionaire real estate investor.

    JPMorgan CEO Jamie Dimon is scheduled to be deposed on May 26 for the lawsuit and for a related suit against the bank by a woman who says Epstein sexually abused her.

    Muks in a tweet Monday night had blasted the idea of that he be given a subpoena in the case.

    “This is idiotic on so many levels,” Musk wrote on Twitter, which he bought and took private last year.

    “That cretin never advised me on anything whatsoever,” he wrote, referring to Epstein.

    “The notion that I would need or listen to financial advice from a dumb crook is absurd,” Musk added. “JPM let Tesla down ten years ago, despite having Tesla’s global commercial banking business, which we then withdrew. I have never forgiven them.”

    In 2018, Epstein told The New York Times he had been advising Musk after the Securities and Exchange Commission opened a probe into Musk’s comments about taking Tesla private. A Tesla spokesperson told The Times, “It is incorrect to say that Epstein ever advised Elon on anything.”

    Epstein killed himself in August 2019, a month after federal authorities arrested him on an indictment charging him with child sex trafficking. He had previously pleaded guilty in 2008 to a Florida state charge of soliciting sex from an underage girl.

    Before his fall from grace, Epstein and his former girlfriend Ghislaine Maxwell, socialized with many rich and powerful people, among them former presidents Donald Trump and Bill Clinton, as well as Britain’s Prince Andrew, the brother of King Charles III.

    Maxwell, a British socialite, was convicted in late 2021 in federal court in Manhattan of procuring underage girls to be sexually abused by Epstein. Maxwell was sentenced in June 2022 to 20 years in prison.

    Musk in July 2020 replied to a Twitter post that showed him posing for a photo next to a smiling Maxwell.

    “Don’t know Ghislaine at all,” Musk wrote. “She photobombed me once at a Vanity Fair party several years ago. Real question is why VF invited her in the first place.”

    The New York Times, in a 2022 article detailing that photo, reported that a Vanity Fair staff member who had stood next to both Maxwell and Musk at the party said that “the pair chatted.”

    “Ms. Maxwell asked Mr. Musk if there were a way to remove oneself from the internet and encouraged Mr. Musk to destroy the internet; Mr. Musk demurred,” The Times reported, citing the staffer, who shared contemporaneous notes of the encounter.

    “Ms. Maxwell then asked Mr. Musk why aliens hadn’t yet made contact with humanity, to which Mr. Musk replied that all civilizations eventually end — including Maxwell’s hypothetical alien one — and raised the possibility that humans are living in a simulation.”

    [ad_2]

    Source link