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Tag: Washington

  • A Tale Of Two Housing Markets In The Slowing West And Rising East

    A Tale Of Two Housing Markets In The Slowing West And Rising East

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    A new report by data analytics provider CoreLogic reveals in many ways a tale of two very different housing markets. At one extreme, the West is slowing, and at the other extreme, the East is rising.

    Even as home prices grew for the 133rd straight month in February, the 4.4% increase still was nothing to write home about. That’s because it was the lowest recorded since 2019. Eight states and districts recorded annual home price losses, with much of the depreciation seen in the relatively expensive West, including California, Idaho, Oregon, Washington and Utah.

    The recent wave of layoffs at tech hubs has likely affected housing demand on the West Coast. However, as noted in the latest CoreLogic S&P Case-Shiller Index, home price gains are holding steady in some large East Coast metros, as workers return to offices and buyer demand renews in areas that saw relatively less appreciation during the pandemic. Areas in the South are also holding up well, mostly due to their relative affordability compared with the rest of the country.

    Selma Hepp, chief economist at CoreLogic, said that the divergence in home price changes across the nation reflects America’s divided housing market. “Declines in the West are due to the tech industry slowdown and a severe lack of affordability after decades of undersupply,” she explained. “The consistent gains in the Southeast and South reflect strong job markets, in-migration patterns and relative affordability due to new home construction.”

    Hepp added, “But while housing market challenges remain, particularly in light of mortgage rate volatility and the ongoing banking turmoil, pent-up home buyer demand is responding favorably to lower rates in many markets. This trend holds true even in the West, leading to a solid monthly gain in home prices in February.”

    She noted that home prices rose by 0.8% in February, double the month-over-month increase historically seen and indicating that prices in most markets have already bottomed out.

    In February, Miami landed on the list of the highest year-over-year home price increase of the country’s 20 tracked metro areas in February, at 15.6%, while Tampa continued to rank second at 9.3%.

    Florida and Maine recorded the highest annual home price gains, 11.3% and 10.3%, respectively. South Carolina posted the third-highest growth, with a 9.2% year-over-year increase. Eight states and districts recorded annual losses: Washington (-4.9%), Montana (-3.1%), Nevada (-1.7%), Idaho (-1.6%), Utah (-1.6%), California (-1.5%), Washington, D.C. (-1.2%) and Oregon (-0.7%).

    Looking ahead, CoreLogic forecasts show annual home price gains slowing to 3.7% by February 2024.

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    Brenda Richardson, Senior Contributor

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

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

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

    Alex Wong | Getty Images

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

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

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

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

    In Washington, the Biden administration sharply criticized the cuts.

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

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

    — CNBC’s Kayla Tausche contributed to this report

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  • China’s chip industry will be ‘reborn’ under U.S. sanctions, Huawei says, confirming breakthrough

    China’s chip industry will be ‘reborn’ under U.S. sanctions, Huawei says, confirming breakthrough

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    The U.S. has placed major chip export restrictions on Huawei and Chinese firms over the past few years. This has cut off companies’ access to critical semiconductors.

    Jaap Arriens | Nurphoto | Getty Images

    China’s chip industry will be “reborn” as a result of U.S. sanctions, a top boss at Huawei said Friday, as the Chinese telecommunications giant confirmed a breakthrough in semiconductor design technology.

    Eric Xu, rotating chairman at Huawei, issued fighting words against Washington’s tech export restrictions on China.

    “I believe China’s semiconductor industry will not sit idly by, but take efforts around … self-strengthening and self reliance,” according to an official translation of Xu’s comments during a press conference.

    “For Huawei, we will render our support to all such self-saving, self-strengthening and self reliance efforts of the Chinese semiconductor industry.”

    Semiconductors have been a flash point in the broader U.S.-China battle for tech supremacy. Over the past few years, Washington has attempted to cut China and Chinese firms off through sanctions and export restrictions.

    In 2019, Huawei was put on a U.S. black list called the Entity List, which barred American firms from selling technology to the Chinese company. This included chips for 5G products — where 5G refers to super-fast next-generation mobile networks. Chip restrictions against Huawei were tightened in 2020 and effectively separated it from the latest cutting-edge chips it required for its smartphones.

    Washington then introduced broader chip restrictions last year, aiming to deprive Chinese firms of critical semiconductors that could serve artificial intelligence and more advanced applications.

    The U.S. is concerned that China could use advanced semiconductors for military purposes.

    Huawei’s Xu said these developments could boost, rather than hamper China’s domestic semiconductor industry.

    “I believe China’s semiconductor industry will get reborn under such sanctions and realize a very strong and self-reliant industry,” Xu said.

    Experts previously told CNBC that the latest round of U.S. restrictions are likely to hurt China’s semiconductor industry. Under the current rules, certain tools or chips that are made using American technology are not allowed to be exported to China.

    The nature of the chip supply chain makes this very effective. U.S. tools are used across the chip production process, even if a semiconductor is manufactured in another country.

    China’s domestic chip industry relies heavily on foreign technology, and it lacks companies that can match firms in the U.S., Taiwan, Japan and South Korea.

    China has made self-reliance a big priority amid the tech battle with the U.S., but experts agree this will prove an extremely difficult feat.

    Huawei breakthrough

    Chinese firms are now trying to develop tools required for semiconductors domestically.

    Last week, Chinese media reported that Xu in a speech said that Huawei and other domestic firms jointly created electronic chip design tools needed to make semiconductors sized at 14 nanometers and above. Xu said those tools will be verified this year, which would allow them to be put into use.

    The rotating chairman confirmed that he made this speech, but added those tools will “mean very little” for the Huawei business. It only means that Chinese firms have the design tools required domestically, he said.

    The 14 nanometer figure refers to the size of each individual transistor on a chip. The smaller the transistor, the more of them can be packed onto a single semiconductor. Typically, a reduction in nanometer size can yield more powerful and efficient chips.

    But Huawei ideally needs chips of a much smaller nanometer size for more advanced applications, which they are currently finding it difficult to obtain. The company is still reeling from the effects of U.S. sanctions — on Friday, it said net profit dropped 69% year-on-year in 2022, marking the biggest decline on record.

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  • Federal prosecutors reveal Proud Boys witness was informant

    Federal prosecutors reveal Proud Boys witness was informant

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    WASHINGTON (AP) — Federal prosecutors disclosed Wednesday that a witness expected to testify for the defense at the seditious conspiracy trial of former Proud Boys leader Enrique Tarrio and four associates was secretly acting as a government informant for nearly two years after the Jan. 6, 2021, attack on the U.S. Capitol, a defense lawyer said in a court filing.

    Carmen Hernandez, a lawyer for former Proud Boys chapter leader Zachary Rehl, asked a judge to schedule an immediate emergency hearing and suspend the trial “until these issues have been considered and resolved.” Lawyers for the other four defendants joined in Hernandez’s request.

    Hernandez said in court papers that the defense team was told by prosecutors on Wednesday afternoon that the witness they were planning to call to the stand on Thursday had been a government informant.

    The judge ordered prosecutors to file a response to the defense filing by Thursday afternoon and scheduled a hearing for the same day, putting testimony in the case on hold until Friday. The U.S. attorney’s office did not immediately comment on the filing.

    In her court filing, Hernandez said the unnamed informant participated in “prayer meetings” with relatives of at least one of the Proud Boys on trial and had discussions with family members about replacing one of the defense lawyers on the case. The informant also has been in contact with at least one of the defense lawyers and at least one of the five defendants, Hernandez wrote.

    It’s the latest twist in a trial that has been bogged down by bickering between lawyers and the judge and already lasted much longer than expected. Defense lawyers have repeatedly asked the judge in vain to declare a mistrial over a variety of issues they say have been unfair to their clients.

    The trial in Washington’s federal court is one of the most serious cases to emerge from the Jan. 6 attack. Tarrio, Rehl and three other Proud Boys — Joseph Biggs, Ethan Nordean and Dominic Pezzola — are charged with conspiring to block the transfer of presidential power from Donald Trump to Joe Biden after the 2020 election.

    Tarrio, a Miami resident, served as national chairman for the far-right extremist group, whose members describe it as a politically incorrect men’s club for “Western chauvinists.” He and the other Proud Boys could face up to 20 years in prison if convicted of seditious conspiracy.

    Defense attorneys have argued there is no evidence the Proud Boys plotted to attack the Capitol and stop Congress from certifying Biden’s electoral victory.

    Hernandez didn’t name the informant in her court filing, but she said it is somebody who has serving as a “confidential human source” for the federal government since April 2021 through at least January 2023. Prosecutors knew in December that the person was a potential trial witness but didn’t inform defense lawyers until Wednesday that the witness has been a federal informant, she said.

    It’s not the first time the government’s use of informants has become an issue in the case. Defense attorneys have repeatedly pushed to get more information about informants in the far-right extremist group as they try to undermine the notion that the group had a plan to attack the Capital on Jan. 6.

    FBI Agent Nicole Miller testified last week that she was aware of two informants in the Proud Boys, including one who marched on the Capital on Jan. 6.

    Hernandez said there are “reasons to doubt the veracity of the government’s explanation and justification for withholding information about the (confidential human sources) who have been involved in the case.” She could not immediately be reached for additional comment.

    Law enforcement routinely uses informants in criminal investigations, but their methods and identities can be closely guarded secrets. Federal authorities haven’t publicly released much information about their use of informants in investigating the Proud Boys’ role in a mob’s attack on the Capitol on Jan. 6.

    Nordean, of Auburn, Washington, was a Proud Boys chapter leader. Biggs, of Ormond Beach, Florida, was a self-described Proud Boys organizer. Rehl was president of the Proud Boys chapter in Philadelphia. Pezzola was a Proud Boys member from Rochester, New York.

    ___

    Associated Press writer Alanna Durkin Richer in Boston contributed to this report.

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  • ‘Blanket insurance’ of bank deposits is not being discussed, Yellen tells senators

    ‘Blanket insurance’ of bank deposits is not being discussed, Yellen tells senators

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    U.S. Secretary of the Treasury testifies before the Senate Appropriations Subcommittee on Financial Services March 22, 2023 in Washington, DC.

    Win Mcnamee | Getty Images

    WASHINGTON — Federal bank regulators are not considering any plans to insure all U.S. bank deposits without congressional approval, Treasury Secretary Janet Yellen told members of a Senate Appropriations subcommittee on Wednesday.

    Several banking groups and consumer advocates have called for some kind of a universal deposit guarantee after the government refunded most of the uninsured deposits at two banks that collapsed earlier this month, California-based Silicon Valley Bank and New York-based Signature Bank.

    In response to a direct question about whether Treasury would circumvent Congress to insure all deposits, Yellen replied: “I have not considered or discussed anything having to do with blanket insurance or guarantees of all deposits.”

    Yellen made the comment to senators during a hearing on Capitol Hill to consider the Treasury Department’s 2024 budget request.

    The statement fueled a decline in the stock market, and a drop in regional bank shares.

    Congress has broad authority over the FDIC insurance limit, currently set at $250,000 as part of the Dodd-Frank financial reforms. Congress can also temporarily suspend the limit, like it did in 2020 as part of the government’s response to Covid-19.

    This time around, only a handful of Democrats have openly suggested Congress consider raising the limit across all deposits. An influential bloc of House Republicans, meanwhile, has already come out against any hike. This makes it difficult to envision how a bill to raise the limit would pass the GOP-controlled House.

    In Washington, the emergency deposit guarantees made for SVB and Signature have set off a fierce debate over whether big banks that took excessive risks got a special bailout, while smaller banks are being forced to confront a rush of withdrawals — triggered by public fears about the big banks — without any special help.

    “I’m very troubled,” said Maine Republican Sen. Susan Collins. “It seems to me, by guaranteeing all of the deposits [at SVB] that you’re creating a situation where they are immune from losses … in a way that puts the well managed community bank at a competitive disadvantage. So I guess my question to you is, how is this fair?”

    Yellen said that at the time, regulators weren’t thinking about giving one bank an advantage over any other bank. At the time, they were thinking about “the implications for the broader banking system because of the contagion potential,” she said.

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    That explanation has not been enough to satisfy small and mid-sized banks, however.

    “If policymakers decide to provide unlimited deposit insurance to some institutions, they cannot leave others out—certainly not the community banks that have, as always, operated on a safe and sound basis,” Rebeca Rainey, CEO of the Independent Community Bankers of America, said in a recent statement.

    While Yellen ruled out universal blanket deposit guarantees, she appeared to be open to other potential ways to help smaller banks offer additional insurance to large deposits.

    One idea volunteered by Democratic West Virginia Sen. Joe Manchin was to create a system where depositors who needed to keep cash in excess of the $250,000 FDIC limit could pay slightly higher bank fees, akin to an insurance premium, in order to secure a higher level of FDIC insurance.

    “Shouldn’t I be able to buy or pay a little higher bank fee, to get protection … with a cap maybe at $10 million?” Manchin said to Yellen near the end of her testimony. “We’ve been talking … some senators have been talking back and forth … and I don’t think we should [craft legislation] without you all involved, showing us how to structure that.”

    “I think this is very worthwhile, for you and your colleagues to be discussing what’s appropriate here,” Yellen replied. “And we would be more than willing to work with you to think this through.”

    She added: “For the moment, we’re trying to stabilize the situation using the tools at our disposal.”

    These efforts are starting to bear fruit, Yellen told a bankers group Tuesday. She said that “aggregate deposit outflows from regional banks have stabilized.”

    But while the trends are moving in the right direction, the amount of money banks borrowed in the week ending March 15 from the Fed’s discount window set a new record at $153 billion, according to the Fed’s weekly report, a sum that suggests the banking sector is not quite stable yet.

    Clarification: This story has been updated to make clear that Yellen made her comment about “blanket insurance” while answering a senator’s question about whether Treasury would circumvent Congress in order to insure all deposits.

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  • Republicans request Fed and FDIC oversight records for failed Silicon Valley Bank and Signature Bank

    Republicans request Fed and FDIC oversight records for failed Silicon Valley Bank and Signature Bank

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    The Signature bank logo is seen in this photo illustration in Warsaw, Poland on 13 March, 2023.

    Jaap Arriens | Nurphoto | Getty Images

    WASHINGTON — The top Republicans on committees that oversee the U.S. financial system sent letters Monday to Federal Reserve Chair Jay Powell and FDIC Chair Martin Gruenberg formally requesting documents and personnel records related to the oversight of two banks that failed over the last 11 days.

    The lawmakers wanted “full information about what appears to be glaring bank mismanagement, fundamental lack of prudence in bank risk and balance sheet management, and regulators’ lack of basic supervision and enforcement of safety and soundness rules, regulations, and principles,” wrote House Financial Services Committee Chairman Patrick McHenry, N.C., and Senate Banking Committee ranking member Sen. Tim Scott, S.C.

    A spokesperson for the Federal Reserve told CNBC on Monday it received its letter and planned to respond. A spokesperson for the FDIC declined to comment, citing agency policy regarding congressional correspondence.

    The letters come as Congress seeks to learn more about how the second largest bank collapse in U.S. history unfolded earlier this month, when Silicon Valley Bank went in just a matter of days from fully operational to government owned on March 10. New York-based Signature Bank failed two days later before U.S. bank regulators put in a backstop to cover uninsured deposits and other safeguards for the broader system.

    The Scott and McHenry letter also requested a timeline of regulators’ decision-making in the hours and days following the initial closure of SVB and Signature.

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    Specifically, GOP lawmakers are questioning the Treasury Department’s designation that the collapse of SVB and Signature — and the potential losses of hundreds of billions of uninsured deposits — posed a systemic risk to the banking sector.

    That designation gave it authority to unwind both institutions in a way that it said “fully protects all depositors,” by tapping the FDIC’s deposit insurance fund to cover uninsured deposits.

    The Fed also created a Bank Term Funding Program aimed at safeguarding institutions affected by the market instability of the bank failures.

    In the days following the collapse, reports have emerged indicating that Silicon Valley Bank ignored repeated warnings from regulators that the bank would be at risk of collapse in the event that interest rates rose quickly.

    Both Republicans and Democrats in Congress have raised questions about whether regulators ignored signs of trouble at the banks or failed to take appropriate action in response to weaknesses that they did see.

    But while Democrats have been quick to call for a return to more stringent regulations and capital requirements for mid-sized banks, Republicans have so far indicated they would oppose additional regulations.

    Read more of CNBC’s coverage of the bank crisis

    Rather than suggest the Fed and FDIC did not regulate the banks tightly enough, Republicans instead suggested that culpability may lie with individual regulators, not the overall regulatory landscape.

    The letters sent Monday also advised both the Fed and the FDIC to preserve all records of their oversight of the two failed banks, a request that telegraphs the intent to open a congressional investigation.

    With Republicans in the majority in the House, McHenry has broad discretion as to how he will direct the committee he chairs to proceed in any investigation.

    On the Senate side, however, the Senate Banking Committee is chaired by Ohio Democratic Sen. Sherrod Brown, with Scott as the No. 2.

    Last week, Brown sent a letter of his own to Gruenberg, Treasury Secretary Janet Yellen, and Michael Barr, the vice chair for supervision at the Federal Reserve board. In it, Brown suggested that responsibility for the bank failures lay in part with top executives at the failed banks.

    Brown also asked the regulators to “identify and close regulatory gaps, shortfalls, or failures by state or federal regulators that contributed to the banks’ failures.” He did not ask for the names of individual Fed or FDIC officials involved in supervising the banks.

    — CNBC’s Chelsey Cox contributed reporting.

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  • Treasury Secretary Yellen says not all uninsured deposits will be protected in future bank failures

    Treasury Secretary Yellen says not all uninsured deposits will be protected in future bank failures

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    WASHINGTON — Treasury Secretary Janet Yellen sought to reassure markets and lawmakers on Thursday that the federal government is committed to protecting U.S. bank deposits following the failure of Silicon Valley Bank and Signature Bank over the weekend.

    “Our banking system remains sound and Americans can feel confident that their deposits will be there when they need them,” Yellen said in testimony before the Senate Finance Committee.

    Under questioning, however, Yellen admitted that not all depositors will be protected over the FDIC insurance limits of $250,000 per account as they did for customers of the two failed banks.

    A Silicon Valley Bank office is seen in Tempe, Arizona, on March 14, 2023.

    Rebecca Noble | AFP | Getty Images

    Yellen has been at the center of emergency federal efforts this past week to recover deposits for account holders at two failed banks, the California-based SVB and the crypto-heavy Signature Bank, based in New York.

    A majority of SVB’s customers were small tech companies, venture capital firms and entrepreneurs who used the bank for day-to-day cash management to run their businesses. Those customers had $175 billion on deposit with tens of millions in individual accounts. That left SVB with one of the highest shares of uninsured deposits in the country when it collapsed, with 94% of its deposits landing above the FDIC’s $250,000 insurance limit, according to S&P Global Market Intelligence data from 2022.

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    U.S. bank regulators announced a plan Sunday to fully insure all deposits at the two failed banks, including those above the $250,000 limit covered by traditional FDIC insurance. The additional protection will be paid for out of a special fund made up of fees levied on all FDIC-insured institutions.

    In addition, the Federal Reserve loosened its borrowing guidelines for banks seeking short-term funding through its so-called discount window. It also set up a separate unlimited facility to offer one-year loans under looser terms than usual to shore up troubled banks facing a surge in cash withdrawals. Both programs are being paid for through industry fees, not by taxpayers, the Biden administration has emphasized.

    “This will help financial institutions meet the needs of all of their depositors,” Yellen said. “This week’s actions demonstrate our resolute commitment to ensure that depositors’ savings remain safe.”

    Democrats and Republicans in Congress have largely supported the emergency actions taken in the past week. But with markets recovering somewhat, lawmakers Thursday questioned Yellen about whether backstops for big banks will become a new norm, and what that could mean for community lenders.

    “I’m concerned about the precedent of guaranteeing all deposits and the market expectation moving forward,” Sen. Mike Crapo, R-Idaho, the committee’s ranking member, said in his opening remarks.

    People line up outside of a Silicon Valley Bank office on March 13, 2023 in Santa Clara, California.

    Justin Sullivan | Getty Images

    Republican Sen. James Lankford of Oklahoma pressed Yellen about how widely the uninsured deposit backstops will apply across the banking industry.

    “Will the deposits in every community bank in Oklahoma, regardless of their size, be fully insured now?” asked Lankford. “Will they get the same treatment that SVB just got, or Signature Bank just got?”

    Yellen acknowledged they would not.

    Uninsured deposits, she said, would only be covered in the event that a “failure to protect uninsured depositors would create systemic risk and significant economic and financial consequences.”

    Lankford said the impact of this standard would be that small banks would be less appealing to depositors with more than $250,000, the current FDIC insurance threshold.

    U.S. Treasury Secretary Janet Yellen takes questions on the Biden administration’s plans following the collapse of three U.S. lenders including Silicon Valley Bank and Signature Bank, as she testifies before a Senate Finance Committee hearing on U.S. President Joe Biden’s proposed budget request for fiscal year 2024, on Capitol Hill in Washington, March 16, 2023.

    Mary F. Calvert | Reuters

    “I’m concerned you’re … encouraging anyone who has a large deposit at a community bank to say, ‘We’re not going to make you whole, but if you go to one of our preferred banks, we will make you whole.’”

    “That’s certainly not something that we’re encouraging,” Yellen replied.

    Members of Congress are currently weighing a number of legislative proposals intended to prevent the next Silicon Valley Bank-type failure.

    One of these is an increase in the $250,000 FDIC insurance limit, which several senior Democratic lawmakers have called for in the wake of SVB’s collapse.

    Following the 2008 financial crisis, Congress raised the FDIC limit from $100,000 to $250,000, and approved a plan under which big banks contribute more to the insurance fund than smaller lenders.

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  • Here’s why one judge who oversees Jan. 6 cases is afraid for American democracy

    Here’s why one judge who oversees Jan. 6 cases is afraid for American democracy

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    A federal judge in Washington, D.C., issued a warning about the risk of future political violence and the dangers of ongoing misinformation and denialism regarding the Jan. 6 Capitol attack.  

    At a sentencing hearing for 21-year-old Aiden Bilyard, a North Carolina man who admitted deploying bear spray against police during the Jan. 6 insurrection — and smashing open a Capitol window with a metal bat — Judge Reggie Walton said that the U.S. is in a “scary moment” in which democracy remains endangered.

    “It’s scary going forward as a country where we end up,” said Walton, who has handled a series of Jan. 6 cases. “Because what happened on Jan. 6 is not something that’s just in the past. It, unfortunately, is something that still haunts us because the individuals who instigated what occurred are still engaging in the same rhetoric that resulted in the frenzy that took place on that day. This is a very serious situation because it goes to the root of what we are supposed to be as a democracy.”

    Bilyard’s defense attorneys unsuccessfully sought a sentence of home confinement during Friday’s hearing, arguing he was remorseful for his actions. Defense lawyers also said Bilyard has been exposed to unwelcomed propaganda and influence by other Jan. 6 defendants — including Oath Keepers founder Stewart Rhodes — while in pretrial detention in Virginia. But Walton said the offenses committed by Bilyard, who sprayed officers with a gel form of bear spray that was considered particularly dangerous, were too serious for the leniency of home detention. Walton sentenced Bilyard to 40 months in prison, after also warning of the danger of the spread of misinformation about the Capitol riot.

    Walton, a 2001 appointee to the U.S. District Court for the District of Columbia, said he’s unsure how people “live with themselves” when they call Jan. 6 defendants “political prisoners,” or sow misinformation about what happened inside the Capitol that day.

    Though Walton didn’t name anyone specific, Jan. 6 defendants and their sympathizers have held nightly protests outside the Washington, D.C., jail, in which defendants are frequently referred to as political prisoners. At a protest on Thursday, a Jan. 6 defendant called the Capitol attack an entrapment operation by the FBI and Antifa.   

    Multiple members of Congress, including Rep. Marjorie Taylor Greene, a Georgia Republican, have referred to Jan. 6 defendants at “political prisoners.” Fox News host Tucker Carlson has also been accused of making baseless and “cherry picked” claims about the attack.

    “A democracy can’t survive if you have a significant number of people who are prepared to subvert the electoral process because the result is not the result that they wanted,” Walton said during Bilyard’s hearing. “I mean that. That’s a sad state of affairs that we’re in at this point where someone loses — and loses by 7 million votes — but nonetheless, espouses that they did win. And there are enough people who believe that was the case, despite any evidence that would suggest that the allegations have any merit. There have been 60-something court cases that have rejected the proposition that the election was somehow stolen.” 

    Walton criticized people who are following “the calls of a demagogue.”

    There was an outburst in the courtroom as Walton announced his sentence of Bilyard. His mother said “this isn’t right,” in protest of his decision. 

    “He made his bed,” Walton responded about Bilyard. “Now he has to lie in it.”

    “Bilyard pointed the nozzle of the canister at officers who were attempting to prevent the mob from proceeding further towards the Capitol Building,” according to a news release from the Justice Department Friday following the sentencing. “He then discharged the chemical irritant towards the group of officers. Immediately after he sprayed the irritant, Bilyard and other rioters overwhelmed the police line, causing the officers to retreat through a stairwell to the Lower West Terrace.”

    At the hearing, prosecutors said BIlyard’s actions helped rioters gain entry into the Senate conference room. They said some of the people in the mob stole furniture from the room and shared it with rioters who were attacking police, including a conference room door that was used as a shield by attackers.

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  • Fed loans, account guarantees helped stabilize ‘deposit flows’ at regional banks, Treasury official says

    Fed loans, account guarantees helped stabilize ‘deposit flows’ at regional banks, Treasury official says

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    Wally Adeyemo at CNBC’s Delivering Alpha, Sept. 28, 2022.

    Scott Mlyn | CNBC

    WASHINGTON — The record-setting number of emergency loans that were made to banks this week by the Federal Reserve was key to stabilizing withdrawals from small and mid-sized U.S. banks, Treasury Deputy Secretary Wally Adeyemo told CNBC Friday.

    The impact of the swift actions by federal regulators last weekend to stabilize the U.S. banking system helped contain the fallout but were still rippling through the economy almost a week later.

    The markets still haven’t fully priced in the federal aid or the $30 billion 11 banks deposited into First Republic Bank to help boost confidence into the system, he said.

    “It will take time for markets to catch up with the actions that have been taken by us and by these banks,” Adeyemo said on CNBC’s “Squawk on the Street.” “And what we’ve done now is given these institutions time to think through how they organize their businesses going forward.”

    Following the collapse of California-based Silicon Valley Bank and New York-based Signature bank last Friday and Sunday, respectively, regulators announced a series of emergency measures to stabilize the nation’s banking system.

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    They included guaranteeing the deposits of customers at the two failed banks; creating a new fund, the Bank Term Funding Program, to make short-term loans to banks on generous terms; and easing conditions at the Fed’s traditional overnight bank lending arm, the so called “discount window.”

    The result of the actions was a dramatic turnaround in the fortunes of numerous banks, said Adeyemo. That included banks that had anticipated potential mass withdrawals, and pledged collateral ahead of time expecting to need emergency loans.

    “While a number of banks coming into the weekend prepositioned the need to get more liquidity, what we found over the course of the week is that they have had to use less and less of it,” said Adeyemo. “And now that we’ve seen a stabilization in terms of deposits to those institutions.”

    But while the trends were moving in the right direction, the amount of money banks borrowed in the past week through Wednesday from the Fed’s discount window set a new record at $153 billion, according to the Fed’s weekly report.

    The previous record for discount window loans was $111 billion, set at the height of the financial crisis in 2008.

    The identities of the banks that borrowed will not be made public for another two years. But the sum suggests the banking sector is not quite stable yet.

    The ongoing questions about bank stability dovetail with another question arising out of the Fed actions. Whether uninsured deposits at banks that fail in the future will be covered the same way they were at SVB and Signature.

    “Are all uninsured depositors in the U.S. banking system protected right now?” CNBC’s Sara Eisen asked Adeyemo.

    The answer was that, for now, this is a Biden administration goal, but not a reality.

    “Ultimately, the president has made clear our goal is to protect depositors to make sure that they have the money they need to run their businesses, and make sure their families are taken care of,” said Adeyemo.

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  • Police: Stalker kills woman, husband in Seattle-area home

    Police: Stalker kills woman, husband in Seattle-area home

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    REDMOND, Wash. (AP) — A longhaul truck driver from Texas who became obsessed with a software engineer in Washington state after meeting her through a social media chatroom app killed her, her husband and himself after stalking them for months, police said.

    Zohreh Sadeghi, 33, and her husband, Mohammad Milad Naseri, 35, were shot to death in their suburban Seattle home by Ramin Khodakaramrezaei, 38, according to Redmond Police Chief Darrell Lowe. He said officers spent a week trying to serve a protection order on Khodakaramrezaei but had not been able to find him before the killings.

    “This is the absolute worst outcome for a stalking case,” Lowe said at a media briefing Friday afternoon. “This is every victim, every detective, every police chief’s worst nightmare.”

    In a written statement, the police department said Friday that the suspect began communicating with Sadeghi after listening to her podcasts. Lowe clarified that the two became acquainted because he heard her in an audio chatroom on the app Clubhouse, where he said she facilitated a discussion for Farsi speakers seeking work in the tech industry.

    Sadeghi’s mother called police around 1:45 a.m. Friday after escaping the home and running to a neighbor’s house.

    Arriving officers saw Naseri collapse in the doorway of the home and pulled him outside, discovering he had been shot, Lowe said. They performed CPR, but he died at the scene. Inside the home, officers found Sadeghi and the suspect dead.

    Khodakaramrezaei befriended Sadeghi in the online chat room in late 2021. Lowe said the two met up in person last summer before the contacts escalated into harassing phone calls and threats in the fall. At one point he showed up at their home unwanted with flowers, Lowe said.

    As the stalker’s behavior intensified, Redmond Police filed a complaint against him for stalking and telephone harassment on March 2, and Sadeghi and Naseri obtained a protection order the next day.

    Sadeghi wrote in her application for the protection order that Khodakaramrezaei threatened to show up at her home and set it on fire and left voicemails declaring that he wouldn’t stop unless “he killed himself or died,” The Seattle Times reported.

    Sadeghi tried to cut off contact with Khodakaramrezaei but harassment continued, so she contacted police in December and again in January after his actions intensified.

    Lowe said that at one point the suspect contacted Sadeghi more than 100 times in a single day. He stressed that a restraining order is just a piece of paper — it allows police to take action if someone violates it, but it cannot protect a person when “someone is intent on causing them harm.”

    Sadeghi was a software engineer who had worked at Promontory MortgagePath, which provided mortgage services, before it shuttered in November. She had also been studying in the University of Washington’s graduate programs, according to her LinkedIn profile.

    Sadeghi’s Twitter feed featured content related to progressive politics and human rights, especially women’s rights in Iran. She and Nasiri also identified themselves as science fiction fans.

    Nasiri had been working at Amazon since January 2022, and he said in his blog that when he was growing up in Iran he was ranked as the second-best singer in Tehran in 2007 before he went on to study at the Sharif University of Technology. The couple married in 2011 after moving to the U.S.

    A number of the posts on Nasiri’s blog detail his efforts to land a job at Google, which he ultimately succeeded at in 2017. He worked there for five years before going to Amazon.

    While most of Nasiri’s posts were about work or technology, he wrote last October to condemn the death of a 16-year-old girl amid the protests in Iran about the treatment of women after the death of a 22-year-old woman who had been detained by the country’s morality police.

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  • Rent control policies are gaining support nationwide. Here’s why economists still think it’s a bad idea.

    Rent control policies are gaining support nationwide. Here’s why economists still think it’s a bad idea.

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    In December 2022, $1,981 was the typical monthly rent in the United States — a 7.4% increase from the year prior. But while rent has begun to stabilize nationwide, rent affordability remains difficult for many Americans. 

    “There’s literally nowhere in the country where a tenant is not burdened by their rent,” according to Leah Simon-Weisberg, an adjunct professor of law at UC San Francisco.

    In response, support for rent control policies has gained traction.

    But this isn’t the first time such policies have had widespread support. After the massive economic disruption caused by World War II, the federal government imposed rent control on roughly 80% of rental housing between 1941 and 1964.

    Over time, it was abandoned because prominent economists unanimously argued against the policy. That sentiment mostly continues today.

    “There are various surveys of economists. One done by IMG showed that only 2% thought that rent controls in places like New York and San Francisco were having a positive impact on affordable housing,” said Jay Parsons, chief economist at RealPage.

    Economists argue that rent control would deter developers from building more homes, which would only worsen the housing supply crisis in the United States.

    America already suffers from a deficit of 3.8 million homes, especially at low-income price points, according to Habitat for Humanity.

    “We have not invested as a nation in building the supply of housing in a variety of communities, in a variety of different price points. We’ve instead relied on the private sector to do so,” said Sharon Wilson Géno, president of the National Multifamily Housing Council. “But unless that money comes into the market and investors see that as a better investment than some other kind of equity or some other kind of investment, they’re not going to come.”

    Watch the video to find out why so many economists are against the idea of widespread rent control.

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  • ‘That’s how capitalism works,’ Biden says of SVB, Signature Bank investors who lost money in failed banks

    ‘That’s how capitalism works,’ Biden says of SVB, Signature Bank investors who lost money in failed banks

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    U.S. President Joe Biden delivers remarks on the banking crisis after the collapse of Silicon Valley Bank (SVB) and Signature Bank, in the Roosevelt Room at the White House in Washington, D.C., U.S. March 13, 2023. 

    Evelyn Hockstein | Reuters

    WASHINGTON — President Joe Biden sought to assure customers of Silicon Valley Bank and Signature Bank on Monday that their money was safe — insured by the Deposit Insurance Fund — but said investors in the failed banks’ securities aren’t going to get the same guarantee.

    “Investors in the banks will not be protected,” Biden said Monday in a White House speech. “They knowingly took a risk and when the risk didn’t pay off, the investors lose their money. That’s how capitalism works.”

    The nation’s top bank regulators on Sunday announced the Federal Deposit Insurance Corporation and Federal Reserve would fully cover deposits at both failed banks and rely on Wall Street and large financial institutions — not taxpayers — to foot the bill. Signature Bank in New York, which was shuttered Sunday over similar systemic contagion fears as SVB, had been a popular funding source for cryptocurrency companies.

    “The FDIC on Friday took control of SVB’s assets and over the weekend Signature’s,” Biden said. “All customers who had deposits in these banks can rest assured they will be protected and they’ll have access to the money as of today.”

    The Treasury Department designated both SVB and Signature as systemic risks, giving it authority to unwind both institutions. The FDIC’s Deposit Insurance Fund, not taxpayer money, will be used to cover depositors, many of whom had significantly more than the $250,000 deposited at the banks that is normally covered by the FDIC.

    “”No losses will be borne by the taxpayers,” Biden stressed Monday. “I’m going to repeat that — no losses will be borne by the tax payers. Instead the money will come from the fees that banks pay into the Deposit Insurance Fund.”

    Any losses to the Deposit Insurance Fund will be covered by a special assessment levied on federally insured banks, according to a joint statement issued by the FDIC, Federal Reserve and Treasury Department.

    Senior management of the banks will be fired following the FDIC takeover.

    “Americans can have confidence that the banking system is safe,” Biden said. “Your deposits will be there when you need them.”

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  • Can The Chaos From Silicon Valley Bank’s Fall Be Contained?

    Can The Chaos From Silicon Valley Bank’s Fall Be Contained?

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    NEW YORK (AP) — Can Washington come to the rescue of the depositors of failed Silicon Valley Bank? Is it even politically possible?

    That was one of the growing questions in Washington Sunday as policymakers tried to figure out whether the U.S. government — and its taxpayers — should bail out a failed bank that largely served Silicon Valley, with all its wealth and power.

    Prominent Silicon Valley personalities and executives have been hitting the giant red “PANIC” button, saying that if Washington does not come to the rescue of Silicon Valley bank’s depositors, more bank runs are likely.

    “The gov’t has about 48 hours to fix a soon-to-be-irreversible mistake,” Bill Ackman, a prominent Wall Street investor, wrote on Twitter. Ackman has said he does not have any deposits with Silicon Valley Bank but is invested in companies that do.

    Some other Silicon Valley personalities have been even more bombastic.

    “On Monday 100,000 Americans will be lined up at their regional bank demanding their money — most will not get it,” Jason Calacanis wrote on Twitter. Calacanis, a tech investor, has been close with Elon Musk, who recently took over the social media network.

    Silicon Valley Bank failed on Friday, as fearful depositors withdrew billions of dollars from the bank in a matter of hours, forcing U.S. banking regulators to urgently close the bank in the middle of the workday to stop the bank run. It’s the second-largest bank failure in history, behind the collapse of Washington Mutual at the height of the 2008 financial crisis.

    Silicon Valley Bank was a unique creature in the banking world. The 16th-largest bank in the country largely served technology startup companies, venture capital firms, and well-paid technology workers, as its name implies. Because of this, the vast majority of the deposits at Silicon Valley Bank were in business accounts with balances significantly above the insured $250,000 limit.

    Its failure has caused more than $150 billion in deposits to be now locked up in receivership, which means startups and other businesses may not be able to get to their money for a long time.

    Staff at the Federal Deposit Insurance Corporation — the agency that insures bank deposits under $250,000 — have worked through the weekend looking for a potential buyer for the assets of the failed bank. There have been multiple bidders for assets, but as of Sunday morning, the bank’s corpse remained in the custody of the U.S. government.

    Despite the panic from Silicon Valley, there are no signs that the bank’s failure could lead to a 2008-like crisis. The nation’s banking system is healthy, holds more capital than it has ever held in its history, and has undergone multiple stress tests that shows the overall system could withstand even a substantial economic recession.

    Further, it appears that Silicon Valley Bank’s failure appears to be a unique situation where the bank’s executives made poor business decisions by buying bonds just as the Federal Reserve was about to raise interest rates, and the bank was singularly exposed to one particular industry that has seen a severe contraction in the past year.

    Investors have been looking for banks in similar situations. The stock of First Republic Bank, a bank that serves the wealthy and technology companies, went down nearly a third in two days. PacWest Bank, a California-based bank that caters to small to medium-sized businesses, plunged 38% on Friday.

    While highly unusual, it was clear that a bank failure this size was causing worries. Treasury Secretary Janet Yellen as well as the White House, has been “watching closely” the developments; the governor of California has spoken to President Biden; and bills have now been proposed in Congress to up the FDIC insurance limit to temporarily protect depositors.

    “I’ve been working all weekend with our banking regulators to design appropriate policies to address this situation,” Yellen said on “Face the Nation” on Sunday.

    But Yellen made it clear in her interview that if Silicon Valley is expecting Washington to come to its rescue, it is mistaken. Asked whether a bailout was on the table, Yellen said, “We’re not going to do that again.”

    “But we are concerned about depositors, and we’re focused on trying to meet their needs,” she added.

    Sen. Mark Warner, D-Virginia, said on ABC’s “This Week” that it would be a “moral hazard” to potentially bail out Silicon Valley’s uninsured depositors. Moral hazard was a term used often during the 2008 financial crisis for why Washington shouldn’t have bailed out Lehman Brothers.

    The growing panic narrative among tech industry insiders is many businesses who stored their operating cash at Silicon Valley Bank will be unable to make payroll or pay office expenses in the coming days or weeks of those uninsured deposits are not released. However, the FDIC has said it plans to pay an unspecified “advanced dividend” — i.e. a portion of the uninsured deposits — to depositors this week and said more advances will be paid as assets are sold.

    The ideal situation is the FDIC finds a singular buyer of Silicon Valley Bank’s assets, or maybe two or three buyers. It is just as likely that the bank will be sold off piecemeal over the coming weeks. Insured depositors will have access to their funds on Monday, and any uninsured deposits will be available as the FDIC sells off assets to make depositors whole.

    Todd Phillips, a consultant and former attorney at the FDIC, said he expects that uninsured depositors will likely get back 85% to 90% of their deposits if the sale of the bank’s assets is done in an orderly manner. He said it was never the intention of Congress to protect business accounts with deposit insurance — that the theory was businesses should be doing their due diligence on banks when storing their cash.

    Protecting bank accounts to include businesses would require an act of Congress, Phillips said. It’s unclear whether the banking industry would support higher insurance limits as well, since FDIC insurance is paid for by the banks through assessments and higher limits would require higher assessments.

    Philips added the best thing Washington can do is communicate that the overall banking system is safe and that uninsured depositors will get most of their money back.

    “Folks in Washington need to be forcefully countering the narrative on Twitter coming from Silicon Valley. If people realize they are going to get 80% to 90% of your deposits back, but it will take awhile, it will do a lot to stop a panic,” he said.

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  • New bipartisan Senate TikTok bill will be unveiled Tuesday

    New bipartisan Senate TikTok bill will be unveiled Tuesday

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    WASHINGTON — A highly anticipated bipartisan Senate bill to give the president the authority to respond to threats posed by TikTok and companies like it will be unveiled Tuesday afternoon by Senate Intelligence Committee Chairman Mark Warner, a committee spokeswoman told CNBC.

    The Virginia Democrat will hold a 3 p.m. ET press conference with South Dakota Republican Sen. John Thune, the lead co-sponsor of the legislation.

    The precise text of the legislation has yet to be released, but Warner suggested this past weekend that the bill will not be limited simply to reining in TikTok, which is owned by Chinese tech giant ByteDance.

    “In terms of foreign technology coming into America, we’ve got to have a systemic approach to make sure we can ban or prohibit it when necessary,” Warner said on Fox News Sunday.

    “TikTok is one of the potentials,” that could be targeted by the bill, Warner said. “They are taking data from Americans, not keeping it safe.”

    “But what worries me more with TikTok is that this could be a propaganda tool. The kind of videos you see would promote ideological issues,” he added.

    Warner’s bill comes nearly a week after the House Foreign Affairs Committee advanced a Republican-sponsored bill that aims to do much of the same thing.

    The House legislation passed the GOP-controlled committee 24-16 along party lines, with unanimous GOP support and no Democratic votes.

    Dubbed the Deterring America’s Technological Adversaries, or DATA, Act, the House bill mandates that the president impose broad sanctions on companies based in or controlled by China that engage in the transfer of the “sensitive personal data” of Americans to entities or individuals based in, or controlled by, China.

    And while the DATA Act has advanced beyond its committee of jurisdiction, it was unclear Monday when, or if, it would receive a vote in the full House.

    Bills that authorize U.S. President Joe Biden to rein in Chinese companies that collect Americans’ personal data have gained steam in recent months, as talks between TikTok and the Treasury Department’s Committee on Foreign Investment in the U.S. have stalled.

    CFIUS, which evaluates risks associated with foreign investment deals, is scrutinizing ByteDance’s 2017 purchase of Musical.ly.

    TikTok hopes the CFIUS probe will ultimately result in a deal between the company and the government to address data privacy issues while protecting the company’s ability to operate in the United States.

    “The swiftest and most thorough way to address national security concerns is for CFIUS to adopt the proposed agreement that we worked with them on for nearly two years,” TikTok spokeswoman Brooke Oberwetter told CNBC last week.

    But as the CFIUS probe drags on without resolution, the White House has reportedly begun to focus more energy on the potential of Congress to clear a legal path for Biden to take action against companies that pose a national security threat.

    Within the administration, Commerce Secretary Gina Raimondo has emerged as a point person in this effort.

    “There’s a number of members in the U.S. Senate who are thinking hard about what’s the right way to protect American national security,” Raimondo said in a recent interview with Bloomberg News.

    “We will work with Congress to figure out the right way to legislate to protect America from these concerns,” she added.

    Last Monday, the Biden administration released new implementation rules for a TikTok ban that applies only to federal government-owned devices, which was passed by Congress in December.

    TikTok’s CEO, Shou Zi Chew, is scheduled to appear as a witness at a House Energy and Commerce Committee hearing on March 23.

    CNBC’s Mary Catherine Wellons contributed reporting to this story.

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  • Several hospitalized after Lufthansa flight diverted to Dulles airport due to turbulence

    Several hospitalized after Lufthansa flight diverted to Dulles airport due to turbulence

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    Multiple people were hospitalized after a Lufthansa flight had to make an emergency landing Wednesday at Dulles International Airport in Virginia due to turbulence, officials said.

    Lufthansa Flight No. 469 from Austin, Texas, to Frankfurt, Germany, was diverted and landed at Dulles at 9:10 p.m. EST after the plane experienced “severe turbulence” while over Tennessee, the Federal Aviation Administration said in a statement to CBS News.

    The Airbus A330 was at an altitude of about 37,000 feet when the turbulence occurred, the FAA said.

    Seven people were transported to local hospitals, Dulles airport told CBS News in a statement.

    No further details were immediately confirmed. The FAA is investigating.

    On Wednesday afternoon, a Spirit Airlines flight bound for Orlando, Florida, was forced to make an emergency landing in Jacksonville after the crew reported a battery fire in an overhead bin, the FAA said. One person was taken to a local hospital to be treated for minor injuries. 


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  • Biden could face issuing his first veto of presidency as Democrats weigh whether to rescind DC crime law | CNN Politics

    Biden could face issuing his first veto of presidency as Democrats weigh whether to rescind DC crime law | CNN Politics

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    CNN
     — 

    Multiple Democrats are undecided about how they will vote on a measure that would overturn a rewriting of Washington, DC’s criminal code, which critics have argued is soft on violent criminals.

    The measure is expected to come up for a vote by next week and only needs a simple majority to pass. Sen. Joe Manchin, a Democrat from West Virginia, has said he will vote with Republicans on it.

    Congress, under DC’s Home Rule charter, is able to veto every law approved by either DC voters or government. If the repeal passes,it is likely to be the first bill that President Joe Biden will consider vetoing. Biden has said he opposes rescinding the DC crime measure but has not explicitly said if he will veto it.

    The question is whether Manchin will be alone in his vote. If he is, it would be the first time that Pennsylvania Democrat Sen. John Fetterman’s absence had an effect on a vote in the Senate because then the measure would only need 50 votes to pass. Fetterman has stepped away from the Senate for the time being to seek treatment for depression.

    Many Democrats oppose overriding the DC law. They argue local officials should make their own laws free of congressional interference and decry Republicans as hypocrites since they typically promote state and local rights. The law was passed after the city council overrode the veto of Mayor Muriel Bowser who, despite her opposition to the new law, opposes Congress overturning it.

    The DC Council had defended the measure in a letter last week, writing that “the District of Columbia has the right to self-govern as granted to us under the Home Rule Act.”

    “Any changes or amendments to the District’s local laws should be done by the elected representatives of the District of Columbia. As those representatives, we alone are accountable to the voters of the District of Columbia,” the letter continued, adding: “Just as Congress does not interfere in the local matters of other states, we compel you not to interfere in our matters.”

    Tennessee Republican Sen. Bill Hagerty, the chief sponsor of the legislation to repeal the local law called it a “common sense” approach in a city where many violent crimes are up. Politically, he compared it to the “defund the police” issue and said for centrist Democrats, “I don’t think that’s going to be very popular in their states and this falls right in that lane.”

    Sen. Jon Tester, one of those centrist Democrats who is up for reelection this cycle, told reporters he still has not decided if he would back the measure.

    “I hate to be a cop out for you guys all the time, but I do have to look at it. I just don’t know what it does yet,” Tester said Tuesday. “There is the issue of, you know, DC does what DC wants to do and let DC do what they do, but we do have some oversight.”

    Democratic Sens. Sherrod Brown of Ohio, Mark Kelly of Arizona and Gary Peters of Michigan also told CNN they have not made up their minds and are weighing the legislation.

    The measure passed out of the House with 31 Democratic votes.

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  • Bills would let transgender people seal name-change requests

    Bills would let transgender people seal name-change requests

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    SEATTLE (AP) — You can change your name, but in many states you can’t completely shed your old one — something that’s of particular concern to transgender people and that legislators in at least two states are trying to change.

    A bill in Washington would allow gender expression and identity as reasons to seal, or keep out of the public record, a future petition for a name change. And a California bill would require the sealing of petitions by minors to change their name and gender on identity documents.

    In states where such petitions aren’t sealed, transgender people can be susceptible to cyberbullying or even physical violence because their previous names, and by extension their lives, are an open book in the public record, advocates warn. Students, for instance, can and do easily find and share such records when they are looking for background on a new kid in town, one advocate noted.

    Maia Xiao, a University of Washington graduate student, has changed her name in that state and said the publication of a transgender friend’s name-change records in an online forum led to relentless harassment, including hate mail. She wrote last summer to Democratic state Sen. Jamie Pedersen to urge reform.

    “It feels very close to me,” said Xiao, who would not disclose the name of her friend, citing privacy. “I don’t live a very online life, but it’s really scary to know that something so personal can be so easily accessed by transphobic trolls who want to cause harm.”

    Pedersen is sponsoring the Washington legislation, which passed the Senate this month with bipartisan support and is expected to also pass the House. The bill is modeled on laws in New York and Oregon and would also extend records privacy to refugees, emancipated minors and people who have been granted asylum.

    Currently, only people subjected to domestic violence can have their name changes easily sealed in Washington. Some other states, including California, also make exceptions for victims of crimes like human trafficking, stalking and sexual assault.

    “This seemed to me like a simple action that could go a long way in making transgender people a lot safer in our state,” Pedersen said.

    Some officials and law enforcement officers worry that criminals who request a name change could escape accountability under the proposals. The Washington bill would allow courts to unseal a name change file if law enforcement had reasonable suspicions, and sex offenders and incarcerated people would still be ineligible for a sealed name change.

    “This is not the intent of the bill, and such cases would be rare, but there needs to be procedures in place to prevent it,” Jennifer Wallace, executive director of the Washington Association of County Officials, said in an email.

    The approaches in Washington and California contrast starkly with recent and mysterious moves in Florida and Texas to compile lists of trans residents using public records, and as lawmakers in at least 39 states consider a torrent of anti-trans bills.

    Republicans’ “disturbing” requests for data on transgender residents in some of those states add urgency to his proposal, Pedersen said.

    The office of Texas Attorney General Ken Paxton last year requested data on how many people had changed the gender information on their driver’s licenses. The Texas Department of Public Safety found over 16,000 gender changes during the prior two years but didn’t turn over data because it could not determine the reason for each change.

    In Florida, Gov. Ron DeSantis asked state universities last month for data on students who had sought or received treatments for gender dysphoria. Neither Paxton nor DeSantis explained why they requested the data.

    Harassment from such disclosures can especially target young trans people who struggle with mental health issues or gender dysphoria, advocates say. The same internet forum that Xiao said had targeted her friend came under fire last year for instances of doxxing trans people, or maliciously publishing their personal information online, and has been linked to suicides.

    Peers may search students’ names as they move to a new middle or high school and can easily find and share court records related to their petitions for a name and gender change, said Kathie Moehlig, executive director of the San Diego nonprofit TransFamily Support Services. She approached California Assembly Speaker Pro Tem Chris Ward with the idea for the bill after students she advises brought the trend to her attention.

    Many families with trans children aren’t even aware such records are public, Moehlig said.

    “Somebody’s gender identity is an innate piece about them — it’s intimate,” she said. “They deserve the right to the privacy around their identity.”

    The California bill, which was introduced last month and has not yet been scheduled for a hearing, would require the state to seal any petition filed by a person under 18 for a change to gender and sex or to gender, sex and name in identity documents. Also sealed would be documents from a petitioner’s court proceedings.

    San Diego lawyer Clarice Barrelet, whose 11-year-old son is transgender, said simply plugging his name into a search engine shows his legal gender change.

    He had insisted by age 6 that he should not be called a girl and would grow up to be a man, Barrelet said. He came out as transgender at age 8 and changed the name and pronouns he used in school, even before his mom petitioned the court for a legal change to his identity documents.

    Barrelet said she thinks those records should be sealed for children and adults to better protect their privacy.

    Ward, a San Diego County Democrat and vice chair of the California Legislative LGBTQ Caucus, said he hopes his bill will reduce the risk of bullying for gender-nonconforming children. He noted that being outed can be especially traumatic for young people who are still processing their identities.

    “I want them to certainly be comfortable,” Ward said, “and free to be themselves.”

    ___

    Associated Press writer Paul Weber in Austin, Texas, contributed to this report. Schoenbaum, in Raleigh, North Carolina, and Austin, in Sacramento, California, are corps members for the Associated Press/Report for America Statehouse News Initiative. Report for America is a nonprofit national service program that places journalists in local newsrooms to report on undercovered issues.

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  • Sen. John Fetterman checks into hospital for clinical depression treatment

    Sen. John Fetterman checks into hospital for clinical depression treatment

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    Sen. John Fetterman checks into hospital for clinical depression treatment – CBS News


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    Pennsylvania Sen. John Fetterman admitted himself into Walter Reed National Military Medical Center in Maryland to receive treatment for clinical depression. Scott MacFarlane reports.

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  • Rise of Asian leads in network TV shows, now ABC’s ‘Company’

    Rise of Asian leads in network TV shows, now ABC’s ‘Company’

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    In fourth grade, Catherine Haena Kim could not muster the courage to audition for the female lead of her school’s production of William Shakespeare’s “The Tempest.” But her teachers saw something in the way she held herself in the classroom.

    “My teachers actually gave me the part because whenever I did speak up, I was very animated and expressive,” Kim said. “When I did this play, I honestly think it’s one of the first times I actually felt seen and special in a way that I think I really hadn’t before that.”

    Kim’s teachers subverted a problem that has frustrated many Asian Americans’ career trajectories, whether on screen, in political office or in an executive suite: receiving praise for being reliable, hard workers, but never quite being perceived as leadership material.

    Across industries, Asian Americans have long been held back by unquestioned biases rooted in racial stereotypes. Employers often paint Asians as passive, lacking in gravitas or not a “cultural fit,” said Justin Zhu, co-founder of the advocacy group Stand with Asian Americans.

    An all grown-up Kim (“Ballers,” “Good Trouble”) is now reveling in the thrill and facing the pressure of being the lead on a much bigger stage: She stars opposite Milo Ventimiglia in the new ABC drama, “The Company You Keep,” which premieres Sunday. A remake of the Korean drama “My Fellow Citizens,” it centers on the hot and heavy romance between Kim’s CIA agent and Ventimiglia’s con artist.

    Given network TV’s woeful record of failing to cast Asian actors as main characters — and increased competition from cable and streaming services — there is an extraordinary number of recent shows that are making change. Other recent broadcast series with Asian or Asian American leads include “Quantum Leap” (Raymond Lee), “Kung Fu” (Olivia Liang), “The Cleaning Lady” (Élodie Yung), “NCIS: Hawai’i” (Vanessa Lachey) and “Ghosts” (Utkarsh Ambudkar).

    Advocates are mixed on whether this rise in visibility is a sign that Asian Americans are actually gaining wider, meaningful representation. Over the last decade, there have been ups and downs: For two years, ABC even had two sitcoms with all-Asian casts — “Fresh Off the Boat” and “Dr. Ken” — but the latter, starring Ken Jeong, was nixed after only two seasons.

    In 2019, after “Crazy Rich Asians” became a box-office hit, things looked promising, said Milton Liu, interim executive director of the Asian American Media Alliance, which puts out a diversity “report card” rating the broadcast networks. That same year, six TV pilots with at least one Asian lead were ordered but only one — sitcom “Sunnyside” starring Kal Penn — went to series, and it was canceled after 11 episodes.

    Liu concedes that the current crop of shows indicate things are “improving slowly.” A member of the Writers Guild of America, he tempered that assessment with a reminder of how difficult it is just to get a TV pilot made.

    Also, most of these broadcast shows don’t showcase an Asian main couple or all-Asian ensemble. The conventional wisdom that many industry executives still hold firm to is that casting a white actor as the lead will make a series relatable to more viewers, so it will be more profitable. Liu said that demographics for network viewers are trained to older audiences, which skew predominantly white.

    “We understand that,” he said. “But we also understand the importance of having shows like ‘Fresh Off the Boat’ so that we aren’t just marginalized.”

    A Nielsen Company study found that two-thirds of Asian Americans feel there is not enough Asian representation on TV. More than half say the depictions that do exist are inaccurate.

    It was “The Company You Keep” executive producer Jon M. Chu, the director of “Crazy Rich Asians,” who suggested that agent Emma Hill be Asian American — and have an on-screen family with a Korean American father and Chinese American mother. The Hill family is also a political dynasty.

    The character of Kim’s on-camera father (James Saito) is loosely inspired by former Washington Gov. Gary Locke, the first Asian American governor on the mainland. The former U.S. ambassador to China has no direct involvement, but called the connection “awesome” in an interview with the AP.

    In past political roles — which include serving as commerce secretary under former President Barack Obama — Locke never lacked confidence in his ability to lead. It was anti-Asian racism that colored how he was perceived by others that was the problem, he says.

    In 2003, the FBI learned he was the target of an assassination plot by a white supremacist and anti-government extremist who “specifically said that there’s no way that an Asian American could be a legitimate governor of the state of Washington,” Locke recalled.

    Zhu, of Stand with Asian Americans, said that underestimating Asian Americans goes back to the 1800s, when Chinese laborers built the U.S. railroads.

    “Asian Americans, since we’ve gotten to this place from working on the railroad, we’ve been paid a fraction of what we deserve and have been seen as sort of workers but not leaders,” Zhu said.

    Locke believes seeing Asians and Asian Americans taking charge on-screen does have an impact in real life.

    “Just seeing more more Asian Americans in all walks of life — even if it’s fictitious — is important because that may be their (viewers’) only exposure to Asian Americans in roles that they’re not accustomed to,” Locke said.

    Kim feels like a “lucky chosen one” because she has a seat at the proverbial table with her new, leading character status. Seeing her name at the top of the call sheet is a brand-new experience. Despite the confidence she now has, sometimes the insecurities that once dodged that timid fourth-grader persist.

    “Most of the time, I’m just like ‘How does everybody do this?’ I feel my imposter syndrome blaring louder than ever,” Kim said. “But I keep going because it’s all mixed in with that feeling a little kid dreams of” — of being seen and recognized as special.

    ___

    Terry Tang is a member of The Associated Press’ Race and Ethnicity team. Follow her on Twitter at @ttangAP.

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  • Mark Esper on the second flying object shot down over Alaska

    Mark Esper on the second flying object shot down over Alaska

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    Mark Esper on the second flying object shot down over Alaska – CBS News


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    The White House said a military fighter jet shot down an object over Alaskan airspace Friday, this after a Chinese spy balloon was shot down off the coast of South Carolina last weekend. CBS News senior White House correspondent Weijia Jiang has the latest from Washington. Then, Mark Esper, former U.S. secretary of defense, spoke with CBS News about what we know so far.

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