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Nicole Shanahan, RFK Jr's running mate and one his his largest donors, reportedly received $1 billion in her divorce from Google's Sergey Brin after rumored Elon Musk affair 2024-05-22 21:39:28+00:00 - By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . You can opt-out at any time. Access your favorite topics in a personalized feed while you're on the go. download the app Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read preview Attorney Nicole Shanahan, Robert F. Kennedy Jr.'s running mate, has a staggering wealth that would make her one of the wealthiest vice presidents in history if their long shot campaign were successful this November. According to The New York Times, Shanahan's largess is largely due to her divorce settlement with Google founder Sergey Brin. Shanahan received more than $1 billion from the divorce, three people with knowledge of her finances told The Times. Brin, one of the wealthiest people in the world, is worth an estimated $139.5 billion, according to Forbes. This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. Forbes previously estimated in March that Shanahan received roughly $390 million in Alphabet shares from Brin based on the then-estimated value of shares that were likely transferred to her. Their divorce records are not public. Forbes tried to piece together what Shanahan may have received from her husband of three years based on Brin's public disclosures about his stake in Alphabet. Related stories The Wall Street Journal reported last year on rumors that Shanahan had an affair with Tesla CEO Elon Musk, a claim both have denied. The Times, citing three sources, reported that the affair happened after both of them took ketamine at a Miami party in late 2021 and that she told Brin about it. Advertisement Brin and Shanahan reportedly separated weeks later, and Brin filed for divorce in early 2022. Shanahan has used her wealth to help Kennedy's campaign, donating $10 million to a pro-Kennedy super PAC. Her $2 million donation helped the group, American Values 2024, secure a Super Bowl ad that compared Kennedy to his father, RFK, and his presidential uncle, JFK. Other Kennedys did not appreciate his allies blatantly using the family's image to boost his campaign. Kennedy, according to The Times, initially eyed Jets Quarterback Aaron Rodgers and former Minnesota Gov. Jesse Ventura before settling on Shanahan as his running mate. Former Congresswoman Tulsi Gabbard has also claimed to have had conversations with Kennedy about being his vice president but has said to shift her focus to trying to join former President Donald Trump's ticket. Rodgers told reporters on Tuesday that he wasn't quite ready to retire from the NFL to enter politics. Advertisement "I love Bobby," Rodgers said. "We had a couple of really nice conversations. But there were really two options: It was retire and be his VP or keep playing." Kennedy's largest focus at the moment is trying to make next month's debate between President Joe Biden and Trump. The unprecedented early debate does offer him a narrow path to get on the stage, but it's unclear if he can meet both the polling and ballot access thresholds in time. A third-party presidential candidate hasn't debated alongside the two major nominees since Texas businessman Ross Perot in 1992.
American Airlines backtracks after saying 9-year-old girl 'should have known' flight attendant was filming her in the bathroom: lawsuit 2024-05-22 21:38:49+00:00 - By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . You can opt-out at any time. Access your favorite topics in a personalized feed while you're on the go. download the app Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read preview American Airlines is facing backlash after saying that a 9-year-old girl should have seen the cellphone filming her in the bathroom in its initial lawsuit defense. Paul Llewellyn, an attorney for the girl's family, told Business Insider that the airline placing blame on the 9-year-old was "shocking." Llewellyn is representing several families who claim Estes Carter Thompson filmed their children on American Airlines flights in separate civil lawsuits against the airline. This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. Lawyers for the airline amended the court record to remove the claims of fault placed on the girl. Thompson, a former flight attendant for the airline, is also facing federal charges of attempted sexual exploitation of children and possession of images of child sexual abuse. Advertisement Federal authorities charged Thompson after police say he taped his phone to a toilet seat during a flight from Charlotte, North Carolina, to Boston to film a 14-year-old girl in September 2023. Thompson pleaded not guilty on Monday. Llewellyn is representing that girl's family in a civil lawsuit against the airline. The lawsuit alleged Thompson used "psychological tricks" to make her think the filming wasn't strange. He is also representing the family of a 9-year-old girl, who says Thompson filmed her in the bathroom during a flight from Texas to Los Angeles in January 2023. Related stories The family of the 9-year-old became aware of the incident after FBI agents informed them that images of their child were found on Thompson's iCloud account, according to the lawsuit. In a response to the family's complaint, lawyers for America Airlines denied negligence on the part of the airline, claiming that the girl "knew or should have known" that the bathroom was "compromised" because it "contained a visible and illuminated recording device." Advertisement The 9-year-old girl's mother said in a statement that the family was both "shocked and angered" by the defense. "How in good conscience could they even make such a suggestion?" the family said. "American Airlines has no shame." American Airlines told Business Insider in a statement that it does "not believe this child is at fault, and we take the allegations involving a former team member very seriously." "Our outside legal counsel retained with our insurance company made an error in this filing," American said in the statement. "The included defense is not representative of our airline and we have directed it be amended this morning." Advertisement Llewellyn said that the airline's defense is "not credible" and that "the bell can't be unrung." "They should never have taken such a position in the first," Llewellyn said.
Abrupt shutdown of financial middleman Synapse has frozen thousands of Americans’ deposits 2024-05-22 21:36:18+00:00 - NEW YORK (AP) — The bank accounts of tens of thousands of U.S. businesses and consumers have been frozen in the aftermath of the abrupt shutdown and bankruptcy of financial technology company Synapse, which acts as a middleman between financial technology companies and banks. Synapse filed for Chapter 11 bankruptcy protection in April and has shut down its services to some of its fintech or bank partners, including Evolve Bank & Trust. That has caused disruptions for customers of Synapse’s partners, leading to accounts being frozen or showing funds not existing at all. Synapse’s shutdown has “needlessly jeopardized end users by hindering our ability to verify transactions, confirm end user balances, and comply with applicable law,” said Memphis-based Evolve in a statement last week. Because Evolve is a bank and is required to comply with banking laws, it has to make sure all customer deposits are accounted for to the penny, which may take time. Evolve also stressed that, despite customers’ deposits being frozen, it is well capitalized. A source who is familiar with the size and scope of the number of accounts impacted at Evolve estimated the number of frozen accounts to be under 200,000. The person was not authorized to speak on the record. Other banks or fintech companies that San Francisco-based Synapse partnered with included Tennessee-based Lineage Bank, as well as savings rewards company Yotta, a company that gives prizes to customers who save money. Reddit message boards for Evolve, Synapse and Yotta were full of customers complaining about being unable to access their funds. The scale of Synapse’s disruptions could widen. Synapse, in court documents, estimates that before it filed for bankruptcy it had roughly 100 customer relationships that exposed roughly 10 million Americans to their services. However, banking regulators believe that figure is extremely high and the number of impacted Americans will be thousands or tens of thousands. Synapse’s creditors have been pushing in court to convert the bankruptcy to Chapter 7, which would liquidate the company. In court, representatives for Synapse’s customers argued that liquidation could make the disruptions to customers’ funds even worse. Fintech companies, more often than not, are not banks themselves due to the high cost and paperwork necessary to create a new bank. Instead these companies partner with banks — many of them smaller institutions with a minimal national profile — and use that bank as a place to store customer funds without having to be a bank themselves. In order to operate this way, fintech companies often need a middleman between the fintech company and the bank that can do the bookkeeping necessary to make sure customer accounts are credited and debited correctly. That’s the job Silicon Valley-backed Synapse had. It’s not clear what role U.S. banking regulators can play in the chaos resulting from Synapse’s collapse. Synapse isn’t a bank, so its regulation is not handled by the Federal Reserve or the Federal Deposit Insurance Corporation. Because none of the banks that Synapse has worked with have failed, there is no eligibility for FDIC deposit insurance to be paid out. It is possible the Consumer Financial Protection Bureau, which has law enforcement authority, could open an investigation into Synapse’s behavior and its impact on customers. Traditional bankers as well as consumer advocates have long criticized the fintech business model, where these companies appear to be banks but have none of the protections of banks due to customer funds being stored elsewhere. “The disorderly failure of Synapse and the impact on end users is likely to confirm policymakers’ and regulators’ worst fears about the operating model and fintech in general,” wrote Jason Mikula, a former Goldman Sachs banker who has been writing about the problems at Synapse. This is not the first time a problem with a financial middleman has caused pain to average Americans. In 2015, hundreds of thousands of customers of the prepaid debit card company RushCard were frozen out of their funds after a botched software update cause RushCard’s systems to be completely frozen. Customers of RushCard, often low-income people, were unable to buy groceries or other basic necessities. The company was fined $13 million buy the Consumer Financial Protection Bureau for the dayslong disruption.
New York Times publishes fresh details on the alleged affair that Elon Musk and Nicole Shanahan both deny 2024-05-22 21:35:25+00:00 - By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . You can opt-out at any time. Access your favorite topics in a personalized feed while you're on the go. download the app Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read preview Nicole Shanahan took ketamine with Elon Musk at a private party in 2021 and later told her husband at the time, Google cofounder Sergey Brin, that she had sex with the Tesla CEO, The New York Times reported, citing multiple sources. The New York Times published an article on Wednesday about Shanahan, a lawyer campaigning as Robert F. Kennedy Jr.'s running mate for the 2024 presidential election. This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. The article discussed details of her relationship with Brin, whom she married in 2018 before the pair finalized their divorce in May 2023, and sheds new light on a past allegation that she had an affair with Musk in 2021, which both Shanahan and Musk have denied. During Shanahan's marriage to Brin, the Times reported that Shanahan partied with Silicon Valley's upper echelon and engaged in recreational drug use that included ketamine and cocaine, citing eight sources as well as documents the publication viewed. Ketamine is a "dissociative anesthetic" that can have some hallucinogenic effects, according to The Drug Enforcement Administration. Ketamine can be legally prescribed under federal law and recent research indicates it could be used to treat depression, but it's also a popular party drug. Advertisement Nicole Shanahan and Sergey Brin, who were previously married. Ian Tuttle/Getty Images Stressors like the COVID-19 pandemic and their daughter's autism diagnosis began weighing on the former couple's marriage, prompting Shanahan to start going out and attending events without Brin, according to the report. "At a party in early 2021 in Miami, Ms. Shanahan was so intoxicated by drugs and alcohol that she required an IV infusion," the outlet reported. Three sources told the Times that Shanahan and Musk had an affair in December 2021 during a private party in Miami. They both took ketamine and "disappeared together for several hours," the Times reported, citing four people who had been briefed on the matter and related documents. Related stories Musk said in March 2024 that he takes a "small amount" of ketamine weekly and that he has a prescription. Advertisement "Ms. Shanahan later told Mr. Brin that she had had sex with Mr. Musk, three of the people said. She also relayed the details to friends, family and advisers," the Times reported. Elon Musk. Anna Webber/Variety/Getty Images Brin filed for divorce from Shanahan one month later in January 2022, citing "irreconcilable differences." Representatives for Shanahan, Musk, and Brin did not immediately respond to Business Insider's request for comment ahead of publication. The Wall Street Journal first reported in July 2022 that an "alleged affair" between Shanahan and Musk had created a rift between the Tesla CEO and Brin, whom many considered to have a close and amicable friendship. Advertisement Musk denied the affair with Shanahan that July, calling the WSJ report "total bs" in an X post. At the time, Musk's relationship with singer Grimes, with whom he shares three children, had ended. "This is total bs. Sergey and I are friends and were at a party together last night!" Musk wrote. "I've only seen Nicole twice in three years, both times with many other people around. Nothing romantic." He added in another post: "Haven't even had sex in ages (sigh)." Musk also posted a photo of himself with Brin, which he said had been taken at the party the previous day (his biographer Walter Isaacson later said that Brin had "tried to avoid" the selfie). Advertisement "We are confident in our sourcing, and we stand by our reporting," The Wall Street Journal said in a statement at the time. Shanahan also denied any affair, telling People that the speculation was "utterly debilitating." "To be known because of a sexual act is one of the most humiliating things . . . it was utterly debilitating," she told the outlet. "I remember feeling like everything I had ever worked for was under siege by a press cycle that had no idea what was going on in my life and who I was." In response to questions from a The New York Times reporter, Shanahan said she was "shocked the NYT is letting you run something like this."
Wind towers crumpled after Iowa wind farm suffers rare direct hit from powerful twister 2024-05-22 21:34:02+00:00 - OKLAHOMA CITY (AP) — A wind farm in southwest Iowa suffered a direct hit from a powerful tornado that crumpled five of the massive, power-producing towers, including one that burst into flames. But experts say fortunately such incidents are rare. Video of the direct hit on the wind farm near Greenfield, Iowa, showed frightening images of the violent twister ripping through the countryside, uprooting trees, damaging buildings and sending dirt and debris high into the air. Several of the turbines at MidAmerican Energy Company’s Orient wind farm recorded wind speeds of more than 100 mph as the tornadoes approached just before the turbines were destroyed, the company said in a statement. “This was an unprecedented impact on our wind fleet, and we have operated wind farms since 2004,” MidAmerican said. While there have been isolated incidents of tornadoes or hurricanes damaging wind turbines, fortunately such occurrences are extremely rare, said Jason Ryan, a spokesperson for the American Clean Power Association. Although requirements vary from state to state about how far turbines must be located from other structures, Ryan said the giant turbines are not placed directly next to homes and other occupied structures. There are currently nearly 73,000 wind turbines in operation across the country, he said. Many of those operate in the center of the country, often referred to as the wind belt, which stretches from Texas north through Oklahoma, Kansas, Nebraska and the Dakotas, and includes large swaths of Minnesota, Iowa and Illinois. Many of those same states also are prone to tornadoes, especially during the spring, including a portion of the Central Plains extending from the Dakotas south into Oklahoma and Texas, said Jennifer Thompson, a meteorologist with the National Weather Service in Norman, Oklahoma. Wind turbines are built to withstand high wind speeds and severe weather, like tornadoes, hurricanes and lightning strikes, but few structures are designed to withstand a direct hit from a powerful tornado, said Sri Sritharan, an engineering professor at Iowa State University who has studied the impact of earthquakes and severe weather on structures. “When you do a design, you don’t design something that can withstand an EF4 or EF5 tornado,” Sritharan said. Wind turbines are designed to meet industry standards for structural integrity that includes factors like wind speed, and it’s possible that design code committees will consider the impact of Tuesday’s tornado strikes in the future, he said. “I would think they would look at this event and how they should update the standards,” Sritharan said.
California advances legislation cracking down on stolen goods resellers and auto theft 2024-05-22 21:28:59+00:00 - SACRAMENTO, Calif. (AP) — The California Senate approved a bipartisan package of 15 bills Wednesday that would increase penalties for organized crime rings, expand drug court programs and close a legal loophole to make it easier to prosecute auto thefts. One proposal would require large online marketplaces — like eBay and Amazon — to verify the identities of sellers who make at least $5,000 profit in a year, an attempt to shut down an easy way to sell stolen goods. “This is not a game,” said Senate President Mike McGuire, a Democrat who represents the North Coast, adding that he hopes to get the bills to Gov. Gavin Newsom’s desk within weeks. “We are working together for safer California, putting aside politics and making sure we do right for our communities.” It normally takes months for lawmakers to deliver bills to the governor in California, but the commitment to quick actions is driven by a new get-tough-on-crime strategy in an election year that seeks to address the growing fears of voters while preserving progressive policies designed to keep people out of prison. Large-scale thefts, in which groups of people brazenly rush into stores and take goods in plain sight, have reached a crisis level in the state, though the California Retailers Association said it’s challenging to quantify the issue because many stores don’t share their data. The Bay Area and Los Angeles saw a steady increase in shoplifting between 2021 and 2022, according to a study of the latest crime data by the Public Policy Institute of California. Across the state, shoplifting rates rose during the same period but were still lower than the pre-pandemic levels in 2019, while commercial burglaries and robberies have become more prevalent in urban counties, according to the study. Assembly lawmakers are also expected to vote on their own retail theft legislation Wednesday, including a bill authored by Assembly Speaker Robert Rivas taking aim at professional theft rings. It would expand law enforcement’s authority to combine the value of goods stolen from different victims to impose harsher penalties and arrest people for shoplifting using video footage or witness statements. The measure also would create a new crime for those who sell or return stolen goods and mandate online sellers to maintain records proving the merchandise wasn’t stolen and require some retail businesses to report stolen goods data. The advancement of a slew of measures further cements Democratic lawmakers’ rejection to growing calls to roll back progressive policies like Proposition 47, a ballot measure approved by 60% of state voters in 2014 that reduced penalties for certain crimes, including thefts of items valued at under $950 and drug possession offenses, from felonies to misdemeanors. Money saved from having fewer people in prison, which totals to $113 million this fiscal year, has gone to local programs to fight recidivism with much success, state officials and advocates said. But the proposition has made it harder to prosecute shoplifters and enabled brazen crime rings, law enforcement officials said. An effort to reform the measure failed in 2020. As major national stores and local businesses in California say they continue to face rampant theft, a growing number of law enforcement officials and district attorneys, along with Republican and moderate Democratic lawmakers, say California needs to consider all options, including rolling back the measure. The coalition backing the initiative last month submitted more than 900,000 signatures to put it on the November ballot. The signatures are being verified.
Why Netanyahu's ICC response sounds so much like Trump 2024-05-22 21:22:16+00:00 - Israeli Prime Minister Benjamin Netanyahu has been making the rounds on American media since the International Criminal Court’s prosecutor-general announced Monday that he’d seek a warrant for Netanyahu’s arrest. In an interview Tuesday night with MSNBC’s “The 11th Hour,” Netanyahu complained of the “false symmetry” that the ICC prosecutor had drawn in pursuing warrants against him and his defense minister with war crimes alongside several members of Hamas leadership. “That’s like saying, ‘Well, I’m going to issue arrest warrants for’ — after 9/11 — ‘I’m issuing arrest warrants for George [W.] Bush, but also for Osama bin Laden,’” he told MSNBC host Stephanie Ruhle. “And in World War II, ‘I’m issuing arrest warrants for FDR but also for Hitler.’ Thanks a lot. That’s a false symmetry and it’s totally absurd. It’s a travesty of justice.” Netanyahu, a longtime student of U.S. politics, was clearly carefully crafting his message for his intended audience. In doing so, whether intentionally or not, the longtime Israeli leader was using the same rhetoric that former President Donald Trump has used to decry his legal troubles. Rather than pledge to cooperate and prove their innocence, Bibi and Trump attack the systems designed to hold powerful people accountable. Netanyahu, a longtime student of U.S. politics, was clearly carefully crafting his message for his intended audience. By centering American presidents in his analogy, Netanyahu shrewdly put on display his understanding of how U.S. policymakers think — that is, almost entirely about themselves. After all, it was American political leaders’ fears that caused the Senate to block ratification of the Rome Statute, the ICC’s founding document. Congress even passed a law in the aftermath of 9/11 and the subsequent invasion of Afghanistan that blocks almost all cooperation with the ICC and bans members of the U.S. military from being extradited to face charges in court in The Hague. And Netanyahu must know that drawing on American pride in winning World War II, and on outrage U.S. officials would have at Hitler comparisons, is rarely a bad bet. Further, by invoking Bush and Roosevelt, Netanyahu is also attempting to obliquely warn America’s political elite that his fate could be their own if they don’t step in to aid him. It’s a point that Sen. Lindsay Graham, R-S.C., made Tuesday during a Senate Appropriations subcommittee hearing with Secretary of State Antony Blinken. In his opening remarks, Graham warned that “if they’ll do this to Israel, we’re next,” which drew applause from anti-war protestors in attendance. “They tried to come after our soldiers in Afghanistan, but reason prevailed,” he continued, referring to ICC prosecutor-general Karim Khan’s 2001 decision not to focus on potential American war crimes there. It was an especially striking shift from the senator. Just two years ago, Graham was working on ways to increase U.S. cooperation with the ICC. Of course, that position was voiced in the immediate shadow of Russia’s invasion of Ukraine and was motivated by a desire to see President Vladimir Putin held to account. (Putin was charged at the ICC in 2023 for overseeing the abduction and deportation of children from Ukraine into Russia.) The idea of turning that same system back around on the U.S. and its allies, though, is more than Graham is willing to stomach. Meanwhile, the idea that a system of justice is necessarily cruel or unfair if it casts its gaze on him has been part and parcel with Trump’s messaging since he first came under investigation. It’s a framing that’s only gotten more explicit — and disturbing — since his first re-election campaign rally last March. “They’re not coming after me,” he told the crowd gathered in Waco, Texas. “They’re coming after you.” It’s a message he’s repeated often, including at a rally in Georgia soon after special counsel Jack Smith obtained a federal indictment accusing him of trying to steal the 2020 election. More recently, he did so again in an official campaign video posted last month. “They’re not coming after me, they’re coming after you. I just happen to be standing in their way, and I will never, ever be moving out of their way,” he intoned directly into camera. Trump and Netanyahu are purposefully missing the point that anyone accused of doing the things they're accused of doing should face accountability for their actions. Whether it’s Trump or Netanyahu saying it, the “it could happen to you” rhetoric is ridiculous fearmongering, as few people listening to them will ever be in a position to face the allegations Trump and Netanyahu are facing. Trump is accused of multiple crimes, including heading a conspiracy to deprive the people of Georgia of their votes and federal charges of obstructing justice in a bid to retain classified documents. Netanyahu, for his part, is accused of using “starvation of civilians as a method of warfare” and “intentionally directing attacks against a civilian population.” None of these alleged crimes is one that just anyone can undertake, nor is the commission of such a crime something any U.S. politician should support. Trump and Netanyahu are purposefully missing the point that anyone accused of doing the things they’re accused of doing should face accountability for their actions. Netanyahu’s invocation of Roosevelt is smart, but may we never forget that FDR led a United States that firebombed civilians in World War II. The United States is the only country to have deployed a nuclear weapon in a war, and when it did, it did so against a largely civilian population. Decades later, the American military committed well-documented abuses in Iraq and Afghanistan. Attempts to hold accountable those who committed those crimes have been mixed at best, in no small part because Trump pardoned multiple service members and military contractors who were convicted of war crimes. And even though Graham denounced the ICC’s investigation as undermining the rule of law, Khan’s decision to seek charges against Netanyahu reflects an approach that “remains focused on allegations like the deprivation of humanitarian aid and other collective punishments that are the responsibility of senior leaders,” international law expert David Kaye wrote Monday in The New York Times. “These are the people least likely to face accountability not just in Israeli courts but in any national court worldwide.” Drawing up arrest warrants for Israeli leaders is not the work of an ICC that is seeking to undermine Israel or bring a prosecution because Israel is Jewish, as Netanyahu has claimed. Likewise, despite Trump’s protestations, prosecutors (not President Joe Biden, whom Trump falsely claims is behind the prosecutions) are attempting to apply the law equally regardless of his former title. Trump and Netanyahu’s attempts to deflect accountability should be seen for the transparent, self-serving ploys that they are. Moreover, we should all be able to recognize that they stand in opposition to an idea we all should embrace: that everyone, even the most powerful men in the world, should be made to stand accountable for their actions.
New pictures of the US Air Force's newest stealth bomber — the B-21 Raider — just dropped as flight testing continues 2024-05-22 21:10:24+00:00 - The US Air Force just released more photos of the B-21 Raider, its newest stealth bomber. The long-range aircraft is working through flight testing in California. Pentagon leadership has said it will form the "backbone" of America's future bomber fleet. Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read preview Thanks for signing up! Access your favorite topics in a personalized feed while you're on the go. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . You can opt-out at any time. Advertisement The US Air Force on Wednesday published more photos of its newest stealth bomber, the B-21 Raider, as the penetrating strike aircraft continues to work through flight testing. The photos, captured in January and April, show the sleek-looking new bomber in the middle of its testing — consisting of ground testing, taxiing, and flight operations — at California's Edwards Air Force Base. The new images come as the long-range aircraft inches closer to entering service later this decade. This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. Have an account? Log in .
The collapse of a fintech firm with 10 million users has left many Americans without access to their money 2024-05-22 21:09:00+00:00 - A dispute between a fintech startup and its banking partners has ensnared potentially millions of Americans, leaving them without access to their money for nearly two weeks, according to recent court documents. Since last year, Synapse — an Andreessen Horowitz-backed startup that serves as a middle-man between customer-facing fintech brands and FDIC-backed banks — has had disagreements with several of its partners about how much in customer balances it owed. The situation deteriorated in April after Synapse declared bankruptcy following the exodus of several key partners. On May 11, Synapse cut off access to a technology system that enabled lenders, including Evolve Bank & Trust, to process transactions and account information, according to the filings. That has left users of several fintech services stranded with no access to their funds, according to testimonials filed this week in a California bankruptcy court. One customer, a Maryland teacher named Chris Buckler, said in a May 21 filing that his funds at crypto app Juno were locked because of the Synapse bankruptcy. “I am increasingly desperate and don’t know where to turn,” Bucker wrote. “I have nearly $38,000 tied up as a result of the halting of transaction processing. This money took years to save up.” 10 million ‘end users’ Until recently, Synapse, which calls itself the biggest “banking as a service” provider, helped a wide swath of the U.S. fintech universe provide services like checking accounts and debit cards. Former partners included Mercury, Dave and Juno, well-known fintech firms that catered to segments including startups, gig workers and crypto users. Synapse had contracts with 20 banks and 100 fintechs, resulting in about 10 million end users, according to an April filing from founder and CEO Sankaet Pathak. Pathak didn’t immediately return an email seeking comment. A spokesman for Evolve declined to comment, instead pointing to a statement on the bank’s website that read, in part: “Synapse’s abrupt shutdown of essential systems without notice and failure to provide necessary records needlessly jeopardized end users by hindering our ability to verify transactions, confirm end user balances, and comply with applicable law,” the bank said. It is unclear why Synapse switched the system off, and an explanation couldn’t be found in filings. ‘We are scared’ Another customer, Joseph Dominguez of Sacramento, California, told the bankruptcy court on May 20 that he had more than $20,000 held up in his Yotta fintech account. “We are scared that money will be lost if Synapse can not provide ledgers and documents to Evolve or Yotta to prove we are the legitimate owners,” Dominguez wrote. “We don’t know where our direct deposit has gone, we don’t know where our pending withdrawals are currently held.” The freeze-up of customer funds exposes the vulnerabilities in the banking as a service, or BAAS, partnership model and a possible blind spot for regulatory oversight. The BAAS model, used most notably by the pre-IPO fintech firm Chime, allows Silicon Valley-style startups to tap the abilities of small FDIC-backed banks. Together, the ecosystem helped these companies compete against the giants of American banking. Regulators stay away Customers mistakenly believed that because funds are ultimately held at real banks, they were as safe and available as any other FDIC-insured accounts, said Jason Mikula, a consultant and newsletter writer who has tracked this case closely. “This is 10 million-plus people who can’t pay their mortgages, can’t buy their groceries … This is another order of disaster,” Mikula said. Regulators have yet to take a role in the dispute, partly because the underlying banks involved haven’t failed, the point at which the FDIC would usually intervene to make customers whole, Mikula added. The FDIC and Federal Reserve didn’t immediately return calls seeking comment. A warning In pleading with the judge in this case, Martin Barash, to help the impacted customers, Buckler noted in his testimonial that while he had other resources besides the locked account, others are not as lucky. “So far the federal government is not willing to help us,” Buckler wrote. “As you heard, there are millions affected who are in far worse straits.” Reached by phone on Wednesday, Buckler said he had one message for Americans: “I want to make people aware: Yeah, your money might be safe at the bank, but it is not safe if the fintech or the processor fails,” he said. “If this is another FTX, if they were doing funny business with my money, then what?”
Barbie honors Venus Williams and 8 other athletes with dolls in their likeness 2024-05-22 21:07:00+00:00 - Mattel is releasing nine new Barbie dolls depicting some of the world's most celebrated female athletes, including tennis star Venus Williams and Canadian soccer icon Christine Sinclair. The nine dolls are part of the brand's ongoing celebration of Barbie's 65th anniversary. "Barbie is thrilled to continue the brand's 65th-anniversary celebration by recognizing the impact of sports in fostering self-confidence, ambition, and empowerment among the next generation," Krista Berger, senior vice president of Barbie and global head of dolls, Mattel, said in statement Wednesday. "By shining a light on these inspirational athletes and their stories, we hope to champion the belief that every young girl deserves the opportunity to pursue her passions and turn her dreams into reality." The dolls are one of a kind and are not available for purchase, Mattel told CBS MoneyWatch on Wednesday. Other athletes being honored with Barbie dolls in their likeness are Brazilian gymnast Rebeca Andrade, Mexican gymnast Alexa Moreno, Australian soccer player Mary Fowler, French boxer Estelle Mossely, Italian swimmer Federica Pellegrini, Spanish paratriathlete Susana Rodriguez and Polish track and field sprinter Ewa Swoboda. In April, celebrated as Asian American and Pacific Islander Heritage Month, the toy brand honored U.S. figure skater Kristi Yamaguchi. Mattel is making nine new Barbie dolls that depict some of the world's most celebrated women athletes, including tennis star Venus Williams and Canadian soccer icon Christine Sinclair. Mattel, Inc. "Throughout my career, I've always been driven by the idea of shattering glass ceilings and staying true to myself, and Barbie's mission couldn't resonate more deeply with that ethos," tennis legend Venus Williams said in the same statement from Mattel. Here are the nine athletes who are the latest women to be recognized by Barbie with dolls in their likeness. Venus Williams Having won four Olympic gold medals and seven Grand Slam singles titles, Venus Williams is considered one of the greatest tennis players of all time. In 2007, the California native was the first woman in tennis to earn the same prize money at Wimbledon as the male athletes. Williams' appearance on the tennis court has slowed in recent years, ever since she withdrew from the Australian Open in January 2023. Christine Sinclair With 190 goals on her resume, Christine Sinclair has been named Canadian Player of the Year 14 times and she has 12 Olympic goals — more than any other player. She retired from international play last year, CBC reported. Mary Fowler Labeled a soccer prodigy by some, Mary Fowler at age 16 became the youngest player on Australia's soccer team in the 2019 FIFA World Cup. She now plays forward for the Manchester City Matildas. "Super grateful for the opportunity to capture and share a version of myself when I feel my strongest, and most confident," she said on an Instagram post about the new doll. "To finally see and hold my Barbie with its bubble braid, gloves and boots, in a look that many young girls recreate is so special." Estelle Mossely Estelle Mossely won France's first ever gold medal in women's boxing at the Rio Olympics on her 24th birthday. She also won a silver medal at the 2015 European Games. "What pride to have my own barbie with everything that that represents," Mossely said in a X post on Wednesday. "It's an honor to be a part of the 2024 Barbie team surrounded by all these great champions." Alexa Moreno Moreno became the first female gymnast representing Mexico to win a World Championships medal when she placed third at the 2018 Artistic Gymnastics World Championships in Doha, Qatar. Despite injuries to her ankle, head, knee and shoulders that have derailed her career since 2020, Moreno plans to compete in the 2024 Olympics in Paris, NPR affiliate KPBS reported this week. Forbes Mexico in 2019 recognized Moreno as one of the 100 most powerful women in Mexico. Rebeca Andrade A native of São Paulo, Brazil, Rebeca Andrade has managed to cement herself as one of the greatest gymnasts of all time. Her performance at the Tokyo Olympics in 2020 won Brazil its first ever gold medal in women's gymnastics. She was on the cover of Vogue Brazil in October 2021 and plans to compete in the 2024 Paris Olympics. Susana Rodriguez Susana Rodriguez was born with albinism and a vision impairment that severely weakened her ability to see. Despite that obstacle, Rodriguez is a doctor and paratriathlon athlete, winning a gold medal in 2020 at the Tokyo Paralympic Games. She was featured on the cover of Time magazine in 2021. Federica Pellegrini This Italian swimmer won a gold medal at the 2008 Beijing Olympics. A year later, at the 2009 FINA World Aquatics Championships in Rome, she became the first woman to break the 4-minute barrier in the 400-meter freestyle. Pellegrini retired from swimming in 2021 and had her first child — a daughter named Matilde — in January. Ewa Swoboda Ewa Swoboda is a Polish track and field sprinter and three-time European Indoor Championship medallist. She took home the gold medal in 2019. Throughout her career, she has continued to break records, most recently at the 2024 World Athletics Indoor Championships where she set a new national record of 6.98 seconds in the women's 60 meters race.
Who Are the Republicans Showing up for Trump's Hush Money Trial? 2024-05-22 20:59:30+00:00 - GOP politicians are flocking to Donald Trump's hush money trial in New York to show support, with some hoping for a spot on his presidential ticket. This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. Have an account? Log in .
Top Apple exec acknowledges shortcomings in effort to bring competition in iPhone app payments 2024-05-22 20:42:13+00:00 - OAKLAND, Calif. (AP) — Longtime Apple executive Phil Schiller on Wednesday acknowledged a court-ordered makeover of the U.S. payment system in its iPhone app store hasn’t done much to increase competition — a shortcoming that could result in a federal judge demanding more changes. Schiller, who has been overseeing the iPhone app store since its inception in 2008, made the admission during occasionally sheepish testimony about the new payment options that so far have been shunned by all but a few dozen apps since their introduction in January. “We have worked hard to create this program and I think we need to do a lot more to do to get developers,” Schiller said. “There is work in front of us to make that happen.” Schiller’s appearance came two weeks into ongoing hearings being held in Oakland, California, federal court to determine whether Apple is properly adhering to an order issued as part of an antitrust case alleging its iPhone app store had turned into an illegal monopoly. Although U.S. District Judge Gonzalez Rogers rejected the monopoly claims made by Epic Games, she ordered Apple to lower the barriers protecting its previously exclusive payment system for in-app digital transactions and allow developers to display links to alternative options. That shake-up threatens to undercut Apple’s own lucrative in-house payment system, which generates billions of dollars annually through commissions ranging from 15% to 30% of the purchase amount on digital transactions completed within iPhone apps. After more than two years of ultimately unsuccessful attempts to overturn the order to allow alternative payment links within apps, Apple in January complied with the requirement. As part of the change, Apple set up an application process to approve links to alternative payment systems and imposed fees of 12% to 27% when users clicked on those options. Epic, the maker of the popular Fortnite video game, asserted Apple’s commissions for clicking on external payment links combined with other costs for payment processing effectively make the alternative more expensive than just paying Apple’s fees for using its standard system. Prompted by Epic’s objections, Gonzalez Rogers is now mulling whether to hold Apple in contempt of her order and taking more drastic actions aimed at giving consumers more payment choices in hopes of fostering competition that could lower prices. In the five hearings held on the issue so far, Gonzalez Rogers has repeatedly sounded frustrated with Apple executives while occasionally asking questions suggesting she thinks the iPhone maker is mostly focusing on how to preserve its profit margins and corral most payments to its in-house system. Although the judge was relatively measured during Schiller’s testimony, she was more blunt last week when was of his subordinates, Carson Oliver, was on the witness stand and she asked whether he understood the intent of her order. “Did you understand the point was to increase competition?” Gonzalez Rogers said. After Oliver confirmed he did, the judge muttered, “Doesn’t seem like it.” During his Wednesday testimony, Schiller repeatedly defended Apple’s response to the judge’s order as well-intentioned to allow more competition while protecting the privacy and security of users. But he had trouble explaining why the company is receiving so few applications to allow external payment links. In the first four months, only 38 apps have sought approval for external payment links, and only 17 of those currently engaged in digital transactions, according to evidence submitted in the hearings. That is out of about 136,00 apps in the U.S. that have completed digital transactions in the U.S. Schiller said the facts emerging in the hearings — all of which he has attended — have prompted him to create “an action item” to prod more iPhone apps to take advantage of external payment options. The hearings are scheduled to resume May 31. Schiller will return to the witness stand to continue his testimony.
Artificial intelligence, great wealth transfer: Why this financial analyst sees a rosy time ahead for stocks 2024-05-22 20:42:00+00:00 - Some investors may worry about market volatility ahead, given a contentious presidential race, lingering inflation, sinking consumer sentiment and uncertainty over Federal Reserve interest rate cuts. Financial analyst Tom Lee has a more optimistic outlook. "Since Covid, companies went through a huge stress test, and they showed that they are really good at adjusting to inflation shocks, supply shocks, economy shutdown," said Lee, managing partner and head of research at Fundstrat Global Advisors. He spoke on Wednesday at the CNBC Financial Advisors Summit. As a result, he said, "we think the earnings power is much better than people realized." Even as inflation cools, many companies will benefit, Lee said. (Higher prices are usually considered a good thing for businesses.) "A lot of companies have an inverse correlation to inflation," he said. "A great example is technology is inversely correlated to inflation, so their margins actually go up if inflation is falling."
Nashville council rejects proposed sign for Morgan Wallen’s new bar, decrying his behavior 2024-05-22 20:41:16+00:00 - NASHVILLE, Tenn. (AP) — Nashville councilmembers have rejected plans for a glowing sign to be erected at Morgan Wallen’s new bar along the city’s neon-lit strip of honky tonks, citing his use of a racial slur that caused controversy in 2021 and recent criminal charges accusing the country star of throwing a chair off a rooftop near two police officers. The Nashville Metro Council voted 30-3 Tuesday evening against the proposed sign at Morgan Wallen’s This Bar & Tennessee Kitchen, which is set to open this weekend. The sign would have hung over a public sidewalk, similar to those at many neighboring bars. Such a sign requires local government approval and usually isn’t a controversial process. During debate, councilmembers called Wallen’s comments hateful and his actions harmful. They also said the performer has received multiple second chances. “I don’t want to see a billboard up with the name of a person who is throwing chairs off of balconies and who is saying racial slurs,” said Councilmember Delishia Porterfield, who is Black. Councilmember Jacob Kupin presented the proposal, but said he “thought long and hard” about what to do because of Wallen’s behavior. He said the third-party organization managing the business, TC Restaurant Group, has been “really, a good partner” and has worked to make downtown Nashville safer. The Associated Press reached out to Wallen’s publicist and TC Restaurant Group seeking comment on the council vote. “The fact that someone’s name is going up on a bar doesn’t mean that we condone all the behavior, but again I appreciate the efforts to make amends, the positive response, and again, the operator themselves I don’t think should be penalized for what happened,” Kupin said. An initial hearing in Wallen’s criminal case was postponed until Aug. 15. According to an arrest affidavit, the chair that Wallen is accused of throwing off the roof of the six-story Chief’s bar on April 7 landed about a yard (meter) from two police officers. Witnesses told officers they saw Wallen pick up a chair, throw it off the roof and laugh about it. He is facing three felony counts of reckless endangerment and one misdemeanor count of disorderly conduct. In a statement issued by Wallen, he said he accepted “responsibility” and was “not proud” of his behavior. The statement mentioned making “amends” and touching base with law enforcement. Wallen’s “One Thing at a Time” album spent 16 weeks at the top of the Billboard 200 in 2023 and was the most-consumed album in the U.S. last year. Top 10 hits from the album included “Last Night,” “You Proof” and “Thinkin’ Bout Me.” In 2021, Wallen was suspended indefinitely from his label after video surfaced of him shouting a racial slur, which he would later say was ignorant of him to use. Kid Rock’s bar, not far from Wallen’s new establishment, was the site of an earlier sign controversy. Ahead of a 2019 vote, some councilmembers bemoaned the design featuring a giant guitar in which the base of the instrument is intentionally shaped like a woman’s buttocks. Ultimately, they approved it.
Nvidia, Powered by A.I. Boom, Reports Soaring Revenue and Profits 2024-05-22 20:40:38+00:00 - Nvidia, which makes microchips that power most artificial intelligence applications, began an extraordinary run a year ago. Fueled by an explosion of interest in A.I., the Silicon Valley company said last May that it expected its chip sales to go through the roof. They did — and the fervor didn’t stop, with Nvidia raising its revenue projections every few months. Its stock soared, driving the company to a more than $2 trillion market capitalization that makes it more valuable than Alphabet, the parent of Google. On Wednesday, Nvidia again reported soaring revenue and profits that underscored how it remains a dominant winner of the A.I. boom, even as it grapples with outsize expectations and rising competition. Revenue was $26 billion for the three months that ended in April, surpassing its $24 billion estimate in February and tripling sales from a year earlier for the third consecutive quarter. Net income surged sevenfold to $5.98 billion.
Warner Bros. Discovery and ESPN strike 5-year deal for College Football Playoff games 2024-05-22 20:40:00+00:00 - In a move to strengthen its sports offerings, Warner Bros. Discovery has signed a five-year sublicensing deal with Disney’s ESPN to broadcast first-round and quarterfinal College Football Playoff games. Warner Bros. Discovery’s TNT will carry two first-round games this year and next year and will add two additional quarterfinals games starting in 2026. Disney also has an option to sublicense a semifinals game to Warner Bros. Discovery starting with the third year of the deal if it chooses, according to people familiar with the matter. Disney will keep exclusivity on the championship game throughout the terms of the contract, which runs through 2031, said the people, who asked not to be named because the details are private. Disney is paying about $1.3 billion per year for rights to the entire College Football Playoffs. The new 12-team College Football Playoff slate debuts in December, replacing a four-team tournament that began in 2014. Under the new format, the top four teams get byes while teams seeded No. 5 through No. 12 play first-round games at the home stadium of the higher-ranked team. ESPN will produce the games and primarily use ESPN talent for the broadcasts, which will be TNT branded, said the people familiar. As part of the sublicensing agreement, Warner Bros. Discovery is paying ESPN an average of “hundreds of millions” per year for the games over the course of five years, though less in years one and two when it only has two games per year, said the people. “It is exciting to add TNT Sports, another highly respected broadcaster, to the College Football Playoff family,” said Bill Hancock, executive director of the College Football Playoff, in a statement. “Sports fans across the country are intimately familiar with their work across a wide variety of sports properties over the past two decades, and we look forward to seeing what new and innovative ideas they bring to the promotion and delivery of these games.” This year’s first round of the CFP will take place on Dec. 20 and 21. Warner Bros. Discovery plans to add the games to its Max sports tier. The company is bulking up on live sports while in the middle of a difficult negotiation with the National Basketball Association for a package of live games. TNT has been a partner to the NBA for nearly 40 years but risks losing the games to Comcast-owned NBCUniversal and Amazon if Warner Bros. Discovery decides to forgo its matching rights, or, potentially, if the league opts to ignore those rights. (NBCUniversal is the parent company of NBC News.) College football is one of the most popular programs on television. Michigan’s semifinals victory over Alabama last year drew an average audience of 27.2 million viewers — the most watched non-NFL sporting event since 2018. Even if Warner Bros. Discovery loses the NBA, it will now have both CFP and the NBA until mid-2025, in addition to several weeks of games for the NCAA men’s basketball March Madness tournament, men’s and women’s soccer, NASCAR, Major League Baseball and the National Hockey League. That should help the company in its upcoming carriage renewal deals for TNT and its other cable networks. ESPN sublicensing to Warner Bros. Discovery also keeps all of the CFP games on Venu Sports, the new sports streaming service that’s being developed by Disney, Fox and Warner Bros. Discovery and is expected to launch in the fall.
Federal Reserve minutes indicate worries over lack of progress on inflation 2024-05-22 19:53:00+00:00 - Federal Reserve officials grew more concerned at their most recent meeting about inflation, with members indicating that they lacked the confidence to move forward on interest rate reductions. Minutes from the April 30-May 1 policy meeting of the Federal Open Market Committee released Wednesday indicated apprehension from policymakers about when it would be time to ease. The meeting followed a slew of readings that showed inflation was more stubborn than officials had expected to start 2024. The Fed targets a 2% inflation rate, and all of the indicators showed price increases running well ahead of that mark. “Participants observed that while inflation had eased over the past year, in recent months there had been a lack of further progress toward the Committee’s 2 percent objective,” the summary said. “The recent monthly data had showed significant increases in components of both goods and services price inflation.” The minutes also showed “various participants mentioned a willingness to tighten policy further should risks to inflation materialize in a way that such an action became appropriate.” Several Fed officials, including Chair Jerome Powell and Governor Christopher Waller, have said they doubt the next move would be a hike. The FOMC voted unanimously at the meeting to hold its benchmark short-term borrowing rate in a range of 5.25%-5.5%, a 23-year high where it has been since July 2023. “Participants assessed that maintaining the current target range for the federal funds rate at this meeting was supported by intermeeting data indicating continued solid economic growth,” the minutes said. Since then, there have been some incremental signs of progress on inflation, as the consumer price index for April showed inflation running at a 3.4% annual rate, slightly below the March level. Excluding food and energy, the core CPI came in at 3.6%, the lowest since April 2021. However, consumer surveys indicate increasing worries. For instance, the University of Michigan consumer sentiment survey showed the one-year outlook at 3.5%, the highest since November, while overall optimism slumped. A New York Fed survey showed similar results. Stocks held in negative territory while Treasury yields were mostly higher following the minutes release. Upside inflation risk? Fed officials at the meeting noted several upside risks to inflation, particularly from geopolitical events, and noted the pressure that inflation was having on consumers, particularly those on the lower end of the wage scale. Some participants said the early year increase in inflation could have come from seasonal distortions, though others argued that the “broad-based” nature of the moves means they shouldn’t be “overly discounted.” Committee members also expressed worry that consumers were resorting to riskier forms of financing to make ends meet as inflation pressures persist. “Many participants noted signs that the finances of low- and moderate-income households were increasingly coming under pressure, which these participants saw as a downside risk to the outlook for consumption,” the minutes said. “They pointed to increased usage of credit cards and buy-now-pay-later services, as well as increased delinquency rates for some types of consumer loans.” Officials were largely optimistic about growth prospects though they expected some moderation this year. They also said they anticipate inflation ultimately to return to the 2% objective but grew uncertain over how long that would take, and how much impact high rates are having on the process. Immigration was mentioned on multiple occasions as a factor both helping spur the labor market and to sustain consumption levels. Market lowering rate-cut expectations Public remarks from central bankers since the meeting have taken on a cautionary tone. Fed Governor Waller on Tuesday said that while he does not expect the FOMC will have to raise rates, he warned that he will need to see “several months” of good data before voting to cut. Last week, Chair Jerome Powell expressed sentiments that weren’t quite as hawkish in tone, though he maintained that the Fed will “need to be patient and let restrictive policy do its work” as inflation holds higher. Markets have continued to adjust their expectations for cuts this year. Futures pricing as of Wednesday afternoon after the release of the minutes indicated about a 60% chance of the first reduction still coming in September, though the outlook for a second move in December receded to only a bit better than a 50-50 coin flip chance. Earlier this year, markets had been pricing in at lease six quarter-percentage point cuts.
A Second Dairy Worker Has Contracted Bird Flu, C.D.C. Reports 2024-05-22 19:49:55+00:00 - A farmworker in Michigan has been diagnosed with bird flu, state officials announced on Wednesday, making it the second human case associated with the outbreak in cows. Officials said that the individual became infected with the virus, called H5N1, after exposure to infected livestock. The individual had only mild symptoms and has fully recovered, officials said. They did not provide additional details in order to protect the privacy of the farm and farmworker, they said. In 2022, a person in Colorado with direct exposure to infected poultry became the first confirmed human case of H5N1 in the United States. Last month, the Centers for Disease Control and Prevention reported an H5N1 infection in a Texas dairy farm worker — the first case associated with the outbreak in cows. The detection of this latest case did not suggest that bird flu was widespread in people, officials said, adding that the risk to the general public remained low.
Target, McDonald's and others are offering value as they lose ground with bargain hunters 2024-05-22 19:35:00+00:00 - Target’s weak quarterly earnings underscored why it cut prices on thousands of household staples: it’s struggling to win over bargain hunters. The discounter is not alone. Target’s first-quarter results on Wednesday not only show American consumers are more selective about spending after sustained inflation squeezed their budgets for nearly three years. The company’s declining sales also illustrate how the battle for shoppers’ wallets has heated up as retailers — and even some restaurants — race to outmatch each other on low prices. Walmart said last week that its grocery “rollbacks,” short-term deals on specific items, were up 45% year over year in April. The discounter also introduced a new premium grocery brand with most items under $5. Earlier this month, Aldi dropped prices on more than 250 items, including chicken, steak, granola bars, and frozen blueberries. And even McDonald’s is debuting a limited-time $5 value meal in late June as some diners scoff at the price of fast food. Target made its move on Monday, saying it has already reduced prices on about 1,500 items and plans to cut prices on thousands more this summer. Many of those cheaper items are staples, such as milk, peanut butter and diapers. Multiple major grocers and restaurants cutting prices or offering deals could offer relief to consumers, at a time when consumer prices are still climbing more than 3% from last year. It could also give the Federal Reserve more confidence to cut interest rates. Even so, the revenue lost from lower prices could force businesses to cut back elsewhere — potentially on labor costs. Analysts on Target’s earnings call on Wednesday asked about the timing and reasoning behind the price cuts and whether Target or its vendors are picking up the tab. The company declined to share details of that split, but Chief Growth Officer Christina Hennington said Target’s vendors know the company is committed to passing on savings to its customers to drive traffic. Some businesses have held on to customers even with the same or higher prices: Chipotle and Sweetgreen, for example, have bucked the consumer slowdown. Target vs. Walmart Target’s results on Wednesday revealed at least part of the reason why it is joining the race to cut prices. Sales of discretionary merchandise, such as clothing, dropped year over year. But so did sales of higher frequency items like groceries and paper towels. Some customers may be making those purchases at Walmart instead. Transactions on Walmart’s website and stores rose 3.8% in the most recent quarter, and its e-commerce purchases shot up by 22% in the U.S., the company reported last week. In an interview with CNBC, Walmart CFO John David Rainey said the company is gaining share from higher-income households. He added some consumers are coming to its stores for meals because of sticker shock at fast food chains. “We’ve got customers that are coming to us more frequently than they have before and newer customers that we haven’t traditionally had,” he said. On Target’s earnings call, analysts asked tough questions about whether the retailer is losing ground with shoppers or is seen as too pricey, outside of sales events. CEO Brian Cornell said Target is putting value front and center as it fights to get back to growth. “We want to make sure America knows that Target’s a great place to shop and we have great value every time you engage whether it’s in-store or through our digital channels,” he said, adding that the company is on track to reverse sales declines in the second quarter. When Target cuts prices, customers have noticed and responded, Hennington said on the earning call. For example, it noticed it didn’t have low-priced tech accessories that customers wanted, such as charging cables and phone cases, she said. Those items became part of Dealworthy, a new private brand launched in February that offers Target’s lowest prices on basic items like laundry detergent and paper plates. “When we introduced the right price points in Dealworthy, the guests noticed immediately and that drove unit and traffic acceleration in those categories and that’s what we’re doing business by business,” she said. It’ll soon run a similar play with seasonal items, she said. After Target “took a hard look at some of the most popular products from last year’s summer assortment,” customers can expect to see cheaper pool noodles, floats and coolers. — CNBC’s Amelia Lucas contributed to this report.
Prosecutor blasts Trump co-defendant's 'garbage argument' at heated hearing in classified documents case 2024-05-22 19:00:00+00:00 - FORT PIERCE, Fla. — A federal prosecutor on Wednesday angrily pushed back on allegations of vindictive prosecution and prosecutorial misconduct from one of former President Donald Trump's co-defendants in the classified documents case, calling some of the claims "garbage" and "a fantasy." “That was difficult to sit through,” prosecutor David Harbach said of lawyer Stanley Woodward’s arguments to U.S. District Judge Aileen Cannon that his client, Walt Nauta, had been indicted as retaliation for not cooperating with the government. "It's a garbage argument, to begin with," Harbach said, before pushing back on Woodward's claims that another prosecutor in special counsel Jack Smith's office had inappropriately sought to pressure Woodward by bringing up his application for a judgeship in Washington, D.C., during a meeting. The courthouse in Fort Pierce, Fla., where U.S. District Judge Aileen Cannon is holding hearings in the classified documents case against former President Donald Trump. Joe Raedle / Getty Images “Mr. Woodward’s story about what happened" at the August 2022 meeting between Woodward and prosecutor Jay Bratt "is a fantasy,” Harbach said. “It did not happen,” he said, adding that even if it did, it still would not meet the standard of a vindictive prosecution. Under questioning from Cannon, Harbach, who was not in the meeting, said Woodward’s alleged quotes from the meeting were “fragmentary” and “out of context.” Harbach seemed agitated throughout the back and forth, and at one point the judge interjected, “I’m going to ask that you calm down.” Woodward maintained that his account of the meeting was accurate. “Those things happened,” he said of his allegations. “What I understood at the time was Mr. Nauta’s refusal to cooperate could be used against him.” He told the judge he is prepared to take the witness stand and testify under oath about the meeting. Bratt was also in court for the hearing but did not address the judge during the morning hearing. Cannon held another hearing in the afternoon on a separate motion by Nauta seeking to dismiss the charges against all three defendants in the case — Trump, his valet Nauta and Carlos De Oliveira, a property manager at Trump's Mar-a-Lago estate — because of alleged procedural failures in the indictment. She did not rule on either motion. The case had been scheduled to go to trial on Monday, but Cannon, a Trump nominee, pushed the trial date back indefinitely earlier this month citing a “myriad” of legal issues she still has to sort through, including the motions to dismiss. Trump faces dozens of felony counts in the case, including willful retention of national defense information, false statements and representations, conspiracy to obstruct justice, withholding a document or record and corruptly concealing a document. Nauta and de Oliveira are charged with helping Trump hide the documents, making false statements to federal investigators about their involvement, and plotting to delete Mar-a-Lago security footage that had been subpoenaed by the Justice Department. All three have pleaded not guilty.