newsarticles.media: Financial News

Pentagon headhunting Goldman, JPMorgan bankers for â€Economic Defense Unit'

The Pentagon is building a new team of investment bankers steeped in private equity to invest $200 billion over three years in defense deals, aiming to counter China's rise, according to a document reviewed by Semafor. The Defense department is specifically going after Goldman Sachs, Morgan Stanley, JPMorgan, and Bank of America as prime recruiting targets for the 30-person team, the headhunter brief outlines, explaining that "this is not a career move, but a two-to-three-year secondment program." The document, prepared by search firm Heidrick & Struggles, pitches a chance to "serve your country" and deploy "more capital than most investors deploy in their entire careers" (and, ostensibly, an opportunity to sell a bunch of stock tax-deferred). Wall Street ... employs thousands of "coverage bankers" who stay close to companies in specific industries. Forming its own "Sponsor Coverage" unit inside the Pentagon would allow the defense department to have a team of its own bankers that service private-equity firms and pitch deals critical to national security, provide advice, and arrange loans. As part of the agency's pitch to lure more heavy hitters from Wall Street, it's deriding the "peak neoliberalism" of the 1990s that invited China into the global economic order, prioritized outsourcing, and, in the Pentagon's view, left the US vulnerable ... according to the document. "The mission: helping deter our largest adversary from gaining military superiority."

Note: For more along these lines, read our concise summaries of news articles on corruption in the financial industry and in the intelligence community.

Bank of England Warned to Prepare for Aliens Due to Imminent US 'Disclosure'

Helen McCaw, who served as a senior analyst in financial security at The Bank of England, sent a message to the bank with a significant alien warning. The short of it? McCaw wrote to Andrew Bailey, the bank's governor, urging him to prepare for the possibility that the United States, specifically the White House, may confirm the existence of extraterrestrial life. McCaw's overarching concern includes her belief that if the White House were to declare this, it would significantly impact the markets and could ignite bank collapses. She cited the United States appearing to be "partway through a multi-year process to declassify and disclose information" regarding alien life forms. "The United States government appears to be partway through a multi-year process to declassify and disclose information on the existence of a technologically advanced non-human intelligence responsible for Unidentified Anomalous Phenomena (UAPs)," she claimed. The longtime Bank of England employee expanded on the topic, discussing the possibility of a "power or intelligence greater than any government," referencing the "unknown intentions" that would come with it. McCaw added to her belief that the government's leadership and central banks may not be "properly briefed" on the topic of aliens or other life forms. McCaw also mentioned the chance of a "collapse in confidence," assuming people feel uncertain about the market and how to it.

Note: Our 26-minute video UFO Disclosure: Breakthrough Technology and Awakening Human Consciousness features interviews with leading experts along with well-sourced, verifiable information to help you make sense of this fascinating issue and its immense potential to transform our world. For more, explore the comprehensive resources provided in our UFO Information Center.

Jeffrey Epstein Pursued Swiss Rothschild Bank to Finance Israeli Cyberweapons Empire

On July 31, 2019, just eleven days before Jeffrey Epstein was found dead in a Manhattan jail cell, his connection to the Rothschild banking dynasty became the subject of major public controversy. Anonymous sources informed Bloomberg of a 2015 visit to Epstein's New York mansion by baroness Ariane de Rothschild, the CEO of Edmond de Rothschild Group, a storied private bank and one of the largest Swiss financial institutions by assets under management. Newly released documents reveal that Epstein and de Rothschild's personal relationship was much closer than the bank previously acknowledged. According to emails released by the U.S. House Oversight Committee on November 12, Epstein planned to see a Broadway play with de Rothschild in January 2014, and scheduled a private trip with her to Montreal. A second set of documents–the leaked inbox of former Israeli defense minister Ehud Barak ... sheds light on Epstein's efforts to leverage his personal friendship with de Rothschild to raise funds for the development of Israeli cyberweapons. It's not clear whether the Rothschild bank ultimately participated directly in Epstein and Barak's cyberweapons efforts–but in October 2015, de Rothschild negotiated a $25 million contract with Epstein's Southern Trust Company, the same entity Epstein used to fund Barak's intelligence-linked security startup Reporty Homeland Security (now known as Carbyne) earlier that year.

Note: Read more about the vast influence of the Rothschild empire. Israeli cyberweapons have been sold to the FBI and used against journalists and activists. For more along these lines, read our concise summaries of news articles on Jeffrey Epstein's crime ring.

At the Center of Trump's Vision for Rebuilding Ukraine: BlackRock

In mid-December, as negotiations to end Russia's war in Ukraine gathered pace, a group of Ukrainian officials sat in a conference room in New York for a meeting with senior executives at BlackRock, the world's largest asset manager. They had come to discuss a crucial element of a peace plan drafted by Kyiv and Washington: Ukraine's postwar recovery. BlackRock had been enlisted to help build a strategy for what President Volodymyr Zelensky has called an $800 billion "prosperity plan." The meeting, held at BlackRock's headquarters, kick-started work on identifying funding sources and investment priorities. BlackRock's role has generated more questions than answers, as the Trump administration steers plans for rebuilding Ukraine toward American business interests. Seven European and Ukrainian officials ... voiced doubts about BlackRock's ability to attract the enormous investments envisioned. The involvement in the talks of a private firm whose main business is to maximize financial returns has reinforced concerns that the Trump administration views Ukraine's reconstruction as a profit-making opportunity for the U.S. government and American companies, rather than as primarily a humanitarian or security matter. Last year, President Trump pushed for a deal granting the United States a stake in Ukraine's mineral wealth. In peace talks with Kyiv, the president's main negotiators have been real estate developers.

Note: First, Blackrock buys up government bonds used to finance military spending, meaning it directly profits from the debt created by war itself. Then, after the war, Blackrock is set to profit again – this time from reconstruction contracts, land grabs, and privatization efforts. Read about this and more with our Substack, Working Together To End the War On Peace in Ukraine, which challenges the dominant narrative on the Ukraine war, arguing that US and NATO policies, covert intelligence agency operations, media censorship, and corporate profiteering have fueled the conflict while blocking genuine peace efforts.

Who Is Andrew Farkas, Who Owned a Marina With Jeffrey Epstein?

Few people wield more power in New York City real estate than Andrew Farkas. Mr. Farkas, 65, is the founder of Island Capital, a merchant bank, and has also been a powerful political benefactor, especially to former Gov. Andrew M. Cuomo, to whom he has donated millions and whom he employed in a lucrative role when Mr. Cuomo was out of office. He is also friendly with President Trump and has invested in projects of Jared Kushner, the president's son-in-law. But a 127-slip marina he owned in the U.S. Virgin Islands has put the billionaire real estate investor in a new and troubling spotlight. His co-owner was Jeffrey Epstein, whose private island served as the grim center of a sex-trafficking operation that was just a few miles south of the marina. Mr. Farkas's name appears in Mr. Epstein's personal emails. Mr. Epstein and Mr. Farkas had regular phone calls. Sometimes they met in person for breakfast in New York. And on one occasion, Mr. Epstein even offered the use of Mr. Farkas's plane to visitors in need. Mr. Epstein's stake in the marina was essentially unknown until 2018, when Jennifer Doelling, the chief financial officer of Island Global Yachting, revealed it during a deposition for a tax audit lawsuit. Mr. Epstein was first charged, on a single count of prostitution, in 2006, one year before the marina deal became final, although allegations had been swirling for years. The victim in the charge had been as young as 14 years old.

Note: Read our comprehensive Substack investigation covering the connection between Jeffrey Epstein's child sex trafficking ring and intelligence agency sexual blackmail operations. For more, read our concise summaries of news articles on Epstein's criminal enterprise.

These Apps Let You Bet on Deportations and Famine. Mainstream Media Is Eating It Up.

The 2018 legalization of sports betting gave rise to a host of apps making it ever easier to gamble on games. Kalshi and Polymarket offer that service, but also much more. They'll take your bets, for instance, on the presidential and midterm elections, the next Israeli bombing campaign, or whether Jeff Bezos or Mark Zuckerberg will get divorced. Tarek Mansour, the CEO of Kalshi, laid it out simply at a conference held by Citadel Securities in October. "The long-term vision," Mansour said, "is to financialize everything and create a tradable asset out of any difference in opinion." It's as dystopian as it sounds. Betting apps have at times delivered better accuracy than polling results. For example, while pollsters clocked last year's presidential race as deadlocked in the days before the election, Polymarket gave Trump an edge at 58 percent. But whether they are consistently better is a whole other story. Consider the 2022 midterm elections: Up until election night, the major prediction markets "failed spectacularly" and "projected outcomes for key races that turned out to be completely wrong," according to one expert analysis. Prediction markets are also more prone to manipulation than they'd have you believe. And this can give deep-pocketed political actors another vessel for information warfare. Kalshi was even embroiled in a legal battle with federal regulators as recently as this summer for this very reason.

Note: For more along these lines, read our concise summaries of news articles on Big Tech and financial industry corruption.

Corruption of U.S. Justice Department and the Two-Tiered Justice System: The Case of Whistleblower Bradley Birkenfeld

Bradley Birkenfeld is a former Swiss banker who helped the Internal Revenue Service (IRS) recoup billions of dollars in tax revenues after exposing the largest tax fraud in U.S. history. Yet it was Birkenfeld who served 40 months at the Schuylkill Federal Correctional Institution in Minersville, Pennsylvania, while his bosses who orchestrated the fraud and the wealthy investors who cheated the U.S. government never faced any jail time. Birkenfeld's boss, Christian Bovay, conceived the scam that Birkenfeld participated in by which UBS would charge a three percent management fee to its wealthy clients in exchange for helping them to evade paying taxes by placing it securely in one of the bank's secret off-shore accounts. Birkenfeld would make clients more money by investing, often in weapons manufacturers. Then when the clients needed their money, UBS would lend it back at a reasonable interest rate. Birkenfeld wrote in Lucifer's Banker that "UBS was making a fee for holding the guy's cash in the first place, then making another fee for loaning him his own damn money! And guess what? That guy's happy! He's getting his deal done, and he's still doing it with tax-free cash! I couldn't believe it, and you know what? It worked, over and over again." On October 5, 2005, Birkenfeld resigned from UBS and became an internal whistleblower. After a company review of its malpractice turned into a whitewash, Birkenfeld sued UBS.

Note: For more along these lines, read our concise summaries of news articles on corruption in the court system and in the banking industry.

Ellen Brown: How a Fed Overhaul Could Eliminate the Federal Debt Crisis, Part I: The Fed's Hidden Drain

The Federal Reserve's independence is currently being challenged by political forces seeking to reshape its mandate. Its independence was formalized only in 1951, with a Treasury-Federal Reserve Accord that was not a law but a policy agreement redefining the relationship of the parties. In the 1930s and 1940s, before the Fed officially became "independent," it worked with the federal government to fund the most productive period in our country's history. [A] little-known Fed policy called Interest on Reserves ... costs taxpayers $186 billion annually by paying banks a hefty interest to hold their reserves at the Fed. By eliminating IOR, the Administration could not only save this $186 billion but would release the $3.3 trillion now sitting idle in reserve accounts to other investments, most likely Treasuries, where banks could get a comparable safe return. The result would be not only to restore Fed profits to the Treasury but to lower federal borrowing costs. The Fed says it needs IOR as a tool to control short-term interest rates. By paying substantial interest on reserves, the Fed ensures that banks don't flood markets with cash by over-lending. But the Fed managed rates through open market operations before 2008 without IOR, showing it is not essential; and it is a very costly tool. In 2021, Fed remittances to the Treasury totaled $79 billion. In 2023, high IOR costs led to Fed losses of $114.3 billion. This not only halted remittances to the Treasury entirely, it created a net deficit to the Fed.

Note: For more along these lines, read our concise summaries of news articles on financial system corruption.

Private Equity Delivers Consistently Poor Health Outcomes

Emergency rooms, dentist offices, and nursing homes managed by the private equity industry consistently deliver worse health outcomes than other such medical institutions. The difference can mean life or death for patients. A new Harvard Medical School study of more than one million Medicare ER visits found that patient death rates are 13 percent higher in private equity–owned ERs than their counterparts, likely thanks to staffing and salary cuts. On average, private equity–owned hospitals reduce hospital staffing by more than 11 percent and pay ER staffers 18 percent less than non-private equity hospitals. Private equity–backed dental groups have been found to perform medically unnecessary and painful procedures. One firm allegedly extracted healthy teeth from patients to charge them for expensive dental implants, while another performed root canals on the baby teeth of children as young as three. A study of more than 662,000 Medicare hospitalizations in private equity–owned facilities saw 25 percent more hospital-acquired complications, including falls and surgical site infections, compared to other hospitals. Medicare patients in private equity–backed nursing homes suffered an 11 percent higher short-term mortality rate than those in non-private equity–backed facilities between 2004 and 2019, resulting in 22,500 additional deaths. Nursing homes linked to private equity tend to underperform in terms of patient mobility and reported pain levels.

Note: For more along these lines, read our concise summaries of news articles on health and financial system corruption.

Jeffrey Epstein was linked to the upper echelons of wealth and politics – but where did he get his fortune?

Jeffrey Epstein was a very wealthy man, but exactly how wealthy and where that money came from remains shrouded in mystery. Newly unearthed emails last week shone light on Epstein's role as freelance client development officer, acting as a channel between political figures and business titans, greasing up the former with lifestyles they could not afford and the latter with avenues of political influence. Figures in Epstein's network of billionaires, politicians, celebrities, royalty and intellectuals were assembled into schemes of influence. The spheres of influence Epstein created, emails showed, relied simultaneously on access and gifts Between his collection of lavish homes in New York, Palm Beach and Paris, two private Caribbean islands, two jets and helicopter, Epstein held nearly $380m in cash and investments, according to his estate. That wealth arrived suddenly. Until the end of the 90s, Epstein was living in a two-bedroom apartment on Manhattan's Upper East Side close to the river. It was only when Maxwell arrived from London that his lifestyle was dramatically elevated. Epstein moved to a townhouse on 68th Street and later to a 28,000-sq-ft mansion on 71st Street, later transferred to him by Wexner in 2011. Steven Hoffenberg, a former business partner of Epstein convicted of running a Ponzi scheme, claimed that Maxwell's father, the disgraced press baron Robert Maxwell, introduced his daughter to Epstein in the late 1980s. A 2022 Miami Herald exposĂ© showed complex Maxwell family transactions passing through companies in Jersey, the British Virgin Islands and Panama that it called "a decades-long modus operandi of financial deception".

Note: There is significant evidence suggesting that Robert Maxwell was a superspy for Mossad, Israel's intelligence and covert operations unit. US attorney Alexander Acosta was once told Epstein "belonged to intelligence, and to leave it alone." Read our comprehensive Substack investigation covering the connection between Epstein's child sex trafficking ring and intelligence agency sexual blackmail operations.

How JPMorgan Enabled the Crimes of Jeffrey Epstein

Jeffrey Epstein ... helped JPMorgan orchestrate an important acquisition. He introduced executives to men who would become lucrative clients, like the Google co-founder Sergey Brin, and to global leaders, like Prime Minister Benjamin Netanyahu of Israel. At Epstein's behest, JPMorgan set up accounts – into which he routinely transferred huge sums – for young women who turned out to be victims of his sex-trafficking operations. It wired his funds overseas. It even paid him millions of dollars. But in the summer of 2019, Epstein was arrested. Federal prosecutors charged him with sex trafficking. JPMorgan went into damage-control mode. It filed a report with federal regulators that retroactively flagged as suspicious some 4,700 Epstein transactions – totaling more than $1.1 billion and including hundreds of millions of dollars in payments to Russian banks and young Eastern European women who were brought to the United States. Banks are required to file such reports in real time to alert law enforcement to things like money laundering, sex trafficking and drug dealing. Doing it after the fact might have provided JPMorgan with legal cover, but it did nothing to help identify Epstein's crimes as they were happening. The fallout for JPMorgan has been limited. In 2023, it paid $290 million to settle a lawsuit brought by roughly 200 of Epstein's victims and an additional $75 million to resolve related litigation brought by the U.S. Virgin Islands.

Note: This article is also available here. According to a Guardian article, "Epstein introduced [JPMorgan] bank executives to some figures who would become clients, including the Google co-founder Sergey Brin, and to global leaders, such as the Israeli prime minister, Benjamin Netanyahu, Bill Gates, Elon Musk and the Emirati billionaire Sultan Ahmed bin Sulayem." Read our comprehensive Substack investigation covering the connection between Epstein's child sex trafficking ring and intelligence agency sexual blackmail operations.

Here's what happens when private equity buys homes in your neighborhood

Erb and his cousin raised money from investors, bought homes in places like the Chatham-Arch neighborhood in Indianapolis ... and rented them out. He was not the first New York finance person to profit from single-family rentals across the United States. The private equity firm Blackstone (commonly confused with BlackRock) more or less invented this buy-to-rent strategy in 2012. It's now a public company valued at more than $18 billion. The response to this development – of Wall Street buying Main Street ... has been bipartisan, populist and patriotic condemnation. Both JD Vance and Kamala Harris called for bans on these corporate landlords. Homeownership has been a primary way that middle-class families build wealth. But now private equity was outbidding aspiring homeowners, making it more expensive to buy a home and pocketing the appreciation in home values. During the Great Recession ... the U.S. had a glut of single-family homes in foreclosure. Many were auctioned off en masse, including by the federal government, which organized auctions for investors like Blackstone and even provided a $1 billion loan guarantee to encourage Blackstone to buy. This allowed private equity firms (which raise money from wealthy families, pension funds and other organizations to seek out profits, often by buying private companies) and real estate investors to efficiently and cheaply buy, say, a dozen similar homes located in the same Phoenix suburb.

Note: For more along these lines, read our concise summaries of news articles on financial inequality and financial system corruption.

Private-equity backed prison health companies continue despite decade of alleged constitutional violations

Staff at a Santa Barbara county jail heard screams coming from one of the cells. A 57-year-old inmate was moaning and hyperventilating. Rather than sending her to the ER, medical staff chalked her pain up to opioid withdrawal, since they had taken a prescription opioid away upon her arrival days before, a grand jury investigation later found. They placed the inmate – referred to as CF in the grand jury's report – on mental health observation. The grand jury determined that CF's stomach had perforated days before her excruciating death. CF would have had a 90% chance of survival if she had received immediate treatment. Wellpath, one of the nation's leading health providers to prisons and jails, was the contractor responsible for healthcare at Santa Barbara county's Northern Branch jail, where CF died. The grand jury's report is the latest in over a decade of government investigations into two behemoths in the prison health industry – Wellpath and Corizon – which are both backed by private equity investors. Both Corizon and Wellpath continued to contract with jails, prisons, immigration and juvenile detention centers around the country until they faced so much liability ... that both landed in bankruptcy court over the last two years. Both companies were still operating in some form while restructuring in Chapter 11 bankruptcy proceedings, and had reorganization plans confirmed in bankruptcy court this year that allowed them to ... continue their prison contracts.

Note: According to this Guardian article, "More and more people, especially the relatively poor, may live almost their entire lives in systems owned by one or another private equity firm: financiers are their landlords, their electricity providers, their ride to work, their employers, their doctors, their debt collectors." For more along these lines, read our concise summaries of news articles on corruption in prisons and in the financial system.

New Senate Report Details How Private Equity 'Devastates' Hospital Systems

A US senator on Wednesday released a report that detailed how private equity firms have ruined hospitals in his home state and across the country. The report from Sen. Chris Murphy (D-Conn.) documented what happened when three Connecticut hospitals–Waterbury Hospital, Rockville General, and Manchester Memorial–were bought by Prospect Medical Holdings, a private equity-backed healthcare firm. Ramona, an operating room assistant at Waterbury Hospital cited in the report, explained how Prospect went to extreme lengths to avoid spending money. She explained to Murphy that Prospect at one point stopped paying vendors, which resulted in supplies eventually growing "so scarce patients were sometimes left on the operating table while staff scrambled" to find the necessary equipment. Staff members eventually started buying supplies themselves, with some even going so far as to buy food for their patients to ensure that they did not go hungry. Prospect didn't just skimp on buying supplies for the hospitals but also on maintaining the buildings themselves. A unit secretary at Waterbury Hospital named Carmen told Murphy's staff of two instances where the ceiling at the building literally fell down due to years of neglect. Murphy's report also emphasized that the story of private equity stripping hospitals for parts is not unique to his state. "The story of these three Connecticut hospitals is playing out in healthcare systems all over the country," it said.

Slash and burn: is private equity out of control?

Preschools and funeral homes, car washes and copper mines, dermatologists and datacentres – private equity is anywhere and everywhere that money changes hands. If it can in any way be marketed or monetised, private equity firms have bought it. By some estimates, these firms now control more than $13tn invested in more than 50,000 companies worldwide. "We cannot overestimate the reach of private equity across the global economy," Sachin Khajuria, a former partner at Apollo Global Management, which manages half a trillion dollars in assets, wrote in 2022. More and more people, especially the relatively poor, may live almost their entire lives in systems owned by one or another private equity firm: financiers are their landlords, their electricity providers, their ride to work, their employers, their doctors, their debt collectors. Private equity firms and related asset managers "increasingly own the physical as well as financial world around us," the scholar Brett Christophers writes. "All of our lives are now part of their investment portfolios." In order to drive up profits, private equity-controlled dental chains have induced children to undergo multiple unnecessary root canals. One child even died as a result. Some of the most heinous accounts have come from private equity-owned treatment centres for young people with behavioural problems, where children have been physically abused, raped and killed. These cases are extreme, but they are not isolated.

Note: BlackRock and Vanguard manage over $11 trillion and $8 trillion respectively–an unprecedented concentration of financial power. We hear outrage about billionaires and oligarchs, but rarely about private equity firms, who are backed by both political parties and are drastically reshaping our economy, contributing to environmental destruction, and extracting wealth from communities in the US and all over the world. For more along these lines, read our concise summaries of financial inequality and financial industry corruption.

Private Equity Wants Your Teeth

In the last decade, private equity firms have been quietly taking control of dental care from behind the scenes, largely through secondary business organizations that push dental practices to cut costs and, in some cases, encourage unnecessary and irreversible dental procedures. In 2024, the dental industry witnessed 161 private equity deals – the highest number of any health care industry, as tracked by the watchdog organization, Private Equity Stakeholder Project. The data reveals that these investment firms are increasingly acquiring dental practices or inserting themselves into clinic management roles, where they then cut corners on patient care. The dental industry is an especially alluring target for private equity firms because it's comprised of thousands of independent clinics, offering investors a fragmented industry to consolidate and streamline. Between 2011 and 2019, private equity firms bought up $4.4 billion worth of dental practices. Dentists at ClearChoice Dental Implant Centers – a dental chain owned by Aspen Dental, one of the largest dental service organizations – were allegedly extracting healthy teeth from patients and replacing them with expensive implants. Experts have warned in various lawsuits against the implant center that this irreversible procedure exposes patients to excessive costs and surgery complications, plus a greater risk of future dental problems like infections and bone loss.

Note: BlackRock and Vanguard manage over $11 trillion and $8 trillion respectively–an unprecedented concentration of financial power. We hear outrage about billionaires and oligarchs, but rarely about private equity firms, who are backed by both political parties and are drastically reshaping our economy, contributing to environmental destruction, and extracting wealth from communities in the US and all over the world. For more along these lines, read our concise summaries of news articles on health and financial industry corruption.

Private equity in health care puts patients' lives in danger, studies show

Private equity firms claim their investments in U.S. health care modernize operations and improve efficiency, helping to rescue failing healthcare systems and support practitioners. But recent studies build on mounting evidence that suggests these for-profit deals lead to more patient deaths and complications, among other adverse health outcomes. Recent studies show private equity (PE) ownership across a wide range of medical sectors leads to: Poorer medical outcomes, including increased deaths, higher rates of complications, more hospital-acquired infections, and higher readmission rates; Staffing problems, with frequent turnover and cuts to nursing staff or experienced physicians that can lead to shorter clinical visits and longer wait times, misdiagnoses, unnecessary care, and treatment delays; Less access to care and higher prices, including the withdrawal of health care providers from rural and low-income areas, and the closure of unprofitable but essential services such as labor and delivery, psychiatric care, and trauma units. Economist Atul Gupta showed in 2021 that private equity acquisitions of U.S. nursing homes over a 12-year period increased deaths among residents by 10%–the equivalent of an additional 20,150 lives lost. Patients treated at PE-owned facilities, whose numbers have skyrocketed, continue to experience worse or mixed outcomes–from higher mortality rates to lower satisfaction–compared to those treated elsewhere.

Note: BlackRock and Vanguard manage over $11 trillion and $8 trillion respectively–an unprecedented concentration of financial power. We hear outrage about billionaires and oligarchs, but rarely about private equity firms, who are backed by both political parties and are drastically reshaping our economy, contributing to environmental destruction, and extracting wealth from communities in the US and all over the world. For more along these lines, read our concise summaries of news articles on health and financial industry corruption.

How TD Became America's Most Convenient Bank for Money Launderers

Da Ying "David" Sze walked out of a four-story concrete warehouse in Queens, New York, carrying several bags full of money. Federal agents had been surveilling him for months. They suspected him of leading a gang of money launderers whose clients included Chinese fentanyl dealers. Most of that business had been conducted at one institution: TD Bank. When investigators looked closer at the bank, they realized Sze wasn't the only criminal who'd made TD their depository of choice. There was the group from Manhattan's Diamond District using bogus gold sales to launder money. The Colombian drug traffickers using TD debit cards to bring their US profits back home. And the human trafficking ring that claimed to be an HVAC company when it opened an account. The more investigators looked at TD, the more money laundering they found. Last year, TD's American subsidiary became the first US bank ever to plead guilty to conspiracy to commit money laundering. The company agreed to pay $3.1 billion in fines to various parts of the federal government, a sum that included the biggest penalty ever levied by the Department of Justice under the Bank Secrecy Act, the main US anti-money-laundering law. More than two dozen people, including three bank employees, have already been charged. US authorities have also imposed an asset cap on TD's American retail operations, limiting their size indefinitely. This is among the most feared punishments in banking.

Note: Read our Substack on the dark truth about the war on drugs. For more along these lines, read our concise summaries of news articles on financial industry corruption and the war on drugs.

Economic inequality increases risk of civil war, says study

If economic inequality increases within a country, the risk of civil war breaking out grows. This is the finding from a study by the Chair of Economic History at the University of TĂĽbingen. The study has been published in the Review of Income and Wealth. The calculations revealed a statistically significant connection between unequal distribution of income and the outbreak of civil wars. The results can be verified using historical events: for example, land was extremely unequally distributed in Russia before the October revolution of 1917–and this critically contributed to the outbreak of revolution and civil war, a marker that was also identified by the new benchmark with a correspondingly high probability. The new benchmark also makes it possible to predict the risk of civil war today: "In the U.S. the inequality in income distribution has risen sharply in the past 30 years. Accordingly, the risk of a civil war in the U.S. has risen drastically from 10% to 21%," says Baten. In Great Britain, China, India and Russia too, inequality has risen greatly in the same period. "We've checked what influence other variables had on the outbreak of civil wars," says Laura Radatz, co-author of the study. "For instance, the size of a country and its population naturally increase the probability that a civil war will break out somewhere in this country." The amount of economic growth in a country does not measurably influence the risk of a civil war, according to the study.

Note: For more along these lines, read our concise summaries of news articles on financial inequality.

How Corporations Can Block Abundance

Even when the economy appears to be booming, millions struggle to stay afloat. In a recent poll from Demand Progress, 81.6 percent of voters surveyed said they want leaders who break up monopolies, compared to just 47.3 percent who prioritize cutting government red tape. This poll suggests that the public supports a populist approach that confronts corporate power more than an abundance agenda that sidesteps it. It reflects a growing recognition: while bureaucratic inefficiencies certainly exist, corporations are blocking our abundance because scarcity is profitable. The scarcity that so many Americans feel in their daily lives is not by accident, it's by design. Companies block abundance by strategically reducing output and access to goods and services. Artificial scarcity is a business strategy. One that prioritizes profit maximization over widespread availability, ensuring that demand consistently outstrips supply. This deliberate restriction allows companies to command higher prices. Concentration makes it easier to manufacture scarcity. When a few large players dominate the market, they can manipulate the fundamental dynamics of supply and demand and charge high economic rents. This is made possible by an economic and political system that corporations have spent decades reshaping to suit their needs. As a result, we live in an economy that has quietly redefined freedom as the power of the wealthy to set the terms for the rest.

Note: For more along these lines, read our concise summaries of news articles on corporate corruption and financial inequality.

How Private Equity Killed the American Dream

In her new book, Bad Company: Private Equity and the Death of the American Dream, journalist and WIRED alum Megan Greenwell chronicles the devastating impacts of one of the most powerful yet poorly understood forces in modern American capitalism. Flush with cash, largely unregulated, and relentlessly focused on profit, private equity firms have quietly reshaped the US economy, taking over large chunks of industries ranging from health care to retail–often leaving financial ruin in their wake. Twelve million people in the US now work for companies owned by private equity, Greenwell writes, or about 8 percent of the total employed population. It is very hard for private equity firms to lose money on deals. They're getting a 2 percent management fee, even if they're running the company into the ground. They're also able to pull off all these tricks, like selling off the company's real estate and then charging the company rent on the same land it used to own. When private equity firms take out loans to buy companies, the debt from those loans is assigned not to the private equity firm but to the portfolio company. It is just not about improving the company at all. It is about, how do we extract money? There was a huge expansion of private equity in the 2010s for the same reason that venture capital exploded: There was a lot of cheap money out there, and cheap money is great for investors.

Note: For more along these lines, read our concise summaries of news articles on financial industry corruption.

Madrid's Biggest Landlord? U.S. Investment Firms

A few dozen people gathered inside a graffiti-clad building in the Carabanchel district of Madrid. They had come to commiserate about the American investment banks and private equity funds that controlled their homes. Some at this meeting of the Sindicato de Vivienda de Carabanchel (the Carabanchel Housing Union) were fighting eviction orders or skyrocketing rents. Others had lost their homes through mortgage foreclosures. One attendee, Elsa Riquelme, described her yearslong battle to stay in the 600-square-foot apartment where she raised her three sons, which is now owned by Blackstone, the world's largest private equity firm. Over the past decade, Blackstone has become Madrid's largest private owner of residential real estate, and the second largest in all of Spain. Ms. Riquelme's apartment is one of 13,000 that Blackstone currently owns in Madrid, and among 19,600 it owns nationwide. Across Spain, around 185,000 rental properties are now owned by large corporations, half of those by firms based in the United States. Rental prices have increased 57 percent since 2015 and home prices 47 percent ... even as more than 4 million homes sit empty. After the pandemic pushed Spain's unemployment rate up to 15 percent, evictions nationwide spiked. In Madrid, tenant groups estimate that 20,000 renters in the city currently face the threat of eviction. These days, just 2 percent of Spanish homes available for rent are public housing. In France it's 14 percent; in the Netherlands it's 34 percent.

Note: This article is also available here. For more along these lines, read our concise summaries of news articles on corporate corruption and financial inequality.

BlackRock accused of contributing to climate and human rights abuses

BlackRock, the world's biggest asset management company, faces a complaint at the Organization for Economic Co-operation and Development (OECD) for allegedly contributing to environmental and human rights abuses around the world through its investments in agribusiness. Friends of the Earth US and the Articulation of Indigenous Peoples of Brazil accuse BlackRock of increasing investments in companies that have been implicated in the devastation of the Amazon and other major forests despite warnings that this is destabilising the global climate, damaging ecosystems and violating the rights of traditional communities. The influence of BlackRock is enormous. It manages more than $11tn in assets, more than the combined government spending of the world's 10 wealthiest countries. To support their complaint, Friends of the Earth investigated publicly available data on BlackRock's shareholdings ... in 20 agribusiness companies that have been implicated in environmental and human rights abuses, operating in the palm oil, pulp/paper, soy, cattle, timber and biomass sectors. It found BlackRock has more than $5bn invested in these companies, an increase since 2019 of $519m. In each of the companies is it a top 10 shareholder. Conservation organisations and Indigenous peoples have repeatedly asked BlackRock to stop financing companies that deforest the Amazon and violate communities' land rights.

Note: For more along these lines, read our concise summaries of news articles on financial industry corruption and environmental destruction.

How BlackRock's CEO Gets Paid Is Anyone's Guess

BlackRock Inc.'s annual proxy statement devotes more than 50 pages to executive pay. How many of those are useful in understanding why Chief Executive Officer Larry Fink was compensated to the tune of $37 million for 2024? Not enough. The asset manager's latest remuneration report has heightened significance because BlackRock's shareholders delivered a rare and large protest vote against its pay framework at last year's annual meeting. That followed recommendations ... to withhold support for the so-called say-on-pay motion. In the wake of the rebuke, a board committee responsible for pay and perks took to the phones and hit the road to hear shareholders' gripes. Investors wanted more explanation of how the committee members used their considerable discretion in arriving at awards. There was also an aversion to one-time bonuses absent tough conditions. Incentive pay is 50% tied to BlackRock's financial performance, with the remainder split equally between objectives for "business strength" and "organizational strength." That financial piece was previously described using a non-exhaustive list of seven financial metrics. Now there are eight, gathered under three priorities: "drive shareholder value creation," "accelerate organic revenue growth" and "enhance operating leverage." There's no weighting given to the three financial priorities. The pay committee says Fink "far exceeded" expectations, but those expectations weren't quantified.

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Former Bush Housing Official Claims Government Has Spent $21 Trillion Building an Underground Doomsday 'Base'

A former housing official who worked under President George H. W. Bush has made an astonishing claim that the U.S. government spent years funneling money into the creation of a secret underground "city" where the rich and powerful can shelter in the event of a "near-extinction event." Catherine Austin Fitts ... served as the assistant secretary of Housing and Urban Development for Housing between 1989 and 1990. Fitts ... cited research by Michigan State University economist Mark Skidmore, who released a report in 2017 stating that he and a team of scholars had uncovered $21 trillion in "unauthorized spending in the departments of Defense and Housing and Urban Development for the years 1998-2015." According to Fitts, who worked as an investment banker before joining Bush's administration, that money was used to fund the development of what she described as an "underground base, city infrastructure and transportation system" that has been kept hidden from the public. She [said] that she spent two years researching where the $21 trillion had gone, alleging that she uncovered evidence that there are 170 secret facilities in the U.S. alone, explaining that she and a team of investigators combed through "all the data and all the allegations on underground bases" in order to make a "guess" as to how many might exist. Additionally, Fitts alleged that several of these bases are located beneath oceans–not just underground.

Note: Read more about the groundbreaking work of Mark Skidmore and Catherine Austin Fitts. For more along these lines, read our concise summaries of news articles on military corruption and government waste.

Jeffrey Epstein Exploited the U.S. Virgin Islands for a Reason

I had to pay a student to go island hopping to find basic records in the U.S. Virgin Islands. The territory's opaque laws and corruption makes it a haven for misdeeds. Albert Bryan Jr., the current governor, used his position to curry favor for Jeffrey Epstein for years. He helped bestow tax exemptions on Epstein's shadowy businesses and pushed for waivers allowing the former financier to dodge USVI sex offender laws. Bryan, whose hand-selected Attorney General swiftly ended the J.P. Morgan lawsuit that revealed a gusher of damning documents about Epstein's network, is now tapping Epstein victim settlement funds ... to pay for various earmarks and unrelated government debts. Former Attorney General Denise George led a series of lawsuits against Epstein's estate and former associates. Bryan fired her. In 2024, Bryan named a new Attorney General–none other than Gordon Rhea, a private practice attorney who previously defended Richard Kahn during the Epstein estate lawsuit. Not long ago, Kahn and Indyke were described by the U.S. Virgin Islands as "indispensable captains" of Epstein's alleged criminal human trafficking enterprise. We still have many unanswered questions. Why did U.S. Virgin Islands police and customs agents never act to protect the young girls they saw taken to Epstein's islands? What is clear, however, is that an attorney who worked to protect Epstein's estate is now the chief law enforcement officer of the U.S. Virgin Islands.

Note: Read our comprehensive Substack investigation covering the connection between Epstein's child sex trafficking ring and intelligence agency sexual blackmail operations. For more along these lines, read our concise summaries of news articles on government corruption and Jeffrey Epstein's child sex trafficking ring.

Jeffrey Epstein Invested With Peter Thiel, and His Estate Is Reaping Millions

Jeffrey Epstein, the registered sex offender, met with many powerful people in finance and business during his career, but the financier invested with only a few of them. One of those people was Peter Thiel, the Silicon Valley billionaire. In 2015 and 2016, Mr. Epstein put $40 million into two funds managed by Valar Ventures, a New York firm that was co-founded by Mr. Thiel. Today that investment is worth nearly $170 million. The investment in Valar, which specializes in providing start-up capital to financial services tech companies, is the largest asset still held by Mr. Epstein's estate. There's a good chance much of the windfall will not go to any of the roughly 200 victims whom the disgraced financier abused when they were teenagers or young women. Those victims have already received monetary settlements from the estate, which required them to sign broad releases that gave up the right to bring future claims against it or individuals associated with it. The money is more likely to be distributed to one of Mr. Epstein's former girlfriends and two of his long-term advisers, who have been named the beneficiaries of his estate. Just one major federal civil lawsuit remains pending against the executors of the estate, a potential class action filed on behalf victims who haven't yet settled with the estate. In the past, victims have received settlements ranging from $500,000 to $2 million.

Note: Read our comprehensive Substack investigation covering the connection between Epstein's child sex trafficking ring and intelligence agency sexual blackmail operations. For more along these lines, read our concise summaries of news articles on Big Tech and Jeffrey Epstein's child sex trafficking ring.

Ex-JPMorgan banker claims Jeffrey Epstein knew more about â€upper levels' of bank than he did

An ex-JPMorgan Chase executive testified in London court that Jeffrey Epstein knew more about what was going on at the top levels of the bank than he did. Jes Staley – who went on to become chief executive of Barclays following his stint at JPMorgan – claimed that Epstein, the convicted child sex offender and disgraced financier who died in prison in 2019, had a "remarkable ability" to gather Wall Street intel. "Mr. Epstein was also well connected within the upper levels of JPMorgan itself," Staley said during his second day in the witness box as he appealed a proposed ban and $2.3 million fine from London's financial regulatory agency. "He seemed to be aware of things relating to the bank, that I was not aware of," Staley added. Staley – who is attempting to overturn a lifetime ban that the Financial Conduct Authority announced in 2023 – acknowledged his relationship with Epstein went beyond work. In 2000, JPMorgan's then-chief executive Douglas "Sandy" Warner told Staley he should get to know Epstein, Staley claimed in his witness statement. "Sandy Warner recommended that I should become acquainted with Mr. Epstein because he was an exceptionally well connected man who could help me, in my capacity at JPM, to form business relationships with influential and other well connected individuals," he said. Staley claimed he was not the only high-level figure at JPMorgan in touch with Epstein.

Note: For more along these lines, read our concise summaries of news articles on financial system corruption and Jeffrey Epstein's child sex and blackmail ring.

Wyden releases findings on financier's ties to Jeffrey Epstein, asks Trump admin for docs

Senator Ron Wyden (D-OR) is releasing new information on a financier's ties to Jeffrey Epstein's operations, the ranking member of the Senate Finance Committee announced. Since 2022, the committee has been investigating billionaire financier Leon Black – who co-founded and previously led asset management firm Apollo Global Management as CEO and has made payments to Epstein. Wyden is calling on the Department of Justice, the Treasury and the Federal Bureau of Investigation to "lift the veil" on financial support for Epstein. Wyden sent a letter to the federal agencies, providing the new findings from the committee's investigation, which is looking into payments of at least $158 million from Black to Epstein for "purported tax and estate planning advice." Wyden says the investigation led to new evidence through federal government records that show funds from Black to Epstein were used to finance Epstein's sex trafficking operations. The Finance Committee also obtained a 2023 settlement agreement between Black and the Attorney General of the U.S. Virgin Islands. Under the $62 million settlement, Black gained immunity from criminal prosecution in the USVI for financially supporting Epstein, according to Wyden, noting the settlement acknowledges "Jeffrey Epstein used the money Black paid him to partially fund his operations." A major U.S. bank waited seven years to report Black's payments to Epstein to the Treasury Department.

Note: For more along these lines, read our concise summaries of news articles on financial system corruption and Jeffrey Epstein's child sex and blackmail ring.

Buy, Borrow, Die: How to be a billionaire and pay no taxes

A three-step process called "Buy, Borrow, Die" ... allows people to amass a huge fortune, spend as much of it as they want, and pass the rest–untaxed–on to their heirs. The technique is so cleverly designed that the standard wish list of progressive tax reforms would leave it completely intact. The ... wealth [of the superrich] consists almost entirely of stock in the companies they've built or invested in. Instead of selling their assets to make major purchases, the superrich can use them as collateral to secure loans, which, because they must eventually be repaid, are also not considered taxable income. You might think this couldn't possibly go on forever. Eventually, the rich will need to sell off some of their assets to pay back the loan. That brings us to step three: die. According to a provision of the tax code known as "stepped-up basis"–or, more evocatively, the "angel of death" loophole–when an individual dies, the value that their assets gained during their lifetime becomes immune to taxation. Those assets can then be sold by the billionaire's heirs to pay off any outstanding loans without them having to worry about taxes. All of this is completely, perfectly legal. The strategy has basically killed the entire concept of an income tax for the wealthiest individuals. The result is a two-tiered tax system: one for the many, who earn their income through wages and pay taxes, and another for the few, who accumulate wealth through paper assets and largely do not pay taxes.

Note: Average individuals also pay more in taxes than major corporations. For more along these lines, read our concise summaries of news articles on financial inequality.

newsarticles.media: Financial News

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