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Biden Strikes to Finish Justice Contracts with Personal Prisons

WASHINGTON – President Biden signed an executive order on Tuesday to terminate the Department of Justice’s contracts with private prisons and step up government enforcement of a law to combat discrimination in the housing market. This is part of the new government’s continued focus on racial justice.

Mr Biden also signed orders making it a federal government policy to “condemn and denounce” discrimination and relations between Americans from Asia and the Pacific, who have been harassed from China to the US since the coronavirus pandemic spread US to strengthen government and Indian tribes.

The steps are incremental parts of Mr Biden’s broader pursuit of racial justice – an initiative that is expected to be a centerpiece of his administration, and that follows an ordinance last week instructing federal agencies to review policies to combat systemic racism. Government efforts are led by Susan E. Rice, who heads the Home Affairs Council.

“I don’t promise we can end it tomorrow, but I promise you we will keep making progress to eradicate systemic racism,” Biden said before signing the orders. He added that “every branch of the White House and federal government will be part of this effort”.

The orders are an escalating rejection of President Donald J. Trump’s policies and attitudes toward racial relations. In separate executive orders, Mr Biden last week lifted a Trump administration’s ban on diversity training in federal agencies and disbanded a Trump-created historical commission that issued a report aimed at promoting the nation’s founders who were slave-owners to give a more positive effect.

On a conference call with reporters, a senior White House official described the Trump administration’s “hideous” Muslim ban, saying that certain minority groups had been treated with “a profound level of disrespect for political leaders and the White House.”

During a press conference on Tuesday, White House press secretary Jen Psaki accused the Trump administration of exacerbating racial inequalities over health. “The previous administration’s actions to destroy the Affordable Care Act in every way did not help any American, and it certainly did not help the color communities,” she said.

During the same briefing, Ms. Rice made it clear that the administration was moving in a new direction, highlighting these differences rather than ignoring them – and that appointing a woman of color to oversee the initiative was part of that approach.

“Americans of color are infected and are more likely to die from Covid,” she said, noting that “40 percent of black-owned businesses were forced too close forever during the Covid crisis.”

A descendant of immigrants from Jamaica, Ms. Rice called herself the living embodiment of the American dream and stated that “investing in equity is good for economic growth” and “creates jobs for all Americans”.

The new Washington

Updated

Jan. 26, 2021, 8:40 p.m. ET

One of the orders signed on Tuesday called on the Justice Department not to renew contracts with private prisons and reverted to policies first adopted in the Obama administration when Mr Biden was Vice President and which Mr Trump reversed.

The order does not end all government contracts with private prisons – administrative officials confirmed it would not apply to other agencies such as Immigration and Customs Enforcement that are contracting private companies to detain thousands of undocumented immigrants.

“There is broad consensus that our current system of mass detention places significant costs and hardships on our society and our communities and does not make us safer,” the regulation says. “To reduce incarceration rates, we need to reduce for-profit incarceration incentives by phasing out the federal government’s dependence on privately operated prisons.”

The Housing Ordinance instructs the Department of Housing and Urban Development to tighten the enforcement of the Fair Housing Act of 1968, which aims to discriminate against home purchases. This includes asking the department to review the actions taken under Mr Trump that have sought to weaken some of that enforcement. Last year, as part of Trump’s attempted appeals to suburban white voters, the department rolled back an Obama-era program aimed at combating segregation in housing.

“This represents a clear change of direction that will get us back on track to comply with fair housing law,” said Julián Castro, who served as Secretary of Housing and Urban Development under President Barack Obama. “It’s a very strong signal that it’s a new day when it comes to fair living and that HUD will be aggressive again. In some ways, this is the easy part, but it’s a powerful first step. “

Mr Castro said the housing division is still lagging behind in the number of staff needed to enforce fair housing law and that nonprofit groups across the country dealing with fair housing issues have federal funding and others Resources should be preserved. Given the fact that the action took place on the sixth day of the new administration, this is a “clear rejection of Trump’s scare tactics” about low-income apartments invading white suburbs.

Mr. Biden’s jail warrant was lauded by the American Federation of Government Employees Prison Officials Council, which represents 30,000 federal prison workers across the country, and groups working to reduce the mass incarceration of blacks and other Americans.

“Eliminating the use of for-profit prisons is only a first step,” said Holly Harris, executive director of Justice Action Network, a non-partisan criminal justice organization – but a move with implications beyond the low percentage of federal prisoners held in private prisons. “Everyone misses the fact that they are a major obstacle to reform because they give millions to elected officials who write our criminal law.”

Ms. Harris, who said she was a Republican, added that she “showed a little mercy to the Democratic government and welcomed this first step.”

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Division retailer retailer Belk plans to file for Chapter 11 chapter

Belk department store

John Greim | LightRocket | Getty Images

The Belk department store chain announced on Tuesday afternoon that it would file for Chapter 11 bankruptcy protection. This marks the youngest retailer in malls as its sales have declined and challenges have accelerated during the Covid pandemic.

The North Carolina-based retailer announced that it will be entering into a restructuring agreement with its majority owner, private equity firm Sycamore Partners, along with the owners of more than 75% of its term loan debt and 100% holders of its term loan debt.

Belk said it plans to recapitalize the business, reduce the debt burden by around $ 450 million, and extend the maturity of all term loans through July 2025. Sycamore will retain majority control over Belk under the agreement.

The company announced it has received funding commitments for $ 225 million in new capital from Sycamore, KKR and Blackstone, as well as some of its existing first-term lenders. The retailer said it plans to keep paying its suppliers and that all normal business operations will continue during the restructuring process.

She hopes to end Chapter 11 bankruptcy by the end of February.

“We are confident that this agreement will put us on the right long-term path to significantly reduce our debt and provide us with more financial flexibility to meet our commitments and continue to invest in our business, including further improvements and additions to our omnichannel capabilities von Belk, “said Lisa Harper, CEO of Belk, in a statement.

America’s department store operators – including Belk and its nearly 300 stores mainly in the Southeast – are facing problems as consumers visit malls less often and buy fewer clothes during the pandemic.

Last year Neiman Marcus, JC Penney, Stage Stores and Lord & Taylor filed for bankruptcy. The latter, the oldest department store chain in the country, eventually liquidated and closed all of its stores. Penney narrowly escaped the same result after US mall owners Simon Property Group and Brookfield Property Partners acquired it.

Sycamore, a consumer and retail investment firm, recently bought womenswear brands Ann Taylor, Loft, Lou & Gray and Lane Bryant from bankruptcy from Ascena Retail Group.

Here is the full press release from Belk.

FIX: This story has been updated to say that Belk has announced plans to file for Chapter 11 bankruptcy. An earlier version incorrectly stated that the company had already filed.

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Mellon Basis to Fund Range Applications at Library of Congress

The Library of Congress is launching an initiative to expand its collection, promote the diversity of future librarians and archivists, and make it easier for members of minority groups to search the library’s digital archives.

The program will be launched over the next four years and will receive a $ 15 million grant from the Andrew W. Mellon Foundation. This is part of a relocation of the foundation towards the award of arts and humanities grants through a so-called “lens for social justice”. ”

The library described the move titled “From the People: Widening the Path” as part of a larger plan to help the institution by building on a commitment to gathering and maintaining more “underrepresented perspectives and experiences,” it says in a press release and invite new generations to participate in the creation and exchange of important cultural materials.

In doing so, “we are investing in an enduring legacy of multi-faceted American history that is truly” Of The People, “said Carla Hayden, Congress Librarian, in a statement.

The initiative is carried out in three ways – through the library’s American Folklife Center, through contacting students at universities and colleges, and through grants to cultural heritage institutions.

The Folklife Center will have grants to produce ethnographic documentation of contemporary cultural activities among people whose experiences may otherwise not be recorded on national records. (Comprising decades of written records, oral lore, and video segments, the center is designed to document, among other things, “the songs, stories, and other creative expressions of people from different communities.”)

In addition, the library will expand the reach of students at tribal and historically black colleges and universities and participate in institutions and programs that serve Hispanics, Asian-Americans, and Pacific Islanders, and provide internshipsdevelop a new generation of diverse talent for heritage organizations, ”the press release said.

The library will also grant grants to cultural heritage institutions This will encourage people to incorporate material from their digital collections into works like photo collages, new music, and digital exhibits that explore experiences among people of color.

“The Library of Congress is the people’s public library and we are delighted that it will bring about diverse and extensive public participation in expanding our nation’s historical and creative records,” said Mellon Foundation President Elizabeth Alexander in a Explanation.

Last summer, the Foundation, the largest humanities philanthropy in the United States, announced that it was increasing its focus on granting grants for programs that promote social justice.

One such program is to spend $ 5.3 million on what Alexander calls “liberty libraries.” These are 500 book collections of fiction, non-fiction, poetry and other writings that are being sent to 1,000 prisons across the country.

Then, in October, the foundation announced its $ 250 million monuments project, designed to help rethink the country’s approach to monuments and memorials to better reflect the diversity of the nation.

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Starbucks (SBUX) Q1 2021 earnings prime estimates

Starbucks reported Tuesday that U.S. sales fell 5% in the first quarter of fiscal year after a surge in new Covid-19 cases led to tighter food restrictions.

The company also announced that COO Roz Brewer will be leaving Starbucks in late February. Those familiar with the matter told CNBC later Tuesday that she would become the executive director of Walgreens. Your responsibilities will be shared among other members of the existing Starbucks executive team.

In extended trading, stocks fell around 1%.

The company reported for the quarter ended December 27, versus Wall Street expectations, based on an analyst survey conducted by Refinitiv:

  • Earnings per share: 61 cents, adjusted compared to 55 cents expected
  • Revenue: $ 6.75 billion versus $ 6.93 billion expected

The company reported net income of $ 622.2 million, or 53 cents per share, for the first quarter, compared to $ 885.7 million, or 74 cents per share, a year earlier.

Without articles, the coffee giant earned 61 cents per share, exceeding the analysts surveyed by Refinitiv, 55 cents per share.

Net sales were down 5% to $ 6.75 billion, below expectations of $ 6.93 billion. Worldwide sales in the same store decreased by 5%. The company saw 19% fewer transactions in the quarter, but the average ticket increased 17%.

In the US, sales in the same store were down 5%. The company’s recovery in its home market was hampered by a further surge in Covid-19 cases as temperatures turned colder. Sales in the same store only decreased 3% in October but declined to 8% by December.

On the positive side, the number of Starbucks Rewards members who have been active in the past 90 days has increased 15% to 21.8 million people. Mobile orders accounted for a quarter of transactions, down from 17% before the crisis.

CEO Kevin Johnson said the company was having a “very strong” holiday season. The activation of Starbucks gift cards exceeded the company’s forecasts. He called the Irish Cream Cold Brew a “new vacation favorite”. Launched in 2019, the drink follows the success of Pumpkin Cream Cold Brew, which overtook Pumpkin Spice Latte as a bestseller on the autumn menu.

In China, Starbucks’ second largest market, sales in the same store turned positive for the first time since the health crisis began. Revenue in the same store increased 5%, although transactions were still down from the same period last year.

The company opened 278 new Netto cafes in the quarter and now has nearly 33,000 locations.

For the next quarter, Starbucks predicts US sales growth of 5% to 10%. According to information from executives, sales in the same store should develop positively in January after the downward trend in December. In China, sales in the same business are expected to nearly double. The company expects earnings of 36 to 41 cents per share. Adjusted earnings per share of 45 to 50 cents are forecast.

The company also raised its outlook for FY 2021 results. Earnings per share are now expected to be between $ 2.42 and $ 2.62, compared to its previous forecast of $ 2.34 to $ 2.54.

CFO Pat Grismer said Starbucks will release a major update to its fiscal year outlook when it releases its next quarter results. He cited the volatility caused by the pandemic.

Read the full results report here.

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What Jeffrey Epstein Did to Earn $158 Million From Leon Black

He has described himself as a mathematician and “finance doctor” to the rich – despite being a college dropout who only had a brief tenure with a traditional Wall Street firm. It has been said that his services were only available to billionaires, whose affairs he mostly handled from a tropical island hideaway.

What did Jeffrey Epstein do to make hundreds of millions of dollars with a handful of wealthy clients like private equity billionaire Leon Black?

The answer: help rich people pay less taxes.

In the case of Mr. Black, executive director of Apollo Global Management, his advice could have resulted in savings of up to $ 2 billion, according to a review of Mr. Black’s business relationships with Mr. Epstein. On Monday, Mr Black announced that he would step down as chief executive of Apollo this year after verification revealed that he had paid Mr Epstein $ 158 million for his services over a five-year period.

Mr. Epstein’s specialty has been teaching high net worth clients ways to use sophisticated trusts and other investment vehicles to lower their tax liability while giving assets to their children. This is evident from documents reviewed by the New York Times and interviews with eleven people familiar with his work. In doing so, he collected high fees – usually based on a cut in expected tax savings.

In the years after 2008, when Mr. Epstein pleaded guilty of prostitution in Florida for a teenage girl, he frequently advised clients on the use of GRATs (Grantor Retained Annuity Trusts), according to three people familiar with his job.

GRATs are a form of sophisticated trust that broke into the mainstream following a high profile court battle with a Walmart heir and has been used by wealthy people, including former President Donald J. Trump’s father, according to published reports. These trusts allow a person to continue to collect income from assets of all kinds – including stocks, real estate, and art – and then pass them on to family members without paying the large gift or estate taxes normally associated with such transfers.

One person who has done business for Mr. Epstein for the past decade said the “shamed financier’s biggest thing is GRATs”. The person, who stopped working with Mr. Epstein in 2018 but spoke on condition of anonymity because he continues to advise wealthy clients, said Mr. Epstein bragged about using GRATs to raise money for a small group of clients, including Mr. Black, to save.

In Mr. Black’s case, the Dechert law firm review found the savings to be enormous: about $ 1 billion for a single GRAT. The report said Mr Epstein’s discovery of a problem in a trust founded in 2006 and its proposed solution was “the most valuable work” he has done.

“An outside lawyer described the solution as a ‘grand slam,'” the Dechert report commissioned at Mr Black’s request after The Times reported in October that he had given Mr Epstein at least $ 75 million Dollars in fees.

The Dechert report – 22 double-spaced pages delivered to Apollo’s board of directors – cleared Mr. Black of any wrongdoing but said he would step down as managing director until he was 70 in July. Another Apollo founder, Marc Rowan, will take on this role, and Mr. Black will remain the company’s chairman. Apollo’s shares rose 7 percent on Tuesday.

The report did not give any details about the problems with the GRAT or Mr. Epstein’s correction William LaPiana, professor and assistant dean at New York Law School and expert on trusts and estates.

Mr LaPiana said GRATs could bring huge savings – especially when filled with assets whose value is expected to increase sharply over time. And a wealthy person would pay dearly for good advice on such trusts.

According to the report, Mr. Epstein was compensated for US $ 23.5 million in 2013 for resolving the GRAT issue under an agreement with Mr. Black. Afterward, they struck a series of agreements that grossed Mr. Epstein more than $ 100 million before the two men split in 2018.

The split was the result of a dispute over Mr. Epstein’s request for a 10 percent fee on another transaction that could have generated savings of $ 600 million, according to the Dechert report. Mr Black ultimately paid Mr Epstein $ 20 million for this transaction, which included inter-trust loans from the Black family to provide a tax benefit for Mr Black’s children, the report said.

In 2019, Mr. Epstein killed himself in a Manhattan prison cell when he was charged with federal sex trafficking.

Jack Blum, a Washington attorney who has led corruption investigations for several Senate committees, said he was surprised at the level of fees charged by Mr. Epstein’s work. “You could be the best lawyer in Manhattan, working on the most complicated trusts and estates, and there would never be anywhere near that much money,” he said.

The Dechert report acknowledged that the compensation that Mr. Black had paid Mr. Epstein far exceeded “any amounts paid to his other professional advisers.”

Mr. Black has repeatedly said that all of Mr. Epstein’s work has been thoroughly reviewed by outside lawyers and accountants. The only law firm mentioned in the Dechert report is Paul, Weiss, Rifkind, Wharton & Garrison, which has performed tax and estate work for Mr. Black for many years. It is also one of Apollo’s key third-party law firms.

The Dechert report does not identify who drafted the identified problematic trust for Mr. Black other than to state that the person was a tax and estate professional recommended by Mr. Epstein. The attorney who did most of the early work for Mr. Black was Carlyn McCaffrey, a tax and estate partner at McDermott Will & Emery, according to three people familiar with the matter who spoke on condition of anonymity.

Ms. McCaffrey, widely recognized as the leading expert on GRATs, said, “We will not comment on any questions about Jeffrey Epstein.”

Mr. Epstein often acted as a source of ideas, who then outsourced part of the work to high-ranking law firms or to the current financial and tax advisors of his clients, according to five people familiar with the agreements.

This is how it worked when Mr. Epstein was advising a technology manager on tax issues, according to a representative of the managing director who agreed to discuss the matter on condition of anonymity. Mr. Epstein offered his help after learning that the executive – an acquaintance he once considered not rich enough to qualify for his services – needed help lowering his taxes on a large stock grant from his employer. The executive believed that Mr. Epstein was offering his services to a friend as a favor because Mr. Epstein referred much of the work to a large law firm that billed the executive for the assignment.

The executive and Mr. Epstein had never discussed a payment, according to the agent, so the executive was surprised when Mr. Epstein sent his own bill – for a sum equal to 10 percent of the tax money saved. The executive initially resisted, but eventually paid to avoid a public spit with Mr. Epstein and never worked with him again.

Although Mr. Epstein often took his pay as a percentage, he also offered services at a flat rate – a fee structure he proposed during a pitch for a New York real estate manager that otherwise contained few details.

In 2013, Mr. Epstein sent the executive a six-page engagement letter which The Times reviewed. It has been suggested that a proprietary “database of financial information” be used to analyze and evaluate estate planning issues for the executive. There was no description of what kind of information the database contained.

For this service, Mr. Epstein suggested fees of $ 10 million for 10 months of work. The executive refused him, according to a representative who spoke on condition of anonymity.

Katherine Rosman contributed to the coverage.

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Goal groups up with Levi’s for unique dwelling items and extra

Levi’s will have a limited time collection at Target that includes over 100 housewares, apparel, and other items.

target

Target will launch a limited-time collection of housewares, pet accessories, apparel, and other denim-inspired items with Levi Strauss & Co. to help build sales momentum during the coronavirus pandemic.

The new line of more than 100 items will be available in most big box retail stores and online from February 28th. It ranges from glass mugs for $ 3 each to a bar cart for $ 150, but most items cost less than $ 25.

For Levi’s, the expanded partnership is a way to strengthen relationships with a thriving retailer as apparel sales have declined and department store partners have lost ground during the pandemic. Target, on the other hand, has attracted new customers and gained more of their business while keeping its doors open as a major retailer. Online offers such as pick-up at the roadside have also grown significantly.

Target’s shares are up 64% over the past year, increasing their market value to $ 93.93 billion. The company also had a strong holiday season: like-for-like sales rose 17.2% and e-commerce sales more than doubled in November and December.

These gains have presented a different challenge to the big box retailer. The company is facing difficult sales comparisons over the coming year and investors may wonder if the pace of growth has peaked.

For Target, the limited-time collection is part of the playbook. It has long used exclusive products to drive sales and generate enthusiasm. It has worked with other popular fashion brands including Hunter and Lilly Pulitzer. It has also launched its own brands that have a fan base. These include Cat & Jack, a children’s clothing brand, and Hearth & Hand, a housewares brand founded by Chip and Joanna Gaines with Magnolia.

As a rule, the limited collections draw crowds into the shops. This time around, Target is encouraging more purchases on its website. Brian Cornell, CEO of Target, said employees will ensure customers can socially distance themselves in stores, including measuring the number inside if necessary.

The Levi’s collection is built on a growing relationship between companies. Target has been selling Levi’s value brand Denizen for about a decade. About three years ago, Cornell reached out to Levi’s CEO Chip Bergh to put the Red Tab on Target. The retailer had found that the brand – usually found in stores like Macy’s in malls – was the most popular request from Target buyers.

In 2019, Target announced some of its deals and launched Red Tab on its website. Target plans to sell the Red Tab label at 500 of its nearly 1,900 locations by autumn 2021. The curated shop displays resemble a “shop in shop”.

The aim is to add the Levi’s Red Tab label to more stores. In the shops, Levi’s has a display that resembles a shop.

target

Target has worked with other companies to create goals in its branches as well. It has Disney stores in 53 stores. From the second half of this year, hundreds of them will be opening Ulta Beauty stores with a curated selection of products and staff trained as makeup and skin care consultants.

Companies started working on the collection before the pandemic, but many things – like blankets, sleepwear, an apron, and a denim dog outfit – match the way Americans now live, cooking, hanging around, and more Spending time at home with four-legged family members.

“It happens to get married to many of the trends that emerged during the pandemic, but that’s more of a coincidence than anything,” Bergh said.

The Levi’s collection includes accessories for pets, including a denim-inspired dog bed.

target

More items have also been designed with sustainability in mind than any of Target’s other collaborations, using materials like durable fabrics and recycled glass.

Both CEOs said they had their eye on a favorite item in the collection – a denim-inspired Sherpa bed that they would like to buy for their dogs.

“I’ll be on Target.com as soon as this thing drops,” said Bergh.

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Tony Hsieh’s Final Evening: An Argument, Medication, a Locked Door and Sudden Hearth

Tony Hsieh, who developed Zappos into a billion dollar internet shoe store and formulated an influential theory about corporate happiness, purposely locked himself in a shed before it was consumed by the fire that would kill him.

Last November, Mr. Hsieh visited his girlfriend, Rachael Brown, at their new riverside home in New London, Connecticut. After the couple argued over the clutter of the house, Mr. Hsieh set up camp in the attached pool on storage shed, which was full of foam noodles and lounge chairs.

These details were made public in reports released Tuesday by New London Fire Department and police investigators, the first law enforcement reports on the incident. They said Mr. Hsieh was seen on a security video from November 18 that was peeping out the shed door at around 3 a.m. when no one was around. Light smoke rose behind him.

When Mr. Hsieh closed the door, the door lock could be heard and a bolt was pulled.

The 46-year-old entrepreneur was traveling with a nurse. According to police reports, he was planning to go to Hawaii with Ms. Brown, his brother Andrew, and several friends and employees before dawn. While in the shed, he asked to be checked every 10 minutes. His hotel nurse said this was standard practice with Mr. Hsieh.

Investigators said they were unsure of exactly what started the fire, partly because there were too many options. Mr. Hsieh had partially disassembled a portable propane heater. Discarded cigarettes were found. Or maybe the fire broke out from candles. Investigators said his friends told them that Mr. Hsieh liked candles because they reminded him of “an easier time” in his life.

A fourth possibility is that Mr. Hsieh did it on purpose.

“It is possible that negligence or even deliberate act on the part of Hsieh could have started this fire,” the fire report said. The report added that Mr Hsieh may also have been drunk and noted the presence of several Whip-It brand nitrous oxide chargers, a marijuana pipe, and Fernet Branca liquor bottles.

The exact role of drugs or alcohol that night is likely to remain unclear. Dr. Connecticut chief medical officer James Gill said in an email that “autopsy toxicology tests don’t make sense” if the victim survives for an extended period of time. A final report is still pending.

Firefighters who broke open the door found Mr. Hsieh lying on a blanket. He was taken to a nearby hospital and then flown to the Connecticut Burn Center, where he died on November 27 of complications from smoke inhalation.

Mr. Hsieh’s death shocked the tech and entrepreneurial worlds due to his relative youth and his writing about corporate happiness. Zappos was a star of the early consumer Internet, caution persuading that there are few dangers to buying online. Mr. Hsieh became CEO in 2001 and made everyone aware that companies should try to make their customers and employees happy. He moved Zappos from the Bay Area to Las Vegas.

Business & Economy

Updated

Jan. 26, 2021, 2:54 p.m. ET

Amazon bought Zappos in 2009 for $ 1.2 billion. The next year, Mr. Hsieh published the bestseller “Delivering Happiness”. “Our goal at Zappos is that our employees see their work not as a job or a career, but as a calling,” he wrote.

Mr. Hsieh stayed in Zappos but turned to a citizen project to revitalize downtown Las Vegas. Lots of investments and many years later, the project was an incomplete success at best. For the past year, Mr. Hsieh has focused on Park City, Utah, where he spent tens of millions of dollars buying real estate and got so manic that friends said they talked about an intervention. Few outsiders knew that he had quietly left Zappos.

On the night of the fire, Mr. Hsieh was desperate about his dog’s death during a trip to Puerto Rico last week, according to police interviews. He and Mrs. Brown had a difference of opinion that escalated. At this point, Mr. Hsieh retired to the shed. An assistant spoke to him frequently and recorded the visits with sticky notes on the door. Mr. Hsieh would generally signal that he is fine.

As the group was preparing to leave for the airport in the middle of the night, Ms. Hsieh asked for a check-in every five minutes. But it was only four minutes before the fire became fatal. Attempts by the residents to break open the locked door were unsuccessful. At about the same time as firefighters arrived, three Mercedes-Benz passenger cars arrived to take the group to the airport.

Ms. Brown, an early employee of Zappos, did not return any comments. A family spokesman also did not respond to a message for comment.

Firefighters regularly visited the house in mid-November. At 1am on November 16, they were called by a smoke alarm connected to a security company. A man who opened the door said the alarm was triggered by cooking, according to department records.

The firefighters left, but returned minutes later, prompted by another smoke alarm. “On arrival found nothing to be seen and a man said again that there was no problem,” wrote Lt. Timothy O’Reilly in a summary of the call. Firefighters said they came in to look around.

Lieutenant O’Reilly and his colleagues found smoke in the finished basement, along with “melted plastic items on the stove along with cardboard that felt hot,” which appeared to be plastic utensils and plates. They also found a burning candle in an “unsafe place” and extinguished it. While the smoke in the basement was dissipating, the firefighters gave fire protection tips.

The investigators’ report also covered an episode in the early evening of November 18. Mr. Hsieh’s assistant checked him out in the shed and saw that a candle had fallen over and burned a ceiling. The assistant asked Mr. Hsieh to put out the flame, and the entrepreneur did.

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GameStop shares soar once more, however quick sellers aren’t backing down

Ramin Talaie | Bloomberg | Getty Images

GameStop is resurfacing after a wild session, pushing the stock back above $ 100, but short sellers betting against the brick and mortar video game dealer are far from easing.

GameStop’s shares rose more than 50% on Tuesday to a high of $ 124.58. The stock rose sharply after Social Capital’s Chamath Palihapitiya said in a tweet that he bought GameStop call options and bet that the stock will go higher. Trading was suspended several times due to the volatility.

GameStop surged more than 400% in January alone when an army of retail investors took on short sellers in online chat rooms, encouraging each other to stack up and push the stock higher. Short sellers have lost more than $ 5 billion in market value year-to-date, including a loss of $ 917 million on Monday and $ 1.6 billion on Friday, according to S3 Partners.

Despite the massive shortages, short sellers are doubling their bearish bets. In the past 30 days, GameStop stock borrowed and sold rose 1.4 million shares, valued at $ 91 million. This corresponds to an increase of 2%, as the share price has more than doubled, according to S3 Partners.

Short sellers have also reloaded bets in the past seven days, with short selling stocks up 769,000, valued at $ 50 million. GameStop’s interest in shorts is unchanged from a week ago at 139%.

“Similar to the Revolutionary War, the first line of troops is drowning in a shower of musket fire, but is being replaced by the next troops,” said Ihor Dusaniwsky, S3 managing director for predictive analytics, in an email. “We’re seeing a short squeeze on older shorts that have suffered massive mark-to-market losses on their positions, but are seeing new shorts.”

“This keeps the short positions in GME stock relatively flat overall, although there is a significant short squeeze on a significant number of existing short sellers,” added Dusaniwsky.

The explosive rally in GameStop was mainly due to the buying frenzy of individual investors in online forums, especially the notorious Reddit chat room “wallstreetbets” with more than 2 million subscribers. A trend post on Tuesday includes a screenshot of the user portfolio showing a return of over 1,000% on GameStop stock.

GameStop had a roller coaster ride on Monday, during which the stock more than doubled and turned negative within a few hours. The stock closed 18% on Monday at $ 76.79.

“The flow of orders in retail in Options is accelerating the short squeeze,” said CC Lagator of Options AI. “The call buyers are essentially leveraging the market makers’ hedges. As stocks go up, more stocks are bought to cover the increase in short deltas. This is market inefficiency and eventually ends when those who sell the calls , are over-hedged for a share that no longer rises and then actually has to sell shares in order to remain delta-neutral. “

The hedge fund Melvin Capital Management, which is short on GameStop, is down 30% through Friday this year, according to The Wall Street Journal.

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Who Owns Shares? Explaining the Rise in Inequality Throughout the Pandemic

Last year there was a devastating public health crisis, an imploding labor market, a lot of political unrest, and – surprisingly – a roaring stock market.

All in all, it was an expansion of inequality in a nation where economic disparities were already growing.

It boils down to which groups have been hardest hit by the falling parts of the economy and which have benefited the most from rising stock prices.

In the stationary part of the economy, low-wage workers were disproportionately affected by job losses. At the same time, Americans benefited from price gains: both those who own individual stocks in brokerage accounts and those who offer stocks in personal retirement accounts such as mutual fund IRAs or from employers such as 401 (k). s.

But that’s where the inequality set in, according to an analysis of data from the Federal Reserve’s 2019 consumer finance survey. Although the distribution of income in the United States is unequal, it is all the more so for ownership of financial assets in general, and stocks in particular.

The triennial survey collects in-depth financial information from a sample of American “business entities” – we call them families – including income, types of assets they own, and their value.

Analysis of this data shows that in 2019, the top 1 percent of Americans in wealth controlled approximately 38 percent of the value of financial accounts that held stocks. Broaden the focus to the top 10 percent and you’ve found 84 percent of the value of all Wall Street portfolios.

By the broadest definition of Wall Street stake, which encompasses everything from 401 (k) in the workplace to personal IRAs, mutual funds, and retirement stocks, just over half of American families have at least one market-linked financial account while only one in six report direct ownership of stocks. Wealthier people are far more likely to have these accounts than middle-class families, who in turn are far more in the market than working-class or poor families.

And unsurprisingly, the rich are more likely to have larger portfolios.

A paper napkin calculation that assumes that all market players have gained an average of 16 percent of the S&P 500 last year would mean American families fattened their portfolios by $ 4 trillion for the entire last year. But $ 3.4 trillion of that would have gone to just 10 percent of the families, the other 90 percent would have split $ 600 billion.

Beyond the gap between the very rich and the merely affluent, there is also a gap between the affluent and the middle class. Only half of households in the 40th to 49th percentiles of net worth have brokerage or retirement accounts that contain stocks. For households in the 80th to 89th percentile, 84 percent are invested in at least one company.

Additionally, the median portfolio size for households in this middle group was $ 13,000 in 2019, which would have gained about $ 2,000 on last year’s market. The typical family in the wealthier group had $ 170,000 in the market and would have made about $ 27,000 with a similar portfolio.

These wealth inequalities are far greater than the inequality we normally talk about on the income ladder.

Updated

Jan. 26, 2021, 8:18 ET

The analysis found that in 2019, 14 percent of individual income went to 1 percent of the richest American households. But that 14-to-1 relationship was nothing compared to other categories.

In addition to controlling 38 percent of the value of stock accounts, the top 1 percent controls 18 percent of the equity of residential real estate, 24 percent of the cash in liquid bank accounts, and 51 percent of the value of accounts that individuals hold directly.

Edward N. Wolff, an economist at NYU, measured economic differences on a scale of 0 to 1 (the Gini coefficient). He says that household income on the 2019 survey scale is 0.57 on the inequality scale, slightly higher than 20 years ago. On the same scale, net wealth inequality is 0.87 compared to 0.83 in the 2001 survey.

The differences go beyond wealth groups. Analysis of the consumer finance survey found that black Americans, who already have a disproportionately low percentage of the country’s income, are even worse off when it comes to assets.

They made up 14 percent of respondents but made up only 8 percent of 2019 income, 5 percent of money in cash, and 2 percent of Wall Street holdings. Even if you remove the top 1 percent – a group that is disproportionately white and controls a disproportionate share of all categories – the African American share of Wall Street equity rises to just 3 percent.

The difference is smaller, but still present, among middle-class households: African Americans made up 13 percent of that group in the survey, earned 11 percent of income, and owned 9 percent of Wall Street stock.

It’s not uncommon for Wall Street to view grim developments as good news. A mass layoff can be viewed as both a devastating human event and a cost-cutting measure to increase profits for the next quarter. In general, however, a bad economy means a bad market – which is why the current situation seems so strange.

Last year, a sharp one month decline was followed by a sharp rebound, despite the fact that the labor market – and everything else in the world – remained deeply uncertain.

By comparison, stock prices fell for about two years around the early 2000s recession. In 2008, at the start of this recession, the S&P 500 slumped for 16 months.

The wealth gap in the United States was already widening in 2020 with the pandemic. Thirty years ago, the top five percent of Americans controlled just over half the nation’s wealth. By last year that number was approaching two-thirds of prosperity, and given the economic development in 2020, it would not be surprising if that threshold were exceeded.

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Tesla CEO Elon Musk tweeted on Tuesday: “I kinda love Etsy.”

Etsy executives welcome the opening of Nasdaq MarketSite ahead of Etsy going public on April 16, 2015 in New York.

Michael Nagle | Bloomberg | Getty Images

Etsy stocks pop after Tesla CEO Elon Musk sent a simple tweet about the e-commerce company.

Ety’s stock rose as much as 8% after Musk tweeted, “I kind of love Etsy.”

The e-commerce company’s stocks weren’t at all ahead of Musk’s callout at 6:25 a.m. ET. The share recently gained 1.5%.

“I bought a hand-knitted woolen Marvin oar for my dog,” Musk tweeted, apparently referring to why he’s a fan of Etsy.

While Musk’s opinion certainly carries a lot of weight with investors, the stock’s surge in his short message is yet another sign of wild, speculative trading in the market. Musk is no stranger to wildcat activity on Twitter, with a history of swaying stock prices, especially Tesla shares, with bold statements on the social media platform.

Musk infamously tweeted last year that Tesla’s shares were “too high” and sent even higher shares a week later.

Etsy stocks are up more than 340% in the past 12 months as the shopping market emerged as the top winner in the coronavirus pandemic. Etsy helped small businesses with no online presence reach consumers during the lockdown.

The stock is up 25% this year alone.

Also on Tuesday, Jefferies raised its 12-month price target for Etsy to a street high of $ 245 per share.

“We believe that behavioral changes triggered by the pandemic will allow ETSY to tap a broader portion of its $ 1.7 billion addressable market, resulting in higher frequency and higher spending,” said John Colantuoni, analyst at Jefferies. towards customers.

“Our DCF-derived PT climbs to $ 245 (down from $ 205) as the accelerated traffic and our deep dive into the long-term GMS improve our confidence in ETSY’s ability to continue to grow faster than all e-commerce grow, “added Colantuoni.

Correction: Updated the headline to correct that Musk was tweeting about the company in general.

– with reports from Michael Bloom of CNBC.

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