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Biden to Identify a Critic of Huge Tech because the Prime Antitrust Cop

The White House said on Tuesday that it would nominate Jonathan Kanter to be the top antitrust official at the Justice Department, a move that would add another longtime critic of Big Tech and corporate concentration to a powerful regulatory position.

President Biden’s plan to appoint Mr. Kanter, an antitrust lawyer who has made a career out of representing rivals of American tech giants like Google and Facebook, signals how strongly the administration is siding with the growing field of lawmakers, researchers and regulators who say Silicon Valley has obtained outsize power over the way Americans speak with one another, buy products online and consume news.

Mr. Biden has named other critics of Big Tech to prominent roles, such as Lina Khan, a critic of Amazon, to lead the Federal Trade Commission. Tim Wu, another legal scholar who says regulators need to crack down on the tech giants, serves in an economic policy role at the White House. And this month, Mr. Biden signed a sweeping executive order aimed at increasing competition across the economy and limiting corporate dominance.

Mr. Kanter, 47, is the founder of Kanter Law Group, which bills itself online as an “antitrust advocacy boutique.” He previously worked at the law firm Paul, Weiss, Rifkind, Wharton & Garrison. His services have attracted some of the most prominent critics of Big Tech in corporate America, including Rupert Murdoch’s News Corp and Microsoft as well as upstarts like Spotify and Yelp.

If he is confirmed by the Senate, Mr. Kanter will lead a division of the Justice Department that last year filed a lawsuit arguing Google had illegally protected a monopoly over online search services. The antitrust division of the agency has also been asking questions about Apple’s business practices.

The White House took more than six months from Mr. Biden’s swearing-in to land on Mr. Kanter. The administration has had to juggle progressive and moderate factions within its own party, as well as the likelihood of Republican support in a divided Senate.

The decision won immediate approval from policymakers and advocacy groups helping to lead the charge for more stringent antitrust enforcement.

Senator Amy Klobuchar, the Minnesota Democrat who leads the antitrust subcommittee of the Judiciary Committee, called Mr. Kanter “an excellent choice,” citing his “deep legal experience and history of advocating for aggressive action.”

Sarah Miller, the executive director of the American Economic Liberties Project, a progressive advocacy group, said in a statement that “President Biden has made an excellent choice to lead the D.O.J.’s antitrust division,” noting that Mr. Kanter haddevoted his career to reinvigorating antitrust enforcement.”

Makan Delrahim, a lawyer who led the Justice Department’s antitrust efforts under President Donald J. Trump, said in a text message that Mr. Kanter would be a “great leader” of the division and called him a “serious lawyer” with private sector and government experience.

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Updated 

July 20, 2021, 6:55 p.m. ET

The announcement may be less warmly embraced by deal-makers on Wall Street who have helped drive mergers and acquisitions volumes to record levels, propelled in part by an exuberant stock market.

Scrutiny in Washington on acquisitions has expanded beyond headline-grabbing Big Tech deals to industries like consumer goods, agriculture, insurance and health care.

The Justice Department has sued to block the proposed merger of Aon and Willis Towers Watson, its first major antitrust action since Mr. Biden took office. The F.T.C. announced in March that it was forming a group to “update” its approach to evaluating the impact of pharmaceutical deals, an industry that generally falls under its purview. That followed a report led by Representative Katie Porter, a Democrat from California, scrutinizing deals in the industry.

In recent years, Mr. Kanter built an unusual practice out of criticizing the tech giants from inside Washington’s corporate law firms. The tech giants have become lucrative clients for major law firms, often making it difficult for those firms to work for their opponents.

But last year, he left Paul, Weiss — an elite corporate litigation firm — because his portfolio representing critics of the tech giants conflicted with other work the firm was doing.

“Jonathan made this decision due to a complicated legal conflict that would have required him to discontinue important and longstanding client representations and relationships,” the firm said at the time.

Mr. Kanter’s critics are likely to question whether his previous work is a conflict of interest that should keep him out of investigations into the tech giants. Both Facebook and Amazon have asked that Ms. Khan recuse herself from matters involving the companies at the F.T.C., even though her background is as a legal scholar and not a paid representative for their rivals.

Asked whether Mr. Kanter would recuse himself from cases involving Google and Apple, a White House official simply said the administration was confident that it could move forward with his nomination given his expertise and record.

Even if Mr. Kanter has the votes to be confirmed it is likely to be months before he takes over at the Justice Department. Congress takes a long break during August — which could push his confirmation past Labor Day.

Cecilia Kang contributed reporting.

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Trump good friend Tom Barrack arrested on UAE lobbying fees

Thomas Barrack, a private equity investor who is a close friend of former President Donald Trump, was arrested Tuesday morning in Los Angeles on federal charges of illegally operating Trump on behalf of the United Arab Emirates.

Barrack, who was charged with two other men in a seven-fold indictment in Brooklyn, New York federal court, served as chairman of Trump’s 2017 charter fund.

The Santa Monica, California resident, along with the other defendants, is charged with secretly advancing the interests of the United Arab Emirates, on the direction of senior officials in that country, by influencing the foreign policy positions of Trump’s 2016 election campaign and then the positions of the US government during the campaign Advance Trump’s presidency through April 2018.

Barrack, who never registered with the US government as an agent for the UAE, is also charged with obstruction of justice and providing several false claims during an interview with federal police officers in June 2019.

The indictment states that Barrack, 74, was informally advising American officials on Middle East policy during the indictment period and was also seeking appointment to a senior role in the U.S. government, including serving as special envoy for the Middle East.

The evidence against Barrack includes thousands of emails, text messages, iCloud recordings, flight records and social media records, prosecutors said separately on a sticky note.

Prosecutors said the “evidence for [Barrack’s] Guilt is overwhelming in this case. “

Prosecutors also said that Barrack met and assisted senior leaders of the Kingdom of Saudi Arabia, which is a close ally of the UAE, and that he provided “UAE government officials” with sensitive, non-public information about developments within the government , including information on the positions of several senior US government officials in relation to the blockade of Qatar carried out by the United Arab Emirates and other Middle Eastern countries. ‘”

Charged with Barrack are Matthew Grimes, 27, of Aspen, Colorado, and a 43-year-old UAE citizen, Rashid Sultan Rashid Al Malik Alshahhi, who remains at large.

Grimes, who worked directly for Barrack at Barrack-founded private equity firm Colony Capital, was arrested Tuesday in California.

Grimes has a “close personal relationship” with Barrack, has made more than 50 international trips in Barrack’s private plane and lists Barrack’s $ 15 million home in Aspen as his primary residence, prosecutors said in a court filing.

“Mentioned Barrack several times [Al Malik] as the UAE’s “secret weapon” to advance its foreign policy agenda in the United States, “a Justice Department press release said.

“To promote suspected criminal conspiracy and conduct, Barrack and Grimes, with the assistance of [Al Malik], purchased a dedicated mobile phone and installed a secure messaging application to facilitate Barrack’s communications with senior UAE officials, “the department said.

Deputy Attorney General Mark Lesko, Department of National Security, Department of Justice said: “The defendants repeatedly used Barrack’s friendships and access to a candidate who was eventually elected president, senior election and government officials, and the American media to advance politics A foreign government aims without revealing its true loyalty. “

Thomas Barrack, Chairman and Chief Executive Officer of Colony Capital Inc., gestures during the closing reception at the Milken Institute Japan Symposium in Tokyo, Japan on Monday, March 25, 2019. The conference brings together business leaders and government officials to discuss geopolitical, economic and social problems faced by Japan. Photographer: Kiyoshi Ota / Bloomberg via Getty Images

Bloomberg | Bloomberg | Getty Images

“The conduct alleged in the indictment is nothing less than betrayal of these officials in the United States, including the former president,” Lesko said in a statement.

Prosecutors in a memo requesting Barracks detention in Los Angeles pending his later bail hearing in Brooklyn said that in communicating with Al Malik, Barrack “designed his efforts to obtain an official position within the government to do it would enable it to serve the interests of the United Arab Emirates and not the interests of the United States. “

“When seeking a position as US Ambassador to the United Arab Emirates or Special Envoy for the Middle East, the defendant informed Al Malik that such an appointment would” give ABU DHABI more power! “The memo states with reference to the capital of the United Arab Emirates.

“Al Malik agreed that if the defendant were successfully appointed to such an official position, it would result in the defendant delivering ‘more’ for the UAE and its efforts[v]very effective operation. ‘ The defendant agreed. “

Prosecutors found that Barrack, who is a Lebanese citizen, is extremely wealthy, has access to a private jet he flew to the UAE in March, and “has deep and longstanding ties to countries that do not have extradition treaties with the United States has “Lebanon, Saudi Arabia and the United Arab Emirates.

A Trump spokeswoman did not respond immediately to a request for comment on Barrack’s arrest.

Matthew Herrington, an attorney for Barrack, told CNBC that his client was arrested in Los Angeles “although we cooperated with this investigation from the start.”

A Barrack spokesman said: “Mr. Barrack volunteered to investigate from the start. He is not guilty and will plead not guilty.”

Barrack stepped down as CEO of Colony Capital in 2020. In April he stepped down as Executive Chairman of the company.

The Federal Prosecutor’s Office has been investigating Barracks’ alleged work on behalf of the UAE for at least two years.

One of the events that caught their attention was an energy policy speech given by Trump as a presidential candidate in May 2016.

The indictment accuses Barrack of “including a language in which the UAE is praised” and “emailing a preliminary draft of the speech.” [Al Malik] for extradition to senior UAE officials. “

For the next two years, prosecutors claim that Barrack “sought and received instruction and feedback, including topics for discussion, from senior UAE officials in connection with national press appearances that Barrack has used to advance the interests of the UAE.”

“During that time, Barrack never registered as a lobbyist for the UAE as required by the Foreign Agents Registration Act,” the indictment said.

The indictment states that in December 2016, one month after Trump’s election, Barrack attended a meeting with Grimes, Al Malik and senior UAE government officials to advise them to create a “wish list” of US foreign policy, which the UAE wished to be carried out in different periods of time in the new administration.

The indictment also states that the following March Barrack and the other two men agreed to promote the candidacy of a person preferred by senior UAE officials for the post of US ambassador to that country.

And in September 2017, “Al Malik communicated with Barrack about the United Arab Emirates’ resistance to a planned summit at Camp David to resolve an ongoing dispute between the State of Qatar, the United Arab Emirates and other Middle Eastern governments against the President of the United States the holding of the Camp David Summit, “stated the Justice Department in its press release.” The summit never took place. “

The United Arab Emirates, which Trump did business in before he became president, established an important relationship with the United States during the Trump administration.

The UAE signed the 2020 Abraham Agreement, which took steps to normalize relations between a handful of Middle East nations, including Israel.

Last November, then-Secretary of State Mike Pompeo announced that the Trump administration would sell more than $ 23 billion in military equipment to the UAE “in recognition of our deepened relationships” and “in recognition of the nation’s need for advanced defense capabilities to deter and defend oneself ”. against increased threats from Iran. “

A friend of Trump for decades, Barrack appeared as an early supporter of Trump’s presidential run long before many on Wall Street viewed the property developer as a serious contender for the White House.

In the spring of 2016, when Trump started sweeping primaries, Barracks and Trump’s daughter Ivanka Trump convinced him that he needed to hire a real campaign manager.

Barrack urged Trump to bring in Paul Manafort, a longtime Washington and Republican lobbyist.

Manafort eventually rose to campaign chairman for Trump before resigning in August 2016 after reports of foreign lobbying on behalf of Ukrainian politicians. Both Manafort and Barrack hoped their collaboration in 2016 would be to the benefit of every man.

Barrack wanted to be appointed Middle East envoy in a future Trump administration. But after Trump won the White House, Trump’s son-in-law Jared Kushner intervened, and Barrack didn’t get the job.

Manafort, meanwhile, had hoped that Barracks connections in the Middle East would lead to lucrative deals for Manafort’s lobbying practice.

But the years of investigation by Special Counsel Robert Mueller put an end to Barrack and Manafort’s hopes of attaining prominent positions in Trump’s White House.

According to prosecutors, questions about Barrack’s foreign lobbyism first came to light during the investigation into Mueller.

By the end of his investigation, Müller had referred a total of 14 criminal cases to the public prosecutor, most of which are still sealed today.

In 2018, Manafort was found guilty by a jury of eight crimes related to foreign lobbying and tax evasion. He was imprisoned for almost two years and was released in June last year.

Trump later pardoned Manafort just before he left the White House.

Correction: Paul Manafort was convicted of eight crimes in 2018. In an earlier version, the year was incorrectly specified.

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Freed Guantánamo Bay Detainee Is Reunited With Household

Former Guantanamo detainee Abdul Latif Nasser was reunited with his family in Casablanca after US troops transferred him to Moroccan state custody, his lawyers said Tuesday.

US troops flown 56-year-old Mr Nasser on Sunday during the first release of a prisoner from prison by the Biden government from Guantánamo Bay. American and Moroccan officials had approved security arrangements for his return in the last few days of the Obama administration, but the deal was put on hold when President Donald J. Trump halted all transfers when he took office.

“He’s excited,” said Bernard E. Harcourt, a New York-based attorney and law professor who represented Mr. Nasser in federal court. He and his co-lawyer Thomas Anthony Durkin telephoned Mr Nasser in his family home in Casablanca and said that the former prisoners of more than 19 years were in a good mood. He was particularly supported by reuniting with extended family members who had gathered for Eid al-Adha, the Muslim holiday known as the Festival of Sacrifice, Harcourt added.

“He said it was great for him to go home when his whole family was around,” said Harcourt.

Mr Nasser’s legal status in his home country was unclear. He was held for a period in a prison near Casablanca on Monday, and Moroccan judicial officials said in a statement that police are investigating him for alleged involvement in terrorism.

The investigation was not unusual. Former Moroccan citizens repatriated from Guantánamo have been detained for days, if not months, and some have been charged with terrorist offenses.

London-based law firm and human rights firm Reprieve said in a statement that Mr. Nasser would not be conducting interviews with news organizations “for the foreseeable future”. He quoted him in the statement as saying that although he was born on March 4th, he considered himself “born again” on July 19th, the day he was released from US military custody.

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Trump ally Jim Jordan amongst Republicans on Jan. 6 Capitol riot committee

House Minority Leader Kevin McCarthy (R-CA) speaks during his weekly news conference at the U.S. Capitol on February 27, 2020 in Washington, DC.

Mark Wilson | Getty Images

House Minority Leader Kevin McCarthy on Monday picked five House Republicans to serve on the select committee that will investigate the Jan. 6 insurrection at the U.S. Capitol. 

The California Republican named five out of the 13 members of the select House committee, but House Speaker Nancy Pelosi has the final say over which lawmakers McCarthy can appoint. 

McCarthy’s picks include Rep. Jim Banks, R-Ind., who will serve as the ranking member of the panel. The other members include Rep. Jim Jordan, R-Ohio., Rep. Rodney Davis, R-Illinois., Rep. Kelley Armstrong, R-N.D. and freshman Rep. Troy Nehls, R-Texas. 

The most well known of the five lawmakers is likely Jordan, who is a committed supporter of former President Donald Trump and is the founding member of the House Freedom Caucus, a group of conservative lawmakers. In January, Jordan helped lead an unsuccessful effort to prevent the House of Representatives from impeaching Trump for inciting the Jan. 6 insurrection.

McCarthy’s picks come just a day before the committee is set to hold its first hearing, which will feature witnesses from the U.S. Capitol Police Department and Metropolitan Police Department. It also comes days after McCarthy met with Trump at the former president’s golf club in Bedminster, New Jersey.

In a piece published Monday, Trump is quoted as saying that he wanted the same thing the rioters wanted: to overturn President Joe Biden’s electoral victory.

The committee hearings come more than six months after the violent insurrection in which supporters of Trump stormed the Capitol to disrupt the certification of Biden’s win. 

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The five Republicans picked by McCarthy are not the only GOP members of the panel. Earlier this month, Pelosi appointed Rep. Liz Cheney, R-Wyo. as one of her eight choices. 

Cheney was one of the two GOP representatives who had voted to create the committee last month. She was also one of 10 Republicans who voted to impeach Trump in January.

The decision to choose Cheney was notable, especially as McCarthy reportedly threatened to strip GOP representatives’ committee seats if they accepted an appointment to the panel from Pelosi, according to NBC news. 

Pelosi also appointed Rep. Bennie Thompson, D-Miss., who will lead the panel. The other members include Democratic Reps. Pete Aguilar, Adam Schiff, and Zoe Lofgren of California, Jamie Raskin of Maryland, Elaine Luria of Virginia and Stephanie Murphy of Florida. 

The formation of the panel has been a flashpoint of debate between Democrats and Republicans. 

The select committee passed in a mostly 222-190 party-line vote last month, after Senate Republicans blocked a previous bill that would have created an independent commission to investigate the insurrection.

Many GOP leaders asserted that the select committee would only duplicate existing efforts by the Justice Department and standing congressional committees to probe the attack on the Capitol.

The committee will investigate what caused the attack on the Capitol, which includes examining activities of law enforcement agencies and technological factors that may have prompted the event. It will also issue a report on its findings and how to prevent another attempt to disrupt the transfer of power.

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Twitter Suspends Marjorie Taylor Greene for Posting Coronavirus Misinformation

SAN FRANCISCO – Twitter announced Monday that Representative Marjorie Taylor Greene would be suspended from her duty for 12 hours after posting news that violated her policy on disclosing misleading information about the coronavirus.

Ms. Greene, a Republican from Georgia, was a staunch opponent of vaccines and masks as a means of containing the pandemic. In tweets on Sunday and Monday, she argued that Covid-19 is not dangerous for people unless they are obese or over 65 and said vaccines shouldn’t be required.

But coronavirus cases are on the rise, and the highly contagious Delta variant accounts for more than half of new infections in the U.S., federal health officials said this month. In Ms. Greene’s home state of Georgia, new cases have increased 193 percent in the past two weeks.

Twitter said Ms. Greene’s tweets were misinformation and banned her from duty until Tuesday. “We have taken enforcement action against the @mtgreenee account for violating the Twitter rules, in particular the misleading Covid 19 information guidelines,” said a Twitter spokesman. The company also added labels to Ms. Greene’s posts about the vaccines, calling them “misleading” and pointing out information about the safety of the vaccines.

In a statement, Ms. Greene said Silicon Valley companies are working with the White House to attack freedom of expression. “These big tech companies are doing the Biden regime’s commandments to restrict our voices and prevent the distribution of messages that are not state-approved,” she said.

Twitter took action after President Biden urged social media companies to do more to combat the spread of vaccine misinformation on their platforms. On Friday, Mr Biden said sites like Facebook “kill people” by allowing misinformation to flourish freely, adding, “Look, the only pandemic we have is among the unvaccinated, and that – and they are killing people . “

His statement ended weeks of frustration in the White House over the spread of online misinformation that resulted in hesitant vaccination, health officials say.

Facebook, which took the brunt of the criticism, argued that Mr Biden’s testimony was unfounded. “The Biden government has chosen to blame a handful of American social media companies,” said Guy Rosen, Facebook’s vice president of integrity, in a blog post on Saturday. “The fact is that the adoption of vaccines by Facebook users in the US has increased.”

On Monday, the president softened his criticism, saying that it was not Facebook but certain users who were responsible for the spread of misinformation. The company should do more to combat “the outrageous misinformation” spreading on its platform, rather than taking what he said as a personal insult, added Mr Biden.

Twitter has long banned users from sharing misinformation about the coronavirus that could cause harm. In March, the company introduced a policy outlining penalties for sharing lies about the virus and vaccines.

Updated

July 19, 2021, 9:32 p.m. ET

“We have seen the emergence of persistent conspiracy theories, alarmist rhetoric that is unfounded in research or credible reporting, and a wide range of unfounded rumors that, out of context, can deter the public from making informed decisions about their health and individuals, Families and communities at risk, “the company said in its policy against the disclosure of Covid misinformation.

Individuals who violate this policy are subject to escalating penalties known as strikes and could face a permanent ban if they repeatedly spread misinformation about the virus. A twelve-hour ban, as Ms. Greene learns, is Twitter’s response to users who have either two or three strikes. After four strikes, Twitter bans users for seven days, and after five strikes, Twitter bans the user altogether.

Other Republicans who have been banned from Twitter have complained that the social media company is censoring them.

In January, Twitter banned President Donald J. Trump after the company found his social media posts played a role in inciting violence during the riot in the U.S. Capitol. Mr Trump has argued that Twitter and Facebook, which also blocked his account, censored him, saying the companies need government oversight.

Ms. Greene had previously been banned from Twitter in April, but the company said it was a bug caused by one of its automated spam and abuse detection systems.

“Everyone knows this is a LIE and it wasn’t a mistake,” Ms. Greene tweeted after her suspension was lifted.

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Trump says he and Capitol rioters needed similar factor: Overturning Biden win

Trump supporters near the U.S Capitol, on January 06, 2021 in Washington, DC.

Shay Horse | NurPhoto | Getty Images

Former President Donald Trump told reporters he wanted the same thing that members of the mob during the violent Jan. 6 Capitol riot wanted: overturning the election of President Joe Biden.

“Personally, what I wanted is what they wanted,” Trump said of the rioters, according to an article Monday in Vanity Fair that excerpts the new book “I Alone Can Fix It,” by Washington Post journalists Carol Leonnig and Philip Rucker.

The former president downplayed the deadly violence at the Capitol that day, while repeating several lies and erroneous claims about the integrity of the election, according to the article.

“They showed up just to show support because I happen to believe the election was rigged at a level like nothing has ever been rigged before,” Trump told the two reporters during an interview in late March at his Mar-a-Lago resort in Florida.

“There’s tremendous proof. There’s tremendous proof. Statistically, it wasn’t even possible that [Biden] won. Things such as, if you win Florida and Ohio and Iowa, there’s never been a loss,” he said.

Trump also claimed in the interview that Capitol Police welcomed members of the mob that day into the halls of Congress, and warmly greeted them after thousands of his supporters marched from a rally outside the White House, where he had urged them to fight against the confirmation of Biden’s win by Congress.

“In all fairness, the Capitol Police were ushering people in,” Trump said.

“The Capitol Police were very friendly. They were hugging and kissing. You don’t see that. There’s plenty of tape on that,” he said in the article, headlined: “‘I’m Getting the Word Out’: Inside the Feverish Mind of Donald Trump Two Months After Leaving the White House.”

Former U.S. President Donald Trump speaks during the Conservative Political Action Conference CPAC held at the Hilton Anatole on July 11, 2021 in Dallas, Texas.

Brandon Bell | Getty Images

The article notes that “Trump didn’t mention the countless accounts of horrific violence — that of a riotous mob shoving a police officer to the ground, later threatening to shoot him with his own gun, or that of an insurrectionist bashing a flagpole into another police officer’s chest, or that of yet another officer howling in pain as he was compressed in a closing door.”

However, Trump did allude, obliquely, to the violence, albeit after he talked about the “loving crowd” at his rally before the riot at the Capitol.

“There was a lot of love. I’ve heard that from everybody. Many, many people have told me that was a loving crowd,” Trump said, before adding: “It was too bad, it was too bad that they did that.”

More than 500 people have been arrested in connection with the riot, which invaded the Senate chamber, caused then-Vice President Mike Pence and members of Congress to hide in secure locations, and disrupted for hours a joint session of Congress that was in the process of confirming Biden’s win.

Five people died in connection with the riot, among them Capitol Police officer Brian Sicknick. More than 100 other cops were injured in the melee.

Members of U.S. Capitol Police try to fend off a mob of supporters of U.S. President Donald Trump as one of them tries to use a flag like a spear as the supporters storm the U.S. Capitol Building in Washington, January 6, 2021.

Leah Millis | Reuters

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Trump griped during his interview with the Post reporters about the failure of Pence and Barr to follow through on his claims, and take steps to keep him in office. Pence oversaw the joint session of Congress on Jan. 6.

“The greatest fraud ever perpetrated in this country was this last election,” Trump said in the interview. “It was rigged and it was stolen. It was both. It was a combination, and Bill Barr didn’t do anything about it.”

D.C. Police Officer Daniel Hodges

Source: D.C. Police Dept.

“Had Mike Pence had the courage to send it back to the legislatures, you would have had a different outcome, in my opinion,” the former president said.

Trump also faulted the U.S. Supreme Court, which has three justices whom he appointed, for failing to take up his campaign’s election claims.

“I needed better judges. The Supreme Court was afraid to take it,” Trump said. “It [Biden’s win] should have been reversed by the Supreme Court. I’m very disappointed in the Supreme Court because they did a very bad thing for the country.”

Trump also trashed other Republicans, as well as members of his own administration in the interview, among them Senate Minority Leader Mitch McConnell, former House Speaker Paul Ryan, former New Jersey Gov. Chris Christie, former U.S. Ambassador Nikki Haley, Dr. Anthony Fauci, Dr. Debora Birx, the late Sen. John McCain, Sen, Mitt Romney, Sen. Ben Sasse and Arizona Gov. Doug Ducey.

Trump called McConnell, whose wife Elaine Chao served as Trump’s Transportation secretary, “a stupid person” for refusing to eliminate the Senate’s filibuster and for not convincing Sen. Joe Manchin, a West Virginia Democrat, to become a Republican.

He also boasted about the seaside location of Mar-a-Lago, the size of one of its window panes and his four years in office. His press secretary handed the reporters copies of a bound document titled “1,000 Accomplishments of President Donald J. Trump: Highlights of the First Term,” the article said.

Trump also suggested that he was — and remains — unbeatable in an election against any other live candidate.

“I think it would be hard if George Washington came back from the dead and he chose Abraham Lincoln as his vice president, I think it would have been very hard for them to beat me,” Trump said.

Correction: Trump’s press secretary handed the reporters copies of a bound document titled “1,000 Accomplishments of President Donald J. Trump: Highlights of the First Term,” the article said. An earlier version misidentified the parties involved.

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As stablecoins explode in reputation, regulators put together a response.

Leading U.S. financial regulators met on Monday to discuss stablecoins, asset-backed digital currencies that are gaining popularity so quickly the government is struggling to keep up – and economic officials increasingly as a risk to financial stability look at.

Stablecoins are cryptocurrencies that derive their value from an underlying currency or basket of assets, and they have long been a matter of particular concern. When news broke in 2018 and 2019 that Facebook was looking to create a stablecoin, the Federal Reserve and other regulators took notice, fearing the project could quickly grow in scope. The pressure to develop a framework for their surveillance has increased recently as prominent stablecoins such as Tether and Binance have grown in popularity.

The Treasury Department announced Friday that Secretary of State Janet L. Yellen would convene a meeting of the President’s Working Group on Financial Markets to discuss the work of regulators on stablecoins. That group includes Jerome H. Powell, chairman of the Federal Reserve, as well as the leaders of the Securities and Exchange Commission and the Commodity Futures Trading Commission. Monday’s session was expanded to include the Heads of the Auditor’s Office and the Federal Deposit Insurance Corporation.

The meeting’s attendees “discussed the rapid growth of stablecoins, the potential use of stablecoins as a means of payment, and potential risks to end users, the financial system and national security,” said a Treasury Department statement released after the meeting on Monday. Ms. Yellen “underlined the need to act quickly to ensure that an adequate US regulatory framework was in place.”

Mr Powell has been particularly open about the need for better oversight of stablecoins, repeatedly saying at two appearances in Congress last week that they are inadequately regulated.

“If we want something that looks like a money market fund, or a bank deposit, a narrow bank and it’s growing really fast, we really need proper regulation – and today we don’t,” he said while giving evidence to the banking committee Senate.

Eric Rosengren, the president of the Federal Reserve Bank of Boston, has similarly warned about Tether, arguing that it relies on underlying financial assets that could see investor runs during troubled times. The New York attorney general said earlier this year that Tether misled investors by claiming it was fully backed by US dollars at all times.

The Treasury Department said the working group expects to issue recommendations on stablecoins in the coming months. The group previously warned stablecoin operators that they must hold adequate cash reserves to cover their offerings.

The Fed could also try to crowd out digital offerings by offering its own alternative.

The central bank is looking at a digital currency offering that would likely work similarly to the digital cash you spend when you swipe your debit card. But where that debit card money is tied to the commercial banking system, the central bank’s digital currency would be backed directly by the Fed, as would physical cash.

Mr Powell told lawmakers last week that going without stable coins could be one of the stronger arguments in favor of a digital dollar.

But Mr Powell remains undecided whether central bank digital currency makes sense, he told lawmakers. The Fed plans to release a comprehensive report on the possibility of a digital dollar, expected in September.

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Schumer to push infrastructure invoice, finances decision this week

Senate Majority Leader Chuck Schumer (D-NY) is flanked by Senators Patty Murray (D-WA), Dick Durbin (D-IL) and Debbie Stabenow (D-MI) as he speaks to reporters, follow the weekly Senate Democrats’ luncheon at the US Capitol in Washington, USA, July 13, 2021.

Elizabeth Frantz | Reuters

Senate Majority Leader Chuck Schumer, DN.Y., plans to proceed with the Senate passing a bipartisan infrastructure bill worth $ 1.2 trillion this week, despite the lack of consensus among the Senators negotiating the legislation about what will be in there.

Again this week, Schumer wants the Senate Democrats to agree to a $ 3.5 trillion budget dissolution, which they want to pass without a Republican vote.

Schumer is under heavy pressure to advance both of President Joe Biden’s domestic spending packages before Senators leave Washington early next month for a scheduled August break.

But several Republicans, whose votes Schumer must exceed 60 to move the infrastructure bill forward, have sounded the alarm over the hasty schedule and threatened to vote against efforts to postpone the bill before negotiators have finalized it.

“We shouldn’t have an arbitrary Wednesday deadline,” said Ohio Senator Rob Portman, the leading Republican negotiating the deal, on CNN’s State of the Union on Sunday. “We should come up with the legislation when it’s ready.”

However, Schumer sees the deadline as a crucial lever to force the bipartisan group of 22 senators to come to an agreement on difficult issues.

None are harder than paying for the $ 579 billion in new infrastructure they were planning to spend earlier this year.

Portman said he spent the past weekend working on the deal with members of the Senate group and the White House.

But rather than adding to the list of potential sources of funding for the bill, Portman said Republicans had recently removed a provision that would fund part of the infrastructure upgrade by collecting unpaid taxes.

“Everyone had productive talks, and it is important to keep the two-pronged process going,” said Schumer in the Senate on Thursday.

“All parties involved in the bipartisan talks on the Infrastructure Act must now finalize their agreement so the Senate can begin examining this bill next week,” he said.

Schumer announced that he will file a motion on Monday to proceed with a Shell bill to be used as a “vehicle” for the infrastructure bill once it is drafted. The Shell Bill contains a permit to finance highways that has already been passed by the House of Representatives.

This would initiate a further process vote on Wednesday. If 60 senators vote in favor of the Cloture appeal, Schumer’s office says it triggers up to 30 hours of debate in the Senate, followed by a vote on the motion to continue the Shell legislation.

During the subsequent amendment process, Schumer would file an amendment that swapped the Shell Act for the actual text of the final bipartisan infrastructure bill.

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Aside from this week’s scheduled vote, the other major test that lies ahead of us for the infrastructure package is what is known as the bipartisan Congressional Budget Office’s bill, an estimate of how much the package would add to the federal deficit based on how much the proposed one Funding would actually pay.

Schumer has also set an ambitious deadline for his group on Wednesday to reach an internal agreement to move forward with their massive budget dissolution, including instructions on reconciliation.

If they could invoke this parliamentary maneuver, the Democrats could pass the $ 3.5 trillion budget with just a simple Senate majority – 50:50 50:50 with the Republicans – instead of the 60 votes that the GOP could require through the filibuster rules.

But the timeline is also squeezed there. Senate Budget Committee Chairman Bernie Sanders, who will lead the process of drafting the bill, only approved the topline number last week.

The package will likely include money for a universal preschool, free community college, expanded health insurance, subsidized childcare, extended family and sick leave, new low-income housing, and nationwide green energy projects.

If passed the Democratic way, the bill would represent both the largest expansion of the social safety net in decades and one of Washington’s most comprehensive efforts to curb climate change and prepare the country for its effects.

Republicans, meanwhile, have resisted the prospect of pumping trillions of dollars more into the economy as inflation rises.

The Democratic budget decision was “totally inadequate for a country already suffering from dramatic inflation,” Senate minority leader Mitch McConnell, R-Ky., Said last week.

However, many of the provisions in Biden’s two expense accounts are popular with voters. The Democrats are relying on this public approval to get the bills through in the next few weeks and months.

The party’s election hopes in 2022 likely depend on whether Biden’s two-pronged agenda actually goes through and whether Biden can maintain public support for it through November next year.

Biden will be promoting the two bills, dubbed the “Build Back Better” agenda by the White House, on Monday in remarks on the economic recovery from the Covid pandemic.

The president has publicly tried to assert himself above the battle during the infrastructure negotiations.

“There may be some minor adjustments to the payouts and that will depend on what Congress wants to do,” Biden told reporters Wednesday afternoon after meeting with Senate Democrats on Capitol Hill. the White House. “I’m not sure what can happen, exactly how it’s paid for,” he added.

But privately, senators from both parties have been in almost constant communication with important White House envoys over the past few days.

Portman said he spoke to White House negotiators about details of the infrastructure bill on Saturday night. On Thursday, a group of Senators met with the White House team on Capitol Hill.

As the House of Representatives returns to Capitol Hill this week, Spokeswoman Nancy Pelosi, D-Calif., And her aides are working behind the scenes to avert potential problems the moderate Democrats face with the $ 3.5 trillion budget plan, Punchbowl News reported Monday morning .

Pelosi has proposed that the Senate pass both the infrastructure deal and the draft budget before adopting them in the House of Representatives.

“There will be no infrastructure bill unless the Senate passes a reconciliation bill,” Pelosi said last month.

– Christina Wilkie reported from Washington and Kevin Breuninger from New York.

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US to Accuse China of Microsoft Hacking

WASHINGTON — The Biden administration on Monday is expected to formally accuse the Chinese government of breaching Microsoft email systems used by many of the world’s largest companies, governments and military contractors, according to a senior administration official. The United States is also set to organize a broad group of allies, including all NATO members, to condemn Beijing for cyberattacks around the world.

The official, who spoke on the condition of anonymity, added that the United States was expected to accuse China for the first time of paying criminal groups to conduct large-scale hackings, including ransomware attacks to extort companies for millions of dollars. Microsoft had pointed to hackers linked to the Chinese Ministry of State Security for exploiting holes in the company’s email systems in March; the U.S. announcement will offer details about the methods that were used, and it is the first suggestion that the Chinese government hired criminal groups to work on its behalf.

Condemnation from NATO and the European Union is unusual, because most of their member countries have been deeply reluctant to publicly criticize China, a major trading partner. But even Germany, whose companies were hit hard by the hacking of Microsoft Exchange — email systems that companies maintain on their own, rather than putting them in the cloud — cited the Chinese government for its work.

Despite the broadside, the announcement will lack concrete punitive steps against the Chinese government such as sanctions similar to ones that the White House imposed on Russia in April, when it blamed the country for the extensive SolarWinds attack that affected U.S. government agencies and more than 100 companies.

By imposing sanctions on Russia and organizing allies to condemn China, the Biden administration has delved deeper into a digital Cold War with its two main geopolitical adversaries than at any time in modern history.

While there is nothing new about digital espionage from Russia and China — and efforts by Washington to block it — the Biden administration has been surprisingly aggressive in calling out both countries and organizing a coordinated response.

But so far, it has not yet found the right mix of defensive and offensive actions to create effective deterrence, most outside experts say. And the Russians and the Chinese have grown bolder. The SolarWinds attack, one of the most sophisticated ever detected in the United States, was an effort by Russia’s lead intelligence service to alter code in widely used network-management software to gain access to more than 18,000 businesses, federal agencies and think tanks.

China’s effort was not as sophisticated, but it took advantage of a vulnerability that Microsoft had not discovered and used it to conduct espionage and undercut confidence in the security of systems that companies use for their primary communications. It took the Biden administration months to develop what officials say is “high confidence” that the hacking of the Microsoft email system was done at the behest of the Ministry of State Security, the senior administration official said, and abetted by private actors who had been hired by Chinese intelligence.

The hacking affected tens of thousands of systems, including military contractors.

The last time China was caught in such broad-scale surveillance was in 2014, when it stole more than 22 million security-clearance files from the Office of Personnel Management, allowing a deep understanding of the lives of Americans who are cleared to keep the nation’s secrets.

President Biden has promised to fortify the government, making cybersecurity a focus of his summit meeting in Geneva with President Vladimir V. Putin of Russia last month. But his administration has faced questions about how it will also address the growing threat from China, particularly after the public exposure of the Microsoft hacking.

Updated 

July 16, 2021, 7:55 p.m. ET

Speaking to reporters on Sunday, the senior administration official acknowledged that the public condemnation of China would only do so much to prevent future attacks.

“No one action can change China’s behavior in cyberspace,” the official said. “And neither could just one country acting on its own.”

But the decision not to impose sanctions on China was also telling: It was a step many allies would not agree to take.

Instead, the Biden administration settled on corralling enough allies to join the public denunciation of China to maximize pressure on Beijing to curtail the cyberattacks, the official said.

The joint statement criticizing China, to be issued by the United States, Australia, Britain Canada, the European Union, Japan and New Zealand, is unusually broad. It is also the first such statement from NATO publicly targeting Beijing for cybercrimes.

The National Security Agency and the F.B.I. are expected to reveal more details on Monday about Chinese “tactics, techniques and procedures” in cyberspace, such as how Beijing contracts criminal groups to conduct attacks for the financial gain of its government, the official said.

The F.B.I. took an unusual step in the Microsoft hacking: In addition to investigating the attacks, the agency obtained a court order that allowed it to go into unpatched corporate systems and remove elements of code left by the Chinese hackers that could allow follow-up attacks. It was the first time that the F.B.I. acted to remediate an attack as well as investigate its perpetrators.

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Politics

Biden marketing campaign spokesman joins USTR as a prime communications officer

United States Agent Seal

Source: Wikipedia

Former President Joe Biden’s chief spokesman has landed a top communications job in the US Trade Representative’s office.

Kamau Marshall, who was Biden’s director of strategic communications in the 2020 election, is now USTR’s assistant assistant for media and public affairs, according to the trade organisation’s website.

Marshall also conducted press contacts for Biden’s inauguration. The USTR is led by Ambassador Katherine Tai.

Marshall’s addition to the USTR leadership team comes as the United States is in the midst of an ongoing trade war with China.

Biden has yet to reveal whether he plans to lift the tariffs on Chinese exports that then-President Donald Trump imposed on the country’s goods. On Thursday, Biden warned American companies of worsening business conditions in Hong Kong.

Marshall has extensive political and communications experience beyond his time at Biden.

During former President Barack Obama’s tenure, he was a speechwriter and communications advisor for the Department of Agriculture. He also served on the Democratic Campaign Committee, MP Al Green, D-Texas, and the late Democratic MPs John Lewis and Elijah Cummings.

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