Category: Economy

Biden Admin in Talks to Potentially Bail Out a Third Bank: Report

Ohio Star Staff

The U.S. government is considering backing a potential deal to rescue the struggling First Republic Bank, in a bid by U.S. officials and Wall Street executives to head off the chance of a third major bank failure, Bloomberg reported, citing people with knowledge of the discussions.

Wall Street investors have expressed an interest in helping stabilize the struggling San Francisco-based bank, which has been selling assets — which lost value amid the Federal Reserve’s aggressive campaign of interest rate hikes designed to combat inflation — to pay out a surge in customers pulling their funds from the bank, according to Bloomberg. While the extent of government aid has not yet been decided, the government could cover the cost of First Republic’s losses or offer liability protection to companies involved in a deal.

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Biden Administration Attempting to Bail Out Moderna

Ohio Star Staff

The pharmaceutical company Moderna, which has already received over $10 billion in taxpayer funds for the development of its COVID-19 vaccine, could receive even more public money at the request of the Biden Administration.

According to the Washington Free Beacon, lawyers with the Department of Justice (DOJ) offered in court filings last month to “relieve” Moderna of any liabilities it may face as the result of a lawsuit claiming that the company has not paid licensing fees for the technology it utilized to develop its vaccine for the Chinese coronavirus.

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Janet Yellen Says More Bank Bailouts Could Be on the Horizon

Ohio Star Staff

Treasury Secretary Janet Yellen said in remarks Tuesday that regulators may ensure all deposits at more banks following the Silicon Valley Bank (SVB) and Signature Bank depositor bailouts.

Yellen said the bailouts were essential to safeguard the U.S. banking system in prepared remarks at the American Bankers Association Tuesday, referencing the Federal Reserve’s actions in insuring the deposits of SVB’s customers.

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‘Sustainable’ Electric Cars Are Getting Junked Over Minor Damage

Admin

Insurers are being forced to write off many electric vehicles with only minor damage to battery packs, sending the batteries to scrap yards and hindering the climate benefits of going electric, Reuters reported.

Battery packs typically represent roughly half the cost of an electric vehicle, sometimes costing tens of thousands of dollars, often making it more economical for insurers to consider a car as totalled than replace a battery pack, according to Reuters. While many carmakers, including Ford and GM, told Reuters that their battery packs were repairable, many are unwilling to share key data with third-party insurers to help assess damage.

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Janet Yellen’s Policy Would Destroy Small U.S. Banks While Bailing Out Chinese Depositors, Experts Say

Ohio Star Staff

Treasury Secretary Janet Yellen stated during her testimony at a Senate Finance Committee hearing on March 16 that she, the Federal Deposit Insurance Corporation board, the Fed board, and President Joe Biden would only safeguard uninsured deposits at banks whose failures they determine would pose “systemic risks” to the economy, which will destroy small regional banks, according to experts who spoke to the Daily Caller News Foundation.

On the other hand, it will enable big banks to be more reckless because their depositors will be made whole if they fail. In the case of Silicon Valley Bank (SVB), this will include many Chinese companies that will be getting reimbursed by community banks, according to Reuters.

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‘That’s a Lie’: GOP Senator Presses Janet Yellen on Plan to Pay for Social Security

Ohio Star Staff

Republican Sen. Bill Cassidy of Louisiana accused the Biden administration of lying about its commitment to working with Congress to protect seniors’ social security benefits at a hearing of the Senate Finance Committee Thursday.

Cassidy asked Treasury Secretary Janet Yellen, who was testifying about President Joe Biden’s proposed budget for the fiscal year 2024, if the president was aware that “when [Social Security] goes broke in nine years” there would be a 24% cut in benefits for current recipients.

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As Losses Mounted, Silicon Valley Bank Doubled Down on Woke Investments and Left-Wing Rhetoric

Just the News

Long before its epic collapse, Silicon Valley Bank (SVB) was a darling of the left. It allied in cash and manpower with a liberal nonprofit run by California Gov. Gavin Newsom’s wife and fully embraced the environmental, social and governance (ESG) platform now being banned in some red states, while celebrating its executives’ involvement in the LGBTQ+ movement.

As SVB’s investment failures mounted, the bank doubled down on its ideological commitments by pledging $5 billion in new green tech outlays, despite signs of rising interest rates negatively impacting that sector. Some institutional investors also began to raise concerns about the overall balance sheet.

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Commentary: Despite ‘Strong’ Rhetoric, Biden Administration Signals Gloomy Economic Outlook

Admin

The White House Office of Management and Budget (OMB) in the now-released President’s Budget is projecting just 0.6 percent in inflation-adjusted real growth of the U.S. economy in 2023 as the unemployment rate is expected to rise to 4.3 percent in 2023 and peak at 4.6 percent in 2024 after the economy is finished overheating from the continued, elevated inflation, consumers max out on credit and spending falls off a cliff.

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Oil CEOs See Massive Bonuses amid Record Profits

Admin

The pay packages for the chief executives of British oil giants BP and Shell skyrocketed in 2022 after the oil titans posted record profits off the back of high gas prices last year, Reuters reported Friday.

The salary of BP CEO Bernard Looney climbed to roughly £1.3 million, while performance-related bonuses and stock awards climbed to £10.03 million, to a total of £11.33 million in compensation, more than two and a half times the £4.46 million he earned in 2021, the company announced Friday. BP —which lagged behind its American competitors in 2022 despite a record profit of roughly $28 billion — has drawn criticism from activists for cutting its green investments and reinvesting in gas and oil, Reuters reported.

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Biden Admin Shot Down Purchase Attempts for Failed Bank, Former Trump Official Says

Admin

A former economic adviser to former President Donald Trump said Monday that the Federal Deposit Insurance Corporation (FDIC) prevented several efforts to purchase Silicon Valley Bank. Federal regulators shut down Silicon Valley Bank Friday after its stock price collapsed and customers began a bank run following the financial institution’s disclosure of a $1.8 billion loss on asset sales due to high interest rates, CNBC reported. The Federal Deposit Insurance Corporation (FDIC) also shut down Signature Bank Sunday, citing “systemic risk,” CNBC reported separately.

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Ohio’s Yearly Gas Price Increase Among Nation’s Highest

The Center Square

A new report shows Ohioans have some of the highest gas price increases in the nation from 2022 to 2023.

Zutobi, an online drivers ed organization, analyzed fuel prices in every state and more than 170 countries to create its “Global Gas Prices Report” for 2023. The report shows the states with the cheapest and most expensive gas prices, along states that showed the most significant changes.

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Treasury Inspector General Audit: 42,000 Federal Employees ‘Repeatedly’ Don’t File Federal Returns

Just the News

Tens of thousands of federal employees have “repeatedly” failed to file their federal tax returns, according to a new federal watchdog report.

The Treasury Inspector General for Tax Administration flags 42,000 so-called “federal employee non-filers” and states the government is limited in its authority to punish them, according to the Washington Times.

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Commentary: Climate Policies Will Shut Down Farmers

Ohio Star Staff

Belgian and Dutch farmers are protesting because they are losing their livelihoods in the name of fighting so-called climate change as European governments seek to reduce emissions of nitrogen oxide and ammonia, necessary inputs of modern agriculture. Will American farmers and consumers soon face the same fate?

European farmers are being told that because of the aim for “net-zero emissions” of greenhouse gases and other so-called pollutants in 2050, their industry is being phased out if they can’t adapt.

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Slave Labor Clouded Plunging U.S. Solar Market in 2022

Ohio Star Staff

U.S. solar panel installations plummeted in 2022 as lingering supply chain issues hindered the industry, although forecasters anticipate a bounceback and significant growth over the next decade, according to a joint report from the industry trade group Solar Energy Industries Association (SEIA) and research analytics firm Woods Mackenzie released Thursday.

The primary cause of the decline was a significant disruption in the solar panel supply chain caused by detentions of Chinese solar panel materials by U.S. Customs and Border Protection over concerns that the products were developed by the forced labor of Uighur muslims, according to the report. While 2022 was a “tough year” for solar, supply chain issues are expected to be resolved in 2023, leading to a 41% surge in installations, Michelle Davis, principal analyst at Wood Mackenzie and lead author of the report, said in a press release Thursday.

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Eco-Conscious ESG Investors Among Top Shareholders in Rail Giant Under Fire for Toxic Spill

Just the News

Three of the five top shareholders in Norfolk Southern — the freight rail carrier under the spotlight for its saftey and environmental record following last month’s toxic train derailment in East Palestine, Ohio — have been aligned with the eco-conscious, socially aware ESG (environmental, social, governance) investing framework embraced by many leading financial firms in recent years. Asset management firms BlackRock Fund Advisors, JPMorgan Investment Management, and The Vanguard Group were all part of the Net Zero Asset Managers initiative, a coalition of ESG-minded money mangers committed to channeling investment capital to firms working toward the goal of net-zero greenhouse gas emissions by 2050, as outlined in the Paris Climate Accord.

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Poll: Inflation Has Americans Worried About Covering Expenses After Job Loss

The Center Square

A majority of Americans polled said they couldn’t afford to pay emergency expenses or cover their living expenses for just one month if they lost their primary source of income, according to Bankrate’s latest Annual Emergency Savings Report. The main reason cited is record-high inflation.

The majority surveyed, 68%, said they’re “worried they wouldn’t be able to cover their living expenses for just one month if they lost their primary source of income.”

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Homeless Shelter Sues State Officials Preventing It from Hiring Christian Employees

Ohio Star Staff

A Christian homeless shelter filed a lawsuit against Washington state officials Thursday alleging that the state’s anti-discrimination law prevents the shelter from only hiring employees that agree with their faith-based worldview.

Yakima Union Gospel Mission (YUGM) in Yakima, Washington, describes its mission as “helping people move from homelessness to wholeness” on its website and has been working in the community for 35 years, according to a press release by Alliance Defending Freedom (ADF), the world’s largest law firm representing faith and free speech issues. The shelter explains in the lawsuit that the defendants, Attorney General Robert Ferguson and Executive Director of the Washington State Human Rights Commission Andreta Armstrong, have been using Washington’s anti-discrimination law to prevent the organization from hiring in line with their faith, according to the lawsuit.

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Union Rep Reports: Employees Are Sick After Working on Cleanup for East Palestine Train Disaster

Hannah Poling

According to a union spokesperson for workers who build and maintain railways for Norfolk Southern, those who assisted in the cleanup after the train derailed in Ohio have continued to have migraines and nausea.

In a letter to Ohio Governor Mike DeWine on Wednesday, Jonathan Long, a union representative for the Brotherhood of Maintenance of Way Employees Division of the International Brotherhood of Teamsters, claimed that Norfolk Southern, the company that owns the train that derailed in East Palestine, Ohio, last month, had ordered about 40 workers to clear the wreckage.

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Kentucky Becomes Latest State to Take on Woke Banks, Asset Managers

Ohio Star Staff

The state of Kentucky announced Tuesday that it may pull funds from JPMorgan Chase, BlackRock and nine other financial firms that “boycott” fossil fuel companies.

Kentucky passed a law in April 2022 that directs the state treasurer to publish a yearly list of banks and asset managers that are found to be boycotting energy companies. Kentucky Treasurer Allison Ball published a list of 11 financial firms that are now subject to divestment under the law unless they change their investment policies within 90 days.

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Caterpillar Announces Relocation of Global Headquarters from Illinois to Texas

Susan Berry, PhD

Construction and mining equipment giant Caterpillar Inc. announced Tuesday it will move its global headquarters from its current location in Deerfield, Illinois, to the company’s existing office in Irving, Texas.

“We believe it’s in the best strategic interest of the company to make this move, which supports Caterpillar’s strategy for profitable growth as we help our customers build a better, more sustainable world,” said Chairman and CEO Jim Umpleby in a press release. 

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Amazon to Add Thousands of Tech, Corporate Jobs in Six American Cities

The Associated Press

Amazon plans to create 3,500 new tech and corporate jobs in six cities nationwide, the company announced Tuesday.

Most of the company’s new hires will be located in Amazon’s New York office with the rest being added in Dallas, Detroit, Denver, Phoenix and San Diego, according to a press release. Amazon also announced plans to expand the six offices to accommodate the new hires.

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Commentary: TikTok is Just the First Chinese App the Trump Admin is Eyeing for Crackdown Over Spying

Ohio Star Staff

Two days after President Trump told reporters that he plans to ban TikTok from the United States, Secretary of State Mike Pompeo suggested in an interview with Fox News that executive action may soon be taken against many other apps owned by Chinese firms.

Trump remarked to journalists aboard Air Force One on Friday that he could ban TikTok “with an executive order,” suggesting that the president has made up his mind about the popular short video platform. TikTok, which is owned by Chinese tech conglomerate ByteDance, has been at the center of a months-long debate over whether the data that it collects from American users could be exploited by China’s government.

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New Durable-Goods Orders Rise Again in June

Ohio Star Staff

New orders for durable goods posted a second consecutive month of rebound in June, rising 7.3 percent following a gain of 15.1 percent in May. The two gains followed drops of 18.3 percent in April and 16.7 percent in March. If transportation equipment is excluded, new orders for durable goods increased 3.3 percent in June following a 3.6 percent rise in May. Durable-goods orders had been holding above the $200 billion level since May 2011 before posting sharp declines in March and April (see first chart). New orders for June are back above the $200 billion threshold, totaling $206.9 billion, but are still 21.9 percent below June 2019.

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Analysis: President Trump Was Correct About the Rapid Economic Rebound Post-Shutdown as Another 630,000 Americans Come Off Unemployment Benefits

Ohio Star Staff

Another 630,000 Americans came off continuing unemployment claims the week ending June 27, according to the latest unadjusted data from the U.S. Department of Labor, proving President Donald Trump is right about the economy rapidly recovering from the COVID-19 pandemic state-based shutdowns.

Since the week ending May 9, unadjusted continuing unemployment claims have dropped from 22.8 million to 16.8 million the week ending June 27, a massive turnaround of 6 million Americans who temporarily found themselves on unemployment benefits but then rapidly came off of it on a net basis.

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Google Selects Mississippi Site for First US Operations Center

The Associated Press

Google’s first U.S. operations center is coming to northwest Mississippi.

The company announced Thursday it will lease a new 60,000-square-foot (5,574 square-meter) facility in Southaven, Mississippi, near Memphis, Tennessee. Google expects the site, which will provide customer and operations support to customers worldwide, to be operational by summer 2021.

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Amazon Says Email to Employees Banning TikTok Was a Mistake

The Associated Press

Roughly five hours after an internal email went out Friday to Amazon employees telling them to delete the popular video app TikTok from their phones, the online retailing giant appeared to backtrack, calling the ban a mistake.

“This morning’s email to some of our employees was sent in error,” Amazon emailed reporters just before 5 p.m. Eastern time. “There is no change to our policies right now with regard to TikTok.”

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Wall Street Rises Again, Joins Worldwide Upswell for Markets

The Associated Press
New York Stock Exchange

Wall Street joined a worldwide upswell by markets on Monday, as stocks push higher on hopes that the economy can continue its dramatic turnaround despite all the challenges ahead.

The S&P 500 was 1.59% higher in afternoon trading, following up on similar gains in Europe and Asia. The headliner was China’s market, which leaped 5.7% for its biggest gain since 2015, when it was in the midst of a bubble bursting. Treasury yields also climbed in a signal of rising optimism after reports detailed improvements in the U.S. and European economies.

The Dow Jones Industrial Average closed up 459 points, or 1.78%, at 26,287. The biggest companies once again led the way, and strength for Apple, Amazon and other tech-oriented titans helped push the Nasdaq composite up 2.21% toward another record.

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Tech Leads the Way as US Stocks Head for a Third Month of Gains

The Associated Press

Stocks closed higher on Wall Street Tuesday, extending the market’s recent winning streak after another strong showing by technology companies.

The S&P 500 rose 0.4% and is on pace for its third straight monthly gain. The Nasdaq composite, which is heavily weighted with technology stocks, climbed to an all-time high for the second day in a row. Bond yields rose, another sign of increasing confidence in the economy.

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Stock Indexes Move Higher on Wall Street After a Shaky Start

The Associated Press

Stock indexes are higher on Wall Street in choppy trading Monday as investors weigh the risks that rising coronavirus cases could pose to hopes for an economic recovery.

The S&P 500 rose 0.4% in midday trading after an initial slide of 0.6% following weakness in overseas markets as the global tally of infections approaches 9 million. The price of gold rose, a signs of caution in the market. Bond yields were mixed.

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Wall Street Veers Higher on Fed Plan to Buy Corporate Bonds

The Associated Press

Stocks swung solidly higher on Wall Street in afternoon trading Monday after the Federal Reserve said it would begin buying individual corporate bonds, the central bank’s latest move to prop up volatile financial markets through the economic fallout of the coronavirus pandemic.

The S&P 500 was up 1% after being down as much as 2.5% shortly after trading began in New York. The gains followed sharp losses in Asia and more moderate ones in Europe. Worries were on the rise that new waves of coronavirus infections around the world could derail the swift economic recovery that Wall Street had seemed sure just a week ago was on the way.

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Wall Street Tilts Higher Again on Economic Recovery Hopes

The Associated Press

Wall Street’s rally is spilling into a new week as most stocks continue to ride the high supplied by Friday’s surprisingly encouraging report on the U.S. jobs market.

The S&P 500 was up 0.5% in midday trading on Monday, bringing it back within 5.3% of its record set in February, as optimism strengthens that the worst of the coronavirus-induced recession may have already passed. Stocks that would benefit most from an economy that’s growing again were rising the most, but pullbacks for a handful of big tech stalwarts were keeping the market’s overall gains in check.

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Wall Street’s Rally Zooms Higher After Surprise Gain in Jobs

The Associated Press

Stocks are rushing higher in morning trading Friday after a much better-than-expected report on the U.S. job market gave Wall Street’s recent rally another shot of adrenaline.

The S&P 500 was up 2.2% after the government said that U.S. employers added 2.5 million workers to their payrolls last month. Economists were expecting them instead to slash another 8 million jobs amid the recession caused by the coronavirus and the shutdowns put in place to stem it.

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Cinema Chain AMC Warns It May Not Survive the Pandemic

The Associated Press

Movie theater chain AMC warned Wednesday that it may not survive the coronavirus pandemic, which has shuttered its theaters and led film studios to explore releasing more movies directly to viewers over the internet.

All of AMC’s theaters are shut down through June, which means the company isn’t generating any revenue. AMC said it had enough cash to reopen its theaters this summer, as it plans to do. But if it’s not allowed to reopen, it will need more money, which it may not be able to borrow.

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Ohioans Share Why Trump Support Among Black Voters is Soaring

Beth Lear

The Washington Examiner revealed polling data this week that found President Trump has a 34% approval rating with African Americans. The Ohio Star spoke with four African American Trump supporters in Ohio and asked them why they support the President. State Representative Candidate Bobby Mitchell of Canal Winchester, Columbus entrepreneur Tyrone Jackson and Pastor Walter Moss of Canton gave their insights about the phenomena.

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AG Yost Tells OptumRx ‘We’ll See You in Court’ for Overbilling the Ohio Bureau of Workers Compensation Millions

Beth Lear

Attorney General Dave Yost announced Monday he amended his lawsuit filed against pharmacy benefit manager (PBM) OptumRx, claiming the PBM excessively charged the Ohio Bureau of Workers Compensation for generic drugs. The overcharge totaled nearly $16 million. It is now “significantly more.”

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Senate Passes House Bill 2, a TechCred Bill That Caused Words Between the Two Legislative Leaders

Beth Lear

COLUMBUS, Ohio – Last week the Speaker of the Ohio House and the Senate President exchanged a few words via the media. The Speaker expressed frustration that the House priority bills, House Bills 1 through 14, were not moving fast enough in the Ohio Senate. The most recent bill to cause Householder concern was House Bill 2. It passed the Senate Wednesday.

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Some Ohio Politicians Praise Lordstown Sale, Senator Portman Expressed Skepticism, Brown Says Union Support Necessary for Success

Beth Lear

Most elected officials praised the reported sale of the Lordstown plant last week. Senator Portman expressed skepticism and Senator Brown told the new owners they needed to partner with the union if they wanted to be successful.

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General Motors Sells Lordstown Assembly Plant to an Electric Car Company

Beth Lear

Auto maker GM announced Thursday that indeed – as President Trump tweeted in May – the Lordstown facility in Ohio would be sold and reopened to manufacturer the Workhorse electric vehicle called the Endurance. GM declared their intent to idle the plant a year ago, and shut the lights out on March 6th after 52 years of business. 

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Grocery Giant Kroger Continues Far Left March with New ‘Gender Fluid’ Customer Survey Option

Beth Lear

A central Ohio Kroger shopper was shocked to read one of the questions on the online survey the company offers at the bottom of their receipts. The Ohio-based grocer has expanded the list of gender options from two, male and female, to four, including “gender fluid/non-binary” and “prefer not to answer.” It is not the first time Kroger has embraced far-left progressive sexuality.

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Opportunity Ohio Finds Right-to-Work States Dominate the Recovery, Ohio Not Among Them

Beth Lear

Matt Mayer, president of the the pro-growth advocates Opportunity Ohio, crunched the numbers and graphed the results of private sector job growth in all the states and the District of Columbia. The news for Ohio, a compulsory union state, is that it continues to lag behind those states that have embraced worker freedom.

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Americans for Prosperity Exposes ‘Corporate Welfare Horror Show’ to Congress for Halloween

Beth Lear

Americans for Prosperity (AFP) launched the latest installment of their Unrig the Economy campaign on Tuesday entitled “Corporate Welfare Horror Show.” AFP is continuing to encourage Congress to reject the reauthorization of the Export-Import Bank and “zombie” tax extenders.

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Lawyers and Lobbyists Likely to Have Income Tax Deduction Restored in Bill Giving Deductions to Teachers

Beth Lear

When the biennium budget was passed in July, a last minute provision added in Conference Committee took away the Business Income Deduction (BID) from two specific groups – lawyers and lobbyists. The deduction may be returned thanks to Senate Bill 26, a bill originally designed to give teachers a write-off when they spend unreimbursed money for their classrooms.

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