Biden says debt ceiling invoice avoids catastrophic financial default

US President Joe Biden addresses the nation on averting a default and the bipartisan budget deal in the Oval Office of the White House in Washington, DC on June 2, 2023.

Pool | Via Reuters

WASHINGTON — President Joe Biden made his first address in the Oval Office Friday night to discuss a bill to raise the debt ceiling while limiting federal spending, calling it a “critical” deal. He wants to sign the bill on Saturday.

“Nobody got everything they wanted, but the American people got what they needed. We averted an economic crisis and collapse,” Biden said.

The debt ceiling compromise proposal passed the Senate by a vote of 63 to 36 on Thursday night, garnering enough bipartisan support to clear the chamber’s 60-vote threshold and avoid a filibuster. On Wednesday, after about 72 hours, it made its way through the House of Representatives, passing 314-117.

There is little time for agreement: the Treasury Department estimated that the federal government would run out of money on June 5 if the debt ceiling had not been lifted.

“This is vital,” Biden said. “Critical to all of the progress we have made over the past few years is maintaining the full confidence and credit of the United States and enacting a budget that will continue to grow our economy and reflect our values ​​as a nation. “

Without the agreement, federal obligations such as Social Security, Medicare, and military paychecks would not have been paid. And if the debt ceiling was not raised, it would have roiled global financial markets and led to US job losses

The bill comes after weeks of intense negotiations between Republican House Speaker Kevin McCarthy and the White House. The final deal gave conservatives several ideological political victories in exchange for their votes to raise the debt ceiling beyond next year’s presidential election and into 2025.

The Little Mermaid is the important thing to Disney stay motion remake technique

Halle Bailey plays Ariel in Disney’s The Little Mermaid.

Disney

Disney’s The Little Mermaid grossed nearly $96 million in its first three days in cinemas in North America. This opening film is on par with the $91 million film Aladdin, which grossed more than $1 billion at the global box office in 2019.

However, that doesn’t guarantee that the company’s latest live-action remake will have the same success. The film will sink or swim by word of mouth.

Audience enthusiasm has become an increasingly important factor in box office success in the wake of the pandemic. With so many entertainment options, even franchise films can struggle to attract moviegoers. For those who cannot afford to see a film on its opening weekend, positive conversation can lure them into theaters, helping to boost the film’s overall box office earnings.

Disney has seen firsthand what happens when audiences don’t connect with titles. The studio, known for its animated content, has seen two of its most recent releases – Lightyear and Strange World – fail at the box office. Neither film was particularly well-received by critics, and previous releases that went straight to Disney+ confused consumers as to where to watch the films.

Disney has since built a solid theatrical business for live-action remakes of its litany of classic animated films, generating nearly $9 billion in worldwide ticket sales from these films since 2010.

The company’s success has inspired other studios to recreate popular animated films as live-action films. Universal Pictures and DreamWorks Animation are currently developing a live-action version of their highly successful How To Train Your Dragon animated trilogy. The film is scheduled to hit theaters on March 14, 2025.

Although there were two live-action movies based on 101 Dalmatians in 1996 and 2000, it wasn’t until 2010’s Alice in Wonderland that Disney really started producing these remakes. This film was the first in this series to gross more than $1 billion at the global box office, which sparked the production of nearly a dozen other titles, including Maleficent, Cinderella, The Jungle Book and Dumbo. .

And there are more on the way. Disney recently announced plans to bring Moana and Lilo and Stitch to the real world. With Disney scouting for newer animated films, Shawn Robbins, chief analyst at BoxOffice.com, believes it’s only a matter of time before the company starts looking at recent hits like Frozen or even Encanto.

These adaptations have had varying degrees of success over the past decade, with some such as The Lion King and Beauty and the Beast each grossing more than $1 billion at the global box office, and others such as Dumbo and Alice. Through the Looking Glass” has each grossed less than $350 million worldwide.

“The long-term game for Disney must include a plan that extends beyond the mighty triumvirate of Lucasfilm, Marvel and Pixar,” said Paul Dergarabedian, senior media analyst at Comscore. “Disney has focused 100% on live-action remakes of some of its most iconic titles, starring beloved characters, with varying degrees of box office success.”

The first box office showing of The Little Mermaid should give Disney a “confidence boost,” he added, as it shows that the live-action strategy is viable.

is it in the cinema

However, for many viewers, Disney’s release strategy has become muddled in the wake of the pandemic. While the live-action version of Lady and the Tramp was made available to subscribers when the Disney+ streaming service launched in late 2019, most consumers were expecting these new adaptations to hit the big screen as well.

When theaters closed due to the pandemic, Disney was forced to port 2020’s “Mulan” to Disney+ for a $30 rental and later release 2021’s “Cruella” in theaters and streaming simultaneously .

The company didn’t release another live-action remake until late 2022, when “Pinocchio,” starring Tom Hanks, came out on Disney+. According to Rotten Tomatoes, the film was heavily criticized by critics and audiences alike.

“Peter Pan and Wendy,” which came out on Disney+ in late April, also had mediocre reviews from critics (62% fresh) and was overwhelmingly disliked by audiences, who gave it 11%.

With only a few exceptions, audiences have been receptive to Disney’s classic animated remakes, often earning higher ratings than Rotten Tomatoes critics.

“The success of Disney’s remakes is pretty clear in that it resonates most strongly with the animation renaissance of the 1990s,” said Robbins. “That’s because these original stories are so popular and because of the contemporary tradition passed down from generation to generation.”

At the horizon

Box office experts will be watching The Little Mermaid’s second weekend in domestic cinemas for an indication of the film’s longevity at the box office.

For most films, a 50-70% drop is the norm. For big tentpole features, box office sales often dip into this range after opening weekend numbers were sky-high. While these types of films can continue to achieve billion-dollar box office releases, this metric can provide insight into whether word-of-mouth is attracting new viewers to theaters or if interest is waning.

The live-action film Aladdin, which also premiered over Memorial Day weekend, saw its ticket sales fall 53% from week one to week two. Ticket sales continued to decline by 40% or less through August of the same year.

Upcoming live action remakes from Disney

  • “Snow White and the Seven Dwarfs” – March 22, 2024
  • “Mufasa: The Lion King” – July 5, 2024
  • “Lilo & Stitch” – in development
  • “Moana” – in development
  • “Hercules” – in development
  • “The Hunchback of Notre Dame” – in development
  • “Robin Hood” – in development
  • “The Aristocats” – in development
  • “The Sword In The Stone” – in development
  • “Bambi” – in development
  • Cruella Sequel – In development
  • Sequel to The Jungle Book – in development

If The Little Mermaid can emulate these losses and stay in the cultural zeitgeist all summer, box office analysts predict domestic and eventually world box office success for the feature film.

That could be difficult as the film will face stiff competition from Sony’s Spider-Man Across the Spider-Verse, which hits theaters on Friday, as well as a host of upcoming family-friendly movies. Paramount’s Transformers: Rise of the Beasts is out June 9, Elemental from Disney and Pixar and Warner Bros. The Flash debuts June 16, and Universal’s Ruby Gillman: Teenage Kraken launches June 30 .

“Despite some backlash and lower box office earnings for certain films, the Disney vault has shown it continues to reach out and appeal to all age groups,” Robbins said. “However, some argue that this was at the expense of the original films. Ultimately, I think the audience wants both. Fresh content and nostalgic material both have their merits.”

Disclosure: Comcast is the parent company of NBCUniversal and CNBC. NBCUniversal owns Rotten Tomatoes.

Saweetie and YG Noticed Cuddling in Cabo Pool (PHOTOS)

It looks like Saweetie and YG are officially a couple. According to TMZ, the rappers were spotted on vacation in Cabo, Mexico and weren’t shy about showing affection for one another.

Saweetie & YG get cozy in Cabo

According to the outlet, the photos were taken by the rappers on Sunday. In the series of photos, YG wore a hat and dark swimming trunks, while Saweetie wore a bright pink two-piece bikini and long pigtails.

The rappers are seen snuggling together while YG leans into Saweetie’s face and even gives him a few kisses.

Check out the photos below!

Neither YG nor Saweetie have publicly confirmed or denied their romance.

Social Media Reactions

Instagram users reacted to photos of the rappers cuddled up in Cabo in The Shade Room’s comments section.

One user, @showgrlnucci, expressed doubts about the successful course of the relationship.

“I’m sorry but that won’t work, no shadow, but this man can’t be faithful.”

Others seemed to poke fun at the nature of the photos.

“The quality and composition of these images gives me an ‘I hoped a fence is camouflaged, climbed a tree, built a nest and used an RF 1200mm telephoto lens to take this image’ vibe and iontliked”

Another user, @queendawkins, poked fun at the fact that YG appeared to be looking straight into one of the cameras.

“He’s looking straight at the camera”

While another user, @fineenii, appears to approve of the couple.

“Unpopular opinion: They actually look good together.” 😍”

The rappers have been spotted together before

It’s not the first time the rappers have been spotted together. In April, Saweetie and YG ate at a restaurant in Indio, California. After the outing, the restaurant reportedly praised Saweetie for paying for the other guests’ meals.

Prior to this outing, the two were also spotted at this year’s Coachella Valley Music and Arts Festival, as reported by HipHopDX.

Roommates, are you guys here for YG and Saweetie dating?

The debt restrict invoice would velocity up the completion of the West Virginia gasoline pipeline

Lengths of pipe wait to be laid underground along the Mountain Valley Pipeline under construction near Elliston, Virginia, September 29, 2019.

Charles Mostoller | Reuters

A bipartisan debt-limit bill introduced over the weekend by President Joe Biden and House Republicans would speed up approval of all permits for a natural gas pipeline in West Virginia and restrict environmental assessments under one of the country’s landmark environmental laws.

The Mountain Valley Pipeline, promoted by Senator Joe Manchin, DW.Va., would transport natural gas 303 miles from West Virginia to the Southeast and a portion of it would traverse the Jefferson National Forest. Construction of the $6.6 billion pipeline is nearing completion, although plans have been delayed by several years due to legal setbacks.

Climate and civil rights activists, as well as some state Democrats, have spoken out strongly against the pipeline. Scientists have repeatedly warned that the country must halt approval of new fossil fuel projects and accelerate the clean energy transition to avoid the worst impacts of climate change.

While the Biden administration has pushed through an aggressive climate agenda, the president has also taken steps to boost fossil fuel production and work with Manchin and Republicans, who have argued that the president’s climate agenda threatens U.S. energy security.

Critics of the Mountain Valley Pipeline say it will pass through mostly rural, low-income Indigenous communities and will undermine the country’s efforts to curb fossil fuel emissions and pollution, which disproportionately harms communities committed to environmental justice.

“The dirty debt ceiling deal is essentially an assault on our climate and our working families. It’s a climate bomb … and a health hazard to any community that comes its way,” said Jean Su, program director for energy justice at the Center for Biological Diversity. said during a call on Tuesday. “It’s incredibly important that Congress vote on a clean debt ceiling.”

Proponents say the pipeline is vital to strengthening the US’s domestic energy security and that the plan is nearing completion and set to become a reality.

U.S. President Joe Biden speaks at the White House in Washington on May 28, 2023 on his agreement with House Speaker Kevin McCarthy (RCA) to raise the United States’ debt ceiling.

Julia Nikhinson | Reuters

The debt limit bill will speed up federal approvals for the pipeline and limit judicial review. Nevertheless, the project could be stopped or blocked by lawsuits.

US energy company Equitrans Midstream Corporation announced earlier this month that it expects to complete the pipeline by the end of the year, but added, “Significant risks and uncertainties remain, including with regard to current and likely litigation.”

“President Biden has protected his historic climate legislation, blocked House Republicans from reclaiming record funding for environmental justice projects, and struck a deal to bring hundreds of clean energy projects online faster while protecting the full scope of environmental assessments,” Abdullah said Hasan, a white House Speaker said.

“We believe this is a bipartisan compromise that Congressional Democrats can be proud of and that will accelerate our clean energy goals and climate agenda,” Hasan said.

The agreement would also streamline the National Environmental Policy Act (NEPA), a landmark environmental regulation, to limit its requirements on some projects.

The agreement would task “a single lead agency” with developing environmental assessments to speed up the process and reduce the time it takes the federal government to analyze the environmental impact of a proposed plan.

Environmental groups argued that the NEPA provision would further limit the public’s ability to contribute to fossil fuel projects, hurting overburdened communities. In a letter Tuesday from 175 groups, Senate Majority Leader Chuck Schumer, House Minority Leader Hakeem Jeffries and members of Congress were urged to vote on a clean debt ceiling bill.

Kathleen Sgamma, president of the Western Energy Alliance, which represents oil and gas companies, said in a statement that reforming the NEPA analysis is “extremely important to put the country back on the energy dominance path.”

“This is an important first step in accelerating the approval of America’s energy infrastructure, reducing costs for taxpayers and alleviating high energy prices for consumers,” Sgamma said of the debt ceiling agreement.

Congress is scheduled to vote on the law on Wednesday. Passing the bill will require both Republican and Democrat support. The deal must pass the Senate before the June 5 deadline set by the Treasury Department.

How Dexcom and Abbott are going past diabetes

According to the Centers for Disease Control and Prevention, more than 37 million people in the United States have diabetes. That is just over 11% of the total population.

A diabetic’s body does not produce enough insulin, or no insulin at all. Sick people need to check their blood sugar regularly. This is traditionally done with blood glucose meters, which diabetics use to prick their fingers to detect drops of blood. But in the last decade, technologies like continuous glucose monitoring have been on the rise.

Abbott And Dexcom are the two most dominant players in this area. Both companies recorded increased growth.

The technology is also being marketed by several health and wellness apps, as many companies see benefits for those who don’t have diabetes.

CNBC spoke to both Abbott and Dexcom about the technology in continuous glucose meters and how they anticipate its expansion.

Watch the video to learn more.

Republican cowards are complaining about being taken over by Biden within the wake of the debt ceiling settlement, however will not search resignation

House Republicans are aware that Kevin McCarthy was taken over by Biden on the debt ceiling deal, but they will not move to resign to drop McCarthy.

For example, here is MP Lauren Boebert (RC):

Saving $1.8 billion for Biden’s new army of IRS agents is great until you realize Democrats have earmarked $80 billion for it.

As I have said since the draft treaty was published, this is NOT a victory for the American people!

— Lauren Boebert (@laurenboebert) May 28, 2023

Rep. Ralph Norman (R-SC) complained to Fox about the deal:

Republicans are the only ones who can bring financial sanity to Congress. This “deal” with the White House does not live up to this responsibility. pic.twitter.com/0b9hPc0WVa

— Rep. Ralph Norman (@RepRalphNorman) May 29, 2023

However, not a single Republican in the House of Representatives has proposed a resignation against McCarthy, leading to two conclusions.

First, Republicans knew that the debt limit bill they were passing had no chance of ever being enacted. Second, Republicans in the House of Representatives feared a default. Republicans have been talking hard for weeks about not being afraid of a default and not believing it is real.

When push came to shove, they didn’t want to ruin the US economy and be blamed for it. So they complain publicly and dozens of them will vote no for the deal, but it’s all for show.

If Republicans in the House really hated the deal they would do everything in their power to destroy it, and if they couldn’t destroy the deal they would campaign to get rid of Kevin McCarthy.

It was all cheating. Kevin McCarthy failed, and House Republicans are too scared and weak to do anything about it.

Jason is the managing editor. He is also White House press secretary and congressional correspondent for PoliticusUSA. Jason has a bachelor’s degree in political science. The focus of his thesis was on public policy with a focus on social reform movements.

Awards and professional memberships

Member of the Society of Professional Journalists and the American Political Science Association

The New Jersey governor would take into account defying the Supreme Courtroom over the mifepristone ban

New Jersey Governor Phil Murphy

Scott Mill | CNBC

New Jersey Gov. Phil Murphy said Wednesday he would consider defying the Supreme Court and continuing to provide mifepristone if the court rules in favor of a ban on the abortion pill.

When asked if the state would prescribe mifepristone following such a ruling, Murphy told MSNBC, “That has yet to be determined.”

“When I say it’s all on the table, Katy, I mean it. That action in general, whether it’s mifepristone, or whether it’s North Carolina or South Carolina or Florida at six weeks,” he said in an interview with MSNBC’s Katy Tur. also refers to other abortion restrictions at the state level.

“It will cost lives. It will cost their health, it will also cost human lives, unfortunately women in particular. That’s what’s at stake, we’ll do whatever it takes to save lives,” said Murphy, a Democrat.

Murphy’s comments came after the US 5th Circuit Court of Appeals in New Orleans heard arguments in a case that could result in mifepristone being taken off the market nationwide, including in states where abortion is legal.

The case depends on whether the Food and Drug Administration’s approval of the abortion pill should be withdrawn.

The closely watched litigation is likely to end up again in the Supreme Court, which intervened last month to maintain the drug’s availability while the case moves through the court system.

Even if the Supreme Court rules in favor of a mifepristone ban, Justice Samuel Alito has hinted that the FDA could refuse to comply.

Alito said in a dissent last month that as the litigation progresses, the FDA could use its enforcement discretion and allow Danco Laboratories, the maker of mifepristone, to continue selling the abortion pill.

Mifepristone, used in combination with another drug, misoprostol, is responsible for about half of all abortions domestically.

Harry and Meghan caught up in near-catastrophic paparazzi chase

The Duke and Duchess of Sussex were allegedly involved in an hour-long “near-disastrous car chase” with paparazzi. The event is an eerie reminder of the tragic death of Prince Harry’s mother in 1997.

Harry and Meghan feared for their lives in “hour-long car chases” with paparazzi, says a spokesman

Prince Harry And Megan Markle, and Markle’s mother, Dorian Ragland, were reportedly followed by paparazzi on Tuesday night, according to the Independent. The trio had just attended a charity awards ceremony hosted by the Ms. Foundation for Women in New York City, where Meghan was honored.

The event marked the couple’s first public sighting since the coronation of King Charles III.

According to the couple’s spokesman, the Duke and Duchess feared for their lives when six cars chased them and their vehicle “for over two hours”.

“Last night the Duke and Duchess of Sussex and Mrs Ragland were involved in a near catastrophic chase by a group of extremely aggressive paparazzi,” the statement confirmed.

The pursuit reportedly involved several near misses involving other drivers, pedestrians and two NYPD (New York Police Department) officers.

Video taken prior to the alleged chase shows the couple entering and exiting the venue, surrounded by a crowd of photographers.

Meanwhile, images have surfaced on social media of Harry, Meghan and their mother sitting in the back of a cab.

“(This is just) a little insight into the defenses and decoys needed to end the harassment,” the couple’s rep said. “While serving as a public figure involves some interest from the public, it should never come at the expense of anyone’s safety.”

The couple’s rep added that posting these images “encourages an extremely intrusive practice that is dangerous for everyone involved.”

NYPD, Mayor, Photo Agency: The couple’s alleged cab driver downplays the incident

However, the NYPD, which provided a security guard, did not seem to see the situation that way. The department described the incident involving the evening paparazzi incident as “challenging.”

However, the Independent reported that there had been “no reported clashes, summonses, injuries or arrests”.

Meanwhile, New York Mayor Eric Adams called the photographers’ behavior “reckless.” However, it was “hard to believe” that a two-hour high-speed car chase ensued in the city’s notorious traffic jams, he added.

Adams admitted that even “if it’s 10 minutes, a 10-minute chase in New York City is extremely dangerous.”

A man who claimed to be her cab driver told the Washington Post, “It wasn’t like a car chase in a movie.”

Additionally, Backgrid USA, the photo agency accused of stalking the former royal couple, tweeted a lengthy statement refuting their allegations.

News reports from NYC Paparazzi Chase recall the tragic death of Harry’s mother, Princess Diana

Harry’s sensitive reaction to the situation is likely due to the death of his mother, Princess Diana. She was killed in a high-speed chase in Paris in 1997, reports the Independent.

According to the Independent, the vehicle crashed after its driver tried to flee the paparazzi.

In fact, Harry and Meghan both relocated to the United States after stepping down from their royal roles in 2020.

The couple said they left the UK mainly because of the intense media and tabloid harassment.

Goal revenue (TGT) Q1 2023

Shopping carts in front of a Target store in the borough of Queens in New York, the United States, on Saturday, May 13, 2023. Target Corp. is expected to release earnings numbers on May 17th.

Bing Guan | Bloomberg | Getty Images

Goal on Wednesday beat Wall Street’s earnings expectations even as the discount store’s sales barely grew year over year and its buyers bought more necessities.

Shares of the company closed the day at $160.96, up nearly 3%, though Target said its sales remain sluggish in the current quarter. Comparable sales are expected to decline in the low single digits.

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The major retailer maintained its full-year outlook. Comparable revenue for the fiscal year is expected to range between a low single digit decrease and a low single digit increase. Target said full-year earnings per share will be between $7.75 and $8.75.

Even as customers buy fewer essential items, Target lures them into stores with groceries, essentials and trend items, CEO Brian Cornell said in a call with reporters.

Here’s what Target reported for the three-month period ended April 29, compared to Refinitiv’s consensus estimates:

  • Earnings per share: $2.05 versus $1.76 expected
  • Revenue: $25.32 billion versus $25.29 billion

Target’s net income fell in the fiscal first quarter $950 million, or $2.05 per share, versus $1.01 billion, or $2.16 per share, last year.

Total revenue rose nearly 1% from $25.17 billion a year earlier, just ahead of analysts’ expectations.

Comparable sales, a key retail metric that tracks sales in stores open 13 months or more and online, were roughly flat in the first quarter compared to the year-ago period. That was roughly in line with Wall Street’s expectations of 0.2% growth, Street Account estimates.

Buyers spent less during the quarter, Chief Growth Officer Christina Hennington said in a conversation with investors. Sales were strongest in February, weakened in March and continued to decline towards the end of April, she said.

Beauty was the strongest category, with mid-teens sales growth year-over-year. Food and Beverage grew in the high single digits. And sales of household items rose in the low-single digits as customers bought health and pet supplies.

Other categories that include more discretionary items, including apparel and home furnishings, saw sales decline in the mid-single-digit to low double-digit range, Hennington said. She added that when customers actually buy these items, they usually only buy them at the last minute, like just before a vacation.

Because customers bought different items, they shopped differently. Comparable store sales increased 0.7%, but comparable digital sales declined 3.4% compared to the same period last year.

Cornell said a drop in packages being shipped to homes is partly the reason for weaker digital sales. These deliveries have a focus on necessities, compared to Target’s same-day curbside pickups, which tend to include more mundane items like groceries or diapers. he said.

In Target stores and online, shopper traffic grew about 1%, on top of a 3.9% growth in the year-ago period.

Target has had a challenging year of falling profits and slowing demand after a growth spurt during the Covid pandemic. Annual sales increased about $31 billion — or nearly 40% — from the fiscal year ended January 2020 to the fiscal year ended January of this year.

The discounter’s problems intensified in the year-ago quarter as it faced higher freight costs and popular pandemic purchases like bikes and kitchen items were left on the shelves. The retailer’s stock fell as it missed Wall Street’s earnings expectations for three straight quarters.

After Target canceled orders and reduced the warehouse flooding, another storm cloud appeared: buyers had become more economical.

Target showed signs on Wednesday that its inventories and earnings are getting back on track. Fiscal first quarter earnings beat expectations and gross margin of 26.3% increased year over year as freight costs fell and the retailer received fewer discounts.

Still, operating margin still hasn’t returned to pre-pandemic levels. However, this will only happen in the next fiscal year or later, the company announced in February.

Inventory at the end of the quarter was down 16% year over year, driven by a 25% decline in discretionary merchandise categories. The company ordered more groceries and high-traffic items to better reflect customers’ shift in spending.

Other retailers have also noticed a change in shoppers’ purchases. On Tuesday, home depot missed sales expectations and lowered guidance. The company’s CFO, Richard McPhail, said customers are buying less expensive items and instead dedicating themselves to smaller projects. Also, he added, they are again spending money on services and have already bought many things they needed while stuck at home due to Covid concerns.

Target’s Cornell identified another challenge facing retailers: organized retail theft. He said Target expects attrition from these crimes to increase by $500 million compared to last year. Shrinkage also includes other types of inventory loss, including employee theft and damaged goods.

“The unfortunate fact is that violent incidents are increasing in our stores and across retail,” he said on the phone call to reporters.

He added the trend Detracts from the shopping experience as the shelves are half full for customers and staff are anxious.

While Target reported a better-than-expected quarter on Wednesday, executives stressed that the strain on U.S. budgets will pose challenges for the company in the near term.

“The consumer is under pressure,” Hennington said on the call to reporters. “Persistent inflation, lack of savings, and economic uncertainty in general are affecting their decisions and making trade-offs.”

However, she said Target gets them to open their wallets by offering holiday-themed items, new products and lower prices. Sales of groceries, decorations and gifts for Valentine’s Day and Easter, movie-themed toys and fresh collections of women’s clothing saw an upswing.

Deutsche Financial institution pays the victims $75 million

Jonathan Raa | Nurphoto | Getty Images

Deutsche Bank has agreed to pay $75 million to victims of sex offender Jeffrey Epstein to settle a federal lawsuit alleging the bank facilitated and profited from the sex trafficking of young women by its customers. sources told CNBC on Wednesday night.

The bomb deal remains JPMorgan Chase to defend his own class action lawsuit filed by the Epstein accusers in US District Court in Manhattan over similar allegations.

JPMorgan CEO Jamie Dimon, who has said the bank is not responsible for the sex trafficking of its former longtime client Epstein, is scheduled to be removed in that lawsuit and a related May 26 lawsuit brought by the US Virgin Islands government.

The Wall Street Journal reported for the first time on Deutsche Bank’s settlement agreement, which provides $75 million for the Epstein accusers.

Under the agreement, victims of Epstein affected by his sex trafficking during the time he was a Deutsche Bank client, from 2013 to 2018, would receive a minimum of $75,000 and up to $5 million, contingent the assessment of their claims.

Deutsche Bank spokesman Dylan Riddle did not comment on the deal, but pointed out that his bank spent more than 4 billion euros [$4.34 billion] to strengthen internal financial controls.

“Over the past several years, Deutsche Bank has made significant progress in addressing a number of previous issues,” Riddle said.

He pointed out that in 2020, when Deutsche Bank agreed to pay a $150 million fine to the New York Financial Supervisory Authority for its dealings with Epstein and other issues, it said, “We recognize ours Failed to incorporate Epstein in 2013 and the weaknesses in our processes and have learned from our mistakes and shortcomings.”

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The two law firms representing the accusers, Edwards Pottinger and Boies Schiller Flexner, said in a joint statement obtained by CNBC: “This landmark settlement is the culmination of a more than decade-long investigation by two law firms to hold one of Epstein’s financial banks. Partners responsible for the role it has played in promoting its human trafficking organization.

The lawsuit, which was seeking class-action status, was filed in November by a woman using the alias Jane Doe. She claimed that Deutsche Bank knowingly engaged in Epstein’s sex trafficking and benefited financially from it “by providing the necessary financial support for the continued operation” of that scheme.

“Deutsche Bank also knew that Epstein would use violent means, threats of violence, fraud, abuse of legal process, exploitation of power differences, and a variety of other forms of coercion to entice young women and girls into engaging in commercial sexual activity. ” is in a suit.

“Knowing that it would make millions of dollars by supporting Epstein’s sex trade and her relationship with Epstein, Deutsche Bank chose to make profit over compliance,” the lawsuit reads. “Specifically, Deutsche Bank decided to enable sex trafficking in order to generate profits.”

A video still from the NBC archives of Donald Trump speaking to Jeffrey Epstein at a party in Mar-A-Lago in 1992.

NBC

Epstein, who was a client of JPMorgan from 1998 to 2013, became a client of Deutsche Bank after JPMorgan ended its banking relationship with him.

“Deutsche Bank picked up right where JPMorgan left off and became the bank that Epstein needed to fund his sexual abuse and sex trafficking operations,” the lawsuit states.

Epstein took his own life in a federal prison in Manhattan in August 2019, a month after he was arrested on child trafficking charges.

His arrest in that case came ten years after he had served a jail sentence or more than a year for pleading guilty in a Florida state court to soliciting sex from an underage girl for money. This 2008 admission of guilt was widely publicized.