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Pay To Play: The 2-Tier Legal Route For Crypto-Fraud Victims
by Gunnar Larson 04 Sep '24

04 Sep '24

Pay To Play: The 2-Tier Legal Route For Crypto-Fraud Victims <https://www.law360.co.uk/financial-services-uk/articles/1871098?nl_pk=a94fc…> By Christopher Crosby More people are falling victim to cryptocurrency scams, but their options for recovering money are few and expensive, which creates a two-tier approach — one for those who have the means to pay lawyers and consultants and another for those who don't. Read full article » <https://www.law360.co.uk/financial-services-uk/articles/1871098?nl_pk=a94fc…> | Save to favorites » <https://www.law360.co.uk/financial-services-uk/articles/1871098?nl_pk=a94fc…>

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A New 84-Year-Old Scotch From the Macallan Is Its Oldest and Rarest
by Gunnar Larson 03 Sep '24

03 Sep '24

A New 84-Year-Old Scotch From the Macallan Is Its Oldest and Rarest https://www.bloomberg.com/news/articles/2024-09-03/the-macallan-releases-it…

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Fwd: United States: Russian State-Sponsored TV Network's Attempt To Dismiss Copyright Lawsuit On Fair Use Grounds Denied
by Gunnar Larson 03 Sep '24

03 Sep '24

---------- Forwarded message --------- From: Gunnar Larson <g(a)xny.io> Date: Sun, Jul 14, 2024, 2:11 AM Subject: Fwd: United States: Russian State-Sponsored TV Network's Attempt To Dismiss Copyright Lawsuit On Fair Use Grounds Denied To: cypherpunks <cypherpunks(a)lists.cpunks.org> *Moscow Stock Exchange* *Logo:* https://tinyurl.com/3v2fd3y2 *Meta's (Facebook) logo,seemingly is a shocker*: https://tinyurl.com/2p8csm8u What is extremely interesting, the copyright case below was filed on March 8, 2021: https://dockets.justia.com/docket/new-york/nysdce/1:2021cv02007/555642 Facebook announced their new Meta brand and logo on October 28, 2021: https://about.fb.com/news/2021/10/founders-letter/ xNY.io debating the Moscow Stock Exchange Logo and the Meta logo, "ask[s] not whether the second work would *damage* the market for the first (by, for example, devaluing it through parody or criticism), but whether it *usurps* the market for the first by offering a competing substitute." On Thu, Mar 24, 2022 at 12:05 PM Gunnar Larson <g(a)xny.io> wrote: > In other news, related to Meta's (FB) logo being very similar to the > Moscow Stock Exchange logo, something similar has been discussed in New > York. I found this quote very interesting: > > - "Lastly, regarding the fourth factor, concerning the effect of the > use on the potential market for or value of the copyrighted work, the Court > noted that this factor "ask[s] not whether the second work would > *damage* the market for the first (by, for example, devaluing it > through parody or criticism), but whether it *usurps* the market for > the first by offering a competing substitute." > > ---------- > > https://www.mondaq.com/unitedstates/copyright/1174834/russian-state-sponsor… > > TV-Novosti, a non-profit operating the Russian state-controlled > RT(formerly Russia Today) television networks and 38 associated RT YouTube > channels, has been sued for copyright infringement by Business Casual, an > American media company that creates documentary content, based on its use > of translated clips of Business Casual's documentaries in its own videos > posted to YouTube. > > Business Casual creates short original historical documentaries which it > posts to its YouTube channel. Its documentaries frequently feature > photographs of historical figures, using a process called "parallax" which > "transforms century-old low-resolution photographs into dramatically > restored high-resolution photographs" and "turn[s] two-dimensional images > into three-dimensional models . . . simulating a depth-of-field. This > optical illusion provides Business Casual's videos with an immersive > three-dimensional look and feel." > > The lawsuit relates to two of Business Casual's documentaries—"How > Rockefeller Built His Trillion Dollar Oil Empire" and "J.P. Morgan > Documentary: How One Man Financed America"—clips of which Business Casual > alleges TV-Novosti incorporated into three separate videos on its > "RT-Arabic" YouTube channel, including portions featuring parallax-enhanced > images, altering the brightness and saturation of the copied content and > replacing Business Casual's watermark with TV-Novosti's own in order to > hide from YouTube's algorithms. > > TV-Novosti moved to dismiss the copyright claims, arguing that it's use of > the clips is protected as fair use. However, after considering each of the > four statutory factors, Judge Koeltl of the Southern District of New York > denied TV-Novosti's motion, holding that while three of the four factors > weighed against finding fair use, "[t]he fourth factor, which the Supreme > Court has described as 'the single most important element of fair use,' > cannot be determined without further factual development." > > Specifically, regarding the first factor, concerning the transformation of > the use, Judge Koeltl found that while TV-Novosti's videos take portions of > the plaintiff's videos, re-arrange them, and add new commentary to them, > TV-Novosti had not made any meaningful changes to the visual clips > themselves, and "[m]erely overlaying new audio does not effect a sufficient > transformation . . . to find fair use as a matter of law." The Court > further noted that TV-Novosti had "not changed the purpose of the > parallax-enhanced images," i.e., to provide visual illustration for the > overlain audio commentary, but had instead "simply lifted the copyrighted > depictions . .. for the purpose of illustrating [TV-Novosti's] own video." > In addition, the Court found that the fact that TV-Novosti could have > sought to pay for the clips, but didn't, and tried to hide its use of the > excerpts from YouTube's algorithms, also weighed against a finding a fair > use under the first factor. > > Regarding the second factor, concerning the nature of the copyrighted > work, the Court initially noted that factual material such as that at > issue, "cuts less closely to the core of copyright." Nevertheless, the > Court held that the fact that source material for Business Casual's videos > was in the public domain weighed against finding fair use, because TV > Novosti could have simply used public domain photos of the historical > figures, rather than the modified clips, to create its videos. > > Regarding the third factor, concerning the amount of use in relation to > the copyrighted work as a whole, the Court noted that while only "small > portions of the entire copyrighted works were used"—excerpts of 7 seconds, > 1 minute and 28 seconds, and 8 minutes and 50 seconds in length—the > portions were "not so trivial as to warrant dismissal under the de minimis > doctrine." > > Lastly, regarding the fourth factor, concerning the effect of the use on > the potential market for or value of the copyrighted work, the Court noted > that this factor "ask[s] not whether the second work would *damage* the > market for the first (by, for example, devaluing it through parody or > criticism), but whether it *usurps* the market for the first by offering > a competing substitute." With this framing, the Court thus found that while > one the one hand, TV-Novosti's "videos are alternative ways of learning > about the lives of J.P. Morgan and John D. Rockefeller," on the other hand, > they "have a broader focus and are in a different language, meaning that > they cater to a different audience." These differences, the Court held, > were significant enough to preclude the Court from "determining the effect > of [TV-Novosti's] videos on the market for [Business Casual's] videos at > this time." > > The Court's recognition of the weight of the fourth factor in determining > fair use means that there may still be hope for TV-Novosti—time (and fact > discovery) will tell. For now, the takeaway may very well be that parties > seeking to raise a fair use defense should take care to emphasize any > characteristics of their use that distinguish not just their work, but its > target audience, including the scope of the work and the language (if any) > which communicates it. > > > -- > *Gunnar Larson - xNY.io <http://www.xNY.io> | Bank.org <http://Bank.org>* > MSc > <https://www.unic.ac.cy/blockchain/msc-digital-currency/?utm_source=Google&u…> > - Digital Currency > MBA > <https://www.unic.ac.cy/business-administration-entrepreneurship-and-innovat…> > - Entrepreneurship and Innovation (ip) > > G(a)xNY.io > +1-646-454-9107 > New York, New York 10001 > -- *Gunnar Larson - xNY.io <http://www.xNY.io> | Bank.org <http://Bank.org>* MSc <https://www.unic.ac.cy/blockchain/msc-digital-currency/?utm_source=Google&u…> - Digital Currency MBA <https://www.unic.ac.cy/business-administration-entrepreneurship-and-innovat…> - Entrepreneurship and Innovation (ip) G(a)xNY.io +1-646-454-9107 New York, New York 10001

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Ripple SEC Law.com Story
by Gunnar Larson 03 Sep '24

03 Sep '24

---------- Forwarded message --------- From: Gunnar Larson <g(a)xny.io> Date: Fri, Jan 21, 2022, 2:52 PM Subject: Ripple SEC Law.com Story To: <pbantz(a)alm.com> Mr. Bantz: My name is Gunnar Larson. I saw your Law.com story related to Ripple and the SEC <https://www.law.com/corpcounsel/2022/01/14/ripple-general-counsel-stu-alder…> . *Perhaps there is some added reporting necessary on your part, as a supplement to your story: * - Would like to learn your perspective on Ripple's customer list by Country: *https://drive.google.com/file/d/1pmz0RF_WvKKE_rRmoG_ksx0OCShmT9Zg/view?usp=drivesdk <https://drive.google.com/file/d/1pmz0RF_WvKKE_rRmoG_ksx0OCShmT9Zg/view?usp=…>* - Note, as of 2020, Ripple's top four customers are Chinese banks - Ripple's General Counsel seems to be talking about both sides of his mouth, related to the SEC. Law.com seems to be supporting this theme with your story The SEC perhaps is not being totally transparent with their Ripple case? The top customers seem to be the focus? What are your thoughts? Thank you, Gunnar -- *Gunnar Larson - xNY.io <http://www.xNY.io> | Bank.org <http://Bank.org>* MSc <https://www.unic.ac.cy/blockchain/msc-digital-currency/?utm_source=Google&u…> - Digital Currency MBA <https://www.unic.ac.cy/business-administration-entrepreneurship-and-innovat…> - Entrepreneurship and Innovation (ip) G(a)xNY.io +1-646-454-9107 New York, New York 10001

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Fwd: xNY.io - Bank.org, PBC | Memo #1 - The People?s Republic of China on ESG and D&O Innovation
by Gunnar Larson 03 Sep '24

03 Sep '24

---------- Forwarded message --------- From: Gunnar Larson <g(a)xny.io> Date: Wed, Jun 8, 2022, 2:12 PM Subject: xNY.io - Bank.org, PBC | Memo #1 - The People’s Republic of China on ESG and D&O Innovation To: <Adrienne.Harris(a)dfs.ny.gov> Cc: Weber, Richard (DFS) <Richard.weber(a)dfs.ny.gov>, Weintraub, Cathy (DFS) <Cathy.Weintraub(a)dfs.ny.gov>, Alexi Anania <a(a)xny.io> June 8, 2022 BY ELECTRONIC MAIL Superintendent, Adrienne A. Harris New York State Department of Financial Services One State Street New York, New York 10004 Adrienne.Harris(a)dfs.ny.gov Re: The People’s Republic of China on ESG and D&O Innovation Dear Madam Superintendent: xNY.io - Bank.org, PBC is proud to be under the esteemed oversight of your distinguished office. Today’s memo signals concern of recent ESG and D&O research published by Nanjing Audit University of the People’s Republic of China. The institution is operated under the auspices of the Jiangsu <https://en.wikipedia.org/wiki/Jiangsu> Provincial Government, the National Audit Office of China <https://en.wikipedia.org/wiki/National_Audit_Office_of_China> and the People's Bank of China <https://en.wikipedia.org/wiki/People%27s_Bank_of_China>. Kindly find the attached memo <https://docs.google.com/document/d/1THKGP530wiMOKurCd79mHSFfW6GvCrOJsRzyA_J…> addressed to your honorable attention. Respectfully yours, Gunnar Larson -- *Gunnar Larson * *xNY.io <http://www.xny.io/> - Bank.org <http://bank.org/>, PBC* MSc <https://www.unic.ac.cy/blockchain/msc-digital-currency/?utm_source=Google&u…> - Digital Currency MBA <https://www.unic.ac.cy/business-administration-entrepreneurship-and-innovat…> - Entrepreneurship and Innovation (ip) G(a)xNY.io +1-646-454-9107 New York, New York 10001 June 8, 2022 BY ELECTRONIC MAIL Superintendent, Adrienne A. Harris New York State Department of Financial Services One State Street New York, New York 10004 Adrienne.Harris(a)dfs.ny.gov Re: The People’s Republic of China on ESG and D&O Innovation Dear Madam Superintendent: xNY.io - Bank.org, PBC is proud to be under the esteemed oversight of your distinguished office. Today’s memo signals concern of recent ESG and D&O research published by Nanjing Audit University of the People’s Republic of China. The institution is operated under the auspices of the Jiangsu <https://en.wikipedia.org/wiki/Jiangsu> Provincial Government, the National Audit Office of China <https://en.wikipedia.org/wiki/National_Audit_Office_of_China> and the People's Bank of China <https://en.wikipedia.org/wiki/People%27s_Bank_of_China>. xNY.io - Bank.org, PBC is concerned that the Nanjing Audit University and the People’s Bank of China potentially could be mis-representing intent related to ESG and D&O innovation, at the expense of our global enterprise. 1. According to the Council on Forign Relations, China is the world’s top emitter, producing more than a quarter of the world’s annual greenhouse gas emissions, which contribute to climate change. 2. Nanjing Audit University’s “theoretical analysis and hypothesis developments” suggest that the People’s Republic of China is embryonic in the enforcement of ESG and/or D&O mandates. Meanwhile, suggesting Bloomberg as a reputational capital. 3. xNY.io - Bank.org, PBC has collated 37 highlights to Nanjing Audit University’s ESG and D&O research for NY-DFS consideration. As a Bill and Melinda Gates Scholar and Blockchain Scholar holding international law distinction(s) My international graduate research has touched on Western profit of China’s water resources. xNY.io - Bank.org, PBC seeks to protect pure New York State ESG and D&O innovation. Madam Superindnet, we attentively recognize you are the world’s most powerful regulatory leader in this regard. >From this humble perspective, xNY.io - Bank.org, PBC seeks to earn your respect and consideration to explore the New York False Claims Act as a potential channel. xNY.io - Bank.org, PBC hopes New York State welcomes this assessment at the liberty of your honorable office. Respectfully yours, Gunnar Larson | xNY.io <http://www.xny.io> - Bank.org <http://bank.org>, PBC MSc <https://www.unic.ac.cy/blockchain/msc-digital-currency/?utm_source=Google&u…> - Digital Currency MBA <https://www.unic.ac.cy/business-administration-entrepreneurship-and-innovat…> - Entrepreneurship and Innovation (ip) G(a)xNY.io +1-646-454-9107 CC: Mr. Richard Webber

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Re: [EXTERNAL EMAIL] - Fwd: Complaint Referral Form Internet Crime Complaint Center - New York State's Notary Verification System
by Gunnar Larson 03 Sep '24

03 Sep '24

Dear FBI Public Information Officer: The FOIA allows requesters to file an administrative appeal with the agency for any information that was denied in response to a FOIA request. Can you please advise if thr FOIA request should be appealed one of the following reason(s): - the refusal to release a record, either in whole or in part - the determination that a record does not exist or cannot be found - the determination that the record you sought was not subject to the FOIA - the denial of a request for expedited processing the denial of a fee waiver request. Thank you, Gunnar Larson On Thu, Aug 22, 2024, 2:15 PM FOIPAQUESTIONS(a)FBI.GOV <FOIPAQUESTIONS(a)fbi.gov> wrote: > The Record/Information Dissemination Section is not an investigative > section of the FBI and only processes Freedom of Information/Privacy Act > (FOIPA) requests. > > > > To report criminal activities please access the FBI’s homepage on the > internet at http://www.fbi.gov/. Option 1-Access the ‘CONTACT US’ link > at the top and then select the “Submit a Tip on Crime/Terrorism”. The > direct link is: http://tips.fbi.gov/. Option 2-Access the ‘CONTACT US’ > link at the top and then select the “Report Internet Crime” link, which > connects to the ‘Internet Crime Complaint Center’. The direct link is: > http://www.ic3.gov/default.aspx. > > > > You also have the option of contacting the FBI’s local field office in > your area and their contact information is available on the FBI’s homepage > which is listed above. > > > > Public Information Officer > > FBI - Information Management Division > > 200 Constitution Drive > <https://www.google.com/maps/search/200+Constitution+Drive?entry=gmail&sourc…> > > Winchester, VA 22602 > > O: (540) 868-4593 > > E: foipaquestions(a)fbi.gov > > > > Do you have further questions about the FOI/PA process? Visit us at > http://www.fbi.gov/foia > > > > Please check the status of your request online at > https://vault.fbi.gov/fdps-1/@@search-fdps Status updates are > performed on a weekly basis. > > > > Note: This is a non-emergency email address. If this is an emergency, > please call 911 directly. If you need to report a tip for immediate > action, please contact FBI Tips at http://tips.fbi.gov/ or reach out to > your local field office. > > > > *From:* Gunnar Larson <g(a)xny.io> > *Sent:* Thursday, August 22, 2024 10:52 AM > *To:* FOIPAQUESTIONS <FOIPAQUESTIONS(a)FBI.GOV> > *Cc:* cypherpunks <cypherpunks(a)lists.cpunks.org> > *Subject:* [EXTERNAL EMAIL] - Fwd: Complaint Referral Form Internet Crime > Complaint Center - New York State's Notary Verification System > > > > Dear Madam or Sir: > > > > My name is Gunnar Larson and I am a co-founder at xNY.io - Bank.org. > > > > On November 3, 2022 I personally made a complaint to IC3 concerning forged > notaries (below). > > > > The FBI has not responded to this matter. > > > > Today I would like to request all FBI records associated with this IC3 > complaint, investigation and/or any records of entrapment associated. > > > > Sending you the very best. > > > > Thank you, > > > > Gunnar > > > -- > > > > Gunnar Larson > > > > xNY.io | Bank.org > > > > MSc - Digital Currency > > > > MBA - Entrepreneurship and Innovation (ip) > > > > > > > > G(a)xNY.io > > > > +1-917-580-8053 > > > > New York, New York 10001 > > ---------- Forwarded message --------- > From: *Gunnar Larson* <g(a)xny.io> > Date: Thu, Nov 3, 2022, 7:02 AM > Subject: Complaint Referral Form Internet Crime Complaint Center > To: cypherpunks <cypherpunks(a)lists.cpunks.org> > > > > [image: Image removed by sender. IC3 logo] > Complaint Referral Form > Internet Crime Complaint Center > > *Thank you. Your complaint was submitted to the IC3. Please save or print > a copy of your complaint before closing this window.This is the only time > you will have to make a copy of your complaint.* > > Victim InformationName: Gunnar LarsonAre you reporting on behalf of a > business? NoBusiness Name: Is the incident currently impacting business > operations? Age: 30 - 39Address: 406 West 25th StreetAddress > (continued): Suite/Apt./Mail Stop: 1RECity: New YorkCounty: Country: United > States of AmericaState: New YorkZip Code/Route: 10001Phone > Number: 6464549107Email Address: g(a)xny.ioBusiness IT POC, if > applicable: Other Business POC, if applicable: Financial > Transaction(s)Transaction Type: OtherIf other, please specify: Notary > FraudTransaction Amount: 2400.00Transaction Date: 10/6/2022Was the money > sent? No > ------------------------------ > > Victim Bank Name: Victim Bank Address: Victim Bank Address > (continued): Victim Bank Suite/Mail Stop: Victim Bank City: Victim Bank > Country: Victim Bank State: Victim Bank Zip Code/Route: Victim Name on > Account: Victim Account Number: > ------------------------------ > > Recipient Bank Name: Recipient Bank Address: Recipient Bank Address > (continued): Recipient Bank Suite/Mail Stop: Recipient Bank City: Recipient > Bank Country: Recipient Bank State: Recipient Bank Zip > Code/Route: Recipient Name on Account: Recipient Bank Routing > Number: Recipient Account Number: Recipient Bank SWIFT Code: Description of > IncidentProvide a description of the incident and how you were victimized. > Provide information not captured elsewhere in this complaint form.Hello: I > was hired as a contractor for a online drop shipping company. The firm sent > packages to my home address. The shipping manager asked me to retrieve a > package by providing a notorized authorization letter. Upon reviewing the > authorization letter and searching New York State's notary verification > system, it appeared the notary was forged. A copy of the letter may be > accessed here: > https://drive.google.com/file/d/1Hqzatqez7yWs7ZZq76RBYy2zzi6NiDw9/view?usp=… > Below, you will find the exchange with the shipping manager. On October 31 > the firm denied payment for employment and has 'gone missing.' Given my > personal and professional association with xNY.io - Bank.org I am concerned > about being associated with felony notary Fraud. Furthrtmore, xNY.io - > Bank.org is party to the Clayton Act and/or an entrapment exercise. Thank > you Gunnar Larson 646-454-9107 Which of the following were used in this > incident? (Check all that apply.)☑ Spoofed Email☑ Similar Domain☑ Email > Intrusion > > ☐ OtherPlease specify: > > Other InformationIf an email was used in this incident, please provide a > copy of the entire email including full email headers. ---------- Forwarded > message --------- From: Dorothy Berry <dorothy.berry(a)dvlemail.com> Date: > Fri, Oct 7, 2022, 2:44 PM Subject: Re: 290283 To: Gunnar Larson <g(a)xny.io> > I will coordinate with our Legal team regarding this. The authorization > letter was given by the customer. --- Kind regards, Dorothy Berry | Manager > Shipping Department Direct number:(475) 330-3037 DELTA VISION (DVS > Logistics US) 45 Ruby St #3 Norwalk, CT 06850 > <https://www.google.com/maps/search/US)+45+Ruby+St+%233+Norwalk,+CT+06850?en…> > (888) 559 9329 Mon-Fri 09:00AM-06:00PM EST Sat-Sun Closed ---- On Fri, 07 > Oct 2022 14:33:19 -0400 Gunnar Larson <g(a)xny.io> wrote --- No. I won't go > present an authorized letter to anyone with a fake notarized stamp on it. > Please advise. On Fri, Oct 7, 2022, 1:48 PM Dorothy Berry < > dorothy.berry(a)dvlemail.com> wrote: Did you try picking up package and > show Authorization letter to them? --- Kind regards, Dorothy Berry | > Manager Shipping Department Direct number:(475) 330-3037 DELTA VISION (DVS > Logistics US) 45 Ruby St #3 Norwalk, CT 06850 > <https://www.google.com/maps/search/US)+45+Ruby+St+%233+Norwalk,+CT+06850?en…> > (888) 559 9329 Mon-Fri 09:00AM-06:00PM EST Sat-Sun Closed ---- On Fri, 07 > Oct 2022 08:56:52 -0400 Gunnar Larson <g(a)xny.io> wrote --- Ms. Berry: I > am having trouble verifying the authentication of the notarized document.. > I just left you a message. Please advise best next steps. Thank you, Gunnar > On Thu, Oct 6, 2022, 4:33 PM Dorothy Berry <dorothy.berry(a)dvlemail.com> > wrote: Good day! Please find the attached file. Thanks. --- Kind regards, > Dorothy Berry | Manager Shipping Department Direct number:(475) 330-3037 > DELTA VISION (DVS Logistics US) 45 Ruby St #3 Norwalk, CT 06850 > <https://www.google.com/maps/search/US)+45+Ruby+St+%233+Norwalk,+CT+06850?en…> > (888) 559 9329 Mon-Fri 09:00AM-06:00PM EST Sat-Sun Closed Are there any > other witnesses or victims to this incident?Yes.If you have reported this > incident to other law enforcement or government agencies, please provide > the name, phone number, email, date reported, report number, etc.[No > response provided]Check here if this an update to a previously filed > complaint: ☐Who Filed the ComplaintWere you the victim in the incident > described above? Yes > > Name: Business Name: Phone Number: Email Address: > > Digital Signature > > By digitally signing this document, I affirm that the information I > provided is true and accurate to the best of my knowledge. I understand > that providing false information could make me subject to fine, > imprisonment, or both. (Title 18, U.S.Code, Section 1001) > > Digital Signature: Gunnar Larson > > Thank you. Your complaint was submitted to the IC3. Please save or print a > copy of your complaint before closing this window. > *This is the only time you will have to make a copy of your complaint.* >

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Wash. AG Hit Again With Atty's Bias Firing Suit
by Gunnar Larson 03 Sep '24

03 Sep '24

Wash. AG Hit Again With Atty's Bias Firing Suit <https://www.law360.com/delaware/articles/1874755?nl_pk=8f2e5a76-bb66-462b-a…> By Greg Lamm A Washington attorney who says he was wrongfully fired from his job with the state's Office of the Attorney General after he was diagnosed with trauma linked to being a closeted gay Mormon youth has filed a new lawsuit after a similar case was tossed by a federal judge last fall. 3 documents attached | Read full article » <https://www.law360.com/delaware/articles/1874755?nl_pk=8f2e5a76-bb66-462b-a…> | Save to favorites » <https://www.law360.com/delaware/articles/1874755?nl_pk=8f2e5a76-bb66-462b-a…>

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BREAKING: Former Aide To NY Gov. Indicted On Foreign Agent Charges
by Gunnar Larson 03 Sep '24

03 Sep '24

BREAKING: Former Aide To NY Gov. Indicted On Foreign Agent Charges <https://www.law360.com/banking/articles/1875766?nl_pk=feb6bbba-7878-4d39-be…> By Stewart Bishop A former aide to New York Gov. Kathy Hochul and ex-governor Andrew Cuomo was arrested Tuesday and accused of secretly acting as an agent of China's government, in a years-long political conspiracy to promote the interests of the Chinese Communist Party and reap millions of dollars. Indictment attached | Read full article » <https://www.law360.com/banking/articles/1875766?nl_pk=feb6bbba-7878-4d39-be…> | Save to favorites » <https://www.law360.com/banking/articles/1875766?nl_pk=feb6bbba-7878-4d39-be…>

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Three Megabanks Had Loans Outstanding of $1.832 Trillion to Giant Hedge Funds on March 31
by Gunnar Larson 03 Sep '24

03 Sep '24

https://wallstreetonparade.com/2024/09/three-megabanks-had-loans-outstandin… By Pam Martens and Russ Martens: September 3, 2024 ~ The Office of Financial Research (OFR), the federal agency created after the 2008 financial collapse on Wall Street to defog the lenses of federal regulators to prevent a replay of that disaster, has posted frightening graphs on its website as part of its “Hedge Fund Monitor.” Particularly alarming is the overall takeaway that the U.S. megabanks that are receiving federal deposit insurance that is backstopped by hardworking and law-abiding U.S. taxpayers, are using their lending ability to make massive loans to dodgy, giant hedge funds that are regularly found to be on the wrong side of the law and/or engaging in wildly risky behavior. Equally concerning is whether megabank lending to giant hedge funds is sapping their ability to make loans to worthy U.S. businesses that are engaged in the real economy rather than the financial casino economy of hedge funds. Take the chart at the top of the page as one example. It shows that just three megabanks provided a combined $1.832 trillion in credit to “Qualifying Hedge Funds” as of March 31, 2024. This represented 79 percent of all such loans, which had a total value of $2.31 trillion. (See chart at the bottom of the page.) “Qualifying Hedge Fund” is defined as follows: “A Qualifying Hedge Fund is any hedge fund with net assets of at least $500 million that is advised by a Large Hedge Fund Adviser. Net assets are measured individually or in combination with any feeder funds, parallel funds, or dependent parallel managed accounts. Large Hedge Fund Advisers, according to SEC Form PF, have at least $1.5 billion in hedge fund assets under management across one or more funds.” Megabanks always find some benign-sounding name for their most dangerous operations. In the case of their massive lending and red-carpet services to giant hedge funds, they call it “Prime Broker” operations. Number of Hedge Funds Served by MegabanksThe Office of Financial Research has not included the names of the three megabanks that have taken on this enormous, $1.8 trillion concentrated risk with hedge funds, but the chart to the right might offer a big clue as to those names. According to this March 4 report from the Bank for International Settlements, the Prime Broker operations of Goldman Sachs (GS), Morgan Stanley (MS), and JPMorgan Chase (JPM) (all U.S. financial institutions which own federally-insured banks) were each servicing more than 1,000 hedge funds as of 2022. The fact that the Office of Financial Research is simply “monitoring” this potentially explosive situation while the federal banking regulators for whom it conducts its research allow this dangerous and incestuous situation to grow, is simply more evidence of completely captured regulators. It’s not like federal regulators don’t have sufficient evidence that hedge funds and deposit-taking banks create a dangerous, combustible mix. In the spring of 2021, Credit Suisse lost $5.5 billion from the highly-leveraged, highly concentrated stock positions it was financing via ginned-up derivatives for the family office hedge fund, Archegos Capital Management. Archegos blew up on March 25, 2021 after it defaulted on margin calls to the banks financing its trades. An internal report for the Board of Directors of Credit Suisse by the outside law firm Paul, Weiss, Rifkind, Wharton & Garrison found that Credit Suisse “was focused on maximizing short-term profits and failed to rein in and, indeed, enabled Archegos’s voracious risk-taking.” Credit Suisse exists no more. Its demise was hastened by its involvement with the Archegos hedge fund. Credit Suisse was sold in a shotgun wedding and fire sale to its long-time rival, UBS, in March 2023. And, of course, the largest hedge fund blowup of all time was that of Long-Term Capital Management (LTCM) in 1998. The Chair of the Commodity Futures Trading Commission at the time, Brooksley Born, described the event as follows for PBS: “I got a call from the Treasury Department, probably the weekend that it nearly collapsed. This was in actually September ’98. And I was told that the very large hedge fund was almost collapsing, that it had $1.25 trillion in notional value of over-the-counter (OTC) derivatives, and it only had $4 billion in capital to support that enormous investment, and that the markets had turned against it…so that it was going to default in a very major way….” LTCM created a major market panic, leading to the New York Fed forcing the banks that were LTCM’s major counterparties to inject approximately $3.6 billion in capital to allow for a gradual unwinding of the hedge fund. Between September 1, 1998 and October 8, 1998 – as the Long-Term Capital Management crisis played out, the stock of JPMorgan Chase lost 35 percent of its market value. Other megabanks also took large hits to their share prices, further fueling market panic and instability. Apparently, federal banking regulators have become incapable of learning from the lessons of the past.

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Navy Escapes Protest Over Modification To $50B Deal
by Gunnar Larson 03 Sep '24

03 Sep '24

Navy Escapes Protest Over Modification To $50B Deal <https://www.law360.com/governmentcontracts/articles/1875179?nl_pk=4126fe73-…> By Daniel Wilson A Court of Federal Claims judge has tossed a challenge over the U.S. Navy modifying a $50 billion professional services contract, despite the protester saying the changes gave an unfair advantage to mentor-protégé joint ventures and their members. 1 document attached | Read full article » <https://www.law360.com/governmentcontracts/articles/1875179?nl_pk=4126fe73-…> | Save to favorites » <https://www.law360.com/governmentcontracts/articles/1875179?nl_pk=4126fe73-…>

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