TikTok Confirms US Urged Parting Ways With ByteDance to Dodge Ban

TikTok confirmed Wednesday that U.S. officials have recommended the popular video-sharing app part ways with its Chinese parent ByteDance to avoid a national ban.

Western powers, including the European Union and the United States, have been taking an increasingly tough approach to the app, citing fears that user data could be used or abused by Chinese officials.

“If protecting national security is the objective, calls for a ban or divestment are unnecessary, as neither option solves the broader industry issues of data access and transfer,” a TikTok spokesperson told AFP.

“We remain confident that the best path forward to addressing concerns about national security is transparent, U.S.-based protection of U.S. user data and systems, with robust third-party monitoring, vetting, and verification.”

The Wall Street Journal and other U.S. news outlets on Wednesday reported that the White House set an ultimatum: if TikTok remains a part of ByteDance, it will be banned in the United States.

“This is all a game of high stakes poker,” Wedbush analyst Dan Ives said in a note to investors.

Washington is “clearly… putting more pressure on ByteDance to strategically sell this key asset in a major move that could have significant ripple impacts,” he continued.

The White House last week welcomed a bill introduced in the U.S. Senate that would allow President Joe Biden to ban TikTok.

The bipartisan bill “would empower the United States government to prevent certain foreign governments from exploiting technology services… in a way that poses risks to Americans’ sensitive data and our national security,” Biden’s national security adviser, Jake Sullivan, said in a statement.

The bill’s introduction and its quick White House backing accelerated the political momentum against TikTok, which is also the target of a separate piece of legislation in the U.S. House of Representatives.

Appearing tough on China is one of the rare issues with potential for bipartisan support in both the Republican-run House and the Senate, where Biden’s Democratic Party holds the majority.

Concern ramped up among American officials earlier this year after a Chinese balloon, which Washington alleged was on a spy mission, flew over U.S. airspace.

TikTok use rocketing

TikTok claims it has more than a billion users worldwide including over 100 million in the United States, where it has become a cultural force, especially among young people.

Activists argue a ban would be an attack on free speech and stifle the export of American culture and values to TikTok users around the world.

U.S. government workers in January were banned from installing TikTok on their government-issued devices.

Civil servants in the European Union and Canada are also barred from downloading the app on their work devices.

According to the Journal report, the ultimatum to TikTok came from the U.S. interagency board charged with assessing risks foreign investments represent to national security.

U.S. officials declined to comment on the report.

TikTok has consistently denied sharing data with Chinese officials and says it has been working with the U.S. authorities for more than two years to address national security concerns.

Time spent by users on TikTok has surpassed that spent on YouTube, Facebook, Instagram or Twitter and is closing in on streaming television titan Netflix, according to market tracker Insider Intelligence.

your ad here

Blinken Urges Ethiopians to Follow Through on Peace Commitments, Accountability

U.S. Secretary of State Antony Blinken met with Ethiopian Prime Minister Abiy Ahmed, as well as other government officials and civil society leaders, in Addis Ababa, Ethiopia, during the first stop of his visit to the African continent.

Speaking at a press conference held at Addis Ababa University on Wednesday, Blinken highlighted the importance of democracy and human rights in Ethiopia, noting the United States is committed to promoting human rights and the rule of law in Ethiopia.

Blinken also took a moment to reflect on the lives lost and the pain many endured in the two-year-long war that began in late 2020 and ended with a cease-fire brokered in November.

“The conflict was absolutely devastating,” Blinken said. “Hundreds of thousands killed. Widespread sexual violence against women. Millions forced to flee their homes. Many left in need of food and shelter, medicine. Hospitals, schools, and businesses were shelled and destroyed.”

He commended the peace effort that has taken root in the country, with the help of mediators from the African Union, Kenya and South Africa, and supported by the United States.

“The Cessation of Hostilities Agreement is a major achievement and step forward, saving lives and changing lives. The guns are silent,” he said.

Blinken praised the Ethiopian government and Tigrayan leadership for the cessation of hostilities. And he brought some good news, saying that the U.S., already the biggest bilateral donor to Ethiopia, will add to that total.

“Today I announced an additional $331 million in emergency food and humanitarian assistance that will reach billions of people, millions of Ethiopians affected by conflict, affected by drought.”

Joseph Siegle, director of research at the Africa Center for Strategic Studies said that the U.S. “has a very critical role to play as a trusted actor, as a guarantor,” in the ongoing peace process.

The U.S., he said, can make sure the process is balanced by speaking up for Tigrayan interests while still ensuring “that Ethiopian sovereignty and Ethiopian interests are also being respected.”

Although the cease-fire is an opportunity to pursue justice and hold those responsible for atrocities accountable, Siegle said that it is not a simple process.

“It’s complicated because there are many actors involved in this conflict and atrocities were committed on all sides including from the Tigrayan side, the Eritreans who were involved as well,” he told VOA. And although it might not be easy to get “accountability to the full extent that human rights advocates might want,” he added, “there is room for considerable progress on that front.”

Blinken said that with peace taking hold, Ethiopia is moving in the right direction, and the U.S. shares its aspirations, but is not yet ready to welcome it back into the U.S. trade program known as the African Growth and Opportunity Act (AGOA). AGOA, a preferential trade agreement, allows some African businesses duty-free access to U.S. markets. Ethiopia was removed from AGOA at the beginning of 2022.

Siegle said that it is not practical to expect an immediate return to normal for the Ethiopia-U.S. relationship. However, there is “a sincere interest on both sides to resume a full-fledged robust relationship,” he said.

“There’s great interest on both sides to restart economic engagement, to open up trading opportunities, including the AGOA [the African Growth and Opportunity Act] accreditation, that was put on hold for Ethiopia. Ethipia needs considerable investment and trade to help rebuild, following the devastating conflict, and Ethiopia is a very important country in the Horn of Africa, in Africa more generally. It’s one of the strongest partners the United States has in Africa. And so, I think the U.S. also wants to get things back onto a more normal footing.”

But human rights advocates say not enough has been done by the Ethiopian leadership in terms of making amends for war crimes and allowing investigators to document atrocities. Sarah Yager is the Washington director at Human Rights Watch, a New York-based advocacy group. She said Ethiopian Prime Minister Abiy Ahmed simply wants to move on from the war without accepting any blame.

“What he has been doing is downplaying the atrocities that have occurred by all warring parties, but also his own, by his own direction in places like Tigray,” Yager said. “He is looking to get economic relief from the United States. He is looking to get other partners around the world interested in being donor nations, in having free trade and bringing businesses back to Ethiopia.”

your ad here

US Official Sees No Link Between Chinese Migrants at Border and Fentanyl

A top U.S. law enforcement official on Wednesday said he sees no link between a rise in Chinese migrants crossing the U.S.-Mexico border and illicit fentanyl entering the United States, in response to questioning by a Republican lawmaker.

Steven Cagen, an assistant director with the investigative arm of U.S. Immigration and Customs Enforcement, said during a congressional hearing that his agency had not established such ties.

“Our investigations and intelligence show that those are two separate situations,” he told Republican Representative Clay Higgins, who had asked if Chinese migrants might be connecting with criminal networks.

Republicans have repeatedly tried to link the trafficking of fentanyl, a powerful synthetic opioid, to the record number of migrants caught crossing the U.S.-Mexico border illegally since Democratic President Joe Biden took office in 2021. The vast majority of fentanyl seized at the southwest border is intercepted at legal ports of entry.

About 4,300 Chinese migrants have been caught crossing the border illegally through the first five months of fiscal year 2023, which began on October 1, more than double the previous year’s total.

Republicans, who took control of the U.S. House of Representatives in January, have pledged more oversight of the Biden administration. No Democrats attended the House Homeland Security Committee hearing on Wednesday in Pharr, Texas, near the border.

Border Patrol Chief Raul Ortiz, who also testified, urged lawmakers to stiffen consequences for crossing illegally, calling the current migration levels “a crisis situation” in some areas.

Washington has been seeking greater help from Beijing in stemming the illicit flow of fentanyl “precursor” chemicals from China, but U.S. officials have told Reuters that Chinese counterparts have been reluctant to cooperate as relations between the two countries have soured.

The drug, which is 100 times more potent than morphine, has fueled a surge in U.S. opioid overdose deaths in recent years.

your ad here

European, US Stocks Fall on Global Bank Worries

Stock markets in Europe and the U.S. tumbled Wednesday as investors worried about the stability of global banking systems in the immediate aftermath of the collapse of two American banks.

Major stock indexes in London, Paris and Frankfurt all plunged by more than 3% while three key U.S. indexes — the Dow Jones Industrial Average of 30 key stocks, the broader S&P 500 index and the tech-heavy Nasdaq index — also dropped, although by 1% or less in late-day trading. Asian markets increased, mirroring Tuesday gains in the U.S.

The newest worries centered on Credit Suisse, with shares for the beleaguered Swiss lender falling more than 17% after its biggest shareholder, the Saudi National Bank, said it would not invest more money in it.

Problems at Credit Suisse, with outlets in major global financial centers, predated the U.S. government takeover of operations at Silicon Valley Bank and Signature Bank in the last week.

Credit Suisse said Tuesday that managers had identified “material weaknesses” in the bank’s internal controls on financial reporting as of the end of last year.

But on Wednesday, Credit Suisse chairman Axel Lehmann, speaking at a financial conference in the Saudi capital of Riyadh, defended the bank’s operations, saying, “We already took the medicine” to reduce risks. “We are regulated. We have strong capital ratios, very strong balance sheet. We are all hands on deck.”

But with the drop in the share price for Credit Suisse, bank stocks in Britain, France and Germany also fell sharply, although not by as much as for Credit Suisse.

S&P Global Ratings said on Tuesday that the failures at the two U.S. banks would have little effect on the fortunes of European banks. But the S&P analysts added, “That said, we are mindful that SVB’s failure has shaken confidence.”

Share prices of other U.S. regional banks like Silicon Valley have fallen sharply in recent days.

Some information for this report came from The Associated Press.

your ad here

US Arrests Chinese Billionaire in Alleged Massive Fraud Scheme      

An exiled Chinese businessman with ties to former Trump White House adviser Steve Bannon has been arrested on federal charges of defrauding his online followers out of more than $1 billion, the Justice Department announced  Wednesday.

Ho Wan Kwok, also known as Miles Guo and Guo Wengui, was arrested earlier Wednesday in New York and was to make his first court appearance later in the day. Kwok fled to the United States in 2015.  

 

The charges against Kwok stem from an alleged conspiracy to solicit investments in various entities and programs from thousands of people on social media.

“Kwok is charged with lining his pockets with the money he stole, including buying himself, and his close relatives, a 50,000-square-foot mansion, a $3.5 million Ferrari, and even two $36,000 mattresses, and financing a $37 million luxury yacht,” U.S. Attorney Damian Williams said in a statement.

As part of the investigation of Kwok, the Justice Department seized about $634 million from 21 different bank accounts and a Lamborghini Aventador SVJ Roadster, Williams said.

A 12-count indictment unsealed Wednesday charged Kwok with wire fraud, securities fraud, bank fraud and money laundering.

Kwok’s alleged financier, Kin Ming Je, is also charged with obstruction of justice. Je, a dual citizen of Hong Kong and Britain, remains at large.

The indictment accused Kwok of lying to his online followers and promising outsized profits in return for investing in four ventures known as GTV Media Group, Himalaya Farm Alliance, G|CLUBS and the Himalaya Exchange.

“The indictment today alleges the defendants were behind an elaborate scheme that defrauded thousands of individuals of over $1 billion,” FBI Assistant Director Michael J. Driscoll said in a statement. “Fraudulent investment scams make victims out of innocent people, ultimately harming the public’s confidence in the integrity of financial systems.”

Kwok and Bannon are longtime associates. Bannon was arrested on a yacht owned by Kwok off the coast of Connecticut in 2020. He was charged in connection with stealing money from a fundraising campaign for a project known as “We Build the Wall.”

your ad here

Why Florida Is America’s Fastest-Growing State

Florida is the fastest-growing state in America for the first time since 1957, according to the U.S. Census Bureau. The population in the southeastern state, which is known for its warm weather and sandy beaches, now tops 22 million.

“I hate being cold,” says Kathy Bonini, 42, who grew up in Pennsylvania but moved to Florida in 2011. “Everybody loves sunshine and palm trees.”

Nancy Sikes-Kline, mayor of the Florida port city of St. Augustine, agrees.

“You know, we call ourselves ‘the sunshine state’ and I think that that makes a big difference,” Sikes-Kline says when asked why people relocate to her state. “I think, at the very core, it’s just this wonderful weather that we have. The sunshine.”

Florida is known for attracting older, retired Americans. But more than 700,000 people of all ages moved to the state between April 1, 2020, and July 1, 2022. That was during the COVID-19 pandemic, a time when many remote workers could live wherever they wanted.

Economist Sean Snaith says there are factors other than the weather that draw people to Florida, including a robust labor market and the fact that, unlike most U.S. states, Florida has no state income tax.

“Depending on where folks are moving from, that might be an extra 8, 9, 10% of your pay that you get to keep that previously went to pay state taxes or other local taxes,” says Snaith, an economics professor at the University of Central Florida and director of UCF’s Institute for Economic Forecasting.

An analysis of Census data shows that people within the United States who move to Florida most frequently come from New York, Georgia, Ohio, Pennsylvania and California.

“Time to kind of get out of California with the wildfires and the high cost of living,” says Florida resident Aaron Dan, 36, who moved from the West Coast in May 2021, during the pandemic. Dan, who works in real estate, sees more opportunities for land development and commercial leasing in Florida.

“You can get a lot more for your dollar around here, lower taxes, obviously,” he says. So, I think just the cost of living is very attractive as well as the opportunity for growth.”

Even before the pandemic, nearly two-thirds of the people who lived in Florida came from out of state. One-fifth of those transplants relocated from a foreign country.

“We’ve had a lot of international in-migration to the state, from a variety of locations. You know, it’s not just one or two countries, it’s Central America and South America, the Caribbean,” he says. “People want to move to the United States, in general, and Florida tends to get a larger chunk of those immigrants.”

But population growth can make life in the Sunshine State more expensive. The average price of a home in Florida rose 14% in the past year, compared with the national average of 8.7%, according to Zillow, a real estate marketplace company.

“Florida is kind of a cheap place to buy a house and to live. That’s become less the case,” Snaith says. “So that is making life difficult in terms of affordability. And that’s one of the problems that Florida is going to be grappling with here, I think, for some time to come.”

Realtor Sharon Wooten is a Florida native. Over time, she’s seen orange groves give way to housing developments.

“It’s changed a lot. The farmland is gone. … I think if we take care of our natural resources, and we don’t grow too fast, it’s OK. And, I think, if we are choosy about what comes in. A lot of these developments are very, very nice and they take care of these developments and everything they do is top notch,” she says. “As long as it’s good growth, it’s OK. You know, it’s brought in a lot of opportunities for people in this area that they may not have ever had.”

Wooten says the increased development has had a positive impact on daily life for some.

“My mother and my grandmother have had opportunities to shop and go to plays and restaurants and things that they didn’t have before,” she says. “So, it’s just sort of opened up a new world to them.”

Snaith says that, as far as the economy is concerned, population growth is “nothing but good news.”

“Every new household that moves to Florida needs a place to live, they need food, they need medical care, their children, if they have them, need schooling, and they clothe them. They need all the things that consumers buy,” Snaith says. “So, you know, population growth is one side of the coin. The flip side of that same coin is economic growth…. The more people you have in any regional economy, the more economic activity they will generate.”

Florida is the third-most-populous state in the country. People have been moving there since the 1950s, when air-conditioning first became commonplace, and that influx shows no signs of letting up.

“Unless there’s some sort of a dramatic change to, you know, the environment, politically, economically,” Snaith says, “I just don’t see any kind of factor that would take us off this course that the state’s been on for a long time.”

your ad here

How Florida Became the Fastest-Growing State in America

More people than ever are moving to Florida, making it the fastest-growing state in America, according to the U.S. Census Bureau. The population in the nation’s third-largest state now tops 22 million people. Florida is known for its hot weather, and once air-conditioning became more common in the 1950s, its population exploded. VOA’s Dora Mekouar [meh-kwar] has more from Orlando, Florida. Camera: Adam Greenbaum

your ad here

Former Australian PM Slams Three-Nation Nuclear Sub Deal

Former Australian Prime Minister Paul Keating says the nation’s agreement to buy and develop a fleet of nuclear-powered submarines in cooperation with Britain and the United States is “the worst deal in all history.” 

Keating attacked the three-nation agreement between Australia, Britain and the United States Wednesday during a speech at the National Press Club in Sydney.   

The multi-decade deal, which could cost Australia as much as $245 billion, was announced Monday by Prime Minister Anthony Albanese, British counterpart Rishi Sunak and U.S. President Joe Biden in San Diego under a new trilateral defense partnership known by the acronym AUKUS (Australia, United Kingdom and United States). 

The agreement will see American and British nuclear-powered submarines rotating into Australian waters as soon as 2027. By the early 2030s, Australia will buy at least three — and as many as five — U.S.-built nuclear-powered, conventionally armed submarines designed to hunt and attack other subs. And the three nations will work together to develop a new nuclear attack submarine — a project that could take two decades. 

Keating dismissed the idea that China poses a military threat to Australia, and said it was “rubbish” that a small fleet of nuclear-powered submarines could defend the country from a Chinese naval fleet. He said Australia could simply sink the fleet “with planes and missiles.” 

The former prime minister, who served in the post from 1991 to 1996, said the nuclear submarine deal is the worst international decision made by a Labor Party government since World War I, when it failed to impose compulsory military service.   

In addition to the new submarine fleet, the AUKUS partnership  will allow the three countries to share information and expertise more easily in key technological areas such artificial intelligence, cybertechnology, quantum technologies, underwater systems and long-range strike capabilities. 

Some information for this report came from The Associated Press. 

your ad here

Biden Strengthens Background Checks on Guns

U.S. President Joe Biden on Tuesday issued an executive order directing federal agencies to step up enforcement of a bipartisan gun control law he signed nine months ago that expands background checks for gun buyers and strengthens rules allowing the temporary removal of firearms from a potentially dangerous person. White House Bureau Chief Patsy Widakuswara has this report.

your ad here

Advocates Call on Blinken to Demand Accountability for Atrocities in Ethiopia

In his first stop on a two-country visit to Africa, U.S. Secretary of State Antony Blinken is in Ethiopia’s capital, Addis Ababa.

The trip is part of an effort to deepen U.S. engagement with the continent. U.S.-Ethiopia relations have been strained in the past two years due to a brutal civil war that left an estimated 500,000 civilians dead due to violence, starvation and lack of medical attention. Thousands more were displaced.

Blinken is scheduled to meet with Ethiopian Prime Minister Abiy Ahmed on Wednesday. He is also expected to meet with Tigrayan officials.

His trip will focus on the implementation of a peace deal brokered last November that ended hostilities in the country’s northern Tigray region.

Sarah Yager, Washington director at Human Rights Watch, said that Abiy is hoping to secure economic aid and a pledge of “normalized relations” from Blinken, although the country is still not at peace.

“There is a cessation of hostilities agreement, which has, in fact, brought some relief to the suffering of the people of Ethiopia. Particularly in the north, in the Tigray region,” Yager told VOA. “Some aid can get through, communications are flowing, fuel prices are down, food prices are down, all of this is very positive.”

In January, Tigrayan forces said they began handing over tanks and heavy weapons as part of the peace deal.

But despite gains made since the peace deal, human rights advocates say there’s more work ahead.

“It is not all sunshine and roses,” Yager added. “There are still abuses happening throughout, not just the Tigray region, but in other parts of the country.”

Kate Hixon, Africa advocacy director at Amnesty International USA, argued that Blinken should center all his engagements with the government of Ethiopia around human rights.

“There still needs to be improved access throughout the country for humanitarian actors and human rights monitors,” Hixon said. “We also still need to see more commitment on justice and accountability and would really like for Secretary Blinken to push that.”

Earlier this year, France and Germany’s foreign ministers visited Ethiopia, touring a warehouse stocked with humanitarian aid and holding talks with leaders. They called for establishing a transitional justice mechanism to punish human rights abuses committed during the conflict, saying there can be no reconciliation without accountability.

“Ethiopia has been backsliding on democracy and freedoms across the country, and abuses are still continuing in some of those same places where the worst suffering has happened. So, we are seeing detentions, killings, sexual violence,” Yager said. “These things are still ongoing and so that’s why we want to see Secretary Blinken deliver some tough messages about accountability when he is there.”

In February, the government of Ethiopia announced that there is a resolution to terminate the mandate of an International Commission of Human Rights Experts on Ethiopia, a body tasked to investigate crimes committed during the war.

Although the government of Ethiopia has made efforts domestically to investigate human rights abuses, Hixon said the government should also allow international efforts.

“All parties to the war have committed unspeakable abuses including mass extrajudicial killings, sexual violence against women and girls,” she told VOA. “There has been an accountability deficit that has really permeated the conflict. And the commission is one way to make sure that there is documentation of some of these abuses and potential for accountability down the road.”

The U.S., Hixon added, should support independent civil society efforts to document atrocities.

“We are asking that Blinken make clear that they have support or that the commission has the U.S. support and that they expect the government of Ethiopia to continue to engage with this commission and give unfettered access in the country,” she told VOA.

Blinken will head to Niger on March 16 and become the first U.S. Secretary of State to visit the country. He plans to meet with President Mohamed Bazoum and Foreign Minister Hassoumi Massaoudou in Niamey and focus on counterterrorism efforts in the region.

your ad here

NASA Webb Telescope Captures Star on Cusp of Death

The Webb Space Telescope has captured the rare and fleeting phase of a star on the cusp of death.

NASA released the picture Tuesday at the South by Southwest conference in Austin, Texas.

The observation was among the first made by Webb following its launch in late 2021. Its infrared eyes observed all the gas and dust flung into space by a huge, hot star 15,000 light years away. A light year is about 5.8 trillion miles.

Shimmering in purple like a cherry blossom, the cast-off material once comprised the star’s outer layer. The Hubble Space Telescope snapped a shot of the same transitioning star a few decades ago, but it appeared more like a fireball without the delicate details.

Such a transformation occurs only with some stars and normally is the last step before they explode, going supernova, according to scientists.

“We’ve never seen it like that before. It’s really exciting,” said Macarena Garcia Marin, a European Space Agency scientist who is part of the project.

This star in the constellation Sagittarius, officially known as WR 124, is 30 times as massive as our sun and already has shed enough material to account for 10 suns, according to NASA.

your ad here

Blinken Visiting Ethiopia, Niger as US Boosts Africa Push

Secretary of State Antony Blinken is visiting Ethiopia and Niger this week as the Biden administration accelerates a push to engage with Africa to counter China’s growing influence on the continent, the State Department said. 

Blinken is visiting Addis Ababa and will travel to Niamey later in the week to discuss the peace deal that ended hostilities in Ethiopia’s northern Tigray region and counterterrorism efforts aimed at Islamic extremists in Niger and the Sahel more broadly. 

His trip will be the fourth high-profile visit to Africa this year by top members of the Biden administration. Treasury Secretary Janet Yellen, the U.S. ambassador to the United Nations, Linda Thomas-Greenfield, and first lady Jill Biden have already gone there. 

Blinken plans to meet with both Ethiopian and Tigrayan officials in Addis Ababa and will be the first secretary of state ever to visit Niger, which has hosted U.S. military operations targeting Islamic State affiliates in the area. 

In discussions with Ethiopian Prime Minister Abiy Ahmed and Tigrayan officials, the State Department said Blinken would focus on “implementation of the cessation of hostilities agreement to advance peace and promote transitional justice in northern Ethiopia.” 

The Tigray conflict led the U.S. to suspend some preferential trade agreements with Ethiopia, which the country is eager to have restored. But the top U.S. diplomat for Africa said Friday that a full normalization of relations will depend on more action from Addis Ababa, particularly after the “earth-shattering” Tigray conflict. 

“What we’re looking to do is refashion our engagement with Ethiopia,” said Molly Phee, the assistant secretary of state for African affairs. “We would like to be able to have a partnership that is commensurate with their size and influence and with our interest and commitment to Africa.” 

“But to put that relationship in a forward trajectory we will continue to need steps by Ethiopia to help break the cycle of ethnic/political violence that has set the country back for so many decades,” she said. 

The conflict in Tigray erupted a year after Abiy received the Nobel Peace Prize for making peace with longtime rival Eritrea. The Ethiopian and Eritrean governments saw the Tigray regional leaders, who had long dominated Ethiopia’s government before Abiy took office, as a common threat. 

An estimated 500,000 civilians were killed in the two-year conflict that ended with a peace agreement signed in South Africa in November. U.S. officials mediated in that deal. 

The conflict cut off the Tigray region of more than 5 million people, with humanitarian aid often blocked and basic services severed while health workers pleaded for the simplest of medical supplies.

In a meeting with the Addis Ababa-based African Union Commission chair, Moussa Faki Mahamat, Blinken will also try to blunt both Chinese and Russian attempts to win support from African nations over Russia’s war with Ukraine; a topic that has raised considerable concerns amongst formerly colonized states. 

your ad here

Russian Fighter Collides with US Drone Over International Waters

The U.S. military says a Russian fighter jet collided Tuesday with a U.S. intelligence, surveillance, and reconnaissance drone operating within international airspace over the Black Sea, causing the drone to crash.
A U.S. military official told VOA the unmanned U.S. MQ-9 has not yet been recovered.

State Department spokesperson Ned Price said the United States is summoning the Russian ambassador over the incident.

“We are engaging directly with the Russians, again at senior levels, to convey our strong objections to this unsafe, unprofessional intercept, which caused the downing of the unmanned U.S. aircraft.”

He added that U.S. Ambassador to Russia Lynne Tracy “has conveyed a strong message to the Russian Ministry of Foreign Affairs.”

U.S. President Joe Biden was briefed about the incident, according to White House spokesman John Kirby.

“If the message [from Russia] is that they want to deter or dissuade us from flying and operating in international airspace over the Black Sea then that message will fail because that is not going to happen,” Kirby told VOA. 

“We are going to continue to fly and operate in international airspace over international waters. The Black Sea belongs to no one nation and we’re going to continue to do what we need to do for our own national security interests in that part of the world.”

According to U.S. European Command, which oversees U.S. military operations in Europe, two Russian Su-27 aircraft “dumped fuel on and flew in front of the MQ-9 in a reckless, environmentally unsound and unprofessional manner.”

“One of the Russian Su-27 aircraft struck the propeller of the MQ-9, causing U.S. forces to have to bring the MQ-9 down in international waters. … This incident demonstrates a lack of competence in addition to being unsafe and unprofessional,” EUCOM added.

U.S. Air Force Gen. James B. Hecker, commander, U.S. Air Forces Europe and Air Forces Africa, said in a press release that the collision had “nearly caused both aircraft to crash.”

EUCOM called on Russian forces to act “professionally and safely,” while warning that these types of acts are “dangerous and could lead to miscalculation and unintended escalation.”

Patsy Widakuswara contributed to this report.

your ad here

US, Mexico Officials Speak Ahead of Meeting on Drugs, Arms Trafficking

Senior Mexican and U.S. officials have spoken ahead of a meeting in April on tackling drugs and weapons trafficking, the two governments said on Tuesday, even as Mexico sought to argue it is not a production hub for synthetic opioid fentanyl.

Officials are set to meet in Washington to discuss the so-called Bicentennial Framework, which will address the production of synthetic drugs, particularly fentanyl, and weapons smuggling.

U.S. Secretary of State Antony Blinken and Mexican Foreign Minister Marcelo Ebrard had a phone conversation on Monday, the State Department said, with Blinken expressing a U.S. commitment to “protecting [both] communities from criminal networks.”

Mexico’s foreign ministry said on Monday evening security officials had “no record” of fentanyl production in Mexico and that the drug and its ingredients largely came from Asia.

In February, the Mexican Army reported its largest synthetic drug lab bust, nabbing half-a-million fentanyl pills in the northwestern state of Sinaloa.

Tensions over security rose this month, following the kidnapping of a group of Americans in the northeastern state of Tamaulipas. Two were killed in an attack officials have suggested was carried out by a drug gang.

Blinken and Ebrard discussed the kidnapping, the State Department said.

Some U.S. Republicans have called for military intervention in Mexico to fight cartels, which Mexico has rejected.

 

your ad here

US Consumer Prices Increased Significantly in February

U.S. consumer prices increased in February amid sticky rental housing costs, but economists are divided on whether rising inflation will be enough to push the Federal Reserve to hike interest rates again next week after the failure of two regional banks.

The Consumer Price Index (CPI) rose 0.4% last month after accelerating 0.5% in January, the Labor Department said on Tuesday. That lowered the year-on-year increase in the CPI to 6.0% in February, the smallest annual gain since September 2021. The CPI rose 6.4% in the 12 months through January.

The annual CPI peaked at 9.1% in June, which was the biggest increase since November 1981.

Excluding the volatile food and energy components, the CPI increased 0.5% after rising 0.4% in January. In the 12 months through February, the so-called core CPI gained 5.5% after advancing 5.6% in January.

Economists polled by Reuters had forecast both the CPI and core CPI climbing 0.4% on a monthly basis. Monthly inflation is rising at double the rate that economists say is needed to bring inflation back to the Fed’s 2% target.

The inflation report was published amid financial market turmoil triggered by the collapse of Silicon Valley Bank in California and Signature Bank in New York, which forced regulators to take emergency measures to shore up confidence in the banking system.

It was also released before the Fed’s policy meeting next Tuesday and Wednesday, and followed a report last Friday showing a still-tight labor market, but cooling wage inflation. Economists said Tuesday’s report remained important for policymakers despite the angst in financial markets.

Fed Chair Jerome Powell told lawmakers last week that the U.S. central bank would likely need to raise rates more than expected, leading financial markets to expect that a half-percentage-point rate increase was on the table next week.

But those expectations were dialed back to 25 basis points after the employment report.

While financial markets on Tuesday still expected a quarter-percentage-point hike, according to CME Group’s FedWatch tool, fear of contagion from the banking crisis prompted some economists, including those at Goldman Sachs, to expect the Fed next week to pause its fastest monetary policy tightening cycle since the 1980s.

The Fed has increased its benchmark overnight interest rate by 450 basis points since last March from the near-zero level to the current 4.50%-4.75% range.

your ad here

Las Vegas Water Agency Seeks Power to Limit Residential Use

Nevada lawmakers are considering a remarkable shift in allowing the water agency that manages the Colorado River supply for Las Vegas to limit single-family residential use in the desert city and surrounding county.

It’s another potential step in a decades-long effort to ensure one of the driest metropolitan areas in the U.S. has enough water. Already, in Las Vegas ornamental lawns are banned, new swimming pools have a size limit and the water used inside homes is recycled.

While some agencies across the U.S. West tie increased water use to increased cost, Nevada could be the first to give a water agency — the Southern Nevada Water Authority — the power to restrict what comes out of residents’ taps in state statute to about 30,000 gallons above the average use. It’s aimed mostly at the top 10% of water users that use 40% of the water in the residential sector, spokesperson Bronson Mack said.

“It’s a worst case scenario plan,” said the bill’s sponsor, Democratic Assemblyman Howard Watts of Las Vegas, of the residential limit. “It makes sure that we prioritize the must-haves for a home. Your drinking water, your basic health and safety needs.”

The sweeping omnibus bill is one of the most significant to go before lawmakers this year in Nevada, one of seven states that rely on the Colorado River. Deepening drought, climate change and demand have sunk key Colorado River reservoirs that depend on melting snow to their lowest levels on record.

Lawmakers heard testimony for the bill on Monday evening, which also includes converting many homes with unrecyclable septic tanks for wastewater to the county’s recyclable sewage system in the coming decades. It also establishes a program to pay at least 50% of the transition as they look to secure more state and federal funds to help with the transition.

Water agency officials stressed during the two-hour hearing that the residential caps would not be used immediately, but rather if conditions become even more dire. The cap would be at about 160,000 gallons annually – an amount that about 20% of the agency’s customers use – with the average single-family residence using close to 130,000 gallons annually, per the agency.

The authority hasn’t yet decided how it would implement or enforce the proposed limits, Mack said.

The residential use limits received widespread support from water policy experts, the Las Vegas Chamber of Commerce and jurisdictions within the agency’s limits, while opposition came from some southern Nevada residents who testified through video from Las Vegas.

“[For] a single-family home, you need to take into consideration: how many adults, family members are in this home?” said Sarah Patton of Las Vegas. “We have grown children that are currently living with us. That is more water use.”

Las Vegas relies on the Colorado River for 90% of its water supply. Nevada has lost about 8% of that supply already because of mandatory cuts implemented as the river dwindles further. Most residents haven’t felt the effects because Southern Nevada Water Authority recycles a majority of water used indoors and doesn’t use the full allocation.

Nevada lawmakers banned ornamental grass at office parks, in street medians and entrances to housing developments two years ago, a move that other cities later adopted. This past summer, Clark County, which includes Las Vegas, capped the size of new swimming pools at single-family residential homes to about the size of a three-car garage.

By the next legislative session in 2025 drought conditions could be much worse, Watts said, and “we have to decide what usage to prioritize” before then. Yet the longer-term goal is for other Nevada to be a leader in responsible use of the Colorado River’s dwindling supply— even with deeper cuts looming.

“It’s a sign to every other sector across the Colorado River Basin, that we’re not going to wait for others,” Watts told lawmakers of the potential single-family residential caps. “We take the lead and work to reduce our consumptive use of water.”

The main point of opposition for the bill was the conversion of homes with septic systems to the sewage system, a major shift that would lead many homes to reroute their wastewater. Some Clark County residents were dissuaded by the possibility of giving up their septic system or worried about the cost.

“This is too much of a burden for these targeted homeowners,” said Michele Tombari who, like others, said spoke fondly of her septic system and did not want to switch. “If you want us to change what was already approved, what we already paid for, you need to pay 100% to have us change that.”

Snow that has inundated northern Nevada and parts of California serves as only a temporary reprieve from dry conditions. Some states in the Colorado River basin have gridlocked on how to cut water usage.

Water from the Colorado River largely is used for agriculture in other basin states: Arizona, California, Wyoming, Utah, New Mexico and Colorado. Municipal water is a relatively small percentage of overall use.

As populations grow and climate change leaves future supplies uncertain, policymakers are paying close attention to all available options to manage water supplies.

Santa Fe, New Mexico, uses a tiered cost structure where rates rise sharply when residents reach 10,000 gallons during the summer months.

Scottsdale, Arizona, recently told residents in a community outside city limits that it no longer could provide a water source for them. Scottsdale argued action was required under a drought management plan to guarantee enough water for its own residents.

Elsewhere in metro Phoenix, water agencies aren’t currently discussing capping residential use, Sheri Trap of the Arizona Municipal Water Users Association said in an email. But cities like Phoenix, Glendale and Tempe have said they will cut down on usage overall.

your ad here

Asian Bank Stocks Lead Market Drops After Collapse of 2 US Banks   

Stock markets in Asia fell Tuesday, with shares of banks hit particularly hard, following a decline in U.S. markets amid the fallout from the collapse of two U.S. banks. 

Japan’s Nikkei 225 Index closed down 2.2% with shares of Softbank falling 4.1%, Mizuho Financial Group dropping 7.1% and Sumitomo Mitsui Financial Group sinking 9.8%.  Hong Kong’s Hang Seng Index closed down 2.4% Tuesday. 

U.S President Joe Biden Monday sought to reassure Americans that the U.S. banking system is secure and that taxpayers would not bail out investors at California-based Silicon Valley Bank and the New York-based Signature Bank.    

“Americans can have confidence the banking system is safe. Your deposits are safe,” Biden said in a five-minute statement delivered at the White House.     

He said customers’ deposits will be covered by funds banks routinely pay into a U.S. government-held account for such emergencies.      

Biden vowed, “We must get a full accounting of what happened” at the two banks.     

Despite the assurances, U.S. banks lost about $90 billion in stock market value on Monday as investors feared additional bank failures. The biggest losses came from midsize banks, of the size of Silicon Valley Bank.     

While shares of the country’s biggest banks — such as JP Morgan Chase, Citigroup and Bank of America — also fell Monday, the selloff was not as sharp. The huge banks have been strictly regulated since the 2008 financial crisis and have been repeatedly stress tested by regulators.    

Biden ignored reporters’ questions Monday about the cause of the U.S. bank failures, but financial experts say both banks were affected by a rise in interest rates, which negatively affected the market values of significant portions of their assets, such as bonds and mortgage-backed securities.       

Banks don’t lose money if they hold such notes until maturity. But if they must sell them to cover depositor withdrawals, as was the case in recent days, the losses can quickly mount.       

The Federal Deposit Insurance Corp. reported that industrywide, U.S. banks at the end of last year reported $620 billion in such paper losses caused by rising interest rates.     

The U.S. Federal Reserve, the country’s central bank, announced Monday that it would review its oversight of Silicon Valley Bank in the wake of the bank’s failure.    

“We need to have humility and conduct a careful and thorough review of how we supervised and regulated this firm, and what we should learn from this experience,” said Fed vice chair for supervision Michael Barr.      

The FDIC, which insures deposits up to $250,000 and supervises financial institutions, said Monday it transferred all Silicon Valley Bank deposits to a so-called “bridge bank.” The new bank is run by a board appointed by the agency until it can stabilize operations.          

The Bank of England also announced Monday the sale of Silicon Valley Bank’s United Kingdom subsidiary to HSBC to stabilize the bank, “ensuring the continuity of banking services, minimizing disruption to the U.K. technology sector and supporting confidence in the financial system.”      

The actions were prompted by the failure of Silicon Valley Bank, which U.S. regulators seized on Friday after concerns about the bank’s financial health led to a large number of depositors withdrawing their money at the same time.          

With about $200 billion in assets, Silicon Valley Bank’s failure was the second largest in U.S. history. The bank was heavily involved in financing for venture capital firms, especially in the tech sector.            

Signature Bank also had a large portion of clients in the tech sector, including cryptocurrency.  Its failure, with more than $100 billion in assets, was the third largest in U.S. history, behind Washington Mutual and Silicon Valley Bank.           

Some information for this story came from The Associated Press, Agence France-Presse and Reuters. 

your ad here

US, Australia, UK Forge Landmark Nuclear Submarine Deal

Australia will buy three nuclear-powered attack submarines from the United States as part of a three-nation, multi-decade deal with Great Britain that is aimed at strengthening the allies’ presence in the Asia-Pacific region as China grows bolder militarily. VOA’s Anita Powell reports from Washington.

your ad here

US, Australia, UK Forge Landmark Nuclear Submarine Deal

Australia will buy three nuclear-powered attack submarines from the United States as part of a three-nation, multi-decade deal with Great Britain that is aimed at strengthening the allies’ presence in the Asia-Pacific region as China grows bolder militarily.

President Joe Biden says the decision to share sensitive U.S. nuclear technology with Australia is a big deal — and a necessary one. He spoke Monday in San Diego, California.

“As we stand at the inflection point in history where the hard work of enhancing deterrence and promoting stability is going to affect the prospects of peace for decades to come, the United States can ask for no better partners in the Indo-Pacific, where so much of our shared future will be rooted,” Biden said at Naval Base San Diego, flanked by both countries’ leaders. “Forging this new partnership, we’re showing again how democracies can deliver our own security and prosperity, and not just for us, but for the entire world.”

The multi-decade deal will see American and British nuclear-powered submarines rotating into Australian waters as soon as 2027. By the early 2030s, Australia will buy at least three — and as many as five — American nuclear-powered, conventionally armed submarines designed to hunt and attack other subs. And the three nations will work together to develop a new nuclear attack submarine — a project that could take two decades.

Biden stressed that the deal concerns nuclear propulsion, not arms, and the leaders pledged to adhere to their nuclear non-proliferation agreements.

Australian Prime Minister Anthony Albanese said the deal, which could cost nearly $150 billion (as much as $200 billion Australian dollars) will create jobs and boost innovation and research.

“The AUKUS agreement we confirm here in San Diego represents the biggest single investment in Australia’s defense capability in all of our history, strengthening Australia’s national security and stability in our region,” he said.

British Prime Minister Rishi Sunak also announced that his nation would increase military spending to 2.5% of their GDP, to meet growing threats worldwide.

“The last 18 months, the challenges we face have only grown: Russia’s illegal invasion of Ukraine,” he said. “China’s growing assertiveness, the destabilizing behavior of Iran and North Korea. All threaten to create a world defined by danger, disorder and division. Faced with this new reality it is more important than ever that we strengthen the resilience of our own countries.”

Beijing has criticized the partnership and accuses Washington of “provoking rivalry and confrontation.”

“This trilateral cooperation constitutes serious nuclear proliferation risks, undermines the international non-proliferation system, exacerbates arms race and hurts peace and stability in the Asia-Pacific,” said Mao Ning, a spokesperson for China’s Foreign Ministry. “It has been widely questioned and opposed by regional countries and the wider international community. We urge the US, the UK and Australia to abandon the Cold War mentality and zero-sum games, honor international obligations in good faith and do more things that are conducive to regional peace and stability.”

But analysts say China’s aggression in the Pacific region prompted this decision.

“This is really more a response to the very aggressive military buildup that China has had, as opposed to anything we’re doing that would be provoking to China,” Mark Kennedy, director of the Wahba Institute for Strategic Competition at the Wilson Center, told VOA.

Because the three countries are democracies and have free-speech protections, there are vocal critics — and analysts expect legislators in all three nations to probe the terms of the deal as it evolves and question its impact on sovereignty issues and government spending.

“There’s criticism, as well there should be, of this deal everywhere because that’s how democracies do policy, right?” Charles Edel, the inaugural Australia Chair at the Center for Strategic and International Studies, told VOA. “The ambitions are really, really large, but they’re also very large bets that are being placed.”

And, he said, it’s a sign that Australia’s ties with the U.S. are stronger than ever.

“The real importance here is that nuclear propulsion technology is truly the crown jewel of America’s technological strength,” he said. “We’ve only shared it once in all of American history, and that was almost four decades ago with the British, despite being asked by multiple countries. I think it’s the closeness of the U.S.-Australian relationship, which makes this possible… That can only happen with countries where there is a very deep reservoir of trust.”

your ad here

UK Boosts Defense Spending in Response to Russia, China

U.K. Prime Minister Rishi Sunak pledged Monday to increase military funding by 5 billion pounds ($6 billion) over the next two years in response to Russia’s invasion of Ukraine and the “epoch-defining challenge” posed by China. 

The increase, part of a major update to U.K. foreign and defense policy, is less than military officials wanted. Sunak said the U.K. would increase military spending to 2.5% of gross domestic product “in the longer term,” but didn’t set a date. Britain currently spends just over 2% of GDP on defense, and military chiefs want it to rise to 3%. 

The extra money will be used, in part, to replenish Britain’s ammunition stocks, depleted from supplying Ukraine in its defense against Russia. Some will also go toward a U.K.-U.S.-Australia deal to build nuclear-powered submarines. 

“The world has become more volatile, the threats to our security have increased,” Sunak told the BBC during a visit to the U.S. “It’s important that we protect ourselves against those.” 

Sunak met U.S. President Joe Biden and Australian Prime Minister Anthony Albanese in San Diego on Monday to confirm next steps for the military pact, known as AUKUS, struck by the three countries in 2021 amid mounting concern about China’s actions in the Pacific. 

Under the deal, the U.K. and Australia will build new nuclear-powered, conventionally armed subs from a British design, with U.S. technology and support. Most of the U.K. construction will take place in shipyards at Barrow-in-Furness in northwest England, with the first subs completed by the late 2030s. Australia will also buy up to five Virginia-class subs from the U.S. 

The three leaders said the submarine plan “elevates all three nations’ industrial capacity to produce and sustain interoperable nuclear-powered submarines for decades to come, expands our individual and collective undersea presence in the Indo-Pacific, and contributes to global security and stability.” 

Britain last produced a defense, security and foreign policy framework, known as the Integrated Review, in 2021. 

The government ordered an update in response to an increasingly volatile world. The new report, released Monday, said “there is a growing prospect that the international security environment will further deteriorate in the coming years, with state threats increasing and diversifying in Europe and beyond.” 

Moscow’s February 2022 invasion of Ukraine upended European security order, and the review said Russia poses “the most acute threat to the U.K.’s security.” 

The U.K. is also increasingly concerned about what the government calls “the epoch-defining challenge presented by the Chinese Communist Party’s increasingly concerning military, financial and diplomatic activity.” 

The defense review said that “wherever the Chinese Communist Party’s actions and stated intent threaten the U.K.’s interests, we will take swift and robust action to protect them.” 

U.K. intelligence agencies have expressed growing concern about China’s military might, covert activities and economic muscle. Ken McCallum, head of domestic spy agency MI5, said in November that “the activities of the Chinese Communist Party pose the most game-changing strategic challenge to the U.K.” MI5 said in January 2022 that a London-based lawyer had tried to “covertly interfere in U.K. politics” on behalf of the Chinese Communist Party — including by channeling money to an opposition Labour Party lawmaker. 

Concern about Beijing’s activities has sparked a government-wide catch-up campaign on China, including Mandarin-language training for British officials and a push to secure new sources of critical minerals that are essential to technology. 

The review doesn’t brand China itself a threat to the U.K., and Sunak has stressed the need for economic ties with China, to the annoyance of more hawkish members of the governing Conservative Party. 

“We are sliding towards a new Cold War,” said Conservative lawmaker Tobias Ellwood, who chairs the House of Commons Defense Committee. “Threats are increasing, but here we are staying on a peacetime budget.”

Speaking as he traveled to the U.S., Sunak said China’s Communist government “is increasingly authoritarian at home and assertive abroad — and has a desire to reshape the world order.”

But, he added, “you can’t ignore China” given the size of its economy.

“It’s right to engage with China, on the issues that we can find common ground and make a difference on, for example climate change, global health, macroeconomic stability,” he said.

“That’s the right approach whilst being very robust in defending our values and our interests.” 

your ad here

New York Bike Path Attacker Spared Death Penalty After Jury Deadlocks

Sayfullo Saipov, the man convicted of killing eight people in an attack on a Manhattan bike path in 2017, was spared the death penalty after a federal jury deadlocked on how he should be punished. 

The deadlock means Saipov will be sentenced to life in prison without parole, because a unanimous decision is required to impose the death penalty. He will spend his sentence at Colorado’s Supermax facility, the most secure U.S. federal prison. 

Saipov, a 35-year-old Uzbek national, was convicted in January by a federal jury of committing murder with a goal of joining Islamic State, or ISIS, a group the United States has designated a “terrorist” organization. The same jury has been reconvened to consider Saipov’s punishment. 

Saipov’s case is the first federal death penalty trial since President Joe Biden, a Democrat, took office in 2021 after pledging to abolish capital punishment during his campaign. 

In its verdict form, read aloud by U.S. District Judge Vernon Broderick in federal court in Manhattan, the jury indicated that it did not unanimously agree that Saipov was likely to commit criminal acts of violence in prison in the future. 

The 12 jurors agreed on a number of other aggravating factors weighing in favor of the death penalty, including that Saipov planned the attack in advance and that he carried it out in support of Islamic State. 

But they also agreed on several mitigating factors, including that many of Saipov’s family members still love him despite what he had done and that a sentence of life imprisonment provides hope that he would one day realize that what he did was wrong. 

During the penalty phase of the trial, jurors heard from survivors of the attack who testified about their ongoing suffering, and jail officers who described Saipov’s outbursts and threats since his arrest. 

“The defendant is still committed to jihad and ISIS and violence,” prosecutor Amanda Houle said in her closing argument on March 7. 

Saipov’s defense lawyer, David Patton, said in his closing argument that the death penalty was “not necessary to do justice.” He said Saipov would spend 22 or 23 hours a day alone in a cell with a concrete bed if sentenced to life in prison. 

your ad here

Children of Ukrainian War Heroes Visit Colorado

Fourteen children of injured or fallen Ukrainian war heroes got a chance to spend two weeks of vacation in Denver, Colorado, thanks to local volunteers from this U.S. state. Svitlana Prystynska has the story, narrated by Anna Rice. Camera: Volodymyr Petryniv

your ad here

Boeing Employee From Burundi Named Leading Black Engineer

Boeing structural analysis engineer George Ndayizeye, who grew up in Burundi, has won a 2023 Black Engineer of the Year Legacy Award. He spoke with VOA’s Natasha Mozgovaya outside Seattle.

your ad here

Biden: US Banking System Secure, Even as Two Banks Collapse    

U.S. President Joe Biden assured Americans on Monday that the U.S. banking system is secure and that taxpayers would not bail out investors at two banks that collapsed.

“Americans can have confidence the banking system is safe. Your deposits are safe,” Biden said in a five-minute statement delivered at the White House as businesses opened for the work week.

He said that all customers at the California-based Silicon Valley Bank and the New York-based Signature Bank would have immediate access to their deposits as federal financial officials take control of their operations.

“No losses will be borne by taxpayers,” Biden declared. “Managers of these banks will be fired. Investors in these banks will not be protected.”

He said customers’ deposits will be covered by funds banks routinely pay into a U.S. government-held account for such emergencies.

But he vowed, “We must get a full accounting of what happened” at the two banks.

He ignored reporters’ questions about the cause of the failures, but financial experts say both banks were affected by a rise in interest rates, which negatively affected the market values of significant portions of their assets, such as bonds and mortgage-backed securities.

Banks don’t lose money if they hold such notes until maturity. But if they must sell them to cover depositor withdrawals, as was the case in recent days, the losses can quickly mount.

The Federal Deposit Insurance Corp. reported that industrywide, U.S. banks at the end of last year reported $620 billion in such paper losses caused by rising interest rates.

In a statement late Sunday, Biden said, “I am firmly committed to holding those responsible for this mess fully accountable and to continuing our efforts to strengthen oversight and regulation of larger banks so that we are not in this position again.”

The statement followed a meeting of officials from top financial regulators, and said the Federal Reserve, the country’s central bank, was also giving other banks access to an emergency lending program to provide additional stability to the wider banking system.

The FDIC, which insures deposits up to $250,000 and supervises financial institutions, said Monday it transferred all Silicon Valley Bank deposits to a so-called “bridge bank.” The new bank is run by a board appointed by the agency until it can stabilize operations.

The Bank of England also announced Monday the sale of Silicon Valley Bank’s United Kingdom subsidiary to HSBC to stabilize the bank, “ensuring the continuity of banking services, minimizing disruption to the U.K. technology sector and supporting confidence in the financial system.”

A Bank of England statement said all depositor money was safe and that Silicon Valley Bank U.K. would continue operating as normal.

The actions were prompted by the failure of Silicon Valley Bank, which U.S. regulators seized on Friday after concerns about the bank’s financial health led to a large number of depositors withdrawing their money at the same time.

With about $200 billion in assets, Silicon Valley Bank’s failure was the second largest in U.S. history. The bank was heavily involved in financing for venture capital firms, especially in the tech sector.

Signature Bank also had a large portion of clients in the tech sector, including cryptocurrency. Its failure, with more than $100 billion in assets, was the third largest in U.S. history, behind Washington Mutual and Silicon Valley Bank.

Some information for this story came from The Associated Press, Agence France-Presse and Reuters.

your ad here