Originally published at: https://peakprosperity.com/daily-digest/no-more-peace-talks-for-ukraine-secret-service-in-scandal/
Economy
Hedge fund exposure has surged to over $28 trillion, a 24.5% increase from the previous year, according to the U.S. Treasury’s Office of Financial Research (OFR). This Gross Notional Exposure (GNE) includes both on and off-balance sheet exposures. The OFR, established under the Dodd-Frank Act of 2010, aims to monitor financial risks to prevent crises like the one from 2007-2010. However, some analysts believe Wall Street’s influence has limited the OFR’s effectiveness, leading to public speculation on potential financial disasters. Hedge funds rely heavily on leverage provided by major Wall Street banks, which act as “Prime Brokers.” Goldman Sachs, Morgan Stanley, and JPMorgan Chase each serviced over 1,000 hedge funds as of 2022. These banks have a history of risky dealings with hedge funds, raising concerns about their stability. For instance, Morgan Stanley owned FrontPoint Partners during the 2008 crisis, a hedge fund that bet against subprime mortgages and major banks while the Federal Reserve loaned $16 trillion to stabilize Wall Street, including $2.04 trillion to Morgan Stanley. Goldman Sachs faced SEC charges in 2010 for its 2007 ABACUS deal, where hedge fund Paulson & Co. bet against mortgage securities it helped select, leading to over $1 billion in investor losses. JPMorgan Chase has admitted to five criminal felony counts since 2014 but continues to grow. It retained its stake in Highbridge Capital Management, a hedge fund linked to Jeffrey Epstein, who facilitated the sale. Some experts argue that the lack of regulatory oversight on Wall Street poses significant risks to the U.S. economy.
Geopolitics
Russian President Vladimir Putin has declared that there will be no peace talks with Ukraine following a significant cross-border incursion by Ukrainian forces into Russia’s Kursk region. This offensive, which has been ongoing for nearly a week, has led to the evacuation of 180,000 Russian citizens from the affected areas. Ukrainian forces have reportedly taken control of 28 towns and villages in the region, causing a sixth of the population to flee. Ukraine claims to hold 1,000 square kilometers of Russian territory, with their forces penetrating at least 12 kilometers into Russia. During a televised meeting, Russian officials admitted that a large portion of Russian territory is in a state of emergency, with over 120,000 people already evacuated and 60,000 more awaiting evacuation. Putin, in his first detailed public statements since the incursion began, accused Ukraine and its Western allies of waging war against Russia and dismissed the possibility of negotiations, citing attacks on civilians and infrastructure. The situation has been further complicated by an incident at the Zaporizhzhia nuclear power plant, which Ukrainian President Zelensky used to highlight the threat of a nuclear disaster. However, the UN’s International Atomic Energy Agency (IAEA) reported that the incident had no impact on nuclear safety. In response to the incursion, Russian forces have been actively repelling Ukrainian attacks and have reported significant Ukrainian casualties and equipment losses. New evacuation orders have been issued in Russia’s Belgorod and Kursk regions. Meanwhile, Ukraine’s Defense Minister Rustem Umerov has been urging NATO countries to lift bans on using Western weapons to strike inside Russia, signaling a potential escalation in the conflict. The internationalization of the conflict is growing, with NATO reportedly backing deeper strikes into Russia. This development could mark a turning point in the war, potentially leading to the deployment of strategic forces by the Kremlin. Western-supplied armored vehicles have already been spotted among Ukraine’s invasion force, raising concerns about further escalation.
Politics
The Secret Service detail assigned to protect former President Donald Trump has faced significant internal issues, including misconduct, mental health problems, and improper relationships, which have distracted from their primary mission of ensuring Trump’s safety. The 60-member team has experienced internal division, long workdays, and stress, culminating in a member’s suicide last year. Allegations include non-merit-based promotions, conflict of interest, and inappropriate social media posts. In a virtual meeting on May 15, leaders Sean Curran and Matthew Piant addressed the team, highlighting “rumors, innuendo, and toxicity” and announcing formal investigations into misconduct. They criticized incidents like a prank involving photos of sleeping staff, which they argued compromised team safety. Some team members felt the meeting was an attempt to retaliate against those who had complained about leadership. The Secret Service is also investigating an agent involved in a failed security plan at a Butler rally where Trump was nearly assassinated. This agent, who posted photos and videos from assignments on social media, is under scrutiny for potentially compromising security. The Butler rally incident, which resulted in Trump’s injury and a rally-goer’s death, has been a wake-up call for the team, leading to renewed motivation among agents. Despite bravery shown during the assassination attempt, critical questions remain about security lapses, such as why no one was stationed on a rooftop from where the shooter fired. Acting Secret Service Director Ronald Rowe has faced pressure to identify and fire those responsible but has emphasized the need for a thorough investigation. Other recent security breaches include an intrusion at Biden’s national security adviser’s home, a break-in at a salon during a Harris fundraiser, and an incident where an erratic man infiltrated the Miami Field Office. These lapses have raised concerns about the overall state of the Secret Service and its ability to protect high-profile individuals effectively.
Sources
Hedge Fund Exposure Soars to $28 Trillion, Putting Goldman Sachs, Morgan Stanley, and JPMorgan at Risk
“Exposure at Hedge Funds Has Skyrocketed to Over $28 Trillion; Goldman Sachs, Morgan Stanley and JPMorgan Are at Risk”
Source | Submitted by rhollenb
Scandals and Security Lapses: Inside Trump’s Troubled Secret Service Detail
Rancor, recriminations, and serious formal misconduct complaints have plagued all levels of the Secret Service detail assigned to protect former President Donald Trump over the last year, distracting the team from its core mission of securing Trump from physical harm and preventing an assassination.
Source | Submitted by AaronMcKeon
Putin Halts Peace Talks as Ukraine’s Kursk Incursion Forces Mass Evacuations
Putin Says There Will Be No Peace Talks With Ukraine As 180,000 Citizens Evacuated Amid Invasion
Source | Submitted by AaronMcKeon