NewzIntel.com

Category: Banking

  • MIL-OSI Banking: Foreign Exchange and Liquidity and Monthly Balance Sheet, October 2024

    Source: Danmarks Nationalbank

    THE FOREIGN-EXCHANGE RESERVE

    In October 2024, the foreign-exchange reserve increased by kr. 8.4 billion to kr. 650.0 billion. The increase reflects Danmarks Nationalbank’s net purchase of foreign exchange for kr. 0.6 billion, and the central government’s net borrowing of foreign debt for kr. 7.7 billion, cf. table 1.

    For settlement in October, Danmarks Nationalbank has not intervened in the foreign exchange market.

    Danmarks Nationalbank’s net foreign-exchange purchases and the change in the foreign-exchange reserve – table 1

    Kr. billion October 2024 January 2024 – October 2024
    Danmarks Nationalbank’s interventions* to purchase foreign exchange, net 0.0 0.0
    Other** 0.6 15.2
    Danmarks Nationalbank’s net foreign-exchange purchases 0.6 15.2
    The central government’s net foreign borrowing*** 7.7 8.9
    Change in the foreign-exchange reserve 8.4 24.1

    Note: Details may not add because of rounding and previously published figure may have been revised. All transactions as per settlement date.

    * Intervention takes place when Danmarks Nationalbank purchases and sells foreign exchange for Danish kroner in the foreign-exchange market in order to stabilise the exchange rate.

    ** Comprises e.g. interest accrued on the foreign-exchange reserve, the central government’s net payments in foreign exchange, and changes in the banks’ deposits in euro-denominated accounts at Danmarks Nationalbank.

    *** Including net payments to the central government in foreign exchange as a result of currency swaps.

    DEVELOPMENT IN LIQUIDITY

    In October, the central government’s net financing requirement amounted to kr. 25.5 billion. Since the turn of the year, the central government’s net financing requirement has been kr. -35.1 billion, cf. table 2.

    The net position of the banks and mortgage-credit institutes vis-à-vis Danmarks Nationalbank increased by kr. 25.3 billion in October, to an outstanding amount of kr. 258.3 billion. In October, the central government’s liquidity impact increased the net position by kr. 22.5 billion.

    Impact of various factors on the net position of the banks and mortgage-credit institutes via-a-vis Danmarks Nationalbank – table 2

    Kr. billion October 2024 January 2024 – October 2024
    The central government’s net financing 25.5 -35.1
    Redemption on domestic central-government debt* 5.6 41.8
    Net bond purchases by the government funds and own portfolio and financing of social housing -1.0 0.1
    Other** -0.2 0.0
    The central government’s gross domestic financing requirement 29.8 6.9
    The central government’s gross domestic borrowing*** 7.3 66.4
    The central government’s liquidity impact 22.5 -59.6
    Danmarks Nationalbank’s net foreign-exchange purchases 0.6 15.2
    Danmarks Nationalbank’s net bond purchases 0.2 -0.2
    Other factors**** 2.0 12.5
    Change in net position 25.3 -32.1

    Note: Details may not add because of rounding and previously published figure may have been revised. All transactions as per settlement date.

    * Including krone-denominated payments by the central government in currency swaps.

    ** Comprises foreign net financing requirement and changes in net collateral for the government’s swap portfolio.

    *** Gross long-term borrowing, net short-term borrowing and krone-denominated payments to the central government in currency swaps.

    **** Comprises e.g. changes in banknotes and coins in circulation.

    DANMARKS NATIONALBANK’S INTEREST RATES

    Since 18 October 2024 the discount rate has been 2.85 pct. p.a., since 18 October 2024 the current-account interest rate has been 2.85 pct. p.a., since 18 October 2024 the lending rate has been 3 pct. p.a. and since 18 October 2024 the rate of interest on certificates of deposit has been 2.85 pct. p.a.

    Enquiries can be directed to press advisor Teis Hald Jensen on tel. +45 3363 6066.

    BALANCE SHEET OF DANMARKS NATIONALBANK 31 OCTOBER 2024

    Assets 2024 2024
    1000 kr. 31/10 30/09
    Stock of gold 29,762,724 29,762,724
    Foreign assets 568,018,936 558,598,616
    Claims on the International Monetary Fund 56,612,023 56,612,023
    Claims related to banks’ and mortgage credit institutes’ TARGET accounts in ECB 25,158 21,936
    Monetary-policy lending – –
    Other lending 1,257,590 1,328,162
    – Banks’1) 1,257,590 1,328,162
    – Miscellaneous loans – –
    Domestic bonds 32,828,772 32,648,468
    Financial fixed assets, etc. 131,550 131,550
    Tangible and intangible fixed assets 657,630 659,416
    Other assets 3,266,872 2,613,908
    692,561,255 682,376,803

    1) Other lending to banks include loans for cash deposits.

    Liabilities 2024 2024
    1000 kr. 31/10 30/09
    Banknotes 49,490,166 50,703,826
    Coins 6,141,453 6,139,781
    Monetary-policy deposits 258,308,841 232,970,192
    – Current accounts 258,308,841 232,970,192
    – Certificates of deposit – –
    Other deposits 14,923,309 14,842,944
    – Deposits related to banks’ and mortgage credit institutes’ TARGET accounts in ECB 25,158 21,936
    – Other deposits from banks’ and mortgage credit institutes’ 1,090,023 1,116,117
    – Miscellaneous deposits 13,808,128 13,704,891
    Central government 228,928,623 243,798,735
    Foreign liabilities 4,405,659 3,348,426
    Counterpart of Special Drawing Rights allocated by the IMF (SDR) 43,743,945 43,743,945
    Other liabilities 2,912,279 3,121,974
    Capital and reserves 83,706,980 83,706,980
    692,561,255 682,376,803

    Note: The monthly balance sheet is calculated at beginning of year values +/- accumulated transaction values. The monthly balance does not include value adjustments and accruals, as these are only calculated at year-end, cf. Danmarks Nationalbank’s accounting principles.

    MIL OSI Global Banks –

  • MIL-OSI USA: Warren, Hickenlooper Call on Fed to Deliver Bigger Rate Cut to Protect the Economy and Provide Relief for American Families

    US Senate News:

    Source: United States Senator for Massachusetts – Elizabeth Warren
    November 04, 2024
    With new inflation data showing inflation nearly at Fed’s target, Senators call for .5% cut
    “If the Fed moves forward with more rate cuts, housing prices and mortgage rates would thus also likely drop, allowing more families to achieve the American dream.” 
    Text of Letter (PDF) 
    Washington, D.C. – Ahead of the Federal Reserve’s (Fed; the Board) November Federal Open Market Committee  meeting, U.S. Senator Elizabeth Warren (D-Mass.) and John Hickenlooper (D-Colo.) urged Fed to deliver a 50 basis point (.50%; each basis point is one hundredth of a percent) cut to the federal funds rate. 
    After months of calling on the Fed to cut the federal funds rate, the Board finally lowered it by 50 basis points in September, the first cut since 2020. The Fed explained: “[t]he Committee has gained greater confidence that inflation is moving sustainably toward 2 percent, and judges that the risks to achieving its employment and inflation goals are roughly in balance.”
    Recent economic data shows that inflation has fallen to 2.1 percent, the lowest since February of 2021. There is no need for restrictive interest rates given this inflation data.
    Even as the economy remains strong, the demand for workers may be waning due to the Fed’s restrictive monetary policy. New statistics from the Department of Labor indicate that unemployment claims fell while the number of Americans collecting unemployment benefits rose, suggesting unemployed people are having a more difficult time landing jobs. 
    The Senators noted that borrowing costs, and in turn housing costs, are still too high. Lowering interest rates is key to unlocking more supply: rate cuts will lower the cost of capital, which would help tackle inflation by spurring more housing construction and consequently lowering housing prices. However, the Fed’s high interest rates have suppressed housing construction for years. 
    “If the Fed moves forward with more rate cuts, housing prices and mortgage rates would thus also likely drop, allowing more families to achieve the American dream,” wrote the senators. 
    Senator Warren has been ringing the alarm bells about the serious dangers of Chair Powell’s failure to lower interest rates: 
    In September 2024, Senators Elizabeth Warren, John Hickenlooper (D-Colo.), and Sheldon Whitehouse (D-R.I.) called on the Fed to cut the federal funds rate, currently at a two decade-high of 5.3 percent, by 75 basis points at the September Federal Open Market Committee meeting. 
    In July 2024, Senators Warren, Hickenlooper (D-Colo.), and Sheldon Whitehouse (D-R.I.) urged Fed Chair Jerome Powell, cut to interest rates at the Fed’s July Federal Open Market Committee (FOMC) meeting, in light of economic data showing that inflation was decreasing and very close to the Fed’s target. 
    In June 2024, Senators Warren, Rosen (D-Nev.), and Hickenlooper (D-Colo.) wrote to the Federal Reserve (the Fed), urging Chair Jerome Powell to cut the federal funds interest rates from the two-decade-high of 5.5 percent.
    In March 2024, Senators Warren and Sheldon Whitehouse (D-R.I.) sent a letter to Chair Powell, expressing concerns about the damaging impact of the Fed’s extreme 2022 and 2023 interest rate hikes, which have halted deployment of clean energy technologies and have undermined the Inflation Reduction Act’s climate and consumer benefits. The senators called on the Fed to cut interest rates to allow for continued progress on clean energy projects and the climate and economic benefits they provide. 
    In January 2024, Senators Warren, John Hickenlooper (D-Colo.), Jacky Rosen (D-Nev.), and Whitehouse sent a letter to Chair Powell, calling on the Fed to reverse its troubling interest rate hikes that have driven mortgage rates to 20-year highs and have put affordable housing out of reach for too many Americans. 
    In July 2023, Senator Warren sent a letter to Chair Powell, raising concerns about the disproportionate impact of the Fed’s monetary policy amid rising unemployment for Black workers. 
    In May 2023, Senator Warren led lawmakers in a letter to Chair Powell, calling on the Fed to pause interest rate hikes and respect its dual mandate of maximum employment and price stability, particularly in the wake of recent turmoil in the banking system following the collapses of Silicon Valley Bank, Signature Bank, and First Republic Bank. The lawmakers expressed serious concerns that the Fed’s monetary policy strategy of more rate hikes could trigger a recession, throw millions out of work, and crush small businesses. 
    In March 2023, at a hearing of the Senate Banking, Housing, and Urban Affairs Committee, Senator Warren questioned Chair Powell on the Fed’s monetary policy plan and its projection that the unemployment rate will rise sharply to 4.6% by the end of the year if the Fed continues to raise interest rates. Senator Warren highlighted that the Fed’s projections suggest that nearly 2 million people will lose their jobs, and that history shows that the Fed has a poor track record of containing moderate increases in unemployment.
    In November 2022, Senator Warren and Representative Madeleine Dean (D-Pa.) led their colleagues in sending a letter to Chair Powell, expressing concern and seeking answers about the Fed’s most recent economic projections, its intentions to continue to raise interest rates at a rapid pace, and its disturbing warning to American families that they should expect “pain” in the coming months. 
    In July 2022, Senator Warren published an op-ed in the Wall Street Journal warning that the Fed’s decision to aggressively raise interest rates risks triggering a devastating recession.
    In June 2022, at a hearing of the Senate Banking, Housing, and Urban Affairs Committee, Senator Warren called out Chair Powell for the Fed’s announced interest rate increases that wouldn’t address the key drivers of inflation. Chair Powell confirmed that the Fed’s interest rate increases will not bring down gas and food prices, two of the biggest drivers of inflation.

    MIL OSI USA News –

  • MIL-OSI Banking: Independent Petroleum Association of America Announces New Appointments to Board of Directors

    Source: Independent Petroleum Association of America

    Headline: Independent Petroleum Association of America Announces New Appointments to Board of Directors

    Nov 4, 2024 Independent Petroleum Association of America Announces New Appointments to Board of Directors

    Posted at 12:13h in Press Releases by

     WASHINGTON — Last week, the Independent Petroleum Association of America (IPAA) – advocating for thousands of oil and natural gas producers that develop 90 percent of wells nationwide – held its fall Board of Directors meeting as part of its 95th Annual Meeting and announced the following board appointments.

     

    Current IPAA Regional Director for Pennsylvania, Michael Hillebrand was announced as the new IPAA Chairman effective January 1, 2025. Hillebrand is President and CEO of Huntley & Huntley, LLC; Founder, Principal, and BOM of Olympus Energy, and current Chairman of the Pennsylvania Independent Oil and Gas Association (PIOGA).

     

     

    Jonny Heins, Senior Director of Corporate Affairs, Permian Resources was named an At-Large Director.

     

    Kate Farr, Senior Director of Government Affairs, Occidental Petroleum was named Chair of the IPAA Land & Royalty Committee.
    Andrew Vecera, Director of Advocacy Services, Ryan LLC was named Chair of the IPAA Tax Committee.
    View all IPAA board members here.

    Jeff Eshelman, IPAA President and CEO: “The organizations these industry leaders are a part of show the breadth of our industry and IPAA, from small to large independent producers with operations in basins across the country providing energy to Americans. The IPAA team is grateful to have these men and women contribute their expertise and talent to our association.”

    ###

    MIL OSI Global Banks –

  • MIL-OSI USA: Brics Summit: Which countries recently joined the bloc? Which want to and why? – FirstPost (India)

    Source: United States Institute of Peace

    Brics is expanding.

    The grouping which originally began with Brazil, Russia, India, China – was coined in 2001 by then Goldman Sachs chief economist Jim O’Neill – expanded to include South Africa in 2010.

    The bloc was founded as an informal club in 2009 to provide a platform for its members to challenge a world order dominated by the United States and its Western allies.

    Its creation was initiated by Russia.

    [embedded content]

    The group is not a formal multilateral organisation like the United Nations, World Bank or the Organisation of the Petroleum Exporting Countries (OPEC).

    Advertisement

    The heads of state and government of the member nations convene annually with each nation taking up a one-year rotating chairmanship of the group.

    It now represents around 3.5 billion people – 45 per cent of the world’s population.

    Its combined economies are valued at over $28.5 trillion – nearly a third of the global economy.

    But which countries have recently joined? Which want to join now and why? And what does the expansion mean for the West?

    With Prime Minister Narendra Modi attending the 16th Brics Summit in Kazan, let’s take a closer look at how Brics is expanding.

    Which countries joined recently?

    Brics in 2023 invited six countries – Argentina, Egypt, Iran, Ethiopia, Saudi Arabia and the United Arab Emirates – to become new members of the bloc.

    Editor’s Picks

    The formal invitation was made during a summit in August in Johannesburg.

    While all BRICS members had publicly expressed support for growing the bloc, there were divisions among the leaders over how much and how quickly.

    Members at the time said the move would help reshuffle a world order they view as outdated.

    Advertisement

    In January, five of these nations – Egypt, Ethiopia, Iran, Saudi Arabia and the United Arab Emirates – said they were joining the BRICS bloc.

    Argentina declined the invitation to join.

    As per Al Jazeera, this came after President Javier Milei took office.

    Milei has vowed to increase ties with the West.

    However, Saudi Arabia later said it is not yet joining the group and that the matter is being considered by its leadership.

    Ultimately, Egypt, Iran, Ethiopia, and UAE joined the bloc.

    Which want to join now and why?

    Dozens of countries have voiced interest in joining the grouping.

    Algeria, Bolivia, Cuba, Democratic Republic of Congo, Turkiye, Comoros, Gabon, Kazakhstan, Vietnam, Thailand and Malaysia have all expressed interest in joining the forum.

    Advertisement

    Turkiye, a Nato member, formally requested to join BRICS in September.

    As p_er Bloomberg,_ Turkiye is looking to become part of the bloc as it eyes increasing its global influence.

    President Recep Tayyip Erdogan’s administration is looking further than its time-tested allies in the West, people familiar with the development told the outlet.

    Erdogan’s government believes the centre of geopolitics is moving away from the developed economies.

    Turkiye is also eyeing improving its economic relationship with Russia and China.

    Turkiye under President Tayyip Erdogan is looking to join Brics. Reuters

    This is a departure for the NATO member nation which has historically been suspicious of Moscow and been a US ally.

    Turkiye is also thought to be upset over the lack of forward movement in its decades-long attempt to join the European Union.

    Advertisement

    According to Al Jazeera, Thailand said it was interested in joining the grouping during the BRICS Dialogue with Developing Countries held in Russia in June.

    Malaysia too expressed interest in becoming a member ahead of a visit from Chinese Premier Li Qiang.

    The bloc “can help Malaysia’s digital economy grow faster by allowing it to integrate with countries that have strong digital markets and also take advantage of best practices from other members,” Rahul Mishra, associate professor at the Center for Indo-Pacific Studies at Jawaharlal Nehru University in New Delhi, told DW.

    “Thailand would also be able to draw investments in important industries including services, manufacturing, and agriculture,” Mishra added.

    Advertisement

    Bolivia’s President Luis Arce has expressed interest in BRICS membership.

    His government has said it is determined to curb dependence on the US dollar for foreign trade, instead turning to the Chinese yuan, in line with BRICS leaders’ stated aim to reduce dependence on the US currency.

    Algeria last July it has applied for BRICS membership and to become a shareholder in the New Development Bank, the so-called BRICS Bank.

    The North African nation is rich in oil and gas resources and is seeking to diversify its economy and strengthen partnership with China and other countries.

    The countries hope the bloc can level the global playing field. Most nations view BRICS as an alternative to global bodies viewed as dominated by the traditional Western powers and hope membership will unlock benefits including development finance, and increased trade and investment.

    Dissatisfaction with the global order among developing nations was exacerbated by the COVID-19 pandemic when life-saving vaccines were hoarded by the rich countries.

    “That so many countries are willing to go to Russia, deemed a pariah state not so long ago for having violated international law by invading Ukraine, confirms a trend followed by an increasing number of countries in the world: They don’t want to have to choose between partners,” Tara Varma, a visiting fellow at the Brookings Institute, told Al Jazeera.

    Adam Gallagher, writing for USIP.org, noting the size of the bloc, said there are clear economic benefits to joining the grouping.

    “Intra-BRICS trade is one area that the group has found its footing,” Gallagher said. He noted how the June 2024 BRICS foreign minister’s meeting encouraged “enhanced use of local currencies in trade and financial transactions” by Brics members.

    Gallagher said that countries like Malaysia, who want to join the grouping, are looking to form alliances across the globe and preserve their strategic autonomy.

    “For these countries, it’s not about taking sides. Some countries also believe BRICS membership will give them a greater voice and representation in international politics. It’s not all about anti-Western ideology,” Gallagher wrote.

    James Chin, a professor of Asian Studies at the University of Tasmania told DW “both Thailand and Malaysia are seen as middle powers.”

    “It’s better for them to join groups like BRICS so that they will have a larger voice in the international arena. But the major benefit will be trade,” Chin added.

    What does the expansion mean for the West?

    Experts say that these growing number of nations who want to join Brics shows that they want their financial independence – and that the established world order may be vulnerable.

    “In the aftermath of the war in Gaza, Russia and China have more effectively harnessed this anti-Western sentiment, capitalising on frustrations over Western double standards as well as the use of sanctions and economic coercion by the West,” Asli Aydintasbas, a Turkish foreign policy expert, was quoted as telling the Brookings Institute as per Al Jazeera.

    “It doesn’t mean that middle powers want to trade US dominance for Chinese, but it means they are open to aligning with Russia and China for a more fragmented and autonomous world.”

    As per Al Jazeera, Brics members and their associates clearly want to decrease their reliance on the US dollar and Europe’s Society for Worldwide Interbank Financial Telecommunication (SWIFT) network.

    Malaysian Prime Minister Anwar Ibrahim walks with Indian Prime Minister Narendra Modi during Anwar’s ceremonial reception at India’s Presidential Palace Rashtrapati Bhavan in New Delhi, India, August 20, 2024. REUTERS

    This comes after Russia was cut-off from the system in the aftermath of the invasion of Ukraine in 2022.

    “China now has an alternative to the SWIFT payment system, though limited in use, and countries like Turkiye and Brazil increasingly restructure their dollar reserves into gold,” Aydintasbas added. “Currency swaps for energy deals are also a popular idea – all suggesting a desire for greater financial independence from the West.”

    As per CFR.org, Western nations until now have talked down the bloc as a threat.

    White House National Security Advisor Jake Sullivan has said Brics isn’t a geopolitical rival, while Treasury Secretary Janet Yellen has downplayed the de-dollarisation strategy of Russia and China.

    But some argue that the West needs to do some serious introspection.

    “The accusation that the West is arrogant toward the needs of the Global South is serious. It cannot be answered by offering ‘value-based partnerships’ and a ‘rules-based’ multilateralism when the interest of the BRICS is focused on changing those rules in global finance, trade, and other standard-setting procedures,” Günther Maihold, senior fellow at the German Institute for International and Security Affairs, was quoted as saying by CFR.org.

    “Ignoring BRICS as a major policy force—something the U.S. has been prone to do in the past—is no longer an option,” Tufts University scholars wrote in 2023.

    It remains to be seen how the US-led West will react.

    With inputs from agencies

    MIL OSI USA News –

  • MIL-OSI Banking: Windows Server 2025 now generally available

    Source: Microsoft

    Headline: Windows Server 2025 now generally available

    Generally available today, Windows Server 2025 builds on our mission to deliver a secure and high-performance Windows Server platform tailored to meet customers’ diverse needs. This release will enable you to deploy apps in any environment, whether on-premises, hybrid environments, or in the cloud.

    Windows Server 2025

    Investing in your success with Windows Server

    Advanced multilayered security 

    In an era where cybersecurity is of utmost importance (see the Microsoft Digital Defense Report 2024 and the Microsoft Threat Intelligence Healthcare Ransomware Report), Windows Server 2025 stands out with a suite of security features designed to safeguard your data and infrastructure. Here are a few key capabilities: 

    • Active Directory (AD): The gold standard for identity and authentication only gets better with new security capabilities to help fortify your environment against evolving threats with greater scalability and improvements in protocols, encryption, hardening, and new cryptographic support. 
    • File services/server message block (SMB) hardening: Windows Server 2025 includes SMB over QUIC to enable secure access to file shares over the internet. SMB security also adds hardened firewall defaults, brute force attack prevention, and protections for man in the middle attacks, relay attacks, and spoofing attacks. 
    • Delegate Managed Service Accounts (dMSA): Unlike traditional service accounts, dMSAs don’t require manual password management since AD automatically takes care of it. With dMSAs, specific permissions can be delegated to access resources in the domain, which reduces security risks and provides better visibility and logs of service account activity. 

    These advanced security features make Windows Server 2025 a robust and secure platform for your IT infrastructure that you should begin evaluating immediately.

    Cloud agility anywhere

    Windows Server 2025 introduces several advanced hybrid cloud capabilities designed to enhance operational flexibility and connectivity across various environments. Key features include: 

    • Hotpatching enabled by Azure Arc: Customers operating fully in the cloud have inherent modern security advantages like automatic software updates and back-up and recovery.  Now we’re bringing some of those capabilities to Windows Server 2025 for on-premises customers with a new hotpatching subscription service, enabled by Azure Arc. With hotpatching, customers will experience fewer reboots and minimal disruption to operations. Hotpatching delivers security updates for Azure Arc-enabled Windows Server 2025 Standard or Datacenter running on physical machines, virtual machines, on-premises, or multicloud servers. Hotpatching, currently in preview, will require a monthly subscription. The hotpatching feature remains no additional cost for Windows Server Datacenter Azure Edition virtual machines.
    • Easy Azure Arc onboarding: Windows Server 2025 brings Azure’s powerful capabilities directly into your datacenter through Azure Arc. This integration simplifies the onboarding process to Azure’s hybrid features and enhances operational flexibility, allowing you to manage and secure your hybrid and multicloud environments more effectively. 
    • Software-defined network (SDN) multisite features: The software-defined network (SDN) multisite features offer native L2 and L3 connectivity for seamless workload migration across various locations, coupled with unified network policy management. 
    • Unified network policy management: This capability allows for centralized management of network policies, making it easier to maintain consistent security and performance standards across your hybrid cloud environment.

    These hybrid cloud capabilities make Windows Server 2025 an ideal choice for organizations looking to optimize their IT infrastructure and leverage the benefits of both on-premises and cloud environments.

    AI, performance, and scale 

    Windows Server 2025 is designed to handle the most demanding workloads, including AI and machine learning. Here are some key capabilities: 

    • Hyper-V, AI, and machine learning: With built-in support for GPU partitioning and the ability to process large data sets across distributed environments, Windows Server 2025 offers a high-performance platform for both traditional applications and advanced AI workloads with live migration and high availability. 
    • NVMe storage performance: Windows Server 2025 delivers up to 60% more storage IOPs performance compared to Windows Server 2022 on identical systems. (Based on 4K randread using Diskpsd 2.2 with Kioxia CM7 SSd) 
    • Storage Spaces Direct and storage flexibility: Windows Server supports a wide range of storage solutions such as local, NAS, and SAN for decades and continues to this day. Windows Server 2025 delivers more storage innovation with Native ReFS deduplication and compression, thinly povisioned Storage Spaces, and Storage Replica Compression now available in all editions of Windows Server 2025.
    • Hyper-V performance and scale: Windows Server 2025 introduces massive performance and scalability improvements that come from Azure. Windows Server 2025 Hyper-V virtual machine maximums: 
      • Maximum memory per VM: 240 Terabytes* — (10x previous) 
      • Maximum virtual processors per VM: 2048 VPs* — (~8.5x previous) 

    *Requires Generation 2 VMs

    Windows Server 2025 delivers major advancements across the board for Hyper-V, GPU integration, Storage Spaces Direct (software defined storage), software-defined networking, and clustering. These improvements make Windows Server 2025 an excellent option for organizations looking for a virtualization solution and for organizations looking to leverage AI and machine learning while maintaining high performance and scalability.

    System Center 2025 is available now

    By delivering System Center 2025 concurrently with Windows Server 2025, management of Windows Server at scale is available immediately. This allows organizations to make the most of new Windows Server features. Designed to enhance agility, performance, and security, this release is set to enhance how organizations optimize their infrastructure and virtualized software-defined datacenters. We encourage you to visit the System Center 2025 post learn more. 

    Microsoft Ignite 2024

    We look forward to meeting you in person and sharing these and other Windows Server 2025 features in our sessions and at our booth at Microsoft Ignite in Chicago, November 19-21. For those of you who can’t make it, many sessions, including our Windows Server breakout titled Windows Server 2025: New Ways to gain cloud agility and security, will be available for online viewing. 

    We are also excited to bring new features to customers on existing Windows Server versions like 2016, 2019, 2022, as well as 2025. Windows Server Software Assurance or active subscription customers can access Azure management tools like Azure Update Manager, Azure Policy Guest Configuration, Disaster Recovery, Change Tracking and Inventory, and more, with access to many features coming at no additional cost**. Tune into Microsoft Ignite where we will show more demos and information on how to access these new offerings.

    Additional Windows Server resources

    Notes

    1. ** Note: compute and storage may incur additional fees. 

    MIL OSI Global Banks –

  • MIL-OSI Canada: Bank of Canada webcasts The John Kuszczak Memorial Lecture

    Source: Bank of Canada


















  • MIL-OSI Canada: John Kuszczak Memorial Lecture 2024

    Source: Bank of Canada


















  • MIL-OSI USA: American Banker: Warren slams DOJ for side-stepping tougher action against TD

    US Senate News:

    Source: United States Senator for Massachusetts – Elizabeth Warren
    October 31, 2024
    Sen. Elizabeth Warren, D-Mass., is blasting the Department of Justice for not punishing TD Bank Group more harshly over the Canadian bank’s money-laundering failures in the United States.
    Law-enforcement officials and regulators hit the Toronto-based bank’s U.S. subsidiary with a record $3.09 billion fine and asset-cap handcuffs earlier this month in a novel money-laundering case. But the penalties imposed by the DOJ don’t go far enough, Warren said Wednesday in a letter seen by American Banker.
    In the letter, sent to Attorney General Merrick Garland and Deputy Attorney General Lisa Monaco, Warren pressed them to explain why the DOJ hasn’t yet charged top TD executives for their culpability in the bank’s crimes.
    …
    Read the full story here.
    By:  Catherine LeffertSource: American Banker

    MIL OSI USA News –

  • MIL-OSI USA: China Tightens Grip on Critical Minerals – China Digital Times

    Source: United States Institute of Peace

    China has extended its dominance at home and abroad over critical minerals that are essential to future high-tech and renewable-energy industries. Amid intensifying geopolitical competition, Western countries are increasing their efforts to claw back market share while countries in the Global South, where many of these minerals are mined, are attempting to capitalize on growing global demand. A recent article on the subject by The Economist stated that in 2023 Chinese companies invested roughly $16 billion in foreign mines, the highest figure in a decade, up from less than $5 billion the year before. This month, Chinese companies have announced plans to invest billions of dollars in mines in Afghanistan, Ghana, Zambia, and the Philippines. Keith Bradsher at The New York Times reported that over the past few weeks, the Chinese government has enacted measures to increase its grip over the mining and refining of rare minerals within China by making it harder for foreign companies to purchase them:

    As of Oct. 1, exporters must provide the authorities with detailed, step-by-step tracings of how shipments of rare earth metals are used in Western supply chains. That has given Beijing greater authority over which overseas companies receive scarce supplies.

    China is also taking greater corporate ownership over the mining and production of the metals. In a deal that has received almost no attention outside the country, the last two foreign-owned rare earth refineries in China are being acquired by one of the three state-owned companies that already run the other refineries in China.

    Beijing’s recent moves to take charge of the supply chain include other obscure chemical elements that are also needed by semiconductor manufacturers. On Sept. 15, China’s Ministry of Commerce restricted exports of antimony, a material used in semiconductors, military explosives and other weaponry. Last year, the ministry imposed export controls on two other chemical elements, gallium and germanium, also needed to make chips.

    National security officials have tightened the flow of information about rare earths. They have labeled rare earth mining and refining as state secrets. Last month, the Ministry of State Security announced that two managers in the rare earths industry had been sentenced to 11 years in prison for leaking information to foreigners. [Source]

    In September, a coalition of 14 Western countries and the European Commission formed the Minerals Security Partnership, a new financing network to support critical mineral projects and break China’s dominance over this sector. Despite initiatives like these, the U.S. has struggled to compete with China for critical minerals, for many reasons. One is that Chinese state-owned companies “have periodically flooded world markets with rare earths to drive down the price whenever Western producers try to ramp up production,” Bradsher wrote. Just this week, Chinese mining giant CMOC announced that it reached its full-year cobalt production target three months ahead of schedule. Eric Olander from the China-Global South Project argued that “CMOC’s strategy is unrelated to pricing conditions and more about keeping Western rivals on the sidelines [,…which] gives China an unrivaled advantage over its rivals in the U.S., Europe, and Asia that are moving aggressively to cut Chinese firms out of their supply chains — which, at least for cobalt, is not going to be possible for a very long time.” Eliot Chen at The Wire China wrote about how American policymakers are considering expanding the U.S. stockpile of critical minerals to compete with China, which has been “the master of the game” when it comes to leveraging its stockpiles:

    “China’s stockpile has a dual purpose: one is defensive and the other is economic, to support domestic industry when prices get too high for downstream industries like the electricity sector, and then conversely when prices are too low and domestic producers like copper smelters have difficulty remaining profitable,” says [Gregory Wischer, principal at Dei Gratia Minerals, a critical minerals consultancy]. 

    What, exactly, China stockpiles is not publicly known, and Chinese authorities are rarely transparent about when they buy up and sell down their stockpiles. But because of the country’s dominance over much of the critical mineral supply chain, even rumors of its intentions can produce wild swings in the price of metals. For example, while Chinese lithium producers account for less than 20 percent of mine production, China refines more than two-thirds of the metal. For other metals like graphite, which has vital defense applications, Chinese refiners control more than 90 percent of the market. 

    China’s outsized influence over the market, combined with its heavy investment in mining assets abroad, have helped it consolidate its control over global supply. An about-face by Chinese policymakers over electric vehicle subsidies in 2018, for example, resulted in a glut of lithium on the market. Chinese companies were then able to step in and acquire distressed lithium miners in Australia and Canada relatively cheaply. [Source]

    China’s monopoly over various critical-mineral supply chains in Africa has motivated the U.S. government to increase engagement in the region. A major component of this U.S. strategy is the $4 billion Lobito Corridor project, which seeks to connect the Port of Lobito in Angola to Zambia and the Democratic Republic of Congo, thereby facilitating American and European access to cobalt and copper. But some local observers see selfish motives in this engagement. “This rivalry-driven approach narrows the scope for a partnership with Africa based on mutual benefit and long-term development. The continent, and the DRC in particular, should not be seen merely as a resource base to fuel external interests,” said Carlos Lopes, a professor at the Nelson Mandela School of Public Governance at the University of Cape Town in South Africa. He added, “Without a genuine commitment to local development, [the Lobito Corridor project] risks perpetuating Africa’s role as a supplier of raw materials rather than fostering economic transformation on the continent.” Analyzing China-Africa critical mineral cooperation in an article last month for the U.S. Institute of Peace, Cobus van Staden explored the potential for U.S.-China cooperation and described how African nations are looking to navigate both sets of relationships to their own benefit:

    The second factor complicating the narrative of direct competition [between the U.S. and China in the region] is the drive from African countries to locate more strategic mineral refining and related manufacturing in Africa. African critical mineral strategies, developed by continental bodies like the African Development Bank, emphasize local refining and value addition, an ambition now enjoying official Chinese support, as well as support from the U.S. through initiatives such as the Minerals Security Partnership among others. For example, the partners involved in the Lobito Corridor have similarly signed agreements with African countries to do more refining locally. These include EU agreements with Zambia and the DRC for mineral-driven value addition, and a trilateral agreement between Zambia, the DRC and the U.S. for domestic electric vehicle supply chain development.

    […] FOCAC 2024 put these complications [including whether Western nations can expand their refining capacities at home despite the potential for environmental and community pushback] in stark relief because it highlighted an increased sense of synergy and coordination around green energy and critical mineral value addition in the China-Africa relationship. A similar focus is developing between the continent and its Western partners. The question now is whether the continent will be able to wield both sets of relationships to its own benefit, even as great-power tensions over critical minerals heat up. [Source]

    MIL OSI USA News –

  • MIL-OSI USA: Rubio Calls Out PwC for Appeasing Communist China

    US Senate News:

    Source: United States Senator for Florida Marco Rubio

    The Chinese Communist Party (CCP) continues to increase scrutiny of Western auditing and consulting firms, including global consulting firm PricewaterhouseCoopers (PwC).

    Instead of distancing itself from Communist China, PwC has opted to strengthen its relationship with the regime. Notably, PwC’s China division has consulted for government officials in the Xinjiang Uyghur Autonomous Region, where Beijing is committing genocide against Uyghurs and other groups, appointed an apparent CCP member to the head of its China operations, and aligned itself with Beijing’s strategic goals by openly supporting China’s Belt and Road Initiative.

    U.S. Senator Marco Rubio (R-FL) sent a letter to PwC Global Chairman Mohamed Khande expressing concern over the company’s ties to the CCP and demanding answers on the threat those ties pose to U.S. interests.  

    • “Simultaneous engagements with foreign adversaries are unacceptable. PwC’s apparent deep connections with CCP-controlled entities raise questions about conflicts of interest that could preclude PwC from executing any contract for U.S. federal and state government agencies with fidelity.
    • “Global firms, such as PwC, who have grown prosperous from a free and democratic order governed by American values, can no longer seek to cater to, and profit from, both sides of this conflict.”

    The full text of the letter is below.

    Dear Mr. Khande:

    I write with regard to PricewaterhouseCoopers LLP’s (PwC) relationship with the Chinese Communist Party (CCP) and the Chinese government, including Chinese provincial and local government entities, and state-owned companies in the People’s Republic of China (PRC). Recently, media outlets have offered noteworthy coverage of the $62 million fine levied on PwC by China’s Ministry of Finance (MOF). While PwC’s questionable auditing work for Evergrande certainly deserves heightened scrutiny, reports have not adequately grappled with conflicts of interest seemingly rising from PwC’s deep entanglements with CCP-controlled and – affiliated entities, and, potentially, the Chinese government.

    PwC and its U.S. subsidiaries have a history of providing consulting services for U.S. federal agencies. Yet, mounting evidence suggests that PwC’s East Asia and China division (PwC China) has consulted government officials in the Xinjiang Uyghur Autonomous Region (XUAR), where Beijing is engaged in an active genocide against Uyghurs and other predominantly Muslim ethnic groups, contracted for numerous state-owned enterprises in China, and openly supported CCP efforts to undermine U.S. economic interests through support for in China’s Belt and Road Initiative (BRI).

    It is no secret that Chinese regulatory authorities have heightened scrutiny around PwC in the wake of its failure to identify $78 billion in misreported revenues by Evergrande. Key decisions made by PwC’s global leadership during this time suggest a pattern of catering to CCP goals when met with regulatory hostility. Until recently, PwC China boasted dozens of the largest Chinese state-owned enterprises on its list of auditing clients, including the Bank of China, China Railway Group Ltd., PetroChina Co. Ltd., People’s Insurance Company of China, and many others. PwC has lost many of these contracts in recent months, as Chinese regulators have discouraged China-based companies from contracting with PwC for auditing services amid the Evergrande fallout. Yet, to my surprise, as Chinese regulators have taken an increasingly hostile posture toward your firm—and sought to wrest control over Western auditors’ operations in mainland China—PwC has responded with attempts to appease the CCP, rather than decouple and de-risk from communist influence.

    In July 2024, amidst the height of Chinese regulatory scrutiny over PwC’s flawed Evergrande audits, PwC leadership appointed Daniel Li as Chairman of its China and East Asia practice. Li appears to be a member of the CCP and serves on the 14th National Committee of the Chinese People’s Political Consultative Conference (CPPCC). The CPPCC is a political instrument that serves atop the CCP’s “united front” system—which is designed to cultivate ties with the entities the Party views as friendly—and steers the CCP’s policy aims. As such, Li’s appointment was a clear effort by PwC to win the trust of CCP authorities amid heightening tension by placing an individual with deep ties to the CCP at the helm of your firm’s China operations. While Hemione Hudson was selected to replace Li at the helm of PwC China last month, Li retains a significant role for PwC China—overseeing your firm’s auditing efforts in China.

    PwC’s deepening ties with the CCP are also evident in your firm’s consulting client selection. The Wall Street Journal reports that, last month, as PwC China’s auditing practice faced hostile regulatory actions over its Evergrande audits, your firm’s consulting unit signed a $200,000 contract with local government authorities in the XUAR. As you know, Beijing is actively committing genocide against Uyghurs and other predominately Muslim ethnic groups in the region. China’s abhorrent oppression of Uyghurs includes modern-day concentration camps, cultural reprogramming efforts, forced labor, and physical torture. Years of mounting evidence now places the reality of these atrocities beyond a shadow of doubt.

    Perhaps most concerning, PwC appears to have acted to publicly align its client engagements with CCP ambitions. PwC’s website openly boasts of the firm’s “Belt and Road United” project, started by your firm in 2017, with the expressed purpose of supporting China’s BRI. A document describing the initiative plainly states, “PwC aligns with the strategy through ongoing support for the Belt & Road Initiative.” In the same document, PwC further claims to be an “enabling influence,” and declares that PwC will “assist government departments and regulators in constructing and improving financial markets and regulatory systems in favor of the B&R Initiative.” The document also openly references the global reach of PwC’s client base, professing that “PwC is dedicated to sharing the full range of resources and practical experience sourced from across our expansive global network” to support BRI.

    PwC’s “Belt and Road United” project appears to have generated several spin-off initiatives in other PwC offices across the globe. For example, PwC Italy’s webpage advertises your firm’s “China Business Group”—a division of PwC with the self-described aim to “support Chinese companies doing business in Italy and successfully develop their external growth strategy in the Italian market.” The document claims that PwC stands at the ready to “support Chinese/Italian government organisations” and “introduce investment opportunities in Italy for potential Chinese clients.” This language appears to be a thinly-veiled attempt of PwC to court the favor of the CCP and secure contracts with Chinese state-owned enterprises by working to expand the influence and reach of Communist China around the globe.

    As noted, PwC and its U.S. subsidiaries consult for many leading U.S. industries, and the company has received substantial revenue from contracts with the U.S. government. When U.S. federal agencies hire private entities for consultation, it is an expectation that contractors will prioritize the best interests of the United States above all others. Simultaneous engagements with foreign adversaries are unacceptable. PwC’s apparent deep connections with CCP-controlled entities raise questions about conflicts of interest that could preclude PwC from executing any contract for U.S. federal and state government agencies with fidelity.

    Accordingly, I ask that you provide responses, along with supporting documentation, to the following questions no later than November 15, 2024:

    1. Please describe the extent of any existing contracts retained by PwC, or its U.S. subsidiaries and affiliates, to provide consulting services for U.S. state and federal government agencies.
    2. Do PwC, or any of its U.S. subsidiaries and affiliates, intend to pursue contracts with U.S. federal agencies in the future?
    3. Has the CCP, or any direct subdivision of the CCP, ever been a client of PwC or any of its subsidiaries?
    4. Has PwC ever provided consulting services for a China-based client that has concurrently been included on the U.S. Department of Defense’s 1260H List, the Department of Treasury’s Non-SDN Chinese Military-Industrial Complex Companies List, or the Department of Commerce’s Entity List? If so, please provide the following information for each client:
      • Name of the company
      • Nature of the company’s work
      • Nature of company’s relationship with the PRC and CCP
      • Duration of PwC’s consulting relationship with the company
      • Nature of PwC’s work on behalf of the company
    5. Do any of PwC’s current or past China-based clients work in the following sectors: military and civil defense, aerospace and aviation, energy and power generation, critical mineral mining and refining, steel and aluminum, new materials, shipbuilding, electric or gas combustion vehicle production, artificial intelligence, quantum computing, microelectronics, telecommunications, biotechnology, or high-speed rail? If so, please provide the following information for each client:
      • Name of the company
      • Nature of the company’s work
      • Nature of company’s relationship with the PRC and CCP
      • Duration of PwC’s consulting relationship with the company
      • Nature of PwC’s work on behalf of the company
    6. As noted above, brochures and materials on PwC’s website openly boast about the firm’s support for China’s Belt and Road Initiative, and its work advancing BRI goals in its consulting engagements abroad. Has PwC ever modified or intentionally crafted its consulting recommendations to U.S. clients, including U.S. federal agencies, in order to recommend cooperation with the BRI or portray the PRC’s BRI in a positive light?
    1. PwC performs hundreds of millions of dollars of work each year on behalf of the U.S.
      Government and American taxpayers. Please describe in detail all policies and safeguards PwC has implemented to ensure that work done on behalf of the United States government does not inform the work that your firm does for Chinese government entities and state-owned enterprises.
    2. PwC’s website lists statistics describing the firm’s work in the “Taiwan region.” Does PwC recognize Taiwan as a free and independent nation state?

    The United States of America, our allies, and Western businesses like PwC, face a fundamental threat. As my office has documented, for more than ten years, the CCP has acted on a concerted plan to supplant the United States as the ascendant global economic power, dominating global trade in the industries that will define the 21st century economy.6 This is not just a conflict over size of economies alone, it is also about which values will define our world. The CCP has been all too willing to commit genocide, oppress and censor citizens, and violate economic norms in its pursuit of power. Yet, it seeks to replace American values for the dignity of the human person and representative government with a global system that reflects its own character. Global firms, such as PwC, who have grown prosperous from a free and democratic order governed by American values, can no longer seek to cater to, and profit from, both sides of this conflict.

    Thank you for your attention to this important matter. 

    Sincerely,

    MIL OSI USA News –

  • MIL-OSI China: Israel releases 200 Palestinian prisoners

    Source: China State Council Information Office

    The Israeli authorities on Saturday released 200 Palestinian prisoners as part of the second phase of a prisoner exchange deal with Hamas.

    Abdullah Zaghari, head of the Palestinian Prisoners Club, said the prisoners were handed over to the International Committee of the Red Cross (ICRC).

    Some prisoners were released into the West Bank from Ofer Prison while others bound for Gaza or deportation abroad were released from Negev Prison in southern Israel.

    Palestinian officials in the Ramallah Governorate also coordinated the release.

    According to eyewitnesses, the prisoners were transferred from the ICRC to a medical center in Ramallah, where the Palestinian security forces were stationed in preparation for the release.

    Among those released, 16 headed to Gaza. Palestinian security sources and eyewitnesses told Xinhua that the prisoners entered Gaza through the Kerem Shalom crossing southeast of the strip.

    According to the Palestinian Prisoners’ Affairs Authority, the 200 prisoners included 121 who had been serving life sentences and 79 others with long sentences.

    Egypt’s Al-Qahera News TV channel reported later in the day that some 70 Palestinian prisoners the Israeli authorities had released arrived in Egypt via the Rafah crossing. Türkiye, Tunisia, and Algeria have agreed to take in some prisoners while others will stay in Egypt.

    Following the release of the prisoners, Hamas spokesperson Abdul Latif al-Qanou said in a press statement that the Palestinians in Gaza are waiting for the Israeli army to “withdraw according to the terms of the agreement and for the displaced residents to begin returning to their lands and homes.”

    MIL OSI China News –

  • MIL-OSI China: 2nd phase of Hamas-Israel prisoner-hostage exchange deal completed: Red Cross

    Source: China State Council Information Office

    The International Committee of the Red Cross (ICRC) announced Saturday the completion of the second phase of a prisoner-hostage exchange between Hamas and Israel, implemented under the initial terms of a ceasefire agreement.

    The second phase, including the release of 200 Palestinian prisoners and four Israeli hostages, was carried out after thorough coordination and review procedures conducted by the ICRC, a neutral intermediary that ensured the smooth and secure implementation of the exchange, it said.

    The Israeli hostages were transferred safely, with their well-being prioritized, whereas the Palestinian prisoners were released from Israeli detention centers and transported to Gaza and the West Bank following ICRC’s interview with them, during which it verified their identities, evaluated their health conditions, and confirmed their readiness for travel, it said.

    The ICRC urged ongoing dialogue between the parties and their continuous humanitarian commitments, so as to create the necessary conditions for the safe execution of future operations.

    Earlier on Saturday, the Israel Defense Forces and the Israel Security Agency said in a joint statement that four female Israeli soldier hostages held in Gaza were transferred to them and crossed the border into Israel.

    Meanwhile, Abdullah Zaghari, head of the Palestinian Prisoners Club, as well as Palestinian officials in the Ramallah Governorate said 200 Palestinian prisoners were handed over to ICRC.

    Some prisoners were released into the West Bank, some bound for Gaza, and some have arrived in Egypt via the Rafah crossing, according to Palestinian sources and Egyptian media reports.

    The first stage of the six-week ceasefire took effect on Jan. 19.

    The ceasefire agreement between Hamas and Israel was reached after 15 months of intense fighting, as a result of negotiations mediated by Egypt, Qatar and the United States.

    MIL OSI China News –

  • MIL-OSI USA: ICYMI—Hagerty Joins The Story With Martha MacCallum on Fox News to Discuss Democrats Delaying Trump’s Cabinet Confirmations

    US Senate News:

    Source: United States Senator for Tennessee Bill Hagerty
    WASHINGTON—United States Senator Bill Hagerty (R-TN), a member of the Senate Appropriations, Banking, and Foreign Relations Committees and former U.S. Ambassador to Japan, yesterday joined The Story With Martha MacCallum on Fox News to discuss his strong support for Pete Hegseth, and Senate Democrats playing political games to delay President Donald Trump’s cabinet confirmations. 

    *Click the photo above or here to watch*
    Partial Transcript
    Hagerty on Democrats’ politically-motivated delay of Trump’s cabinet confirmations: “We’re moving ahead in due course here. I think the biggest difficulty has been the Democrats that are using every procedural move they can, Martha, to try to slow this thing down. Right now, we’re scheduled to vote on Pete [Hegseth] tonight. From that point, we’ll move on to start the clock again for Kristi Noem. That’ll take another thirty hours of work, so Kristi won’t come up again until very early on Sunday morning. Then we’ll start the clock off on Scott Bessent [early Sunday morning]. And they’ll roll forward into Monday, vote on Scott, then go to Sean Duffy and just continue this process. The Democrats have used every procedural mechanism available to them to slow us down. And I’ll just remind you, Martha, we are far, far behind where we were in [former President Barack] Obama’s initial Administration. We’re behind where we were, frankly, with President Trump, his first term, and clearly, [former] President [Joe] Biden. I don’t think the Democrats got the message.”
    Hagerty on his strong support for Pete Hegseth: “Certainly, our members [of the Senate] are all entitled to vote as they’re going to. I’m certainly going to be supportive of Pete because I think if you watch the four-and-a-half-hour confirmation hearing, you’re going to see that Pete is very bright, very energetic, and very talented. He’s going to be able to inspire the troops, recruit and retain as he should. And I hope that all my colleagues will take a very hard look at that and vote in the affirmative tonight.”

    MIL OSI USA News –

  • MIL-OSI Security: Freddie “Bankroll Freddie” Gladney, III Sentenced to Over 12 Years in Federal Prison Following Guilty Verdict at Jury Trial on Firearm and Drug Trafficking Charges

    Source: United States Bureau of Alcohol Tobacco Firearms and Explosives (ATF)

          LITTLE ROCK—Freddie “Bankroll Freddie” Gladney, III, will spend the next 150 months in federal prison after being convicted of multiple narcotics offenses, including a firearms offense, which involved a conspiracy to distribute large amounts of marijuana in and around central Arkansas. Jonathan D. Ross, United States Attorney for the Eastern District of Arkansas, announced the sentence, which was handed down today by United States District Judge James M. Moody, Jr.

          Following a four-day trial, Gladney, 30, of Helena, was convicted by a federal jury on April 12, 2024. The jury found Gladney guilty of one count of conspiracy to distribute and possess with intent to distribute marijuana, one count of possession with intent to distribute marijuana, one count of possession of a firearm in furtherance of a drug trafficking crime, and one count of using a telephone in furtherance of a drug trafficking crime.

          In addition to the 150 months’ total imprisonment, which is more than twelve years, Judge Moody sentenced Gladney to three years supervised release. There is no parole in the federal system. Gladney was also ordered to pay a $242,000 money judgment as part of his conviction. 

          Gladney was indicted by a federal grand jury on May 3, 2023, in a 32-count superseding indictment that charged him with numerous offenses related to a conspiracy that was investigated by the Federal Bureau of Investigation (FBI).

          Two FBI operations, each focused on a rival gang, were created to address violence and drug trafficking in the corridor between Pine Bluff and Little Rock. The investigations focused on rival gangs responsible for violence throughout central Arkansas, with one operation focused on the EBK or Every Body Killas gang and resulting in the indictment of 35 defendants.

          An investigation revealed that on April 14, 2022, an Arkansas State Police trooper observed a black truck speeding and conducted a traffic stop in Marion. The trooper noted the odor of marijuana coming from inside the vehicle and asked Gladney to exit the vehicle. Gladney began to exit the vehicle but then reentered and started reaching for something in the vehicle. Because Gladney refused to exit the vehicle, the trooper was forced to remove him.

          During a search of Gladney’s vehicle, law enforcement officers located in the passenger seat near the area where Gladney had been reaching, a Romarm/Cugie Model Micro Draco 7.62x39mm caliber firearm and a Polymer 80 Model PF940C, 9mm privately made firearm (also known as a “ghost gun”). Additionally, during a search of the back seat of the vehicle, law enforcement officers located a duffle bag containing 21.4 pounds of high-grade marijuana and $33,662, which was located in the center console along with seven magazines, five of which were extended and fully loaded.

          At sentencing, Gladney received a 4-level increase for being an organizer or leader of criminal activity that involved five or more participants. Gladney received a 2-level increase in his guideline range for obstruction of justice related to a May 25, 2021, wiretap call in which he instructed a codefendant to remove guns and scales used for weighing illegal drugs from his Helena residence in anticipation that it would be searched by law enforcement. 

    GLADNEY III:           So where, what you got in the house in Helena?

    CODEFENDANT:     I got everything out of there.

    GLADNEY III:           You got everything out of there already?

    CODEFENDANT:     Yeah.

    GLADNEY III:           Scales and everything?

    CODEFENDANT:     Naw, I gotta, gotta, lemme call them. Send em back in to get that. I gotta find out where all they at.

    GLADNEY III:           Scales and shit. Get everything out the house. Any guns, anything.

    CODEFENDANT:     Alright, let me..

    GLADNEY III:           Where that MAK-90 at?

    CODEFENDANT:     It’s not there.

    GLADNEY III:           Alright get everything else out that house before they go search that b***h.

    CODEFENDANT:     Alright.

          Judge Moody cited the ghost gun in increasing Gladney’s sentence 2.5 years above the guidelines range. Judge Moody noted that based on trial testimony, it was apparent that Gladney’s ghost gun, which did not have a back plate, was either ready to receive a “switch,” or had recently had a “switch” on it, that would turn the ghost gun from a semi-automatic firearm to a fully-automatic firearm. Judge Moody also recognized that Gladney was on probation from a drug and gun case in Memphis at the time he was intercepted on the wiretap in this case. 

          This investigation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

          The investigation was conducted by the FBI with assistance from Arkansas State Police, Arkansas Department of Community Corrections, Little Rock Police Department, North Little Rock Police Department, Pine Bluff Police Department, and Jonesboro Police Department. FBI’s GETROCK Task Force was formed in 2017 in response to the escalation in gang and gun violence in Little Rock. The unit’s investigations and operations are coordinated out of FBI Little Rock’s field office, and GETROCK continues to serve as the clearinghouse for gang-related law enforcement activity in Central Arkansas. Additional support was provided by the Bureau of Alcohol, Tobacco, Firearms, and Explosives; Homeland Security Investigations; United States Postal Inspection Service; Arkansas National Guard Counterdrug Joint Task Force; and the Arkansas State Crime Laboratory. These cases are being prosecuted by Assistant United States Attorneys Julie Peters, Amanda Fields, and Reese Lancaster.

    # # #

    Additional information about the office of the

    United States Attorney for the Eastern District of Arkansas, is available online at

    https://www.justice.gov/edar

    X (formerly known as Twitter):

    @USAO_EDAR 

    MIL Security OSI –

  • MIL-OSI: First National Bank Alaska declares regular and special dividends for fourth quarter, both payable in December

    Source: GlobeNewswire (MIL-OSI)

    ANCHORAGE, Alaska, Nov. 01, 2024 (GLOBE NEWSWIRE) — At the Board of Directors meeting held Oct. 31, 2024, First National Bank Alaska (OTCQX:FBAK) declared a cash dividend of $3.20 per share for shareholders of record as of Dec. 1, 2024, payable on Dec. 15, 2024 with distribution on Dec. 16.

    At the same meeting, the Board declared a special cash dividend of $3.20 per share for shareholders of record as of Dec. 1, 2024, payable and for distribution on Dec. 19, 2024.

    CONTACT: Cheri Gillian
    Secretary to the Board of Directors
    907-777-3409

    The MIL Network –

  • MIL-Evening Report: Cook Islands PM calls for easing of tensions in New Caledonia

    By Caleb Fotheringham, RNZ Pacific journalist

    Cook Islands Prime Minister Mark Brown has returned from New Caledonia saying it is not a simple “black and white situation”.

    Brown returned from a three-day Pacific fact-finding mission in the French Pacific territory alongside the Prime Ministers of Solomon Islands, Tonga and Fiji.

    New Caledonia has been going through a period of turmoil with violence and arson since May, resulting in 13 deaths and the destruction of many businesses.

    “There’s no doubt there is a call and a need for the easing of tensions in the country,” Brown said.

    “This would enable more dialogue to take place between the various vested groups to find a pathway forward for New Caledonia.”

    Brown said Kanaky New Caledonia’s population was diverse, made up of indigenous Kanak, French, and Pacific diaspora.

    Almost all of these groups want greater autonomy from France with some also wanting full independence or to remain a French territory, he said.

    “But you have quite a large group between those two extremes that want a way forward that enables New Caledonians, all of them, to be able to determine their own future.”

    Pacific policing France ‘may wish to consider’
     Brown said Australia’s newly proposed regional policing initiative is “an option that New Caledonians may wish to consider”.

    “At the moment that’s being done by the state government through France through its gendarmes and police force.”

    The last time regional policing was used was in Solomon Islands after ethnic unrest in the 2000s, he said.

    When asked whether France had “militarised” New Caledonia, Brown said France sent a lot of support “to help maintain law and order” but the focus now was on the reduction of tensions and dialogue.

    France’s Ambassador to the Pacific Véronique told the ABC she doubted French authorities would see the need for Pacific police to be deployed to New Caledonia.

    Brown said the other issue was the need for an urgent financial package.

    “Unlike most other Pacific countries in cases of disaster whether they be natural disaster or other sorts, Pacific countries have the likes of the World Bank, the Asian Development Bank, development partners that would support and assist.

    Relying solely on France
    “In the case of New Caledonia, it doesn’t have the association with any of those financial institutions and would rely solely on France for its support.”

    There needed to first be a reduction of tensions so that any rebuild would not be under threat from more civil unrest, he said.

    Brown said Pacific nations had taken different decolonisation paths — with the exception of Tonga which had never been colonised.

    Fiji became a republic after a number of coups and Cook Islands is self-governing in free association with New Zealand.

    “Each of us took a different path to where we are today to gain our autonomy and our sovereignty and it’s something that we were able to share with New Caledonia.”

    This article is republished under a community partnership agreement with RNZ.

    MIL OSI Analysis – EveningReport.nz –

  • MIL-OSI: CORRECTION – Bogota Financial Corp. Reports Results for the Three and Nine Months Ended September 30, 2024 Corrected

    Source: GlobeNewswire (MIL-OSI)

    TEANECK, N.J., Nov. 01, 2024 (GLOBE NEWSWIRE) — Bogota Financial Corp. (NASDAQ: BSBK) (the “Company”), the holding company of Bogota Savings Bank (the “Bank”), after market close today issued a correction to its financial results for the three and nine months ended September 30, 2024 (the “Revised Earnings Release”), which was issued prior to market open on November 1, 2024 (the “Original Earnings Release”). Interest expense on deposits (and similarly total interest expense) for the three and nine months ended September 30, 2024 reported in the Original Earnings Release was understated by $300,000 due to a misstatement of the rates paid on certain certificates of deposit during the three months ended September 30, 2024. As a result, the Revised Earnings Release reflects the following changes:

    At September 30, 2024

        Average rate for certificates of deposit Average rate
    for deposits    		  
      As Initially Reported 4.15% 3.55%  
      As Corrected 4.39% 3.95%  
             

    For Three Months Ended September 30, 2024

    (Dollars in thousands, except per share data) Interest paid on average certificates of deposit Interest paid on average interest-bearing deposits Net interest income Net interest income after provision (recovery) for credit losses (Loss) income before income taxes Income tax (benefit) expense Net (loss) income (Loss) earnings per common share – basic (Loss) earnings per common share – diluted
    As Initially Reported $ 5,327 $ 5,861 $ 2,957 $ 2,957 $ (320 ) $ (173 ) $ (147 ) $ (0.01 ) $ (0.01 )
    As Corrected $ 5,627 $ 6,161 $ 2,657 $ 2,657 $ (620 ) $ (253 ) $ (367 ) $ (0.03 ) $ (0.03 )
                                                   
      Cost of average certificates of deposit Cost of average interest-bearing deposits (Loss) Return on Average Assets (Loss) Return on Average Equity Interest rate spread Net interest margin Efficiency Ratio
    As Initially Reported 4.26 % 3.84 % (0.09 )% (0.72 )% 0.81 % 1.24 % 109.75 %
    As Corrected 4.50 % 4.04 % (0.07 )% (0.52 )% 0.66 % 1.15 % 120.78 %
                                 

    For Nine Months Ended September 30, 2024

    (Dollars in thousands, except per share data) Interest paid on average certificates of deposit Interest paid on average interest-bearing deposits Net interest income Net interest income after provision (recovery) for credit losses (Loss) income before income taxes Income tax (benefit) expense Net (loss) income (Loss) earnings per common share – basic (Loss) earnings per common share – diluted
    As Initially Reported $ 16,484 $ 18,085 $ 8,352 $ 8,282 $ (1,762 ) $ (741 ) $ (1,020 ) $ (0.08 ) $ (0.08 )
    As Corrected $ 16,784 $ 18,385 $ 8,052 $ 7,982 $ (2,062 ) $ (821 ) $ (1,240 ) $ (0.10 ) $ (0.10 )
                                                   
                                                   
      Cost of average certificates of deposit Cost of average interest-bearing deposits (Loss) Return on Average Assets (Loss) Return on Average Equity Interest rate spread Net interest margin Efficiency Ratio
    As Initially Reported 4.31 % 3.88 % (0.17 )% (1.23 )% 0.73 % 1.23 % 118.23 %
    As Corrected 4.39 % 3.95 % (0.20 )% (1.44 )% 0.68 % 1.18 % 122.18 %
                                 

    The full text of the corrected release is a follows:

    Teaneck, New Jersey, November 1, 2024 – Bogota Financial Corp. (NASDAQ: BSBK) (the “Company”), the holding company for Bogota Savings Bank (the “Bank”), reported a net loss for the three months ended September 30, 2024 of $367,000, or $0.03 per basic and diluted share, compared to a net loss of $29,000, or $0.00 per basic and diluted share, for the comparable prior year period. The Company reported a net loss for the nine months ended September 30, 2024 of $1.2 million, or $0.10 per basic and diluted share, compared to net income of $1.8 million, or $0.14 per basic and diluted share, for the nine months ended September 30, 2023.

    On April 24, 2024, the Company announced it had received regulatory approval for the repurchase of up to 237,090 shares of its common stock, or approximately 5% of its then outstanding common stock (excluding shares held by Bogota Financial, MHC). The repurchase program does not have a scheduled expiration date and the Board of Directors has the right to suspend or discontinue the program at any time. As of September 30, 2024, 163,790 shares have been repurchased pursuant to the program at a cost of $1.2 million.

    Other Financial Highlights:

    • Total assets increased $39.6 million, or 4.2%, to $978.9 million at September 30, 2024 from $939.3 million at December 31, 2023, due to an increase in securities, offset by a decrease in cash and cash equivalents and loans.
    • Cash and cash equivalents decreased $3.9 million, or 15.8%, to $21.0 million at September 30, 2024 from $24.9 million at December 31, 2023 as excess funds were used to purchase securities.
    • Securities increased $47.1 million, or 33.3%, to $188.7 million at September 30, 2024 from $141.5 million at December 31, 2023.
    • Net loans decreased $5.8 million, or 0.8%, to $708.9 million at September 30, 2024 from $714.7 million at December 31, 2023.
    • Total deposits at September 30, 2024 were $629.3 million, increasing $3.9 million, or 0.6%, as compared to $625.3 million at December 31, 2023, due to a $2.3 million increase in interest-bearing deposits, primarily in certificates of deposit, and a $1.6 million increase in non-interest bearing demand accounts. The average cost of deposits increased 128 basis points to 3.95% for the first three quarters of 2024 from 2.67% for the first nine months of 2023 due to higher interest rates and a larger percentage of deposits consisting of higher-costing certificates of deposit.
    • Federal Home Loan Bank advances increased $34.9 million, or 20.8% to $202.6 million at September 30, 2024 from $167.7 million as of December 31, 2023.

    Kevin Pace, President and Chief Executive Officer, said “The Bank continues its growth strategy focusing on core deposits and commercial lending. We have seen an uptick in our commercial pipeline this quarter that shows interest remains strong in our market. Offering new desirable technology through partnerships with our providers is a key initiative we are focusing on going into 2025.  This will allow us to attract new customers in our competitive environment.”

    “The Bank completed its third stock repurchase program earlier this year and promptly began its fourth buyback. We remain diligent in our efforts to show confidence and deliver value to our shareholders.”

    Income Statement Analysis

    Comparison of Operating Results for the Three Months Ended September 30, 2024 and September 30, 2023

    Net income decreased by $338,000 to a net loss of $367,000 for the three months ended September 30, 2024 from a net loss of $29,000 for the three months ended September 30, 2023. This decrease was primarily due to a decrease of $560,000 in net interest income, partially offset by a decrease of $171,000 in salaries and employee benefit costs, an increase of $128,000 in income tax benefit and a $38,000 increase in non-interest income.

    Interest income increased $1.3 million, or 14.3%, from $9.3 million for the three months ended September 30, 2023 to $10.6 million for the three months ended September 30, 2024 primarily due to higher yields on interest-earning assets and an increase in the average balance of securities. 

    Interest income on cash and cash equivalents decreased $30,000, or 17.9%, to $138,000 for the three months ended September 30, 2024 from $168,000 for the three months ended September 30, 2023 due to a $2.6 million decrease in the average balance to $10.2 million for the three months ended September 30, 2024 from $12.8 million for the three months ended September 30, 2023, reflecting the use of excess cash to purchase securities. The decrease was offset by an 18 basis point increase in the average yield from 5.21% for the three months ended September 30, 2023 to 5.39% for the three months ended September 30, 2024 due to the higher interest rate environment.

    Interest income on loans increased $401,000, or 5.0%, to $8.4 million for the three months ended September 30, 2024 compared to $8.0 million for the three months ended September 30, 2023 due primarily to a 24 basis point increase in the average yield from 4.45% for the three months ended September 30, 2023 to 4.69% for the three months ended September 30, 2024, and to a lesser extent, a $876,000 increase in the average balance to $711.6 million for the three months ended September 30, 2024 from $710.7 million for the three months ended September 30, 2023.

    Interest income on securities increased $889,000, or 88.2%, to $1.9 million for the three months ended September 30, 2024 from $1.0 million for the three months ended September 30, 2023 primarily due to a $48.7 million increase in the average balance to $187.2 million for the three months ended September 30, 2024 from $138.5 million for the three months ended September 30, 2023, and a 114 basis point increase in the average yield from 2.91% for the three months ended September 30, 2023 to 4.05% for the three months ended September 30, 2024 due to the higher interest rate environment. 

    Interest expense increased $1.9 million, or 31.1%, from $6.1 million for the three months ended September 30, 2023 to $8.0 million for the three months ended September 30, 2024 due to higher costs and average balances on certificates of deposit and borrowings.

    Interest expense on interest-bearing deposits increased $1.3 million, or 27.0%, to $6.2 million for the three months ended September 30, 2024 from $4.9 million for the three months ended September 30, 2023. The increase was due to a 93 basis point increase in the average cost of deposits to 4.04% for the three months ended September 30, 2024 from 3.11% for the three months ended September 30, 2023. The increase in the average cost of deposits was due to the higher interest rate environment and a change in the composition of the deposit portfolio.  The average balances of certificates of deposit decreased $831,000 to $497.3 million for the three months ended September 30, 2024 from $498.1 million for the three months ended September 30, 2023 while the average balance of NOW/money market accounts and savings accounts decreased $9.0 million and $2.1 million for the three months ended September 30, 2024, respectively, compared to the three months ended September 30, 2023.

    Interest expense on Federal Home Loan Bank advances increased $582,000, or 47.7%, from $1.2 million for the three months ended September 30, 2023 to $1.8 million for the three months ended September 30, 2024. The increase was primarily due to an increase in the average balance of $71.6 million to $196.9 million for the three months ended September 30, 2024 from $125.3 million for the three months ended September 30, 2023. The increase was slightly offset by a decrease in the average cost of borrowings of 22 basis points to 3.64% for the three months ended September 30, 2024 from 3.86% for the three months ended September 30, 2023 due to new borrowings being at lower rates. At September 30, 2024, cash flow hedges used to manage interest rate risk had a notional value of $65.0 million, while fair value hedges totaled $60.0 million in notional value. During the three months ended September 30, 2024, the use of the cash flow and fair value hedges reduced the interest expense on the Federal Home Loan Bank advances and certificates of deposit by $498,000.

    Net interest income decreased $560,000, or 17.4%, to $2.7 million for the three months ended September 30, 2024 from $3.2 million for the three months ended September 30, 2023.  The decrease reflected a 35 basis point decrease in our net interest rate spread to 0.66% for the three months ended September 30, 2024 from 1.01% for the three months ended September 30, 2023. Our net interest margin decreased 32 basis points to 1.15% for the three months ended September 30, 2024 from 1.47% for the three months ended September 30, 2023.

    We did not record a provision for credit losses for the three months ended September 30, 2024 or September 30, 2023 due to moderate loan growth and improved economic conditions.

    Non-interest income increased by $38,000, or 13.0%, to $327,000 for the three months ended September 30, 2024 from $290,000 for the three months ended September 30, 2023.  Bank-owned life insurance income increased $23,000, or 11.6%, due to higher balances during 2024 and gain on sale of loans increased $12,000 compared to no gain on sale of loans for the comparable period last year due to the sale of a $400,000 residential loan in 2024.

    For the three months ended September 30, 2024, non-interest expense decreased $56,000, or 1.5%, over the comparable 2023 period. This was due to a $171,000, or 7.5% reduction in salaries and employee benefits, which decreased due to lower headcount and increased expenses in 2023 related to the retirement of the previous Chief Executive Officer, and a $40,000, or 31.9%, decrease in advertising expenses.  Our FDIC insurance assessment also decreased by $26,000, or 19.8%.  These decreases were partially offset by an increase in professional fees of $99,000, or 66.4%, due to higher consulting expense related to strategic business planning. Data processing expense also increased $100,000, or 48.8%, due to higher processing costs.

    Income tax expense decreased $128,000, or 102.1%, to a benefit of $253,000 for the three months ended September 30, 2024 from a $125,000 benefit for the three months ended September 30, 2023. The decrease was due to a reduction of $466,000 in taxable income. 

    Comparison of Operating Results for the Nine Months Ended September 30, 2024 and September 30, 2023

    Net income decreased by $3.1 million, or 168.1%, to a net loss of $1.2 million for the nine months ended September 30, 2024 from net income of $1.8 million for the nine months ended September 30, 2023.   This decrease was primarily due to a decrease of $4.0 million in net interest income, partially offset by a decrease of $1.2 million in income tax expense.

    Interest income increased $3.4 million, or 12.4%, from $27.7 million for the nine months ended September 30, 2023 to $31.1 million for the nine months ended September 30, 2024 due to higher yields on interest-earning assets and an increase in the average balance of securities, partially offset by a decrease in the average balance of loans and cash and cash equivalents. 

    Interest income on cash and cash equivalents decreased $8,000, or 1.9%, to $415,000 for the nine months ended September 30, 2024 from $423,000 for the nine months ended September 30, 2023 due a $2.3 million decrease in the average balance to $9.1 million for the nine months ended September 30, 2024 from $11.4 million for the nine months ended September 30, 2023, reflecting the decrease of liquidity due to increased securities purchases. This decrease was offset by a 111 basis point increase in the average yield due to the higher interest rate environment.

    Interest income on loans increased $1.1 million, or 4.5%, to $24.9 million for the nine months ended September 30, 2024 compared to $23.8 million for the nine months ended September 30, 2023 due primarily to a 20 basis point increase in the average yield from 4.46% for the nine months ended September 30, 2023 to 4.66% for the nine months ended September 30, 2024, offset by a $1.9 million decrease in the average balance to $711.7 million for the nine months ended September 30, 2024 from $713.6 million for the nine months ended September 30, 2023.

    Interest income on securities increased $2.2 million, or 69.4%, to $5.3 million for the nine months ended September 30, 2024 from $3.1 million for the nine months ended September 30, 2023 primarily due to a 112 basis point increase in the average yield from 2.80% for the nine months ended September 30, 2023 to 3.92% for the nine months ended September 30, 2024, and a $31.0 million increase in the average balance to $179.8 million for the nine months ended September 30, 2024 from $148.8 million for the nine months ended September 30, 2023.

    Income from other interest-earning assets, which primarily consisted of Federal Home Loan Bank stock, increased $209,000, or 27.1% to $981,000 for the nine months ended September 30, 2024 from $772,000 for the nine months ended September 30, 2023 due to dividends paid on such stock.

    Interest expense increased $7.4 million, or 47.4%, from $15.7 million for the nine months ended September 30, 2023 to $23.1 million for the nine months ended September 30, 2024 due to higher costs and average balances on certificates of deposit and borrowings.

    Interest expense on interest-bearing deposits increased $5.6 million, or 43.9%, to $18.4 million for the nine months ended September 30, 2024 from $12.8 million for the nine months ended September 30, 2023. The increase was due to a 128 basis point increase in the average cost of deposits to 3.95% for the nine months ended September 30, 2024 from 2.67% for the nine months ended September 30, 2023. The increase in the average cost of deposits was due to the higher interest rate environment and a change in the composition of the deposit portfolio.  The average balances of certificates of deposit increased $12.0 million to $510.5 million for the nine months ended September 30, 2024 from $498.5 million for the nine months ended September 30, 2023 while average NOW/money market accounts and savings accounts decreased $24.2 million and $5.7 million for the nine months ended September 30, 2024, respectively, compared to the nine months ended September 30, 2023.

    Interest expense on Federal Home Loan Bank advances increased $1.8 million, or 62.7%, from $2.9 million for the nine months ended September 30, 2023 to $4.7 million for the nine months ended September 30, 2024. The increase was primarily due to an increase in the average balance of $60.7 million to $171.6 million for the nine months ended September 30, 2024 from $110.9 million for the nine months ended September 30, 2023. The increase was also due to an increase in the average cost of borrowings of 17 basis points to 3.67% for the nine months ended September 30, 2024 from 3.50% for the nine months ended September 30, 2023 due to new borrowings being at higher rates. At September 30, 2024, cash flow hedges used to manage interest rate risk had a notional value of $65.0 million, while fair value hedges totaled $60.0 million in notional value. During the nine months ended September 30, 2024, the use of the cash flow hedges reduced the interest expense on the Federal Home Loan Bank advances and certificates of deposit by $1.2 million.

    Net interest income decreased $4.0 million, or 33.1%, to $8.0 million for the nine months ended September 30, 2024 from $12.0 million for the nine months ended September 30, 2023.  The decrease reflected a 73 basis point decrease in our net interest rate spread to 0.68% for the nine months ended September 30, 2024 from 1.41% for the nine months ended September 30, 2023. Our net interest margin decreased 64 basis points to 1.18% for the nine months ended September 30, 2024 from 1.82% for the nine months ended September 30, 2023.

    We recorded a $70,000 provision for credit losses for the nine months ended September 30, 2024 compared to a $125,000 recovery for credit losses for the nine-month period ended September 30, 2023, which was due to a decrease in loan balances in 2023. The entire provision in the first three quarters of 2024 was due to an increase in held-to-maturity corporate securities.

    Non-interest income increased by $73,000, or 8.5%, to $929,000 for the nine months ended September 30, 2024 from $856,000 for the nine months ended September 30, 2023.  The increase was primarily due to bank-owned life insurance income, which increased $74,000, or 12.9%, due to higher balances during 2024.

    For the nine months ended September 30, 2024, non-interest expense increased $163,000, or 1.5%, over the comparable 2023 period. Professional fees increased $270,000, or 65.5% due to higher consulting expense related to strategic business planning. Data processing expense increased $210,000, or 29.3%, due to higher processing costs. These were offset by a $333,000, or 4.9%, reduction in salaries and employee benefit, which decreased due to lower headcount and increased expenses in 2023 related to the retirement of the previous Chief Executive Officer.

    Income tax expense decreased $1.2 million, or 312.9%, to a benefit of $821,000 for the nine months ended September 30, 2024 from a $386,000 expense for the nine months ended September 30, 2023. The decrease was due to a reduction of $4.3 million in taxable income. 

    Balance Sheet Analysis

    Total assets were $978.9 million at September 30, 2024, representing an increase of $39.6 million, or 4.2%, from December 31, 2023.  Cash and cash equivalents decreased $3.9 million during the period primarily due to the purchase of new securities offset by loan repayments. Net loans decreased $5.8 million, or 0.8%, due to $22.5 million in repayments including a $12.6 million decrease in the balance of residential loans, as well as a $9.1 million decrease in the balance of construction loans and a decrease of $915,000 in multifamily loans. The decrease was partially offset by new production of $16.7 million, including $13.1 million and $3.6 million of commercial real estate and commercial and industrial loans, respectively.  The Company also purchased a pool of residential loans totaling $10.4 million. Due to the interest rate environment, we have experienced a decrease in demand for residential and construction loans, which have been primary drivers of our loan growth in recent periods.  Securities held to maturity increased $7.4 million, or 10.3%, and securities available for sale increased $40.0 million, or 57.6%, due to new purchases of mortgage-backed securities with excess cash. 

    Delinquent loans increased $8.9 million to $21.5 million, or 3.0% of total loans, at September 30, 2024, compared to $12.6 million, or 1.8% of total loans, at December 31, 2023. The increase was mostly due to four commercial real estate loans to three customers with a balance of $8.1 million. Three of the past due commercial real estate loans are being actively managed with the customers and are expected to be brought current, while one totaling $758,000 has been placed on nonaccrual, but is considered well-secured with a loan-to-value of 59%. During the same timeframe, non-performing assets increased from $12.8 million at December 31, 2023 to $13.8 million, which represented 1.41% of total assets at September 30, 2024. No loans were charged-off during the three or nine months ended September 30, 2024 or September 30, 2023. The Company’s allowance for credit losses related to loans was 0.39% of total loans and 19.94% of non-performing loans at September 30, 2024 compared to 0.39% of total loans and 21.81% of non-performing loans at December 31, 2023.  The Bank does not have any exposure to commercial real estate loans secured by office space. At September 30, 2024, the Company’s allowance for credit losses related to held-to-maturity securities totaled $108,000 or 0.13% of the total held-to-maturity securities portfolio.

    Total liabilities increased $39.8 million, or 5.0%, to $841.9 million mainly due to a $34.9 million increase in borrowings and a $3.9 million increase in total deposits. The increase in deposits reflected an increase in certificate of deposit accounts, which increased by $505,000 to $493.8 million from $493.3 million at December 31, 2023, an increase in NOW deposit accounts, which increased by $4.2 million to $45.5 million from $41.3 million at December 31, 2023, and by an increase in noninterest bearing demand accounts, which increased by $1.6 million from $30.6 million at December 31, 2023 to $32.1 million at September 30, 2024. This was offset by a $2.6 million, or 18.0%, decrease in money market accounts.  At September 30, 2024, brokered deposits were $101.1 million or 16.1% of deposits and municipal deposits were $36.0 million or 5.7% of deposits.  At September 30, 2024, uninsured deposits represented 10.7% of the Bank’s total deposits. Federal Home Loan Bank advances increased $34.9 million, or 20.8%, due to new borrowings, for which the durations have primarily been short-term in nature as we remain mindful of the changing interest rate environment and the potential for further interest rate cuts from the Federal Reserve. Total borrowing capacity at the Federal Home Loan Bank is $297.9 million of which $202.7 million has been advanced.

    Total stockholders’ equity decreased $233,000 to $136.9 million, due to a net loss of $1.2 million and the repurchase of 163,790 shares of stock at a cost of $1.2 million, offset by a decrease in accumulated other comprehensive loss for securities available for sale of $1.6 million and stock compensation of $225,000 for the nine months ended September 30, 2024. At September 30, 2024, the Company’s ratio of average stockholders’ equity-to-total assets was 15.04%, compared to 15.32% at December 31, 2023.

    About Bogota Financial Corp.

    Bogota Financial Corp. is a Maryland corporation organized as the mid-tier holding company of Bogota Savings Bank and is the majority-owned subsidiary of Bogota Financial, MHC. Bogota Savings Bank is a New Jersey chartered stock savings bank that has served the banking needs of its customers in northern and central New Jersey since 1893. It operates from seven offices located in Bogota, Hasbrouck Heights, Upper Saddle River, Newark, Oak Ridge, Parsippany and Teaneck, New Jersey and operates a loan production office in Spring Lake, New Jersey.

    Forward-Looking Statements

    This press release contains certain forward-looking statements about the Company and the Bank. Forward-looking statements include statements regarding anticipated future events and can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such as “believe,” “expect,” “anticipate,” “estimate,” and “intend” or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.” Forward-looking statements, by their nature, are subject to risks and uncertainties. Certain factors that could cause actual results to differ materially from expected results include increased competitive pressures, changes in the interest rate environment, inflation, general economic conditions or conditions within the securities markets, real estate market values in the Bank’s lending area, changes in liquidity, including the size and composition of our deposit portfolio and the percentage of uninsured deposits in the portfolio; the availability of low-cost funding; our continued reliance on brokered and municipal deposits; demand for loans in our market area; changes in the quality of our loan and security portfolios, economic assumptions or changes in our methodology, either of which may impact our allowance for credit losses calculation, increases in non-performing and classified loans, monetary and fiscal policies of the U.S. Government including policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System, a failure in or breach of the Company’s operational or security systems or infrastructure, including cyberattacks, the failure to maintain current technologies, failure to retain or attract employees and legislative, accounting and regulatory changes that could adversely affect the business in which the Company and the Bank are engaged.
    The Company undertakes no obligation to revise these forward-looking statements or to reflect events or circumstances after the date of this press release.

    BOGOTA FINANCIAL CORP.
    CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
    (unaudited)
               
      As of     As of  
      September 30, 2024     December 31, 2023  
    Assets              
    Cash and due from banks $ 10,630,086     $ 13,567,115  
    Interest-bearing deposits in other banks   10,372,434       11,362,356  
    Cash and cash equivalents   21,002,520       24,929,471  
    Securities available for sale, at fair value   108,560,811       68,888,179  
    Securities held to maturity, net of allowance for securities credit losses of $108,000 and zero, respectively (fair value – $74,603,097 and $65,374,753, respectively)   80,103,753       72,656,179  
    Loans, net of allowance for credit losses of $2,747,949 and $2,785,949, respectively   708,896,566       714,688,635  
    Premises and equipment, net   7,853,076       7,687,387  
    Federal Home Loan Bank (FHLB) stock and other restricted securities   10,180,100       8,616,100  
    Accrued interest receivable   4,352,967       3,932,785  
    Core deposit intangibles   165,454       206,116  
    Bank-owned life insurance   31,635,988       30,987,851  
    Other assets   6,138,029       6,731,500  
    Total Assets $ 978,889,264     $ 939,324,203  
    Liabilities and Equity              
    Non-interest bearing deposits $ 32,125,742     $ 30,554,842  
    Interest bearing deposits   597,141,995       594,792,300  
    Total deposits   629,267,737       625,347,142  
    FHLB advances-short term   53,500,000       37,500,000  
    FHLB advances-long term   149,065,610       130,189,663  
    Advance payments by borrowers for taxes and insurance   3,265,262       2,733,709  
    Other liabilities   6,850,898       6,380,486  
    Total liabilities   841,949,507       802,151,000  
                   
    Stockholders’ Equity              
    Preferred stock $0.01 par value 1,000,000 shares authorized, none issued and outstanding at September 30, 2024 and December 31, 2023   —       —  
    Common stock $0.01 par value, 30,000,000 shares authorized, 13,092,357 issued and outstanding at September 30, 2024 and 13,279,230 at December 31, 2023   130,823       132,792  
    Additional paid-in capital   55,315,975       56,149,915  
    Retained earnings   90,936,649       92,177,068  
    Unearned ESOP shares (389,674 shares at September 30, 2024 and 409,750 shares at December 31, 2023)   (4,595,895 )     (4,821,798 )
    Accumulated other comprehensive loss   (4,847,795 )     (6,464,774 )
    Total stockholders’ equity   136,939,757       137,173,203  
    Total liabilities and stockholders’ equity $ 978,889,264     $ 939,324,203  
     
    BOGOTA FINANCIAL CORP.
    CONSOLIDATED STATEMENTS OF OPERATIONS
    (unaudited)
     
      Three Months Ended     Nine Months Ended  
      September 30,     September 30,  
      2024     2023     2024     2023  
    Interest income                              
    Loans, including fees $ 8,381,581     $ 7,980,388     $ 24,888,377     $ 23,821,545  
    Securities                              
    Taxable   1,884,276       994,791       5,247,336       3,042,389  
    Tax-exempt   13,137       13,159       39,409       78,293  
    Other interest-earning assets   341,268       301,081       980,536       771,584  
    Total interest income   10,620,262       9,289,419       31,155,658       27,713,811  
    Interest expense                              
    Deposits   6,160,547       4,851,926       18,384,323       12,777,907  
    FHLB advances   1,802,387       1,220,166       4,719,056       2,900,359  
    Total interest expense   7,962,934       6,072,092       23,103,379       15,678,266  
    Net interest income   2,657,328       3,217,327       8,052,279       12,035,545  
    Provision (recovery) for credit losses   —       —       70,000       (125,000 )
    Net interest income after provision (recovery) for credit losses   2,657,328       3,217,327       7,982,279       12,160,545  
    Non-interest income                              
    Fees and service charges   56,610       61,529       164,400       159,381  
    Gain on sale of loans   11,710       —       11,710       29,375  
    Bank-owned life insurance   221,122       197,873       648,137       574,073  
    Other   37,943       30,332       105,420       93,660  
    Total non-interest income   327,385       289,734       929,667       856,489  
    Non-interest expense                              
    Salaries and employee benefits   2,102,993       2,274,347       6,404,946       6,737,952  
    Occupancy and equipment   380,714       372,626       1,118,739       1,114,170  
    FDIC insurance assessment   106,313       132,571       313,626       319,690  
    Data processing   306,167       205,721       928,292       717,913  
    Advertising   85,750       126,000       310,950       369,383  
    Director fees   159,851       159,336       467,100       478,011  
    Professional fees   248,420       149,251       682,517       412,519  
    Other   214,686       241,530       747,598       661,300  
    Total non-interest expense   3,604,894       3,661,382       10,973,768       10,810,938  
    (Loss) income before income taxes   (620,181 )     (154,321 )     (2,061,822 )     2,206,096  
    Income tax (benefit) expense   (253,221 )     (125,268 )     (821,403 )     385,801  
    Net (loss) income $ (366,960 )   $ (29,053 )   $ (1,240,419 )   $ 1,820,295  
    (Loss) earnings per Share – basic $ (0.03 )   $ (0.00 )   $ (0.10 )   $ 0.14  
    (Loss) earnings per Share – diluted $ (0.03 )   $ (0.00 )   $ (0.10 )   $ 0.14  
    Weighted average shares outstanding – basic   12,702,683       13,037,903       12,702,683       13,103,951  
    Weighted average shares outstanding – diluted   12,717,904       13,037,903       12,734,624       13,103,951  
                                   
    BOGOTA FINANCIAL CORP.
    SELECTED RATIOS
    (unaudited)
               
      At or For the Three Months     At or for the Nine Months  
      Ended September 30,     Ended September 30,  
      2024     2023     2024     2023  
    Performance Ratios (1):                              
    (Loss) return on average assets (2)   (0.07 )%     (0.01 )%     (0.20 )%     0.26 %
    (Loss) return on average equity (3)   (0.52 )%     (0.08 )%     (1.44 )%     1.75 %
    Interest rate spread (4)   0.66 %     1.01 %     0.68 %     1.41 %
    Net interest margin (5)   1.15 %     1.47 %     1.18 %     1.82 %
    Efficiency ratio (6)   120.78 %     104.40 %     122.18 %     83.05 %
    Average interest-earning assets to average interest-bearing liabilities   114.30 %     116.68 %     114.62 %     117.21 %
    Net loans to deposits   110.67 %     110.08 %     114.43 %     110.08 %
    Average equity to average assets (7)   14.01 %     15.00 %     14.14 %     14.88 %
    Capital Ratios:                              
    Tier 1 capital to average assets                   13.47 %     15.67 %
    Asset Quality Ratios:                              
    Allowance for credit losses as a percent of total loans                   0.39 %     0.39 %
    Allowance for credit losses as a percent of non-performing loans                   19.94 %     22.62 %
    Net charge-offs to average outstanding loans during the period                   0.00 %     0.00 %
    Non-performing loans as a percent of total loans                   1.94 %     1.73 %
    Non-performing assets as a percent of total assets                   1.41 %     1.33 %
                                   
    (1) Certain performance ratios for the three and nine months ended September 30, 2024 and 2023 are annualized.
    (2) Represents net (loss) income divided by average total assets.
    (3) Represents net (loss) income divided by average stockholders’ equity.
    (4) Represents the difference between the weighted average yield on average interest-earning assets and the weighted average cost of average interest-bearing liabilities. Tax exempt income is reported on a tax equivalent basis using a combined federal and state marginal tax rate of 27.5% for 2024 and 2023.
    (5) Represents net interest income as a percent of average interest-earning assets. Tax exempt income is reported on a tax equivalent basis using a combined federal and state marginal tax rate of 27.5% for 2024 and 2023.
    (6) Represents non-interest expenses divided by the sum of net interest income and non-interest income.
    (7) Represents average stockholders’ equity divided by average total assets.
     

    LOANS

    Loans are summarized as follows at September 30, 2024 and December 31, 2023:

     
      September 30,     December 31,  
      2024     2023  
      (unaudited)  
    Real estate:              
    Residential First Mortgage $ 473,492,871     $ 486,052,422  
    Commercial Real Estate   112,899,496       99,830,514  
    Multi-Family Real Estate   74,697,352       75,612,566  
    Construction   40,243,916       49,302,040  
    Commercial and Industrial   10,229,503       6,658,370  
    Consumer   81,377       18,672  
    Total loans   711,644,515       717,474,584  
    Allowance for credit losses   (2,747,949 )     (2,785,949 )
    Net loans $ 708,896,566     $ 714,688,635  
     

    The following tables set forth the distribution of total deposit accounts, by account type, at the dates indicated:

     
      At September 30,     At December 31,  
      2024     2023  
      Amount     Percent     Average
    Rate    		     Amount     Percent     Average
    Rate    		  
                                                   
      (unaudited)  
    Noninterest bearing demand accounts $ 32,125,742       5.11 %     — %   $ 30,554,842       4.89 %     — %
    NOW accounts   45,493,204       7.23 %     2.21       41,320,723       6.61 %     1.90  
    Money market accounts   12,003,291       1.91 %     0.30       14,641,846       2.34 %     0.30  
    Savings accounts   45,865,501       7.29 %     1.82       45,554,964       7.28 %     1.76  
    Certificates of deposit   493,779,999       78.47 %     4.15       493,274,767       78.88 %     4.00  
    Total $ 629,267,737       100.00 %     3.55 %   $ 625,347,142       100.00 %     3.42 %
     

    Average Balance Sheets and Related Yields and Rates

    The following tables present information regarding average balances of assets and liabilities, the total dollar amounts of interest income and dividends from average interest-earning assets, the total dollar amounts of interest expense on average interest-bearing liabilities, and the resulting annualized average yields and costs. The yields and costs for the periods indicated are derived by dividing income or expense by the average balances of assets or liabilities, respectively, for the periods presented. Average balances have been calculated using daily balances. Nonaccrual loans are included in average balances only. Loan fees are included in interest income on loans and are not material.

     
      Three Months Ended September 30,  
      2024     2023  
      Average
    Balance    		     Interest and Dividends     Yield/ Cost     Average
    Balance    		     Interest and Dividends     Yield/ Cost  
      (Dollars in thousands)  
    Assets: (unaudited)  
    Cash and cash equivalents $ 10,195     $ 138       5.39 %   $ 12,764     $ 168       5.21 %
    Loans   711,601       8,381       4.69 %     710,725       7,981       4.45 %
    Securities   187,212       1,897       4.05 %     138,479       1,008       2.91 %
    Other interest-earning assets   9,908       203       8.20 %     6,620       132       8.04 %
    Total interest-earning assets   918,916       10,619       4.60 %     868,588       9,289       4.25 %
                                                   
    Non-interest-earning assets   56,061                       54,179                  
    Total assets $ 974,977                     $ 922,767                  
    Liabilities and equity:                                              
    NOW and money market accounts $ 65,767     $ 329       1.99 %   $ 74,785     $ 354       1.88 %
    Savings accounts   44,029       205       1.85 %     46,177       214       1.83 %
    Certificates of deposit (1)   497,251       5,626       4.50 %     498,082       4,284       3.41 %
    Total interest-bearing deposits   607,047       6,160       4.04 %     619,044       4,852       3.11 %
                                                   
    Federal Home Loan Bank advances (1)   196,885       1,802       3.64 %     125,344       1,220       3.86 %
    Total interest-bearing liabilities   803,932       7,962       3.94 %     744,388       6,072       3.24 %
    Non-interest-bearing deposits   31,679                       38,257                  
    Other non-interest-bearing liabilities   2,724                       1,727                  
    Total liabilities   838,335                       784,372                  
                                                   
    Total equity   136,642                       138,395                  
    Total liabilities and equity $ 974,977                     $ 922,767                  
    Net interest income         $ 2,657                     $ 3,217          
    Interest rate spread (2)                   0.66 %                     1.01 %
    Net interest margin (3)                   1.15 %                     1.47 %
    Average interest-earning assets to average interest-bearing liabilities   114.30 %                     116.68 %                
     
    1. Cash flow and fair value hedges are used to manage interest rate risk. During the three months ended September 30, 2024 and 2023, the net effect on interest expense on the Federal Home Loan Bank advances and certificates of deposit was a reduced expense of $498,000 and $92,000, respectively.
    2. Interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.
    3. Net interest margin represents net interest income divided by average total interest-earning assets.
     
      Nine Months Ended September 30,  
      2024     2023  
      Average Balance     Interest and Dividends     Yield/ Cost     Average Balance     Interest and Dividends     Yield/ Cost  
      (Dollars in thousands)  
    Assets:                                              
    Cash and cash equivalents $ 9,072     $ 415       6.09 %   $ 11,352     $ 423       4.98 %
    Loans   711,697       24,888       4.66 %     713,603       23,822       4.46 %
    Securities   179,818       5,287       3.92 %     148,802       3,121       2.80 %
    Other interest-earning assets   8,903       566       8.48 %     6,110       348       7.62 %
    Total interest-earning assets   909,490       31,156       4.57 %     879,867       27,714       4.20 %
    Non-interest-earning assets   58,221                       54,380                  
    Total assets $ 967,711                     $ 934,247                  
    Liabilities and equity:                                              
    NOW and money market accounts $ 67,628     $ 993       1.96 %   $ 91,781     $ 1,089       1.59 %
    Savings accounts   43,824       608       1.85 %     49,529       375       1.01 %
    Certificates of deposit (1)   510,494       16,784       4.39 %     498,460       11,314       3.03 %
    Total interest-bearing deposits   621,946       18,385       3.95 %     639,770       12,778       2.67 %
    Federal Home Loan Bank advances (1)   171,565       4,719       3.67 %     110,875       2,900       3.50 %
    Total interest-bearing liabilities   793,511       23,104       3.89 %     750,645       15,678       2.79 %
    Non-interest-bearing deposits   31,225                       38,253                  
    Other non-interest-bearing liabilities   6,154                       6,351                  
    Total liabilities   830,890                       795,249                  
    Total equity   136,821                       138,998                  
    Total liabilities and equity $ 967,711                     $ 934,247                  
    Net interest income         $ 8,052                     $ 12,036          
    Interest rate spread (2)                   0.68 %                     1.41 %
    Net interest margin (3)                   1.18 %                     1.82 %
    Average interest-earning assets to average interest-bearing liabilities   114.62 %                     117.21 %                
     
    1. Cash flow and fair value hedges are used to manage interest rate risk. During the nine months ended September 30, 2024 and 2023, the net effect on interest expense on the Federal Home Loan Bank advances and certificates of deposit was a reduced expense of $1.2 million and $139,000, respectively.
    2. Interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.
    3. Net interest margin represents net interest income divided by average total interest-earning assets.
     

    Rate/Volume Analysis

    The following table sets forth the effects of changing rates and volumes on net interest income. The rate column shows the effects attributable to changes in rate (changes in rate multiplied by prior volume). The volume column shows the effects attributable to changes in volume (changes in volume multiplied by prior rate). The net column represents the sum of the prior columns. Changes attributable to changes in both rate and volume that cannot be segregated have been allocated proportionally based on the changes due to rate and the changes due to volume.

     
      Three Months Ended September 30, 2024     Nine Months Ended September 30, 2024  
      Compared to     Compared to  
      Three Months Ended September 30, 2023     Nine Months Ended September 30, 2023  
      Increase (Decrease) Due to     Increase (Decrease) Due to  
      Volume     Rate     Net     Volume     Rate     Net  
      (In thousands)  
    Interest income: (unaudited)  
    Cash and cash equivalents $ (66 )   $ 36     $ (30 )   $ (123 )   $ 115     $ (8 )
    Loans receivable   9       391       400       (101 )     1,167       1,066  
    Securities   420       469       889       742       1,424       2,166  
    Other interest earning assets   68       3       71       175       43       218  
    Total interest-earning assets   432       898       1,330       692       2,750       3,442  
                                                   
    Interest expense:                                              
    NOW and money market accounts   (128 )     103       (25 )     (413 )     317       (96 )
    Savings accounts   (24 )     15       (9 )     (73 )     306       233  
    Certificates of deposit   (49 )     1,391       1,342       279       5,191       5,470  
    Federal Home Loan Bank advances   1,031       (449 )     582       1,667       152       1,819  
    Total interest-bearing liabilities   830       1,060       1,890       1,461       5,965       7,426  
    Net decrease in net interest income $ (398 )   $ (162 )   $ (560 )   $ (768 )   $ (3,216 )   $ (3,984 )
     

    Contacts
    Kevin Pace – President & CEO, 201-862-0660 ext. 1110

    The MIL Network –

  • MIL-OSI Security: Jury Convicts San Diego Man in $35 Million Dollar Securities Fraud and COVID-Relief Fraud Scheme

    Source: Office of United States Attorneys

    SAN DIEGO – After an eight-day trial, a federal jury has convicted Denny Thakorbhai Bhakta on all 25 counts of securities fraud, bank fraud and money laundering in connection with a $35 million dollar investment fraud scheme and COVID-relief fraud scheme.

    Bhakta’s uncle, who was swindled out of $4.5 million, testified during the trial that he came to the U.S. as an immigrant, with only a suitcase and $8 in his pocket, and because of the defendant, he “lost everything he had worked for in 57 years in America. Everything.” Bhatka’s fraud scheme targeting numerous victims, including a childhood friend who lost hundreds of thousands of dollars; a friend of his family who lost $1.6 million; a high school classmate and her father who together lost more than $800,000; a cousin who lost $40,000; and an 88-year-old investor who was defrauded out of  $50,000.

    “This sophisticated scheme unraveled after several victims came forward and exposed the fraud,” said U.S. Attorney Tara McGrath. “Many of the victims are people who represent the best of us—hard working, honest Americans who made investments based on a trusted relationship. The jury’s verdict is a resounding affirmation that justice will prevail over deceit.”

    The evidence at trial showed Bhakta solicited investors in his companies Fusion Hotel Management LLC and Fusion Hospitality Corporation (collectively “Fusion”). Between at least 2016 and up to 2021, Bhakta falsely told investors that Fusion routinely acquired discounted blocks of hotel rooms from Hilton, which Fusion then sold to United Airlines and other companies at a higher price for a significant profit. To support these lies, Bhakta provided fabricated bank statements, fake contracts, and profit and loss statements purporting to show millions in revenue and profit. Instead of buying blocks of hotel rooms with investors’ funds, however, Bhakta used the money he obtained from investors for gambling, to make Ponzi-style payments to other investors, and to pay for Bhakta’s personal expenses, including a Mercedez-Benz S-Class and a Porsche 911 Turbo S.

    During the trial, prosecutors introduced evidence that Bhakta was flown into Las Vegas on the Wynn private jet and in just one 7.5-hour gambling binge in 2018, Bhakta lost $1 million at the Wynn Las Vegas. Through casino records, prosecutors demonstrated how Bhakta repeatedly took investors’ money straight to casinos and gambled (and lost) millions of dollars of investor money.

    As prosecutors argued at trial, in 2020, Bhakta doubled down on the fraud. Through the Paycheck Protection Program (“PPP”), Bhakta applied for 18 separate PPP loans totaling $4.4 million. To fraudulently obtain the PPP loans, and unbeknownst to his victim/investors, Bhakta created fake W-2 and other IRS documents and used the names and personally identifying information of his victim-investors to claim them as employees of Fusion and other entities under Bhakta’s control.  Bhakta used the more than $4.4 million he received in PPP loans to keep the Ponzi scheme going and to continue gambling and losing money at casinos.

    Bhakta was remanded into custody after the jury’s verdict. A sentencing hearing is set for January 25, 2025, at 9:00 a.m. in Courtroom 4D.

    This case is being prosecuted by Assistant U.S. Attorneys Kevin Mokhtari and Eric Olah.

    The Securities and Exchange Commission has also take civil action against the defendant.

    DEFENDANTS                                             Case Number 21cr3352-JLS                            

    Denny Thakorbhai Bhakta                             Age: 42                                   San Diego, CA

    SUMMARY OF CHARGES

    Securities Fraud—Title 15, U.S.C. §§ 78j(b), 78ff; Title 17, C.F.R. § 240.10b-5

    Maximum penalty:  Twenty years in prison and $5 million fine

    Bank Fraud—Title 18, U.S.C., Section 1344(2)

    Maximum penalty:  Thirty years in prison and $1 million fine

    Money Laundering– Title 18, U.S.C., Section 1957

    Maximum penalty: Ten years in prison and fine twice the amount of the criminally derived property involved in the transaction

    INVESTIGATING AGENCIES

    Federal Bureau of Investigation

    U.S. Securities and Exchange Commission, Los Angeles Regional Office

    MIL Security OSI –

  • MIL-OSI USA: Congressman Dan Goldman Requests Information on Bank of America Decision to Reverse Ban on Financing Assault-Weapons Manufacturers

    Source: United States House of Representatives – Congressman Dan Goldman (NY-10)

    Following Legislation Passed in Texas and Florida, Bank of America Backtracked Implementation of Landmark Financing Ban

    Read the Letter Here

    Washington, DC – Congressman Dan Goldman (NY-10) joined Congressman Sean Casten (IL-06) and 50 of his Democratic colleagues in sending a letter to Bank of America CEO and Chair of the Board Brian Moynihan requesting information regarding Bank of America’s decision to reverse their ban on financing assault-style gun manufacturers, who design weapons frequently used by perpetrators of mass shootings.

    “We write with disappointment regarding the recent news that Bank of America has reversed its ban on financing assault-style gun manufacturers in response to pressure from Republican-led states, such as Florida and Texas. When the second-largest bank in the country backtracks on gun violence prevention, it sends a message to the entire industry: it’s permissible for other financial institutions to put short-term politics over the protection of American lives,” the Members wrote.

    In 2018, following the Marjorie Stoneman Douglas High School mass shooting, Bank of America announced it would no longer finance military-style firearms for civilian use. Bank of America described the financing of these gunmakers as “contrary to our values, operating principles and Code of Conduct.”

    However, in 2021, Texas passed a law restricting companies that discriminate against firearms entities from doing business with the state. In January 2024, Florida passed an anti-ESG law which required banks that accept state or local funds to verify they don’t “politically discriminate.”

    In response, Bank of America weakened its policy, stating that financing military-style firearms would be subject to an “enhanced due-diligence process,” directly contradicting their 2018 proposal. The members contend that this policy change unnecessarily puts lives at risk.

    “The strong positions by Bank of America in 2018 likely saved lives. Your retreat in recent years strikes us as situational ethics. Perhaps you fear the political risk of alienating certain politicians. We would suggest that pales in comparison to the fear felt by a classroom full of kids looking down the barrel of an assault rifle. The least you could do is show a fraction of the courage that too many children are asked to show in a country awash in these weapons of war,” the Members continued.

    The members concluded asking the following questions regarding Bank of America’s policy change:

    1. “Since 2018, what steps has Bank of America taken to reverse its prior policies and decisions that were intended to reduce gun violence?

    2. Please explain why Bank of America now deems it appropriate to finance assault-style gun manufacturers.

    3. Please detail how Bank of America implemented the enhanced due diligence standard and review process for clients and transactions involving the manufacture of military-style firearms for civilian use, including:

      1. What “specialized industry knowledge” did the internal subject matter experts (SMEs) possess that contributed to the development of this policy?

        1. What are their professional backgrounds?

      2. Please provide specifics about the “clear process” for review with senior executive checkpoints, escalation routines, and risk management considerations, including how Bank of America will assess the reputational and litigation risk associated with specific, potential clients.

      3. What factors would cause Bank of America to decide to provide financing or underwriting to a manufacturer of military-style firearms for civilian use?

    4. Since this enhanced due diligence process was put in place, what, if any, financing or underwriting has Bank of America provided to firearm manufacturers, including those specified below?

      1. Sturm Ruger & Company (RGR)

      2. Smith and Wesson (SWBI)

      3. Axon (AXON:US)

      4. Sportsman’s Warehouse Holdings (SPWH)

      5. Big Five Sporting Goods Corporation (BGFV)”

    Read the letter here or below:

    Dear Mr. Moynihan,

    We write with disappointment regarding the recent news that Bank of America has reversed its ban on financing assault-style gun manufacturers in response to pressure from Republican-led states, such as Florida and Texas. When the second-largest bank in the country backtracks on gun violence prevention, it sends a message to the entire industry: it’s permissible for other financial institutions to put short-term politics over the protection of American lives.

    In 2018, following the Marjorie Stoneman Douglas High School mass shooting, Bank of America announced that it would no longer finance military-style firearms for civilian use. In an interview that April, Vice Chair Anne Finucane stated that Bank of America wants to contribute in “any way we can” to reduce mass shootings. Specifically, Ms. Finucane said: “It’s our intention not to finance these military-style firearms forcivilian use” on a “go forward basis.” At Bank of America’s annual shareholder meeting that same month, one conservative activist said the bank was “willfully giving up money.” You responded to shareholders that the policy change was prompted in part because more than 150 Bank of America employees “directly lost a relative in the shootings in the last couple [of] years.”

    Remington, Vista Outdoor, and Sturm, Ruger & Co. were three of your clients affected by this policy change in 2018. Remington made the Bushmaster assault weapon that was used in the 2012 mass shooting that killed 26 children and educators at Sandy Hook Elementary School in Newtown, Connecticut. Remington had been a client of Bank of America since at least 2012 until the bank cut ties—but only after contributing $43 million to a lending package that helped Remington exit bankruptcy in 2018. Vista Outdoor sold rifles and shotguns, including AR-15-style weapons, until 2019, when Bank of America helped finance Vista’s acquisition of another sporting goods company in 2016. Lastly, Sturm Ruger makes the AR-556 pistol, which resembles an AR-15-style rifle but has been designed to circumvent existing gun laws. This weapon was used in the 2021 mass shooting that killed ten people at a King Soopers supermarket store in Boulder, Colorado. In 2013, Bank of America extended a $25 million line of credit to Sturm Ruger. Between 2012 and 2018, Bank of America issued $273.6 million in bonds and loans to these firearm companies. To be clear, none of these guns are designed for hunting or for self-defense. They are designed to kill large numbers of people as quickly as possible.

    In 2019, Bank of America described the financing of these gunmakers as “contrary to our values, operating principles and Code of Conduct” in its Environmental and Social Risk Policy Framework. In 2022, Bank of America reiterated that it “will not currently finance the manufacture of military-style firearms for non-law enforcement, non-military use.” Then in November 2023, Bank of America assured members of Congress that its “lines of business continue to follow this policy.”

    However, in December 2023, Bank of America weakened its firearms lending policy in its updated policy framework, stating that financing military-style firearms would be subject to an “enhanced due diligence process” and review by the Senior-level Risk Committee. This directly contradicts Vice Chair Finucane’s 2018 statement that “going forward we will not finance the manufacture of these firearms.”

    Recent reports suggest that this policy change was prompted by anti-ESG laws in states like Florida and Texas. In 2021, Texas passed a law restricting companies that “discriminate” against firearms entities from doing business with the state. Specifically, it requires that government contracts include a written verification that the company does not and will not “have a practice, policy, guidance, or directive that discriminates against a firearm entity or firearm trade association.”18 In October 2023, shortly before Bank of America changed its policy, the Texas Attorney General issued an advisory urging government entities to closely review these written verifications and consider other “red flags,” citing Bank of America’s approach towards certain firearm entities. More recently, in January 2024, Florida announced that it will begin enforcing violations of an anti- ESG law passed last year, which requires banks that accept state or local funds to verify that they don’t “politically discriminate.” In particular, these requirements prohibit banks from denying services on the basis of enumerated factors, including a company’s “engagement in the lawful manufacture, distribution, sale, purchase, or use of firearms or ammunition.” In May 2024, Florida enacted a law, effective July 1, 2024, that provides for a customer complaint process for alleged violations of these requirements and expands the scope to include non-Florida chartered banks.

    The strong positions by Bank of America in 2018 likely saved lives. Your retreat in recent years strikes us as situational ethics. Perhaps you fear the political risk of alienating certain politicians. We would suggest that pales in comparison to the fear felt by a classroom full of kids looking down the barrel of an assault rifle. The least you could do is show a fraction of the courage that too many children are asked to show in a country awash in these weapons of war.

    To that end, we seek clarification on this policy change and ask that you answer the following questions by August 8, 2024:

    1. Since 2018, what steps has Bank of America taken to reverse its prior policies and decisions that were intended to reduce gun violence?

    2. Please explain why Bank of America now deems it appropriate to finance assault-style gun manufacturers.

    3. Please detail how Bank of America implemented the enhanced due diligence standard and review process for clients and transactions involving the manufacture of military-style firearms for civilian use, including:

      1. What “specialized industry knowledge” did the internal subject matter experts (SMEs) possess that contributed to the development of this policy?

        1. What are their professional backgrounds?

      2. Please provide specifics about the “clear process” for review with senior executive checkpoints, escalation routines, and risk management considerations, including how Bank of America will assess the reputational and litigation risk associated with specific, potential clients.

      3. What factors would cause Bank of America to decide to provide financing or underwriting to a manufacturer of military-style firearms for civilian use?

    4. Since this enhanced due diligence process was put in place, what, if any, financing or underwriting has Bank of America provided to firearm manufacturers, including those specified below?

      1. Sturm Ruger & Company (RGR)

      2. Smith and Wesson (SWBI)

      3. Axon (AXON:US)

      4. Sportsman’s Warehouse Holdings (SPWH)

      5. Big Five Sporting Goods Corporation (BGFV)”

    We look forward to your prompt response either in writing or via a briefing and the opportunity to continue to work together to stem the tragedies caused by gun violence and make our communities safer. Thank you foryour attention to this matter.

    ###

    MIL OSI USA News –

  • MIL-OSI Economics: Tanzania marks record agricultural achievement as African Development Bank President Adesina urges investment in Africa

    Source: African Development Bank Group
    Tanzania is setting new benchmarks in food self-sufficiency across Africa, raising hope that the fight against hunger and malnutrition on the continent is achievable.
    President Samia Suluhu Hassan of Tanzania said her country had reached 128 percent food security and is now exporting surplus to neighbouring…

    MIL OSI Economics –

  • MIL-OSI China: One year into free-trade zone, Xinjiang embraces further opening up

    Source: People’s Republic of China – State Council News

    URUMQI, Nov. 2 — Edil Mohammed, who commutes daily for about an hour by bus from Yarkent, Kazakhstan, to Horgos, China, has adapted to the lifestyle of cross-border work.

    As the head of a branch of Kazakhstan’s Bank CenterCredit, which is located in the China-Kazakhstan International Border Cooperation Center in Horgos, northwest China’s Xinjiang Uygur Autonomous Region, he is part of a pioneering group of foreign banks that entered Xinjiang following the establishment of the China (Xinjiang) Pilot Free Trade Zone (FTZ) in November 2023.

    The Xinjiang pilot FTZ, which encompasses three iconic areas — Urumqi, Kashgar and Horgos — stands as the first FTZ in China’s northwestern border regions and the 22nd nationwide. As it embraces its first anniversary, the zone has shown promising results.

    As the Belt and Road Initiative (BRI) continues to forge ahead, Xinjiang has committed to building itself into an important corridor linking Asia and Europe and to serving as a gateway for China’s opening-up efforts in the west.

    “Global investors are seizing opportunities in the pilot FTZ, and many jobseekers have found satisfying positions, such as in cross-border e-commerce, international live-streaming, translation and diverse agents,” said Mohammed, adding that the growth of new business models and expanding trade will attract even more international financial institutions and enterprises.

    SUPPORTIVE POLICIES

    Qin Xiaoyu, a customs declarer at a foreign-trade enterprise specializing in the import and export of daily consumer goods to five Central Asian countries, has benefited from enhanced services following the establishment of a dedicated market procurement window at the FTZ’s Urumqi area.

    “The consultation and whole process only take a few minutes,” said Qin. “The dedicated service window can save both time and costs. Enterprises benefit from policies such as value-added tax exemptions, simplified declaration processes and flexible foreign exchange collection, all of which improve export efficiency.”

    The service window is part of a broader set of measures rolled out by the Xinjiang pilot FTZ to boost foreign trade, providing a low-cost, high-efficiency export channel for small and micro enterprises, as well as individual businesses, according to Ju Ning, an official at the Urumqi Economic & Technological Development Zone.

    “The ‘green channel’ for the rapid customs clearance of agricultural products at the border ports between China-Kazakhstan, China-Tajikistan and China-Kyrgyzstan has been fully implemented, cutting the customs declaration time for agricultural exports from five days to just one day,” said He Yadong, a spokesperson for the Ministry of Commerce.

    Statistics show that from January to August, Xinjiang’s import and export volume increased by 30.9 percent to 285.32 billion yuan (about 40.11 billion U.S. dollars).

    “The pilot FTZ prioritizes institutional innovation, actively exploring reforms in government functions, management models, and the facilitation of trade and investment. It effectively plays a leading role in deepening reform and expanding opening up,” said Buvejer Abula, a researcher of economic and social development with the Xinjiang Agricultural University.

    RISING INDUSTRIAL CLUSTERS

    In the FTZ’s Horgos area, refrigerated trucks loaded with fruit and vegetables pass through a fast-track customs clearance “green channel” destined for Kazakhstan, Uzbekistan, Russia and beyond.

    Yu Chengzhong’s trade company exports over 500 tonnes of fruit and more than 300 tonnes of vegetables daily. This fresh produce can reach markets in Almaty in Kazakhstan within just a few hours.

    “The establishment of the FTZ has given our company a unique opportunity for growth,” said Yu, adding that the company has established sales networks in the five Central Asian countries, and this year, the company built a 66-hectare warehouse in Kazakhstan to further penetrate local markets.

    In the production workshop of a lithium battery enterprise called Shengyuehengchang, two automated production lines, each capable of producing 200,000 Ah lithium batteries per day, are running smoothly, fulfilling orders for its clients in Kyrgyzstan.

    The company normally manufactures small-capacity batteries but is now transitioning towards high-rate energy storage and power battery production. These batteries are primarily sold to the Central Asian market and are widely used in products such as electric motorcycles, drones, power tools and solar-energy products.

    “Leveraging the FTZ’s geographical advantages and favorable opening up policies, local companies are increasingly eyeing overseas markets for diverse development paths,” said Bo Yinjiang, an official with the Kashgar Economic Development Zone.

    The zone has already attracted 28 enterprises related to lithium batteries, covering the areas of lithium battery materials, manufacturing and supply chains. The annual output value of the enterprises is expected to exceed 10 billion yuan upon full operation, forming a burgeoning lithium battery industry cluster.

    “Since the pilot FTZ’s inception, a number of business associations and companies have visited Xinjiang to seek market opportunities and collaboration. There is also a rise in foreign-invested enterprises,” said Li Xuan, from the regional commerce department.

    “The pilot FTZ offers a significant historical opportunity for pursuing high-level opening up and high-quality development in Xinjiang. It must actively align with high-standard international trade and economic rules, integrate into the dual circulation of domestic and international markets, and support the development of the core region of the BRI,” Li added.

    The Ministry of Commerce will promote the industrial exchange and cooperation between the Xinjiang pilot FTZ and the central and eastern regions of the country, and support the FTZ in prioritizing key industries and fostering integrated innovation throughout the entire value chain, according to He, the ministry spokesperson.

    MIL OSI China News –

  • MIL-OSI United Kingdom: Growth at the heart of Foreign Secretary’s visit to Nigeria and South Africa

    Source: United Kingdom – Executive Government & Departments 3

    Foreign Secretary David Lammy visits Nigeria and South Africa.

    • Economic growth to underpin work in both Nigeria and South Africa, as Foreign Secretary agrees to develop a new UK-South Africa Growth Plan and a new Strategic Partnership with Nigeria.
    • Climate continues to top the agenda of Foreign Secretary’s engagement as he visits Earthshot+ event in Cape Town.
    • Foreign Secretary sets out “Growth is the core mission of this government and will underpin our relationships in Nigeria, South Africa and beyond.”

    David Lammy will begin a visit to Nigeria and South Africa today (3rd November), his first trip to the African continent as Foreign Secretary and the first to visit South Africa since 2013.

    Committing to a fresh approach to Africa that works productively from Morocco to Madagascar, the Foreign Secretary will announce the start of a five-month consultation process, to ensure African voices inform and sit at the very heart of the UK’s new approach to the continent. Accommodating the diverse needs and ambitions of 54 countries, the consultation will guarantee the UK’s relationships across Africa are based on mutual respect and partnership.

    Foreign Secretary David Lammy said:

    Africa has huge growth potential, with the continent on track to make up 25% of the world’s population by 2050.  

    Our new approach will deliver respectful partnerships that listen rather than tell, deliver long term growth rather than short term solutions and build a freer, safer, more prosperous continent. I want to hear what our African partners need and foster relationships so that the UK and our friends and partners in Africa can grow together. 

    Growth is the core mission of this government and will underpin our relationships in Nigeria, South Africa and beyond.

    This will mean more jobs, more prosperity and more opportunities for Brits and Africans alike.

    In Nigeria, the Foreign Secretary will sign a modern and progressive Strategic Partnership – the first of its kind between the UK and Nigeria. This new dialogue will cover the breadth of the UK-Nigeria areas of shared cooperation from growth and jobs to national security, tackling the climate and nature crisis to strengthening our people-to-people ties. 

    Nigeria will be the world’s fifth largest economy by 2075 – the Foreign Secretary will advocate for further collaboration on mutual growth via the UK-Nigeria Enhanced Trade and Investment Partnership, signed earlier this year. This partnership is the key vehicle for driving trade and market access between the UK and Nigeria and plays a vital role in the UK’s growth mission.

    The Foreign Secretary will advocate for further trade and climate collaboration between Nigeria and the UK in high level meetings with President Tinubu, Foreign Minister Tuggar and Lagos Governor Sanwo-Olu. 

    Building on President Tinubu’s macro-economic reforms, the Foreign Secretary will announce a diverse Technical Assistance package to the Nigerian Ministry of Finance, offering British expertise from the Bank of England, HMRC and others to help continue to modernise and diversify the Nigerian economy. Catalysing reform across Nigeria will create further opportunities within the flourishing Nigerian economy for British businesses – generating growth, jobs and incomes for Brits and Nigerians.  

    Travelling on to South Africa, David Lammy will agree to develop a new UK-South Africa Growth Plan. South Africa is our largest trading partner on the continent and this plan will allow trade to flourish even more through collaboration on market access, a new UK Trade Partnership programme to boost South Africa exports, and a new programme to increase the number of agricultural jobs in rural South Africa. This will simultaneously boost trade for Brits whilst bolstering opportunities within South Africa.

    At the biennial UK-South Africa bilateral forum the Foreign Secretary and Foreign Minister Lamola will refresh the Comprehensive Strategic Partnership to 2030 – raising joint ambition on climate, nature, trade and security and committing to UK-SA cooperation for the next two years on trade and investment, energy transition, and security. 

    South African exports to the UK supported over 137,000 jobs in 2020 – the Foreign Secretary will boost this with the renewal of a risk-sharing partnership between British International Investment and Standard Chartered to provide trade finance for SMEs and corporates operating across Africa and Asia.

    No growth can be truly inclusive nor effective unless it is green. In both Nigeria and South Africa, the Foreign Secretary will build on the momentum from his Kew Lecture to encourage green growth and climate cooperation. In South Africa the Foreign Secretary will celebrate climate innovation at the Earthshot+ thought leadership conference. Founded by Prince William, The Earthshot Prize is a global environmental prize and platform designed to discover, accelerate and scale ground-breaking solutions to repair and regenerate the planet. The Foreign Secretary will speak with these innovators to understand how the UK can support and help channel finance to where biodiversity, climate risk and energy needs are greatest. He will announce a further Biodiversity Challenge Fund to help tackle the illegal wildlife trade and technical assistance to support South Africa’s energy transition.

    Media enquiries

    Email newsdesk@fcdo.gov.uk

    Telephone 020 7008 3100

    Contact the FCDO Communication Team via email (monitored 24 hours a day) in the first instance, and we will respond as soon as possible.

    Updates to this page

    Published 3 November 2024

    MIL OSI United Kingdom –

  • MIL-Evening Report: ‘Genocide as colonial erasure – UN expert Francesca Albanese on Israel’s ‘intent to destroy’ Gaza

    Democracy Now!

    NERMEEN SHAIKH: Israel’s deadly siege on northern Gaza has entered a 30th day. Early week, the World Health Organisation managed to deliver some medical supplies to the Kamal Adwan Hospital, but on Thursday, Israeli fighter jets bombed the hospital’s third floor, where the supplies were being stored.

    Al Jazeera reports Israeli forces are continuing to shell Beit Lahia, the scene of multiple massacres last week. On Wednesday, an Israeli attack on a market in Beit Lahia killed at least 10 Palestinians. Earlier in the week, Israel struck a five-story residential building, killing at least 93 people, including 25 children.

    Meanwhile, at the United Nations, the UN Special Rapporteur on the Occupied Palestinian Territory, Francesca Albanese, has released a major report accusing Israel of committing genocide.

    Albanese concludes that Israel’s war on Gaza is part of a campaign of, “long-term intentional, systematic, state-organised forced displacement and replacement of the Palestinians” . The report is titled Genocide as Colonial Erasure.

    AMY GOODMAN: Francesca Albanese is now facing intensifying personal attacks from Israeli and US officials. She was set to brief Congress earlier last week, but the briefing was cancelled. On Tuesday, the US Ambassador to the United Nations, Linda Thomas-Greenfield, wrote on social media, “As UN Special Rapporteur Albanese visits New York, I want to reiterate the US belief she is unfit for her role. The United Nations should not tolerate antisemitism from a UN-affiliated official hired to promote human rights.”

    On Wednesday, Francesca Albanese spoke at the United Nations and responded to the US attacks.

    FRANCESCA ALBANESE: I have the same shock that you have, looking at how the United States is behaving in this context, in the context of the genocide that is unfolding in Gaza. I’m not — I’m not surprised that they attack anyone who speaks to the facts that are, frankly, on our watch in Gaza. And they do that so brutally because they feel called out, because it’s not that it’s that the United States is simply an observer. The United States is being an enabler in what Israel has been doing.

    AMY GOODMAN: That was UN Special Rapporteur Francesca Albanese speaking at the United Nations on Wednesday. She joins us here in our studio.

    Welcome back to Democracy Now! Thanks so much for joining us.

    Well, before we get you to further respond to what the US and Israel is saying, can you lay out the findings of your report?


    Colonial Erasure’: UN expert Francesca Albanese on Israel’s “intent to destroy” Gaza Video: Democracy Now!

    FRANCESCA ALBANESE: Absolutely. First of all, thank you for having me.

    I have to say that this report is the second I write on — and I present to the United Nations on the topic of genocide. And it has been very reluctantly that I’ve taken on the responsibility to be the chronicler of — the chronicler of an unfolding genocide in Gaza.

    In March this year, I concluded that there were reasonable grounds to believe that Israel had committed at least three acts of genocide in Gaza, like killing members of the protected group, Palestinians; inflicting severe bodily and mental harm; and creating conditions of life that would lead to the destruction of the group. And the reason why I identified these were not just war crimes and crimes against humanity is because I identified an intent to destroy.

    And I understand that even in this country, people are quite confused about what is genocidal intent, because it’s not a motive. One can have many motives to commit a crime. And I understand genocide is a very insidious one, and it’s difficult to identify what’s a motive. But this is not about the motives. The intent to commit genocide is the determination to destroy, which is fully evident in — especially in the Gaza Strip, as I identified in — as argued in March already.

    The reason why I continue to write about genocide — and, in fact, this report walks on the heels of the previous one — is in order to better explain the intent, especially state intent, because there is another misunderstanding that there should be a trial of the alleged perpetrators in order to have — to attribute responsibility to a state.

    No, because not only you have had acts committed that should have been prevented by the — in a rule of law, in a proclaimed rule of law system like Israel, where there is the government, the Parliament, the judiciary, working as checks and balances, genocide has not only been not prevented, [it] has been enabled through the various organs of the state.

    And I explain what has happened as of October 7, which has provided the opportunity to escalate violence, to build on the rage and on the fury of many Israelis, turning the soldiers into willful executioners, is that there was already a plan, hatred.

    I mean, the Palestinians, like Ilan Pappé says, are victims not of war, but of a political ideology that has been unleashed. Palestinians have always been an unwanted encumbrance in the Israeli mindset, because they are an obstacle both as an identity and as legal status to the realisation of Greater Israel as a state for Jewish Israelis only.

    NERMEEN SHAIKH: So, we’ll go back to — because I do want to ask about the Israeli state institutions that you name and the branches of the Israeli state that have been involved in forming this state’s intent. But if you could elaborate on the point that you make, the difference between intent and motive, and in particular what you say in the report about how it’s critical to determine genocidal intent, “by way of inference”?

    You know, that’s a different phrasing than one has heard in all of this conversation about genocide so far. If you explain what you mean by that and what such a determination makes possible? So, rather than just looking at genocidal intent in other forms, what it means to infer genocidal intent?

    FRANCESCA ALBANESE: So, first of all, what constitutes genocide is established by Article II of the Genocide Convention, which creates a twofold obligation for member states, to prevent genocide so genocide doesn’t have to complete itself. When there is a manifestation of intent, even genocidal intent, there is already an obligation to intervene, because a crime is unfolding.

    And then there is an obligation to punish. How the jurisprudence, especially after Rwanda and after former Yugoslavia, there have been cases both for criminal proceedings, where individual perpetrators have been investigated and tried, and [the] responsibility of the state, litigated before the International Court of Justice. This is how the jurisprudence on genocide has developed.

    And the intent has been further elaborated upon what the Genocide Convention says. And while it might be difficult to have direct intent, meaning to have — it’s difficult but not impossible, in fact, to have a state official say, “Yes, let’s go and destroy everyone” — although I do believe that there is direct intent in this genocide in Gaza.

    But the court also established that genocide can be inferred from the scale of the attack on the people, the nature of the attack, the general conduct. And what it says is that normally there should be a holistic approach in order to identify intent, which is exactly what I’ve done.

    And indeed, this is why I proposed in this report what I called the triple lens approach. We need to look at the conduct, like the totality of the conduct, instead of studying with a microscope each and every crime. We need to look at the whole, against the totality of the people, the Palestinians as such, in the totality of the land, that Israel has slated as its own by divine design.

    NERMEEN SHAIKH: No, absolutely. And then, if you could — the other precedent you’ve just spoken about — of course, Rwanda and former Yugoslavia — another case that you cite in the International Court of Justice is The Gambia v. Myanmar. So, how is that comparable to what we see happening in Gaza? Why is that a relevant example and different from both Rwanda and former Yugoslavia?

    FRANCESCA ALBANESE: Let me tell you what I see as the major differences in the case of Israel, because it’s a very complex discussion. But in all four cases, there is a toxic combination of hatred, ideological hatred, which has informed political doctrines. And this is true in all the various contexts we are mentioning. The other common element is that there is [a] combination of crimes. Like, forced displacement is not an act of genocide per se, but the jurisprudence says that it can contribute to corroborate the intent.

    But, again, mass killing or mass destruction of property, torture and other crimes against a person, which translate into an infliction of physical and mental harm to the group, not individuals as such, but individuals as part of the group, these are common elements to all genocides.

    What I find characteristic in this one is, first of all, this is not — I mean, the state of Israel is not Myanmar and is not Rwanda 30 years ago. This is not war-torn former Yugoslavia. This is a state which has a separation of powers, different organs, as I said, checks and balances. And let me give you a specific example, because you asked me to comment on the state functions.

    In January this year, the International Court of Justice issued a set of preliminary measures in the context of its identification, before even looking at the merits of the case initiated by South Africa for Israel’s breach, alleged breach, of the Genocide Convention, which identified the plausibility of risk for the rights protected — of the rights of the Palestinians protected under the Genocide Convention, which means plausibility — it’s semantics, but it’s plausibility that genocide might be committed against the Palestinians in Gaza.

    And the provisional measures included an obligation to investigate and prosecute the various cases of incitement, genocidal incitement, that the court had already identified. And it mentions leaders, senior leaders, of the Israeli state. Has there been any investigation? Has there been any prosecution?

    But I’m telling you more. The genocidal statements didn’t resonate as shocking in the Israeli public, not only because there was rage, an enormous rage and animosity, of course. I mean, this is understandable, that the facts of October 7 were brutal and traumatized the people.

    But at the same time, hatred against the Palestinians and hate speech, it’s not something that started on October 7. I do remember, and I do remember the shock I felt because no one was reacting, and years ago, there were Israeli ministers talking of — freely, of killing, justifying the killing of Palestinians’ mothers and children because they would turn into terrorists.

    AMY GOODMAN: Francesca Albanese, talk about the title of your report, Genocide as Colonial Erasure.

    FRANCESCA ALBANESE: This is another element which I think — and, in fact, it’s the most important, where we see the difference between this genocide and others, because there is a settler-colonial component. And again, if you look at what the International Court of Justice in July this year concluded, when it decided that the — when it found that Israel’s 57 years of occupation in Gaza, the West Bank and East Jerusalem is unlawful and needs to be withdrawn totally and unconditionally, as rapidly as possibly, which the General Assembly says by September 2025.

    The court said that it amounts to — that the colonies amount to — have led to a process of annexation and racial segregation and apartheid. And these are the features of settler colonialism, the taking of the land, the taking of the resources, displacing the local population and replacing it. This has been a feature.

    Now, it is in this context that we need to analyse what is happening today. And by the way, don’t believe, don’t listen only to Francesca Albanese. Listen to what these Israeli leaders and ministers are saying — reoccupying Gaza, retaking Gaza, recolonising Gaza, reconquesting Gaza. This is what they are saying.

    And there are settlers on expeditions, not only to Gaza but also to Lebanon. So, this is why I say that the main difference, the main feature of this genocide, apart all the horrible aspects of it, is that this is the first settler-colonial genocide to be ever litigated before a court, an international court.

    And this is why coming to this country, which is a country birthed from a genocide, when I meet the Native Americans, for example, I feel the pain of these people. And I say if we manage to build on the intersectionality of Indigenous struggle, the cry for justice behind this case for Palestine will resonate even louder, because it will somewhat be an act of atonement from the settler-colonial endeavor, which has sprouted out of Europe, toward Indigenous peoples. So there is a lot of symbolism behind it.

    NERMEEN SHAIKH: And, you know, the analogy — first of all, you talked about the case brought by South Africa, so what they share, apart from South Africa and Israel-Palestine, is both the fact that they were colonial-settler states, as well as the fact that apartheid has been established as having occurred in both places.

    Now, in the case of South Africa, it was a decision that was taken by the United Nations at the time of apartheid, was unseating South Africa from the General Assembly. There have been calls now to do the same with Israel. So, if you could — if you could comment on that?

    And then, I just want to quote another short sentence from your report, in which you say, “As the world watches the first live-streamed settler-colonial genocide, only justice can heal the wounds that political expedience has allowed to fester.” So, if you could talk about the International Court of Justice’s case in that context, what role you think they can play, South Africa’s case, in resolving or addressing — seeing and addressing this wound?

    FRANCESCA ALBANESE: First of all, let me unpack the question of the unseating Israel, because this is one of the recommendations I made in my report. Under Article 6 of the UN Charter, a member state can be suspended of its credentials or its membership by the General Assembly upon recommendation of the UN Security Council. And the first criticism I got is that we cannot do that, because every states commit international law violations. Absolutely. Absolutely.

    But there are two striking features here. First, Israel is quite unique in maintaining an unlawful occupation, which has deemed such by — in at least one full occasion, but again, there was already a case brought before the ICJ in 2004, so there have been two ICJ advisory opinions.

    There is a pending case for genocide. There has been the violations of hundreds of resolutions by the — on Israel — over occupied Palestinian territory, by the Security Council, the General Assembly, the Human Rights Council, and steady violation of international humanitarian law, human rights law, the Apartheid Convention, the Genocide Convention. So this is quite unique.

    But all the more, this year alone, Israel has conducted an attack, an unprecedented attack, against the United Nations. It has attacked physically, through artillery, weapons, bombs, UN premises. Seventy percent of UNRWA offices and UNRWA buildings, clinics, distribution centers have been hit and shelled by the Israeli army.

    Two hundred and thirty UN staff members have been killed by Israel in Gaza alone. UN peacekeepers in Lebanon have been attacked. And this doesn’t even take into account the smear, the defamation against senior UN officials, the declaration of the secretary-general as persona non grata, the referring to the General Assembly as a “cloak of antisemites”.

    Again, this has mounted to a level — the hubris against the United Nations and international law has been unchecked and unbounded forever, but now, especially after the Knesset passed a law outlawing UNRWA, declaring UNRWA a terrorist organisation, and therefore disabling it from its capacity to deliver aid and assistance especially in Gaza and the West Bank and East Jerusalem, this is the nail in the coffin of the UN Charter.

    And it can also contribute to that sense of colonial erasure, because here it’s not just at stake the function of a UN body — and UNRWA is a subsidiary body of the General Assembly, so it’s even more serious. But there is the capacity of UNRWA to deliver humanitarian aid in a desperate situation, and also the fact that UNRWA is seen by Israel as the symbol of Palestinian identity, especially the Palestinian refugees. So there is an attempt to erase Palestinianness, including by hitting UNRWA.

    AMY GOODMAN: I want to ask you about your trip here, as we begin to wrap up. The US Ambassador to the United Nations, Linda Thomas-Greenfield, quoted on — tweeted on Tuesday, “As UN Special Rapporteur Albanese visits New York, I want to reiterate the US belief she is unfit for her role. The United Nations should not tolerate antisemitism from a UN-affiliated official hired to promote human rights.” If you can further address their charge of antisemitism against you?

    FRANCESCA ALBANESE: Yeah.

    AMY GOODMAN: And talk about what happened. You were supposed to come to Congress and speak and brief them, but that was cancelled this week.

    FRANCESCA ALBANESE: Yes, it was canceled. But let me — first of all, I’m very embarrassed to read this, because a senior US official who writes this, I mean, it shows a little bit of desperation. I’m sorry, but, you know, I’m very candid.

    And let me unpack my antisemitism for the audience. So, what I’ve been accused of — the reason why I’ve been accused of antisemitism — is because I’ve allegedly compared the Jews to the Nazis. Never done. Never done.

    What I’ve said, what I’ve done is saying, and I keep on saying, that history is repeating itself. I’ve never done such a comparison where I draw the parallel. It’s on the behaviour of member states who have the legal and moral obligation to prevent atrocities, including an unfolding genocide.

    In the past, they have done nothing — nothing — until the end of the Second World War, to prevent the genocide of the Jews and the Roma and Sinti. And they’ve done nothing to prevent the genocide of the Bosnians.

    And they’ve done nothing to prevent the genocide of the Rwandans. And they are doing the same today. This is where I insist that now, compared to when there was the Holocaust, now we have a human rights framework that should prevent this. The Genocide Convention to prevent this. So, this is one of the points.

    The second point, — which leads to portray me as an antisemite, which is really offensive — is that I’ve said that October 7 was not — I’ve contested, I’ve challenged the argument that October 7 was an antisemitic attack. October 7 was a crime, was heinous. And again, I’ve condemned the acts that were directed against the Israeli civilians, and expressed solidarity with the victims, with the families. I’ve been in contact with the families of the hostages.

    But I’ve also said the hatred that led that attack, that prompted that attack, to the extent it hit civilians, not the military, but it was prompted not by the fact that the Israelis are Jews, but the fact that the Israelis — I mean, the Israelis are part of that endeavor that has kept the Palestinians in a cage for 17 years and, before, under martial law for 37 years. And Palestinians have tried — it’s true they have used violence, but before violence, they have tried dialogue. They have tried collaboration. They have tried a number of means to access justice, and they have gone nowhere.

    I can — I mean, let me relate just this case, because last year I worked with children. And someone who was 17 years old before October 7 last year had never set foot out of Gaza. This is the reality. And I spoke with children while I was writing my report on “unchilding”, the experience of Palestinians under Israeli occupation. And one of them — I mean, there were these two girls fighting, because one of them had been able to go to Israel and the West Bank because she had cancer and could be treated, and the other was jealous, because, she said, “At least she was sick, and she could go, she could travel. I’ve never seen the mountains.”

    And again, this doesn’t justify violence, but, please, please, put things in context. And even Israeli scholars have said claiming that October 7 was prompted by antisemitism is a way to decontextualize history and to deresponsibilise Israel.

    I condemn Israel not because it’s a Jewish state. It’s not about that, but because it’s in breach of international law through and through. And were the majority of Israelis Buddhists, Christians, atheists, it would be the same. I would be as vocal as I am now.

    NERMEEN SHAIKH: Francesca, just one last question, and we only have a minute. Your recent book, J’Accuse, you take the title, of course, from the letter Émile Zola wrote during the Dreyfus Affair to the French president. You came under severe criticism for the choice of that title. Could you explain why you chose it and what it means in this context?

    FRANCESCA ALBANESE: Absolutely. I have the sense that whatever I say comes under scrutiny and criticism. But J’Accuse is — first of all, it’s the title that was proposed by the editor, the publisher. And I was against it until October 7.

    When I saw the narrative, the dehumanization of the Palestinians after October 7, and what it was legitimising, I said, “This is the title. We need to use it,” because I draw the parallel between what is happening to the Palestinians and what has happened to other groups, particularly the Jewish people in Europe.

    I say the Holocaust was not just about the concentration camps. The Holocaust was a culmination of centuries of discrimination, and the previous decades had led the Jewish people in Europe to be kicked out of jobs, professions, to be treated like subhumans, as animals. And it’s this dehumanisation that we need to look at in the face today, in the eyes today, and recognise as leading to atrocity crimes.

    AMY GOODMAN: We want to thank you for being with us, Francesca Albanese, UN Special Rapporteur on the Occupied Palestinian Territory.

    The text of this programme was first published by Democracy Now! here and is  republished under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 United States Licence.

    MIL OSI Analysis – EveningReport.nz –

  • MIL-OSI Africa: Financial skills like managing debt are key to success, but Ghana’s small businesses don’t have them

    Source: The Conversation – Africa – By Samuel Adomako, Associate Professor of Strategy and Innovation, University of Birmingham

    Financial literacy is vital for individuals and households. Simply put, it’s the ability to understand and effectively use various financial skills: budgeting, managing debt, making sound investments, and understanding financial statements.

    These skills are crucial for businesses, too – especially small and medium enterprises. Small and medium enterprises are widely recognised as the backbone of many low-income countries’ economies. The World Bank estimates that these businesses account for between 60% and 70% of jobs in sub-Saharan Africa and approximately 40% of low-income countries’ GDPs globally.

    Ghana is one of the countries whose economy relies heavily on small and medium enterprises. Much emphasis has been placed on how important it is for these businesses to access finance. But far less has been discussed about the value of financial literacy. In Ghana, as is the case in many other countries, the reality is that many small and medium enterprises still fail to grow as expected, even when they have access to capital. This surprising outcome suggests that access to finance, while crucial, is not the sole factor determining business success. The missing piece of the puzzle? Financial literacy.

    We conducted a study to find out whether managers at small and medium enterprises in Ghana believed that financial literacy would help them to improve their growth after accessing finance. CEOs and senior financial managers who self-identified as being financially literate told us that their businesses had grown as a result, explicitly linking growth and financial literacy.

    It is clear from this study that financial literacy empowers the managers of small and medium enterprises to make informed decisions, make the best use of their resources, and avoid common pitfalls that can derail business growth. It enables them not only to access finance but also to use it effectively for sustainable growth and long-term success.

    Our findings have wider implications. Small and medium enterprises are vital for economic growth. But their potential is being undermined by a lack of financial literacy. This isn’t just a problem for businesses themselves: it’s a problem for the entire economy they are part of. When small and medium enterprises fail to grow, job creation stalls, innovation slows down, and the economy as a whole suffers.

    The study

    There is no single public register for small and medium enterprises in Ghana. So we drew our participants from a range of resources, including the national company register, the Ghana Export Promotion Authority, the Association of Ghana Industries and the Ghana Business Directory.

    We defined small and medium enterprises in the same way as Ghana’s Statistical Service does: companies that have 250 or fewer employees.

    Ultimately, 201 firms across the manufacturing and services sectors took part in the study. The vast majority of responses were from CEOs and senior finance managers, which is important since people in these positions ought to have comprehensive knowledge about a firm’s growth and performance.

    The respondents saw a clear link between financial literacy and access to finance for growing their businesses. One CEO said:

    Understanding financial principles is the foundation of our business decisions. Without financial literacy, we wouldn’t have been able to secure the necessary funding to expand our operations. It’s not just about getting access to finance but knowing how to manage it effectively that drives growth.

    A senior financial manager told us:

    Before improving our financial literacy, we struggled to convince lenders of our potential. Learning how to present our financials clearly and manage our cash flow gave us the credibility we needed to secure financing and invest in our growth.

    Some interviewees discussed how not being financially literate had hampered their ability to properly use funding. A finance manager said that, after securing an initial round of funding. “we quickly realised we couldn’t manage cash flow effectively”, adding:

    It felt like we were putting out fires every day. I didn’t understand terms like ‘liquidity ratios’ or ‘debt management’ until I started learning about financial literacy. It was eye-opening.

    These lessons happened in various ways, some more formal than others. One CEO, realising their own financial management skills needed work, hired a financial officer with strong abilities in this area and learned a great deal from them.

    Some CEOs signed themselves up for financial management workshops; others organised short courses for their entire teams. One told us: “We took a financial literacy course designed for entrepreneurs, and it gave us new insights into how to manage loans and investments. It wasn’t just about survival but also about how to leverage what we had to grow. Now, we budget better, monitor our cash flow closely, and even started saving for unexpected expenses.”

    Read more: Battling to make ends meet? Financial planning expert offers 5 tips on how to build your budget

    Addressing the issues

    There are several ways to improve financial literacy among small and medium enterprises.

    First, policymakers should incorporate mandatory financial literacy training into existing support programmes for these businesses. It should cover essential financial management skills such as budgeting, cash flow management and investment planning.

    Read more: Corruption hurts businesses but digital tools offer the hope of fighting it, say manufacturers in Ghana and Nigeria

    Policymakers could also facilitate partnerships between banks, microfinance institutions and educational organisations to offer targeted financial literacy workshops for managers at small and medium enterprises. This would equip businesses to manage the financial support they receive.

    Finally, policymakers should introduce incentives, such as reduced interest rates or preferential loan terms, for small and medium enterprises that complete certified financial literacy courses. This would motivate managers to enhance their financial management skills, leading to more sustainable business growth and improved economic outcomes.

    – Financial skills like managing debt are key to success, but Ghana’s small businesses don’t have them
    – https://theconversation.com/financial-skills-like-managing-debt-are-key-to-success-but-ghanas-small-businesses-dont-have-them-241955

    MIL OSI Africa –

  • MIL-OSI China: China’s bond market issuances hit 7.6 trln yuan in Sept

    Source: China State Council Information Office

    Bond issuances in China hit 7.6 trillion yuan (about $1.07 trillion) in September this year, data from the country’s central bank showed.

    Specifically, issuances of treasury bonds came in at 1.36 trillion yuan, while local government bond issuances amounted to 1.28 trillion yuan, according to the People’s Bank of China.

    Financial bond issuances stood at 764 billion yuan, and corporate credit bond issuances reached 1.19 trillion yuan.

    Outstanding bonds held in custody came in at 169.9 trillion yuan at the end of September.

    MIL OSI China News –

  • MIL-OSI Global: Financial skills like managing debt are key to success, but Ghana’s small businesses don’t have them

    Source: The Conversation – Africa – By Samuel Adomako, Associate Professor of Strategy and Innovation, University of Birmingham

    Mongta Studio/Shutterstock

    Financial literacy is vital for individuals and households. Simply put, it’s the ability to understand and effectively use various financial skills: budgeting, managing debt, making sound investments, and understanding financial statements.

    These skills are crucial for businesses, too – especially small and medium enterprises. Small and medium enterprises are widely recognised as the backbone of many low-income countries’ economies. The World Bank estimates that these businesses account for between 60% and 70% of jobs in sub-Saharan Africa and approximately 40% of low-income countries’ GDPs globally.

    Ghana is one of the countries whose economy relies heavily on small and medium enterprises. Much emphasis has been placed on how important it is for these businesses to access finance. But far less has been discussed about the value of financial literacy. In Ghana, as is the case in many other countries, the reality is that many small and medium enterprises still fail to grow as expected, even when they have access to capital. This surprising outcome suggests that access to finance, while crucial, is not the sole factor determining business success. The missing piece of the puzzle? Financial literacy.

    We conducted a study to find out whether managers at small and medium enterprises in Ghana believed that financial literacy would help them to improve their growth after accessing finance. CEOs and senior financial managers who self-identified as being financially literate told us that their businesses had grown as a result, explicitly linking growth and financial literacy.

    It is clear from this study that financial literacy empowers the managers of small and medium enterprises to make informed decisions, make the best use of their resources, and avoid common pitfalls that can derail business growth. It enables them not only to access finance but also to use it effectively for sustainable growth and long-term success.

    Our findings have wider implications. Small and medium enterprises are vital for economic growth. But their potential is being undermined by a lack of financial literacy. This isn’t just a problem for businesses themselves: it’s a problem for the entire economy they are part of. When small and medium enterprises fail to grow, job creation stalls, innovation slows down, and the economy as a whole suffers.

    The study

    There is no single public register for small and medium enterprises in Ghana. So we drew our participants from a range of resources, including the national company register, the Ghana Export Promotion Authority, the Association of Ghana Industries and the Ghana Business Directory.

    We defined small and medium enterprises in the same way as Ghana’s Statistical Service does: companies that have 250 or fewer employees.

    Ultimately, 201 firms across the manufacturing and services sectors took part in the study. The vast majority of responses were from CEOs and senior finance managers, which is important since people in these positions ought to have comprehensive knowledge about a firm’s growth and performance.

    The respondents saw a clear link between financial literacy and access to finance for growing their businesses. One CEO said:

    Understanding financial principles is the foundation of our business decisions. Without financial literacy, we wouldn’t have been able to secure the necessary funding to expand our operations. It’s not just about getting access to finance but knowing how to manage it effectively that drives growth.

    A senior financial manager told us:

    Before improving our financial literacy, we struggled to convince lenders of our potential. Learning how to present our financials clearly and manage our cash flow gave us the credibility we needed to secure financing and invest in our growth.

    Some interviewees discussed how not being financially literate had hampered their ability to properly use funding. A finance manager said that, after securing an initial round of funding. “we quickly realised we couldn’t manage cash flow effectively”, adding:

    It felt like we were putting out fires every day. I didn’t understand terms like ‘liquidity ratios’ or ‘debt management’ until I started learning about financial literacy. It was eye-opening.

    These lessons happened in various ways, some more formal than others. One CEO, realising their own financial management skills needed work, hired a financial officer with strong abilities in this area and learned a great deal from them.

    Some CEOs signed themselves up for financial management workshops; others organised short courses for their entire teams. One told us: “We took a financial literacy course designed for entrepreneurs, and it gave us new insights into how to manage loans and investments. It wasn’t just about survival but also about how to leverage what we had to grow. Now, we budget better, monitor our cash flow closely, and even started saving for unexpected expenses.”



    Read more:
    Battling to make ends meet? Financial planning expert offers 5 tips on how to build your budget

    Addressing the issues

    There are several ways to improve financial literacy among small and medium enterprises.

    First, policymakers should incorporate mandatory financial literacy training into existing support programmes for these businesses. It should cover essential financial management skills such as budgeting, cash flow management and investment planning.



    Read more:
    Corruption hurts businesses but digital tools offer the hope of fighting it, say manufacturers in Ghana and Nigeria

    Policymakers could also facilitate partnerships between banks, microfinance institutions and educational organisations to offer targeted financial literacy workshops for managers at small and medium enterprises. This would equip businesses to manage the financial support they receive.

    Finally, policymakers should introduce incentives, such as reduced interest rates or preferential loan terms, for small and medium enterprises that complete certified financial literacy courses. This would motivate managers to enhance their financial management skills, leading to more sustainable business growth and improved economic outcomes.

    Samuel Adomako does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

    – ref. Financial skills like managing debt are key to success, but Ghana’s small businesses don’t have them – https://theconversation.com/financial-skills-like-managing-debt-are-key-to-success-but-ghanas-small-businesses-dont-have-them-241955

    MIL OSI – Global Reports –

  • MIL-OSI New Zealand: Economy – Geopolitical tensions highlighted as risk to financial stability – Reserve Bank of NZ

    Source: Reserve Bank of New Zealand

    4 November 2024: The Reserve Bank of New Zealand – Te Pūtea Matua today announced key findings from its 2024 Reverse Stress Test, alongside an assessment of how geopolitical tensions could impact financial stability in New Zealand.

    The findings are being pre-released from our upcoming Financial Stability Report and highlight the importance of proactive risk evaluation and management to safeguarding New Zealand’s financial stability.

    The Reverse Stress test asked participating banks to model severe but plausible scenarios that could cause their capital levels to fall below the regulatory minimums. The scenarios banks used featured severe recessions, with significant increases in unemployment and falls in property prices. Several banks identified escalation of geopolitical tension as the primary driver of economic downturns. Scenarios were often accompanied by secondary shocks, such as cyber-related events or insurance retreat.

    Banks also identified actions they could take in response to the scenarios to rebuild their capital positions. Responses included reducing dividends, cutting costs, tightening lending standards, repricing and extending loan terms for existing customers.

    “The Reverse Stress test prompted banks to explore severe scenarios that threatened their businesses and identify how they might respond. The exercise has improved our understanding of the potential vulnerabilities of the financial system. It has also been a valuable exercise for testing and enhancing industry’s risk management capabilities,” Director of Financial Stability Assessment & Strategy Kerry Watt says.

    An important part of Te Pūtea Matua’s financial stability work is promoting public understanding of risks. This stress testing exercise highlighted geopolitical risks as material for New Zealand. These risks arise from international tensions and can impact the financial system through various channels.

    Geopolitical risk can disrupt international trade, weaken domestic demand and lead to financial market volatility. This in turn can lead to higher loan defaults, raise funding costs, and increase cyber risks for financial institutions. The nature of the impact will depend on the transmission channel, severity and location of the geopolitical shock.

    “Concern about geopolitical tension has been increasing recently. As a small open economy, dependent on international trade and investment, geopolitical risks are clearly relevant to our financial system. Their potential impacts cannot be underestimated,” Mr Watt says.

    “We must be aware of these risks and be prepared to manage them to ensure the stability of the financial system.”
     

    More information

    Read our Reverse Stress Testing special topic here : https://govt.us20.list-manage.com/track/click?u=bd316aa7ee4f5679c56377819&id=23fad86f03&e=f3c68946f8
    Read our Geopolitical box article here: https://govt.us20.list-manage.com/track/click?u=bd316aa7ee4f5679c56377819&id=be28deaca3&e=f3c68946f8
    The 2024 November Financial Stability report will be published on our website at 9am on Tuesday 5 November, with a media conference at 1pm. See full details
    What is the Financial Stability Report: https://govt.us20.list-manage.com/track/click?u=bd316aa7ee4f5679c56377819&id=744e75eb37&e=f3c68946f8

    MIL OSI New Zealand News –

  • MIL-OSI USA: Reps. Kim, Nickel Lead Bipartisan Bill to Protect Consumers from Credit Card Repair Scams

    Source: United States House of Representatives – Representative Young Kim (CA-39)

    Washington, DC – Today, U.S. Representatives Young Kim (CA-40) and Wiley Nickel (NC-13) introduced the Ending Scam Credit Repair Act (ESCRA) to combat fraudulent practices in the credit repair industry. The bill targets credit repair organizations (CROs) that exploit consumers by charging high fees without delivering on promises to improve credit scores. By strengthening CROs regulations, the bill will ensure transparency and accountability in the industry.

    The bipartisan Ending Scam Credit Repair Act empowers consumers by ensuring that CROs only receive payment after delivering documented improvements to credit reports, while increasing civil penalties for violations.

    “Credit scores can be the key to unlocking the American dream. Fraudulent CROs should not get away with scamming hardworking Americans seeking to improve their scores,” said Congresswoman Young Kim. “The Ending Scam Credit Repair Act creates accountability and transparency for consumers and hikes penalties for scammers. I’m thrilled to introduce the bipartisan Ending Scam Credit Repair Act and will continue to work on commonsense solutions to protect the American dream.”

    “Too many hard-working Americans have been scammed by bad actors in the credit repair industry,” said Congressman Wiley Nickel. “Our bill puts a stop to these deceptive practices by banning upfront fees, improving dispute transparency, and requiring state registration. Consumers deserve real results, not empty promises and financial loss.”

    “Financial-services companies and consumer advocacy groups are grateful for congressional action on behalf of consumers, having seen first-hand the real harm credit repair organizations cause consumers, often charging hundreds of dollars a month, but yielding few if any positive results,” said Bill Himpler, President and CEO, American Financial Services Association (AFSA).

    “Paying for credit repair is almost always a waste of money,” said Andrew Pizor, senior attorney, National Consumer Law Center (NCLC). “The amendment from Representatives Nickel and Kim will help ensure consumers are not prey to credit repair scams and that they don’t get charged unless they get the results they are paying for.”

    Edward Boltz, Legislative Chair of the National Association of Consumer Bankruptcy Attorneys (NACBA), whose members represent people in and after bankruptcy, agreed that the “Ending Credit Repair Scams Act” will stop credit repair jamming schemes which mislead consumers by holding themselves out as “lawyers,” but “will also now make it clear that honest attorneys can provide advice and assistance to those who need real help with credit report errors.”

    Read the full bill text HERE.

    MIL OSI USA News –

  • MIL-OSI China: Israeli airstrike on S. Gaza kills 9 Palestinians

    Source: China State Council Information Office

    People stand on the rubble of a building destroyed in an Israeli attack in the Nuseirat refugee camp, central Gaza Strip, on Nov. 1, 2024. [Photo/Xinhua]

    Nine Palestinians, including four children, were killed in an Israeli airstrike on the southern Gaza Strip, Palestinian sources said Sunday.

    Local sources and eyewitnesses told Xinhua that an Israeli drone targeted a gathering of Palestinians in the Sheikh Nasser area, east of Khan Younis city.

    Paramedics reported that medical workers retrieved the bodies of the victims, and transferred several others with varying injuries to hospitals.

    The Israel Defense Forces (IDF) said in a statement on Sunday that IDF troops are continuing operational activities in central and southern Gaza, locating weaponry and eliminating militant cells.

    Also on Sunday, Varsen Aghabekian Shahin, Palestine’s minister of state for foreign affairs and expatriates, received a European Parliament delegation at the ministry’s headquarters in Ramallah, central West Bank.

    During the meeting, Shahin discussed with the delegation the latest developments concerning the war in Gaza, according to a ministry statement.

    Shahin emphasized the importance of cooperation with international partners to stop the killings in Gaza and build on the international recognitions and court rulings that affirm the Palestinian people’s right to self-determination, said the statement.

    Israel has been launching a large-scale offensive against Hamas in the Gaza Strip to retaliate against a Hamas rampage through the southern Israeli border on Oct. 7, 2023, during which about 1,200 people were killed and approximately 250 taken hostage.

    The Palestinian death toll from ongoing Israeli attacks in Gaza has risen to 43,341, Gaza-based health authorities said in a statement on Sunday.

    MIL OSI China News –

  • MIL-OSI Economics: ADB Provides $10 Million Grant to Address Gender-Based Violence in Cambodia

    Source: Asia Development Bank

    PHNOM PENH, CAMBODIA (4 November 2024) — The Asian Development Bank (ADB) approved $10 million in grant financing to address gender-based violence (GBV) in Cambodia to help meet the country’s target of zero GBV by 2030.

    The Strengthening Country Systems for Prevention and Response to GBV project is ADB’s first stand-alone Asian Development Fund (ADF) grant specifically focused on gender equality in Southeast Asia, and establishes a clear link between governance systems, public financial management, and the quality and accessibility of services addressing GBV.  

    The project will strengthen legal and institutional frameworks by updating Cambodia’s legislation on domestic violence; improve service delivery at the local level by strengthening the quality and accessibility of response services and refurbishing shelters for survivors, especially in rural areas; and leverage digital solutions in adolescent school-based and community-based programs to promote prevention. It will enhance digital solutions for 24/7 access to information, education, and communication resources on GBV in an effort to link prevention and response in a continuum for maximum impact.

    “This important project will enhance systemic responses, expand access to shelters, and ensure survivors receive the care they need,” said ADB Country Director for Cambodia Jyotsana Varma. “It will also promote community-based programs on prevention, empowering local communities to play a key role in raising awareness and stopping violence before it occurs. ADB remains committed to supporting Cambodia in building a safer, more inclusive society for all.”

    The incidence of GBV remains persistently high even as Cambodia has made significant strides in combating it with the government and civil society organizations piloting promising prevention approaches. Since 2014, the prevalence of intimate partner violence has decreased by 8 percentage points to 21% women (aged 15–49) experiencing it at least once in their lifetime, according to the World Health Organization. While better than the global and Southeast Asian average of 30%, Cambodia still faces hurdles due to uneven response hindered by multiple public agencies, and limited survivor-centered care. 

    Building on lessons from previous GBV projects in Asia, this initiative promotes a comprehensive, whole-of-government approach that integrates gender equality and GBV considerations across key ministries for Women’s Affairs, Interior, and Economy and Finance to ensure a coordinated response.

    This $10 million project is funded by a grant from the Asian Development Fund, which supports ADB’s vulnerable developing member countries.

    ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 69 members—49 from the region.

    MIL OSI Economics –