Source: United States INDO PACIFIC COMMAND
BANDAR SERI BEGAWAN, Brunei –
U.S. Army Lt. Gen. Joshua M. Rudd, deputy commander of U.S. Indo-Pacific Command, traveled to Brunei Jan. 22-24, reinforcing the strong U.S.-Brunei relationship.
Category: KB
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MIL-OSI: First Savings Financial Group, Inc. Reports Financial Results for the First Fiscal Quarter Ended December 31, 2024
Source: GlobeNewswire (MIL-OSI)
JEFFERSONVILLE, Ind., Jan. 28, 2025 (GLOBE NEWSWIRE) — First Savings Financial Group, Inc. (NASDAQ: FSFG – news) (the “Company”), the holding company for First Savings Bank (the “Bank”), today reported net income of $6.2 million, or $0.89 per diluted share, for the quarter ended December 31, 2024, compared to net income of $920,000, or $0.13 per diluted share, for the quarter ended December 31, 2023. Excluding nonrecurring items, the Company reported net income of $4.3 million (non-GAAP measure)(1) and net income per diluted share of $0.62 (non-GAAP measure)(1) for the quarter ended December 31, 2024 compared to $920,000, or $0.13 per diluted share for the quarter ended December 31, 2023. The core banking segment reported net income of $6.4 million, or $0.91 per diluted share, for the quarter ended December 31, 2024, compared to $4.0 million, or $0.59 per diluted share, for the quarter ended December 31, 2023. Excluding nonrecurring items, the core banking segment reported net income of $4.5 million, or $0.64 per diluted share for the quarter ended December 31, 2024 (non-GAAP measure)(1) compared to $4.0 million, or $0.59 per diluted share for the quarter ended December 31, 2023.
Commenting on the Company’s performance, Larry W. Myers, President and CEO, stated “We are pleased with the first fiscal quarter, which included a bulk sale of first lien home equity lines of credit and continued improvement in our net interest margin. The bulk sale is part of a strategic initiative to transition the first lien home equity line of credit business to an originate for sale model during fiscal 2025 in order to enhance noninterest income, moderate the loan to deposit ratio, decrease reliance on noncore funding, and generate capital. The surplus capital generated from the bulk sale and potential future flow sales may be used to retire high-cost subordinated debt and repurchase Company common shares. We are optimistic regarding the remainder of fiscal 2025 as we continue to focus on asset quality, select loan growth opportunities, and capital and liquidity management. We’ll continue to evaluate options and strategies that we believe will maximize shareholder value.”
(1) Non-GAAP net income and net income per diluted share exclude certain nonrecurring items. A reconciliation to GAAP and discussion of the use of non-GAAP measures is included in the table at the end of this release.
Results of Operations for the Three Months Ended December 31, 2024 and 2023
Net interest income increased $1.3 million, or 9.6%, to $15.5 million for the three months ended December 31, 2024 as compared to the same period in 2023. The tax equivalent net interest margin for the three months ended December 31, 2024 was 2.75% as compared to 2.69% for the same period in 2023. The increase in net interest income was due to a $3.8 million increase in interest income, partially offset by a $2.4 million increase in interest expense. A table of average balance sheets, including average asset yields and average liability costs, is included at the end of this release.
The Company recognized a reversal of provision for credit losses for loans and securities of $490,000 and $7,000, respectively, and a provision for unfunded lending commitments of $46,000 for the three months ended December 31, 2024, compared to a provision for credit losses for loans of $470,000 and reversal of provision for unfunded lending commitments of $58,000 for the same period in 2023. The reversal of provisions during the 2024 period was due primarily to the bulk sale of approximately $87.2 million of home equity lines of credit during the quarter ended December 31, 2024, which resulted in the reversals of $980,000 in allowance for credit losses for loans and $129,000 in allowance for unfunded lending commitments. The Company recognized net charge-offs totaling $119,000 for the three months ended December 31, 2024, of which $52,000 was related to unguaranteed portions of SBA loans, compared to net charge-offs of $9,000 in 2023. Nonperforming loans, which consist of nonaccrual loans and loans over 90 days past due and still accruing interest, decreased $374,000 from $16.9 million at September 30, 2024 to $16.6 million at December 31, 2024.
Noninterest income increased $3.3 million for the three months ended December 31, 2024 as compared to the same period in 2023. The increase was due primarily to a $2.5 million net gain on sale of loans due to the aforementioned bulk loan sale and $403,000 in net gains on equity securities during the three months ended December 31, 2024 with no corresponding gains for 2023.
Noninterest expense decreased $1.1 million for the three months ended December 31, 2024 as compared to the same period in 2023. The decrease was due primarily to decreases in compensation and benefits, occupancy and equipment and professional fee expenses of $487,000, $405,000 and $385,000, respectively. These decreases were primarily due to the cessation of national mortgage banking operations in the quarter ended December 31, 2023.
The Company recognized income tax expense of $848,000 for the three months ended December 30, 2024 as compared to income tax benefit of $476,000 for the same period in 2023. The increase is due primarily to higher taxable income in the 2024 period, due primarily to the aforementioned net gain on sale of loans. The effective tax rate for 2024 was 12.0%. The effective tax rate is well below the statutory tax rate primarily due to the recognition of investment tax credits related to solar projects in both the 2024 and 2023 periods.
Comparison of Financial Condition at December 31, 2024 and September 30, 2024
Total assets decreased $61.6 million, from $2.45 billion at September 30, 2024 to $2.39 billion at December 31, 2024. Net loans held for investment decreased $79.3 million during the three months ended December 31, 2024 due primarily to the $87.2 million bulk sale of residential real estate home equity line of credit loans.
Total liabilities decreased $60.5 million due primarily to decreases in total deposits of $48.1 million, which included a decrease in brokered deposits of $72.1 million and a decrease in FHLB borrowings of $6.6 million. The decrease in brokered deposits and FHLB borrowings was due primary to repayments as a result of the aforementioned bulk loan sale. As of December 31, 2024, deposits exceeding the FDIC insurance limit of $250,000 per insured account were 31.1% of total deposits and 13.7% of total deposits when excluding public funds insured by the Indiana Public Deposit Insurance Fund.
Total stockholders’ equity decreased $1.1 million, from $177.1 million at September 30, 2024 to $176.0 million at December 31, 2024, due primarily to a $6.6 million increase in accumulated other comprehensive loss, partially offset by an increase in retained net income of $5.2 million. The increase in accumulated other comprehensive loss was due primarily to increasing long-term market interest rates during the three months ended December 31, 2024, which resulted in a decrease in the fair value of securities available for sale. At December 31, 2024 and September 30, 2024, the Bank was considered “well-capitalized” under applicable regulatory capital guidelines.
First Savings Bank is an entrepreneurial community bank headquartered in Jeffersonville, Indiana, which is directly across the Ohio River from Louisville, Kentucky, and operates fifteen depository branches within Southern Indiana. The Bank also has two national lending programs, including single-tenant net lease commercial real estate and SBA lending, with offices located predominately in the Midwest. The Bank is a recognized leader, both in its local communities and nationally for its lending programs. The employees of First Savings Bank strive daily to achieve the organization’s vision, We Expect To Be The BEST community BANK, which fuels our success. The Company’s common shares trade on The NASDAQ Stock Market under the symbol “FSFG.”
This release may contain forward-looking statements within the meaning of the federal securities laws. These statements are not historical facts; rather, they are statements based on the Company’s current expectations regarding its business strategies and their intended results and its future performance. Forward-looking statements are preceded by terms such as “expects,” “believes,” “anticipates,” “intends” and similar expressions.
Forward-looking statements are not guarantees of future performance. Numerous risks and uncertainties could cause or contribute to the Company’s actual results, performance and achievements to be materially different from those expressed or implied by the forward-looking statements. Factors that may cause or contribute to these differences include, without limitation, changes in general economic conditions; changes in market interest rates; changes in monetary and fiscal policies of the federal government; legislative and regulatory changes; and other factors disclosed periodically in the Company’s filings with the Securities and Exchange Commission.
Because of the risks and uncertainties inherent in forward-looking statements, readers are cautioned not to place undue reliance on them, whether included in this report or made elsewhere from time to time by the Company or on its behalf. Except as may be required by applicable law or regulation, the Company assumes no obligation to update any forward-looking statements.
Contact:
Tony A. Schoen, CPA
Chief Financial Officer
812-283-0724FIRST SAVINGS FINANCIAL GROUP, INC. CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) Three Months Ended OPERATING DATA: December 31, (In thousands, except share and per share data) 2024 2023 Total interest income $ 32,449 $ 28,655 Total interest expense 16,987 14,542 Net interest income 15,462 14,113 Provision (credit) for credit losses – loans (490 ) 470 Provision (credit) for unfunded lending commitments 46 (58 ) Credit for credit losses – securities (7 ) – Total provision (credit) for credit losses (451 ) 412 Net interest income after provision (credit) for credit losses 15,913 13,701 Total noninterest income 6,103 2,782 Total noninterest expense 14,943 16,039 Income before income taxes 7,073 444 Income tax expense (benefit) 848 (476 ) Net income $ 6,225 $ 920 Net income per share, basic $ 0.91 $ 0.13 Weighted average shares outstanding, basic 6,851,153 6,823,948 Net income per share, diluted $ 0.89 $ 0.13 Weighted average shares outstanding, diluted 6,969,223 6,839,704 Performance ratios (annualized) Return on average assets 1.02 % 0.16 % Return on average equity 14.07 % 2.42 % Return on average common stockholders’ equity 14.07 % 2.42 % Net interest margin (tax equivalent basis) 2.75 % 2.69 % Efficiency ratio 69.29 % 94.93 % QTD FINANCIAL CONDITION DATA: December 31, September 30, Increase (In thousands, except per share data) 2024 2024 (Decrease) Total assets $ 2,388,735 $ 2,450,368 $ (61,633 ) Cash and cash equivalents 76,224 52,142 24,082 Investment securities 242,634 249,719 (7,085 ) Loans held for sale 24,441 25,716 (1,275 ) Gross loans 1,905,199 1,985,146 (79,947 ) Allowance for credit losses 20,685 21,294 (609 ) Interest earning assets 2,234,258 2,277,512 (43,254 ) Goodwill 9,848 9,848 – Core deposit intangibles 357 398 (41 ) Loan servicing rights 2,661 2,754 (93 ) Noninterest-bearing deposits 183,239 191,528 (8,289 ) Interest-bearing deposits (retail) 1,212,527 1,180,196 32,331 Interest-bearing deposits (brokered) 437,008 509,157 (72,149 ) Federal Home Loan Bank borrowings 295,000 301,640 (6,640 ) Subordinated debt and other borrowings 48,642 48,603 39 Total liabilities 2,212,708 2,273,253 (60,545 ) Accumulated other comprehensive loss (17,789 ) (11,195 ) (6,594 ) Total stockholders’ equity 176,027 177,115 (1,088 ) Book value per share $ 25.48 $ 25.72 (0.24 ) Tangible book value per share (non-GAAP) (1) 24.00 24.23 (0.23 ) Non-performing assets: Nonaccrual loans – SBA guaranteed $ 4,444 $ 5,036 $ (592 ) Nonaccrual loans 12,124 11,906 218 Total nonaccrual loans $ 16,568 $ 16,942 $ (374 ) Accruing loans past due 90 days – – – Total non-performing loans 16,568 16,942 (374 ) Foreclosed real estate 444 444 – Total non-performing assets $ 17,012 $ 17,386 $ (374 ) Asset quality ratios: Allowance for credit losses as a percent of total gross loans 1.09 % 1.07 % 0.01 % Allowance for credit losses as a percent of nonperforming loans 124.85 % 125.69 % (0.84 %) Nonperforming loans as a percent of total gross loans 0.87 % 0.85 % 0.02 % Nonperforming assets as a percent of total assets 0.71 % 0.71 % 0.00 % (1) See reconciliation of GAAP and non-GAAP financial measures for additional information relating to calculation of this item. RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL MEASURES (UNAUDITED): The following non-GAAP financial measures used by the Company provide information useful to investors in understanding the Company’s performance. The Company believes the financial measures presented below are important because of their widespread use by investors as a means to evaluate capital adequacy and earnings. The following table summarizes the non-GAAP financial measures derived from amounts reported in the Company’s consolidated financial statements and reconciles those non-GAAP financial measures with the comparable GAAP financial measures. Three Months Ended Net Income December 31, (In thousands) 2024 2023 Net income attributable to the Company (non-GAAP) $ 4,308 $ 920 Plus: Gain on sale of loans, home equity lines of credit, net of tax effect 1,869 – Plus: Reversal of provision for credit losses, loans, net of tax effect 735 – Plus: Reversal of provision for credit losses, unfunded commitments, net of tax effect 97 – Plus: Gain on sale of equity securities (Visa Class B-2 shares), net of tax effect 302 Less: Adjustments to sick pay contingent liability, net of tax effect (296 ) Less: Compensation expense associated with loan sale, net of tax effect (790 ) Net income attributable to the Company (GAAP) $ 6,225 $ 920 Net Income per Share, Diluted Net income per share attributable to the Company, diluted (non-GAAP) $ 0.62 $ 0.13 Plus: Gain on sale of loans, home equity lines of credit, net of tax effect 0.26 – Plus: Reversal of provision for credit losses, loans, net of tax effect 0.11 – Plus: Reversal of provision for credit losses, unfunded commitments, net of tax effect 0.01 – Plus: Gain on sale of equity securities (Visa Class B-2 shares), net of tax effect 0.04 Less: Adjustments to sick pay contingent liability, net of tax effect (0.04 ) Less: Compensation expense associated with loan sale, net of tax effect (0.11 ) Net income per share, diluted (GAAP) $ 0.89 $ 0.13 Core Bank Segment Net Income (In thousands) Net income attributable to the Core Bank (non-GAAP) $ 4,452 $ 4,048 Plus: Gain on sale of loans, home equity lines of credit, net of tax effect 1,869 – Plus: Reversal of provision for credit losses, loans, net of tax effect 735 – Plus: Reversal of provision for credit losses, unfunded commitments, net of tax effect 97 – Plus: Gain on sale of equity securities (Visa Class B-2 shares), net of tax effect 302 – Less: Adjustments to sick pay contingent liability, net of tax effect (296 ) – Less: Compensation expense associated with loan sale, net of tax effect (790 ) – Net income attributable to the Core Bank (GAAP) $ 6,369 $ 4,048 Core Bank Segment Net Income per Share, Diluted Core Bank net income per share, diluted (non-GAAP) $ 0.64 $ 0.59 Plus: Gain on sale of loans, home equity lines of credit, net of tax effect 0.26 – Plus: Reversal of provision for credit losses, loans, net of tax effect 0.11 – Plus: Reversal of provision for credit losses, unfunded commitments, net of tax effect 0.01 – Plus: Gain on sale of equity securities (Visa Class B-2 shares), net of tax effect 0.04 – Less: Adjustments to sick pay contingent liability, net of tax effect (0.04 ) – Less: Compensation expense associated with loan sale, net of tax effect (0.11 ) – Core Bank net income per share, diluted (GAAP) $ 0.91 $ 0.59 RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL MEASURES (UNAUDITED) (CONTINUED): Three Months Ended Efficiency Ratio 2024 (In thousands) 2024 2023 Net interest income (GAAP) $ 15,462 $ 14,113 Noninterest income (GAAP) 6,103 2,782 Noninterest expense (GAAP) 14,943 16,039 Efficiency ratio (GAAP) 69.29 % 94.93 % Noninterest income (GAAP) $ 6,103 $ 2,782 Less: Gain on sale of loans, home equity lines of credit (2,492 ) – Less: Gain on sale of equity securities (Visa Class B-2 shares) (403 ) – Noninterest income (Non-GAAP) 3,208 2,782 Noninterest expense (GAAP) $ 14,943 $ 16,039 Less: Adjustments to sick pay contingent liability (395 ) – Less: Compensation expense associated with loan sale (1,053 ) – Noninterest expense (Non-GAAP) $ 13,495 $ 16,039 Efficiency ratio (excluding nonrecurring items) (non-GAAP) 72.28 % 94.93 % Tangible Book Value Per Share December 31, September 30, Increase (In thousands, except share and per share data) 2024 2024 (Decrease) Stockholders’ equity (GAAP) $ 176,027 $ 177,115 $ (1,088 ) Less: goodwill and core deposit intangibles (10,205 ) (10,246 ) 41 Tangible stockholders’ equity (non-GAAP) $ 165,822 $ 166,869 $ (1,047 ) Outstanding common shares 6,909,173 6,887,106 $ 22,067 Tangible book value per share (non-GAAP) $ 24.00 $ 24.23 $ (0.23 ) Book value per share (GAAP) $ 25.48 $ 25.72 $ (0.24 ) SUMMARIZED FINANCIAL INFORMATION (UNAUDITED): As of Summarized Consolidated Balance Sheets December 31, September 30, June 30, March 31, December 31, (In thousands, except per share data) 2024 2024 2024 2024 2023 Total cash and cash equivalents $ 76,224 $ 52,142 $ 42,423 $ 62,969 $ 33,366 Total investment securities 242,634 249,719 238,785 240,142 246,801 Total loans held for sale 24,441 25,716 125,859 19,108 22,866 Total loans, net of allowance for credit losses 1,884,514 1,963,852 1,826,980 1,882,458 1,841,953 Loan servicing rights 2,661 2,754 2,860 3,028 3,711 Total assets 2,388,735 2,450,368 2,393,491 2,364,983 2,308,092 Retail deposits $ 1,395,766 $ 1,371,724 $ 1,312,997 $ 1,239,271 $ 1,180,951 Brokered deposits 437,008 509,157 399,151 548,175 502,895 Total deposits 1,832,774 1,880,881 1,712,148 1,787,446 1,683,846 Federal Home Loan Bank borrowings 295,000 301,640 425,000 315,000 356,699 Common stock and additional paid-in capital $ 28,382 $ 27,725 $ 27,592 $ 27,475 $ 27,397 Retained earnings – substantially restricted 178,526 173,337 170,688 167,648 163,753 Accumulated other comprehensive loss (17,789 ) (11,195 ) (17,415 ) (17,144 ) (13,606 ) Unearned stock compensation (973 ) (901 ) (999 ) (1,096 ) (1,194 ) Less treasury stock, at cost (12,119 ) (11,851 ) (11,866 ) (11,827 ) (11,827 ) Total stockholders’ equity 176,027 177,115 168,000 165,056 164,523 Outstanding common shares 6,909,173 6,887,106 6,883,656 6,883,160 6,883,160 Three Months Ended Summarized Consolidated Statements of Income December 31, September 30, June 30, March 31, December 31, (In thousands, except per share data) 2024 2024 2024 2024 2023 Total interest income $ 32,449 $ 32,223 $ 31,094 $ 30,016 $ 28,655 Total interest expense 16,987 17,146 16,560 15,678 14,542 Net interest income 15,462 15,077 14,534 14,338 14,113 Provision (credit) for credit losses – loans (490 ) 1,808 501 713 470 Provision (credit) for unfunded lending commitments 46 (262 ) 158 (259 ) (58 ) Provision (credit) for credit losses – securities (7 ) (86 ) 84 23 – Total provision (credit) for credit losses (451 ) 1,460 743 477 412 Net interest income after provision for credit losses 15,913 13,617 13,791 13,861 13,701 Total noninterest income 6,103 2,842 3,196 3,710 2,782 Total noninterest expense 14,943 12,642 12,431 11,778 16,039 Income before income taxes 7,073 3,817 4,556 5,793 444 Income tax expense (benefit) 848 145 483 866 (476 ) Net income 6,225 3,672 4,073 4,927 920 Net income per share, basic $ 0.91 $ 0.54 $ 0.60 $ 0.72 $ 0.13 Weighted average shares outstanding, basic 6,851,153 6,832,626 6,832,452 6,832,130 6,823,948 Net income per share, diluted $ 0.89 $ 0.53 $ 0.60 $ 0.72 $ 0.13 Weighted average shares outstanding, diluted 6,969,223 6,894,532 6,842,336 6,859,611 6,839,704 SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED): Three Months Ended Noninterest Income Detail December 31, September 30, June 30, March 31, December 31, (In thousands) 2024 2024 2024 2024 2023 Service charges on deposit accounts $ 567 $ 552 $ 538 $ 387 $ 473 ATM and interchange fees 665 642 593 585 449 Net unrealized gain on equity securities 78 28 419 6 38 Net gain on equity securities 403 – – – – Net gain on sales of loans, Small Business Administration 711 647 581 951 834 Net gain on sales of loans, home equity lines of credit 2,492 – – – – Mortgage banking income 78 6 49 53 89 Increase in cash surrender value of life insurance 361 363 353 333 329 Gain on life insurance 108 – – – – Commission income 210 294 220 220 222 Real estate lease income 121 122 154 115 115 Net gain (loss) on premises and equipment 45 (4 ) – 120 – Other income 264 192 289 940 233 Total noninterest income $ 6,103 $ 2,842 $ 3,196 $ 3,710 $ 2,782 Three Months Ended December 31, September 30, June 30, March 31, December 31, Consolidated Performance Ratios (Annualized) 2024 2024 2024 2024 2023 Return on average assets 1.02 % 0.61 % 0.69 % 0.92 % 0.16 % Return on average equity 14.07 % 8.52 % 9.86 % 13.06 % 2.42 % Return on average common stockholders’ equity 14.07 % 8.52 % 9.86 % 13.06 % 2.42 % Net interest margin (tax equivalent basis) 2.75 % 2.72 % 2.67 % 2.66 % 2.69 % Efficiency ratio 69.29 % 70.55 % 70.11 % 65.26 % 94.93 % As of or for the Three Months Ended December 31, September 30, June 30, March 31, December 31, Consolidated Asset Quality Ratios 2024 2024 2024 2024 2023 Nonperforming loans as a percentage of total loans 0.87 % 0.85 % 0.91 % 0.82 % 0.83 % Nonperforming assets as a percentage of total assets 0.71 % 0.71 % 0.72 % 0.68 % 0.69 % Allowance for credit losses as a percentage of total loans 1.09 % 1.07 % 1.07 % 1.02 % 1.01 % Allowance for credit losses as a percentage of nonperforming loans 124.85 % 125.69 % 118.12 % 124.01 % 121.16 % Net charge-offs to average outstanding loans 0.01 % 0.02 % 0.01 % 0.01 % 0.00 % SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED): Three Months Ended Segmented Statements of Income Information December 31, September 30, June 30, March 31, December 31, (In thousands) 2024 2024 2024 2024 2023 Core Banking Segment: Net interest income $ 13,756 $ 14,083 $ 13,590 $ 13,469 $ 13,113 Provision (credit) for credit losses – loans (745 ) 1,339 320 909 (49 ) Provision (credit) for unfunded lending commitments (75 ) 78 64 (259 ) – Provision (credit) for credit losses – securities (7 ) (86 ) 84 23 – Net interest income after provision for credit losses 14,583 12,752 13,122 12,796 13,162 Noninterest income 5,253 2,042 2,474 2,537 1,679 Noninterest expense 12,574 10,400 10,192 10,093 10,252 Income before income taxes 7,262 4,394 5,404 5,240 4,589 Income tax expense 893 301 689 729 541 Net income $ 6,369 $ 4,093 $ 4,715 $ 4,511 $ 4,048 SBA Lending Segment (Q2): Net interest income $ 1,706 $ 994 $ 944 $ 869 $ 1,003 Provision (credit) for credit losses – loans 255 469 181 (196 ) 461 Provision (credit) for unfunded lending commitments 121 (340 ) 94 – – Net interest income after provision for credit losses 1,330 865 669 1,065 542 Noninterest income 850 800 722 1,173 1,003 Noninterest expense 2,369 2,242 2,239 1,685 2,146 Income (loss) before income taxes (189 ) (577 ) (848 ) 553 (601 ) Income tax expense (benefit) (45 ) (156 ) (206 ) 137 (131 ) Net income (loss) $ (144 ) $ (421 ) $ (642 ) $ 416 $ (470 ) Mortgage Banking Segment: (2) Net interest income (loss) $ – $ – $ – $ – $ (3 ) Provision for credit losses – loans – – – – – Provision for unfunded lending commitments – – – – – Net interest income (loss) after provision for credit losses – – – – (3 ) Noninterest income – – – – 100 Noninterest expense – – – – 3,641 Loss before income taxes – – – – (3,544 ) Income tax benefit – – – – (886 ) Net loss $ – $ – $ – $ – $ (2,658 ) (2) National mortgage banking operations were ceased in the quarter ended December 31, 2023 and subsequent immaterial mortgage lending activity is reported within the Core Banking segment. SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED): Three Months Ended Segmented Statements of Income Information December 31, September 30, June 30, March 31, December 31, (In thousands, except percentage data) 2024 2024 2024 2024 2023 Net Income (Loss) Per Share by Segment Net income per share, basic – Core Banking $ 0.93 $ 0.60 $ 0.69 $ 0.66 $ 0.59 Net income (loss) per share, basic – SBA Lending (Q2) (0.02 ) (0.06 ) (0.09 ) 0.06 (0.07 ) Net loss per share, basic – Mortgage Banking 0.00 0.00 0.00 0.00 (0.40 ) Total net income (loss) per share, basic $ 0.91 $ 0.54 $ 0.60 $ 0.72 $ 0.12 Net Income (Loss) Per Diluted Share by Segment Net income per share, diluted – Core Banking $ 0.91 $ 0.59 $ 0.69 $ 0.66 $ 0.59 Net income (loss) per share, diluted – SBA Lending (Q2) (0.02 ) (0.06 ) (0.09 ) 0.06 (0.07 ) Net loss per share, diluted – Mortgage Banking 0.00 0.00 0.00 0.00 (0.40 ) Total net income (loss) per share, diluted $ 0.89 $ 0.53 $ 0.60 $ 0.72 $ 0.12 Return on Average Assets by Segment (annualized) (3) Core Banking 1.09 % 0.71 % 0.83 % 0.80 % 0.73 % SBA Lending (0.55 %) (1.71 %) (2.91 %) 1.81 % (2.11 %) Efficiency Ratio by Segment (annualized) (3) Core Banking 66.15 % 64.50 % 63.45 % 63.06 % 69.31 % SBA Lending 92.68 % 124.97 % 134.39 % 82.52 % 106.98 % Three Months Ended Noninterest Expense Detail by Segment December 31, September 30, June 30, March 31, December 31, (In thousands) 2024 2024 2024 2024 2023 Core Banking Segment: Compensation $ 7,245 $ 5,400 $ 5,587 $ 5,656 $ 5,691 Occupancy 1,577 1,554 1,573 1,615 1,481 Advertising 338 399 253 205 189 Other 3,414 3,047 2,779 2,617 2,891 Total Noninterest Expense $ 12,574 $ 10,400 $ 10,192 $ 10,093 $ 10,252 SBA Lending Segment (Q2): Compensation $ 1,931 $ 1,854 $ 1,893 $ 1,933 $ 1,826 Occupancy 59 55 51 58 91 Advertising 14 17 12 7 10 Other 365 316 283 (313 ) 219 Total Noninterest Expense $ 2,369 $ 2,242 $ 2,239 $ 1,685 $ 2,146 Mortgage Banking Segment: (2) Compensation $ – $ – $ – $ – $ 2,146 Occupancy – – – – 469 Advertising – – – – 119 Other – – – – 907 Total Noninterest Expense $ – $ – $ – $ – $ 3,641 (3) Ratios for Mortgage Banking Segment are not considered meaningful due to cessation of national mortgage banking operations in the quarter ended December 31, 2023. SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED): Three Months Ended SBA Lending (Q2) Data December 31, September 30, June 30, March 31, December 31, (In thousands, except percentage data) 2024 2024 2024 2024 2023 Final funded loans guaranteed portion sold, SBA $ 10,785 $ 10,880 $ 7,515 $ 15,144 $ 14,098 Gross gain on sales of loans, SBA $ 1,141 $ 1,029 $ 811 $ 1,443 $ 1,303 Weighted average gross gain on sales of loans, SBA 10.58 % 9.46 % 10.79 % 9.53 % 9.24 % Net gain on sales of loans, SBA (4) $ 711 $ 647 $ 581 $ 951 $ 834 Weighted average net gain on sales of loans, SBA 6.59 % 5.95 % 7.73 % 6.28 % 5.92 % (4) Inclusive of gains on servicing assets and net of commissions, referral fees, SBA repair fees and discounts on unguaranteed portions held-for-investment. SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED): Three Months Ended Summarized Consolidated Average Balance Sheets December 31, September 30, June 30, March 31, December 31, (In thousands) 2024 2024 2024 2024 2023 Interest-earning assets Average balances: Interest-bearing deposits with banks $ 21,102 $ 16,841 $ 26,100 $ 24,587 $ 20,350 Loans 2,010,082 1,988,997 1,943,716 1,914,609 1,857,654 Investment securities – taxable 101,960 99,834 101,350 102,699 103,728 Investment securities – nontaxable 160,929 158,917 157,991 157,960 159,907 FRB and FHLB stock 24,986 24,986 24,986 24,986 24,968 Total interest-earning assets $ 2,319,059 $ 2,289,575 $ 2,254,143 $ 2,224,841 $ 2,166,607 Interest income (tax equivalent basis): Interest-bearing deposits with banks $ 210 $ 209 $ 324 $ 261 $ 249 Loans 29,617 29,450 28,155 27,133 26,155 Investment securities – taxable 914 910 918 923 942 Investment securities – nontaxable 1,715 1,685 1,665 1,662 1,687 FRB and FHLB stock 493 471 519 499 74 Total interest income (tax equivalent basis) $ 32,949 $ 32,725 $ 31,581 $ 30,478 $ 29,107 Weighted average yield (tax equivalent basis, annualized): Interest-bearing deposits with banks 3.98 % 4.96 % 4.97 % 4.25 % 4.89 % Loans 5.89 % 5.92 % 5.79 % 5.67 % 5.63 % Investment securities – taxable 3.59 % 3.65 % 3.62 % 3.59 % 3.63 % Investment securities – nontaxable 4.26 % 4.24 % 4.22 % 4.21 % 4.22 % FRB and FHLB stock 7.89 % 7.54 % 8.31 % 7.99 % 1.19 % Total interest-earning assets 5.68 % 5.72 % 5.60 % 5.48 % 5.37 % Interest-bearing liabilities Interest-bearing deposits $ 1,671,156 $ 1,563,258 $ 1,572,871 $ 1,549,012 $ 1,389,384 Federal Home Loan Bank borrowings 315,583 378,956 351,227 333,275 440,786 Subordinated debt and other borrowings 48,616 48,576 48,537 48,497 48,458 Total interest-bearing liabilities $ 2,035,355 $ 1,990,790 $ 1,972,635 $ 1,930,784 $ 1,878,628 Interest expense: Interest-bearing deposits $ 13,606 $ 12,825 $ 12,740 $ 12,546 $ 9,989 Federal Home Loan Bank borrowings 2,617 3,521 3,021 2,298 3,769 Subordinated debt and other borrowings 764 800 799 833 784 Total interest expense $ 16,987 $ 17,146 $ 16,560 $ 15,677 $ 14,542 Weighted average cost (annualized): Interest-bearing deposits 3.26 % 3.28 % 3.24 % 3.24 % 2.88 % Federal Home Loan Bank borrowings 3.32 % 3.72 % 3.44 % 2.76 % 3.42 % Subordinated debt and other borrowings 6.29 % 6.59 % 6.58 % 6.87 % 6.47 % Total interest-bearing liabilities 3.34 % 3.45 % 3.36 % 3.25 % 3.10 % Net interest income (taxable equivalent basis) $ 15,962 $ 15,579 $ 15,021 $ 14,801 $ 14,565 Less: taxable equivalent adjustment (500 ) (502 ) (487 ) (463 ) (452 ) Net interest income $ 15,462 $ 15,077 $ 14,534 $ 14,338 $ 14,113 Interest rate spread (tax equivalent basis, annualized) 2.34 % 2.27 % 2.24 % 2.23 % 2.27 % Net interest margin (tax equivalent basis, annualized) 2.75 % 2.72 % 2.67 % 2.66 % 2.69 % -
MIL-OSI USA: Tuberville: Allowing Child Mutilation is “Pure Insanity”
US Senate News:
Source: United States Senator for Alabama Tommy Tuberville
WASHINGTON – Today, U.S. Senator Tommy Tuberville (R-AL) issued the following statement in support of President Donald Trump’s executive order ending the chemical and surgical mutilation of children:
“We all know by now that so-called ‘gender-affirming care’ is anything but caring. There’s a reason it’s illegal for kids to buy alcohol, a lottery ticket, or join the military. Allowing our young people whose brains aren’t fully developed to undergo a life-altering, irreversible procedure is pure insanity. This isn’t about politics—this is about good and evil. I’m thankful for President Trump’s commonsense leadership to end this barbaric practice in our country once and for all.”
MORE:
ICYMI: Tuberville Joins Roundtable on Protecting Children and Women’s Sports
Senator Tommy Tuberville represents Alabama in the United States Senate and is a member of the Senate Armed Services, Agriculture, Veterans’ Affairs, HELP, and Aging Committees. -
MIL-OSI USA: Cornyn to Chair Senate Drug Caucus
US Senate News:
Source: United States Senator for Texas John Cornyn
WASHINGTON – U.S. Senator John Cornyn (R-TX) issued the following statement announcing he will serve as chair of the U.S. Senate Caucus on International Narcotics Control during the 119th Congress:
“Deadly narcotics like fentanyl continue to ravage communities in Texas and across the nation, and an all-of-the-above approach is needed to fully root out these silent killers. I look forward to leveraging this new post to stifle the supply chain of Chinese precursors, target distributors in Latin America, and hold financiers of this deadly trade accountable for the massive loss of innocent American life they’re responsible for.”
Sen. Cornyn previously served as chair from 2019-2020 and ranking member from 2021-2022. During this time, the Caucus released a landmark report on the public health implications and risks of cannabis use, in addition to hosting hearings on international narcotics trafficking, the role of cartels in the illicit drug trade, and the drug overdose epidemic. -
MIL-OSI USA: Welch Calls Out Trump’s Overreach with Illegal Federal Funding Freeze
US Senate News:
Source: United States Senator Peter Welch (D-Vermont)
WASHINGTON, D.C.—U.S. Senator Peter Welch (D-Vt.) tonight took to the Senate Floor to blast President Trump’s new order to halt the disbursement of trillions of dollars in federal funding, which was issued by the Office of Management and Budget (OMB) but temporarily blocked late this afternoon until Monday by a federal judge. A portion of Senator Welch’s remarks can be found below:
“This is the test that we face: If we’re United States Senators and we believe that the Constitution is important—not in the abstract—but in the role it has played in preserving and protecting the freedom of all Americans, and we believe that freedom is preserved when there is a check and balance against unbridled power, then we are the ones that have to act in order to protect the well-being of this country against the illegal actions by a President who just doesn’t care, whether it’s legal or it isn’t.
“He worships power. And he’s creating a new culture—where if you worship community service, if you worship generosity, forgiveness, empathy…you’re a sucker. That’s the emotional message from President Trump. People in Vermont? They want and they do better, when they see injustice, they see suffering and they respond to it. They don’t intensify it.
“So, we have a decision as United States Senators to stand up for what this institution requires. And that is that we are a separate and coequal branch of government. And when the responsibilities are being subverted by an overreach by the executive, we resist. And we resist because it’s absolutely vital to the well-being of this country that our democracy prevail—three branches of government, checks and balances.
“But it’s really, fundamentally important to the well-being of the people we represent that their opportunity to live with stability, the ability to help their neighbors, to have confidence that promises are made or promises kept. That we defend the good work, the good will, integrity of the people of Vermont…of all of our 50 states.”
Watch the video here:
Read the Vermont Congressional Delegation’s statement on the impact of the order on Vermonters. -
MIL-OSI New Zealand: Make a splash at these toddler pools this summer
Source: Auckland Council
As Auckland temperatures rise, many tots and toddlers will enjoy cooling off in one of the regions’ pools this summer – even if they haven’t learnt the word pool yet. There are many toddler-friendly pools around Auckland ready to help your child make a splash, helping them to stay cool, learn life-long skills and gain confidence in the water.
Toddler pools and paddling pools are a great way for little ones to get comfortable around water. By having a dedicated pool, toddlers can have fun while learning water skills without the risk of colliding with older children. These pools are especially designed to make the swimming experience more enjoyable for little ones – the shallow water allows them to touch the bottom easily and often these pools are slightly warmer. Make sure to check the opening hours of toddler pools as they may be closed at times when adult pools are open.
Safety first
Toddlers are a handful in or out of the water, and safety is crucial when swimming with small children. Pools for toddlers make it easier for adults to focus their attention on little ones in the pool. Never turn your back on a toddler in the water – our safety rules state that a caregiver 17 years and over must be within arm’s reach of children under four at all times.
Children aged 5-10 must be supervised and adults must be close enough to provide immediate assistance.
Follow the child-to-adult ratios when supervising your children. One adult should accompany no more than two children aged four and under; for children aged 5-10 the ratio is four children to one adult. Please note that for hygiene reasons children under three must wear a waterproof swimming nappy – an easy way to keep the nappy in place is by dressing your child in togs over the top.
Learn a life skill
Babies as young as six months can take part in swimming lessons at Auckland Council’s pool and leisure centres. There is a dedicated babies class for infants aged six months to one year, and for kids aged 1-3 there are three toddler classes, based on your child’s ability to submerge on cue and confidence to swim independently. For kids aged 3-5 there are three dedicated pre-school classes. Unsure which class suits your child? Check out this swim level flow chart or book an assessment.
Unsure of your toddler’s swimming ability? Book an assessment to make sure you enroll your child in the right swimming class.
Six toddler pools to try
There are many toddler pools to choose from around the region, but here are a few of our favourites.
1. Lloyd Elsmore Park Pool and Leisure Centre
Located in Pakuranga, this is the perfect spot for kids and toddlers. The indoor splash pool is 33°C and features a fountain so littlies can play and get used to the feeling of water on their face. The learners’ pool features a wheelchair accessibility ramp and has depth ranges of 0.75m-0.9m. The facility also has an outdoor splashpad, which is another fun way to cool off during summer.
Opening hours:
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Toddler splash pool: 30am-5.15pm
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Splash pad: 10am-6pm (weather dependent, December-March/April)
2. Albany Stadium Pool
Toddlers and young ones are well catered for at Albany Stadium Pool. The dedicated toddler pool is heated to 31°C and features a play centre and slide – it’s wheelchair accessible and water wheelchairs are available. There’s also an indoor splash pad, over-the-pool rock climbing wall and a 20m programmes pool for swimming lessons.
Toddler pool hours:
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Monday-Friday 30am-7pm
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Saturday-Sunday 8am-7pm
Toddlers can enjoy the pool and splash play area at Albany Stadium Pool.
3. Ōtara Pool and Leisure Centre
This fantastic community facility features a toddlers’ pool heated to a comfy temperature of 32°C. A colourful water feature helps kids have fun while learning important water skills. The 15m learners’ pool is a great option for older children advancing with their swimming, and older kids can also enjoy the outdoor pool in the summer months.
Toddler pool hours:
Older children enjoying the learners’ pool at Ōtara Pool and Leisure Centre.
4. Grey Lynn Paddling Pool
This dedicated outdoor toddler pool is popular with tots during the summer months. The hexagonal pool has a maximum depth of 0.75m, is sheltered from the sun by shade sails and is patrolled by a lifeguard during opening hours. It’s right next to a playground so your kids will stay active wet or dry.
Toddler pool hours:
Shade sail offer extra sun protection at the outdoor Grey Lynn Paddling Pool.
5. Manurewa Pool and Leisure Centre
This all-ages centre features a toddlers’ splash pool with a fun umbrella fountain. The water is heated to a balmy 32°C. The learners’ pool features three lanes making it great for swim lessons, and it can also be accessed by a ramp.
Toddler pool hours:
Tots will enjoy the toddler splash pool at Manurewa Pool and Leisure Centre, heated to a balmy 32°C.
6. Moana Nui-a-Kiwa Pool and Leisure Centre
This facility in Māngere is fun central all year round. Indoors there’s a toddlers’ pool that’s 0.3-0.9m deep, and features a friendly orca sculpture and a splash pool with a bubble pit. The learners’ pool has a depth of 0.75-1.1m, great for lessons. Outdoors there’s a splash pad, and for older kids there’s a hydroslide and a dedicated bombing pool so your kids can learn to pop a manu.
Toddler pool hours:
Click here for a full list of Auckland Council pools and opening hours
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MIL-OSI: U.S. Rep. Nanette Barragán Joins Federal Home Loan Bank of San Francisco to Address Affordable Housing Crisis in Southern California
Source: GlobeNewswire (MIL-OSI)
SAN FRANCISCO, Jan. 28, 2025 (GLOBE NEWSWIRE) — Committed to prioritizing solutions for the affordable housing crisis in Southern California, U.S. Rep. Nanette Barragán, (CA-44) hosted a roundtable discussion with the Federal Home Loan Bank of San Francisco (FHLBank San Francisco) today at The Enclave in Torrance, California. The roundtable brought together affordable housing leaders, community organizations, financial institutions, and other stakeholders throughout the area to discuss how organizations and public-private partnerships could play a pivotal role in solving the housing crisis in Southern California after tens of thousands were displaced by the recent wildfires in the region.
“Many families in my district, and across Los Angeles County, struggle to afford housing,” said Rep. Nanette Barragán. “This roundtable brings together key partners to explore solutions to increase housing supply, reduce costs, and expand opportunities for homeownership. Together, we can make real progress for our communities.”
Rep. Barragán has a history of leading on issues related to affordable housing and has secured millions in federal funding for local projects that support affordable housing development, advance homeownership for first time homebuyers and expand supportive housing options. By teaming up with FHLBank San Francisco and its members, she is working to find local solutions to the housing crisis.
“This roundtable comes at a critical moment for our district, as many families and individuals have been displaced by the devastating wildfires in Los Angeles. We are proud to partner with Representative Barragán, a dedicated leader and tireless advocate for addressing the housing crisis in Southern California,” said Alanna McCargo, president and chief executive officer of FHLBank San Francisco. “Collaboration is essential to develop innovative solutions that improve affordability, expand housing supply and support the rebuilding of communities impacted by these wildfires. Our Bank is a valuable and trusted community partner that can leverage an extensive network of member financial institutions to help turn these ideas into action.”
In 2024, FHLBank San Francisco awarded $6.75 million in Affordable Housing Program (AHP) grants to support a range of projects in Los Angeles. Statewide, more than $49 million in AHP grants were awarded through its member financial institutions to help address and expedite solutions to California’s affordable housing crisis.
Attendees at the roundtable included:
- Dora Leong Gall, A Community of Friends
- Holly Benson, Adobe communities
- Andrea Parker, Farmers and Merchants bank
- Jeremy Empol, FHLBank San Francisco
- Anabel Cuevas, FHLBank San Francisco
- Darrell Simien, Habitat for Humanity LA
- Laura Archuleta, Jamboree
- Suny Lay Chang, LINC Housing
- Michael Ruane, National CORE
- Gerald Phillips, Neighborhood Housing Services of Los Angeles County
- Patricia Valladolid, One San Pedro/Century Housing
- Michael Faulwell, SchoolsFirst FCU
- Brent Terecero, SchoolsFirst FCU
FHLBank San Francisco is dedicated to supporting housing initiatives throughout its three-state region, including Arizona, California, and Nevada. Since the Affordable Housing Program (AHP) was created in 1990, FHLBank San Francisco has awarded over $1.35 billion in AHP grants to support the construction, rehabilitation, or purchase of over 154,600 homes affordable to lower-income households, including $61.8 million in 2024 alone. Together, the 11 regional FHLBanks that make up the Federal Home Loan Bank System are one of the largest privately capitalized sources of grant funding for affordable housing in the United States.
About the Federal Home Loan Bank of San Francisco
The Federal Home Loan Bank of San Francisco is a member-owned cooperative supporting local lenders in Arizona, California, and Nevada to build strong communities, create opportunity, and change lives for the better. The tools and resources we provide to our member financial institutions — commercial banks, credit unions, industrial loan companies, savings institutions, insurance companies, and community development financial institutions — propel homeownership, finance quality affordable housing, drive economic vitality, and revitalize neighborhoods. Together with our members and other partners, we are making the communities we serve more vibrant, equitable, and resilient.
Contact:
Tom Flannigan
tom.flannigan@fhlbsf.com
415-616-2695 -
MIL-OSI Economics: New Leadership at Sony Interactive Entertainment
Source: Sony
San Mateo, Calif., January 28 (PST) /Tokyo, January 29 (JST), 2025 – Sony Group Corporation and Sony Interactive Entertainment (SIE), the company behind PlayStation, today announced the appointment of Hideaki Nishino to the role of President and CEO effective April 1, 2025.
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MIL-OSI Economics: Changes to Sony Group’s Management Structure
Source: Sony
Tokyo, Japan – Sony Group Corporation (“Sony”) today announced that Hiroki Totoki, currently Director, Representative Corporate Executive Officer, President, COO and CFO, has been newly appointed as Director, Representative Corporate Executive Officer, President and Chief Executive Officer, effective April 1, 2025.
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MIL-OSI USA: Senator Rosen Statement on Trump’s Reckless Federal Funding Freeze
US Senate News:
Source: United States Senator Jacky Rosen (D-NV)
WASHINGTON, DC – Today, U.S. Senator Jacky Rosen (D-NV) issued the following statement blasting the Trump Administration’s pause on all federal grants and loans and the dire impact it will have on Nevada.
“President Trump’s freeze on federal grants and funding has jeopardized key programs that many Nevadans rely on,” said Senator Rosen. “Because of this freeze, there is now chaos and confusion about the status of critical funding needed to support local law enforcement, veterans, businesses, widely used housing programs, and others. Make no mistake, I will fight back against this unconstitutional action and work to ensure that Nevada’s federal funding resumes to continue benefiting Nevadans.” -
MIL-OSI USA: Senators Rosen, Booker, Gillibrand, Kelly, Blumenthal, Wyden, Schiff, Peters, Cortez Masto, & Gallego Issue Statement on ICC Sanctions Procedural Vote
US Senate News:
Source: United States Senator Jacky Rosen (D-NV)
WASHINGTON, DC – Today, U.S. Senators Jacky Rosen (D-NV), Cory Booker (D-NJ), Kirsten Gillibrand (D-NY), Mark Kelly (D-AZ), Richard Blumenthal (D-CT), Ron Wyden (D-OR), Adam Schiff (D-CA), Gary Peters (D-MI), Catherine Cortez Masto (D-NV), and Ruben Gallego (D-AZ) released the following statement on their opposition to a procedural vote on the Illegitimate Court Counteraction Act.
“As pro-Israel members committed to protecting and strengthening the U.S.-Israel relationship, and ensuring Israel has every tool to defend itself, we are deeply troubled by the International Criminal Court’s (ICC) outrageous political targeting of Israel and its leaders. The Court’s false equivalence of Israel’s defense of its people with Hamas’s barbaric actions on October 7th is an affront to human conscience, deserving of both condemnation and severe consequences. We believe this judicial overreach must be countered forcefully, including through sanctions on those at the ICC directly responsible.
“Instead of directly punishing those responsible for the ICC’s reckless and irresponsible behavior, the House-passed ICC sanctions bill has overly broad language that would put our allies and U.S. private companies in the crosshairs. While we are eager to support a bill that would swiftly sanction those at the ICC responsible for its anti-Israel actions, in taking up the House bill today, Senate Republicans took a flawed, partisan approach. Despite our efforts, the bill’s sponsors did not allow us to make this bill stronger and more targeted. This is why we made the difficult decision to vote against a procedural motion on their bill, after serious consideration of the far-reaching, unintended consequences it would have. We urge our Republican colleagues to return to the negotiating table and reach a bipartisan agreement so that we can stand together in support of Israel through more targeted and effective legislation.” -
MIL-OSI USA: Baldwin Statement on Trump Administration Order to Cut Federal Grants and Loans
US Senate News:
Source: United States Senator for Wisconsin Tammy Baldwin
Published: 01.28.2025WASHINGTON, D.C. – U.S. Senator Tammy Baldwin (D-WI) today released the following statement on the Trump Administration’s recent decision to cut federal grants:
“I am already hearing from my constituents who are worried about funding being cut off for cops and firefighters, childcare, combatting the fentanyl crisis, food for kids, and so much more. We are talking about real people’s lives; real people’s ability to eat, stay safe, or live a healthy life is on the line. I want to be clear, Democrats and Republicans passed laws providing this funding for our kids, families, and communities, and ripping it away is an unconstitutional power grab. I will fight it at every step.” -
MIL-OSI USA: Warren Probes Lutnick for Ties to Crypto Firm with Long Record of Financing Terrorists, Illicit Activity
US Senate News:
Source: United States Senator for Massachusetts – Elizabeth Warren
January 28, 2025
Ahead of hearing, Sen. Warren wrote to Lutnick about deep ties to Tether, known as “outlaws’ favorite cryptocurrency”
“Your record of support for and financial involvement with Tether…raise significant questions about your own personal judgment and the conflicts of interest that you will have if you are confirmed as Commerce Secretary.”
Text of Letter (PDF)
Washington, D.C. – U.S. Senator Elizabeth Warren (D-Mass.) sent a letter to Howard Lutnick, President Donald Trump’s nominee for Secretary of the Department of Commerce, ahead of his Wednesday confirmation hearing, probing his serious financial conflicts and personal and professional ties to the scandal-ridden cryptocurrency Tether.
“In particular, your deep involvement with and support for Tether, a known facilitator of criminal activity that has been described as ‘outlaws’ favorite cryptocurrency’ raises concerns about your judgment and ability to put the interests of the American people ahead of your own financial interests,” wrote Senator Warren.
Senator Warren requested information about Lutnick’s financial stake in Tether, any conversations with Trump administration officials about Tether, and whether his firm performed due diligence to confirm that Tether is in compliance with “Know Your Customer” rules in the Bank Secrecy Act, international sanctions, and anti-money laundering laws.
As CEO of Tether’s asset manager, Cantor Fitzgerald, which also reportedly holds a 5 percent stake in the cryptocurrency company, Lutnick played a significant role in Tether’s rise. Despite Tether’s clear ties to criminal activity — including financing North Korean nuclear weapons programs, Mexican drug cartels, Russian arms companies, Middle Eastern terrorist groups, and Chinese manufacturers of chemicals used to make fentanyl — Lutnick “‘vouched’ for Tether when ‘few others would.’”
Even after Trump’s election win and subsequent decision to nominate Lutnick as Commerce Secretary, Cantor Fitzgerald continued to deepen its ties to Tether, reportedly agreeing to serve as the backbone of Tether’s multi-billion dollar Bitcoin lending program. Lutnick seemingly used his role as Trump Transition co-chair to advance his own interests, including bringing Cantor Fitzgerald lobbyist Jeff Miller to Congressional meetings related to the transition. As Senator Warren noted, “even aides in the Trump administration were questioning [Lutnick’s] continued efforts to mix [his] business interests with [his] duties on the Trump transition team.”
“You cannot serve as a booster for Tether while impartially fulfilling the Department of Commerce’s mission to ‘create the conditions for economic growth and opportunity for all communities’ as ‘economic growth has taken on increased importance for national security,’” Senator Warren concluded.
After President Trump announced his decision to nominate Howard Lutnick as Commerce Secretary in November, Senator Warren said: “Donald Trump’s pick of a Wall Street CEO for Commerce Secretary is a win for the billionaire class at the expense of working people. The across-the-board tariff plan is a distraction from the MAGA scam to extend tax giveaways for giant corporations and billionaires like Howard Lutnick.” -
MIL-OSI USA: Padilla Questions Defense Secretary Hegseth on Trump’s Purported Military Action to “Turn On” California Water
US Senate News:
Source: United States Senator Alex Padilla (D-Calif.)
Padilla Questions Defense Secretary Hegseth on Trump’s Purported Military Action to “Turn On” California Water
WASHINGTON, D.C. — Today, U.S. Senator Alex Padilla (D-Calif.) requested Secretary of Defense Pete Hegseth clarify President Trump’s January 27th Truth Social post, which claimed that the U.S. military “entered” California and “turned on the water” flowing from Northern California to other parts of the state.
Even though California is delivering as much water to farms and cities as during the previous Trump Administration, the President claimed that he used his “Emergency Powers” as Commander-in-Chief to send the military to California to turn on the water. Contrary to misinformation circulated by President Trump, Southern California has record water storage on hand. Senator Padilla has pushed back against dangerous misinformation about the state’s water supply, which Trump is attempting to leverage to withhold disaster aid.
After President Trump was sworn in, federal pumping of water was briefly reduced due to outages for maintenance, which have since been restored to prior pumping levels.
“Clarity and transparency on these matters are crucial to ensure that the public is properly informed and that any actions comply with federal laws governing the use of the U.S. military within the United States,” wrote Senator Padilla.
Padilla asked Secretary Hegseth the following five clarifying questions in response to Trump’s post:
1. Which units of the U.S. Armed Forces have been assigned to this mission?
2. Specifically, where in California were they deployed? Please name the specific cities that were “entered” by U.S. Armed Forces, and the names and ownership of any facilities where troops were assigned.
3. When the President says members of the military “TURNED ON THE WATER,” what specific actions did U.S. servicemembers undertake to accomplish this mission?
4. To which specific “Emergency Powers” is the President referring to justify this mission?
5. Compared to the week of January 13, 2025, how much more water is now flowing through the federal pumps?
Full text of the letter is available here and below:
Dear Secretary Hegseth,
I write regarding President Trump’s January 27th post on Truth Social in which he wrote, “The United States Military just entered the Great State of California and, under Emergency Powers, TURNED ON THE WATER flowing abundantly from the Pacific Northwest, and beyond. The days of putting a Fake Environmental argument, over the PEOPLE, are OVER. Enjoy the water, California!!!”
Given this statement from the President and Commander-in-Chief of the U.S. Armed Forces, I ask that you respond in writing to the following questions:
1. Which units of the U.S. Armed Forces have been assigned to this mission?
2. Specifically, where in California were they deployed? Please name the specific cities that were “entered” by U.S. Armed Forces, and the names and ownership of any facilities where troops were assigned.
3. When the President says members of the military “TURNED ON THE WATER,” what specific actions did U.S. servicemembers undertake to accomplish this mission?
4. To which specific “Emergency Powers” is the President referring to justify this mission?
5. Compared to the week of January 13, 2025, how much more water is now flowing through the federal pumps?
Clarity and transparency on these matters are crucial to ensure that the public is properly informed and that any actions comply with federal laws governing the use of the U.S. military within the United States.
I look forward to your prompt response to these questions.
Sincerely, -
MIL-OSI USA: Padilla Raises Alarm on Trump Administration Illegally Blocking Hundreds of Billions in Federal Support
US Senate News:
Source: United States Senator Alex Padilla (D-Calif.)
Padilla Raises Alarm on Trump Administration Illegally Blocking Hundreds of Billions in Federal Support
Urges Budget Committee to Delay OMB Nominee
WASHINGTON, D.C. — Today, U.S. Senator Alex Padilla (D-Calif.), member of the Senate Budget Committee, issued the following statement after President Trump’s Office of Management and Budget (OMB) ordered federal agencies to freeze all congressionally approved federal grants and loans, including disaster relief for Californians:
“Donald Trump is illegally blocking hundreds of billions of dollars for essential federal programs to support families recovering after catastrophic fires, law enforcement agencies we rely on to keep our communities safe, and children and families who depend on federal child care and nutrition programs. All in his effort to pay for his tax cuts for large corporations and billionaires, like the ones he surrounded himself with during his inauguration. This overreach is unconstitutional and hurts the thousands of Californians who have been devastated by the recent fires. When Congress approves federal funds for programs to help communities, they are not optional: they are legal mandates.
“Americans in every corner of the country will feel the impact of Donald Trump’s unlawful directives. I am calling on my Republican colleagues to not confirm Russell Vought to be OMB Director until Trump reverses this reckless order.”
The sweeping directives in the Trump Administration’s memorandum are set to go into effect at 5 p.m. ET this evening. If implemented as written, the directives could block funding for California and national priorities including:
Disaster Relief: Public assistance and hazard mitigation grants from the Disaster Relief Fund (DRF) to state, tribal, territorial, and local governments and non-profits to help communities quickly respond to, recover from, and prepare for major disasters will be halted — right as so many Southern California communities are struggling amid the recent fires.
Firefighting: Grants to support firefighters across the country will be halted. This includes grants that help states and localities purchase essential firefighting equipment.
Public Safety: Grants for law enforcement and homeland security activities will cease to go out the door, undermining public safety in every state and territory.
Infrastructure Projects: All federally-funded transportation projects — roads, bridges, public transit, and more — will be halted, including projects already under construction.
Homelessness/Housing: In the midst of a homelessness and housing crisis, the Trump Administration is freezing housing and homelessness funding, which will exacerbate our housing crisis.
988 Suicide and Crisis Lifeline: Funding for the 988 Suicide and Crisis Lifeline that Senator Padilla significantly improved, as well as grants for mental health services, will be cut off.
Nutrition Assistance: Millions of American citizens who rely on nutrition assistance programs like school lunch programs will be left hungry as funding is cut off and non-profits who provide additional assistance lose federal funding.
Combating the Fentanyl Crisis: Funding for communities to address the substance use disorder crisis and combat the fentanyl crisis will be cut off.
Emergency Preparedness: Critical preparedness and response capability funding used to prepare for disasters, public health emergencies, and chemical, biological, radiological, or nuclear events will be frozen.
Child Care: Child care programs across the country will not be able to access the funding they rely on to keep their doors open.
K-12 Schools: Federal funding for K-12 schools will be halted. School districts may not be able to access key formula grant funding including Title I, IDEA, Impact Aid, and Career and Technical Education, which would pose tremendous financial burdens on schools in the middle of the school year.
Biomedical Research: There will be immediate pauses on all funding for critical health research, including research on cancer, Alzheimer’s disease, and diabetes, as well as clinical trials at the NIH Clinical Center and all across the country — disrupting lifesaving and often time-sensitive research.
Higher Education and Job Training: Millions of students relying on federal student loans and federal work study will have their plans to pursue postsecondary education and further their careers thrown into chaos as federal financial aid disbursements are paused.
Health Services: Federal funding for community health centers that provide health care for over 30 million Americans will be immediately frozen, creating chaos for patients trying get their prescriptions, a regular checkup, and more.
Small Businesses: The Small Business Administration will have to halt loans to small businesses — including those in disaster-ravaged California communities.
Veterans Care: Federal grants to help veterans in rural areas access health care and grants to help veterans get other critical services, including suicide prevention resources, transition assistance, and housing for homeless veterans, will be cut off.
Tribes: Funding to tribes for basic government services like health care, public safety, programs, tribal schools, and food assistance will be halted.
Preventing Violence Against Women: All Violence Against Women Act (VAWA) grants, as well as funding for victims assistance and state and local police, will be cut off.
U.S. Competitiveness: Existing grants to support research for Artificial Intelligence and quantum computing will be halted and any new grant funding would be paused — undermining U.S. innovation and competitiveness with China and putting California jobs at risk.
Energy Jobs: Grants for critical energy projects nationwide will be cut off — halting billions of dollars in investment nationwide and jeopardizing good-paying American jobs. The Department of Energy Loan Program Office will halt loans in 28 states, impacting hundreds of thousands of construction and operations jobs.
Food Inspections: Some states will have to take on the full financial burden of ensuring the nation’s meat supply is safe if federal cooperative agreements for meat inspection are halted.
Support for Servicemembers: Support for a host of Department of Defense financial assistance and grant programs supporting servicemembers and their families will be halted, including the Fisher House, Impact Aid, community noise mitigation, ROTC language training, STEM programs, and the USO.
Military Readiness: Grants and other assistance appropriated to strengthen military effectiveness and defense capacity will be halted, including Defense Production Act support for the defense industrial base, basic research grants necessary to advance key technologies, and small business support to strengthen supply chains. -
MIL-OSI USA: Murkowski Releases Statement on Suspension of Federal Funding
US Senate News:
Source: United States Senator for Alaska Lisa Murkowski
01.28.25
Washington, DC – U.S. Senator Lisa Murkowski (R-AK) released the following statement on federal funding:
“Alaskans have understandably been reaching out to my office all day, asking for clarity about what OMB’s memo ordering a pause in grants, loans, and other federal financial assistance means for them. At this point, we don’t have any more direction than what has been reported. My staff is actively tracking impacted projects and services in Alaska, and working to identify those that most urgently need to be brought to the administration’s attention. Please pass along any information you can to my office directly about projects and services that are being affected, and thank you for your patience as we work alongside you to navigate next steps.”
On Tuesday afternoon, the Office of Management and Budget (OMB) released guidance and a Q&A that can be referenced for assistance as the situation evolves. Alaskans can contact Senator Murkowski’s office using this link to report additional concerns. -
MIL-OSI USA: Senator Markey Decries Trump Pardons for Violent January 6 Insurrectionists
US Senate News:
Source: United States Senator for Massachusetts Ed Markey
Washington (January 28, 2025) – Senator Edward J. Markey (D-Mass.) released the following statement today on President Trump’s pardons for violent January 6 insurrectionists. Yesterday, Senator Markey joined the Senate Democratic caucus in introducing a resolution condemning the pardons of individuals who were found guilty of assaulting Capitol Police Officers.
“On January 6, 2021, dedicated officers of the U.S. Capitol Police were forced to protect members of Congress in medieval-style combat as a vicious mob armed with firearms, bear spray, and metal barricades forced its way into the U.S. Capitol. Officers died as a result of the insurrection, and many more were left beaten and bruised. Donald Trump pardoned the January 6 insurrectionists, including violent felons, in one swoop—a disgraceful insult not only to our democracy, but to the law enforcement officers who show up every day to protect and serve us,” said Senator Markey. “I’m astounded by the silence among my Republican colleagues. They claim to ‘back the blue’ but now they laud the violent criminals who left our officers black and blue on January 6. We now know that the Republican party is no longer the party of ‘law and order,’ but the party of ‘chaos and disorder.’ Donald Trump’s pardons are a dangerous and shameful abuse of presidential power. We should all be united in denouncing them.”
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MIL-OSI USA: Sullivan Statement on Federal Funding Pause and Review
US Senate News:
Source: United States Senator for Alaska Dan Sullivan
01.28.25WASHINGTON—U.S. Senator Dan Sullivan (R-Alaska) released the following statement regarding the temporary pause on the distribution of some federal funds, pending a review by the Trump administration:
“My office has heard from many Alaskans concerned about the Trump administration’s pause on the distribution of federal funds. My team and I are digging into the details of how this pause impacts Alaska and closely monitoring the situation.
“The pause is more limited in scope than some initial media reports suggested, but I still have concerns on how it can negatively impact Alaskans. The pause is being conducted to review compliance with several of the President’s executive orders, particularly those related to foreign aid, illegal immigration and DEI initiatives. According to the White House, the pause does not affect direct benefits to Americans and Alaskans—including Social Security, Medicare, Medicaid, SNAP, Pell grants, Head Start, veterans’ benefits, rental assistance and similar programs.
“We will continue to work closely with Alaskans who may be impacted and share any additional guidance provided by the Office of Management and Budget. My team and I will continue to weigh in with the Trump administration on behalf of impacted Alaskans and our communities. If any individual Alaskan or Alaska organization is concerned about a particular grant or funding source, I encourage them to reach out to my office at 202.224.3004.”
The Office of Management and Budget released an initial guidance document which can be viewed here.
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MIL-OSI USA: One Month Away: Submission Deadline Approaches for Senator Sullivan’s Student Fentanyl Awareness Competition
US Senate News:
Source: United States Senator for Alaska Dan Sullivan
01.28.25
WASHINGTON—U.S. Senator Dan Sullivan (R-Alaska) reminded Alaskans today of the approaching February 28th deadline for high school students across Alaska to participate in a public awareness campaign about the dangers of fentanyl in their community. The competition is part of the statewide “One Pill Can Kill – Alaska” public awareness campaign that Senator Sullivan launched in May of 2024. Since the campaign began, Senator Sullivan has highlighted the One Pill Can Kill campaign in community visits, roundtables and student listening sessions across the state, including in Anchorage, Fairbanks, Wasilla, Ketchikan, Cordova, Valdez, Glenallen, Kotzebue and Utqiagvik. More information on the competition can be found below and by clicking here.
“Fighting the deadly fentanyl crisis in our state means enlisting the help of all Alaskans,” Senator Sullivan said. “After hearing from youth across our state, it became clear that in order for this campaign to succeed, young Alaskans in particular would need to play a big role. Young Alaskans are impacted by this crisis—and they’re motivated to action. By harnessing the creative and bright minds of Alaska’s next generation of leaders, we can finally turn the tide against this horrendous plague on our communities.”
Competition Details:
What: We are asking students to launch a “One Pill Can Kill” media campaign to reach high school students. The campaign can reach students in a variety of ways: posters in hallways, advertisements in student newspapers, or videos on social media are a few examples. Creativity is key.
The campaigns should use the “One Pill Can Kill” messaging and highlight the dangers of fentanyl, the risks of non-prescription drug use, and the importance of staying informed and seeking help.
Who: This competition is open to groups of high school students in Alaska. Schools are encouraged to submit one campaign per school but may submit more. Each entry must include at least two students’ participation. Home schooled students may also participate by launching a media campaign that reaches youth in locations other than school, including online.
How: After launching the campaign, contestants must submit a report to Senator Sullivan’s communications team explaining their campaign, how it was executed and what they learned. Final submissions can be sent to helen_martin@sullivan.senate.gov. Keep in mind the judging criteria below. Examples of the campaign’s media materials must be included or linked to in the report.
Judging Criteria:
- Effectiveness – Is the campaign effective?
- Targeted Audience – Does the campaign reach the intended audience?
- Messaging – Does the campaign incorporate the theme of “One Pill Can Kill – Alaska?”
- Creativity – Is the campaign innovative?
- Accuracy – Are the facts about fentanyl and its risks correct and well-researched?
- Lessons Learned – Does the report explain what they learned from the experience?
Prize:
While all campaigns will be featured on Senator Sullivan’s website, the winning campaign will work with Senator Sullivan’s communications team to design public service announcements featured as part of the statewide “One Pill Can Kill – Alaska” campaign. It will be shared on Senator Sullivan’s social media channels and offered for distribution to local television, radio, and print media across Alaska.
Timeline:
- Report Submission Deadline: February 28, 2025
- Winners Announced: March 14, 2025
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MIL-OSI United Nations: Lieutenant General Ulisses De Mesquita Gomes of Brazil – Force Commander of the United Nations Organization Stabilization Mission in the Democratic Republic of the Congo (MONUSCO)
Source: United Nations MIL-OSI 2
nited Nations Secretary-General António Guterres announced today the appointment of Lieutenant General Ulisses De Mesquita Gomes of Brazil as Force Commander of the United Nations Organization Stabilization Mission in the Democratic Republic of the Congo (MONUSCO).
Lieutenant General Gomes succeeds Acting Force Commander Major General Khar Diouf of Senegal, to whom the Secretary-General is grateful for his dedication and service.
Lieutenant General Gomes brings to the position 35 years of experience in crisis response, conflict management and peacekeeping. He has both operational and strategic expertise as well as diplomatic experience. His last position was with his national military, where he served as Deputy Chief of Army Logistics Command. Prior to that, he was the Brazilian Military Attaché to the United States of America.
He previously served as the 7th Infantry Brigade Commander in Brazil, the Defence Adviser of the Minister of Strategic Affairs of the Brazilian Government and the Chief of Planning and Operations of the 11th Infantry Brigade. His international experience includes his deployment with the United Nations Stabilization Mission in Haiti (MINUSTAH) (2008-2009) and his appointment as the Chief of the Current Military Operations Service and Policy & Doctrine Team in the Office of Military Affairs of the UN Department of Peace Operations (2017-2019).
Lieutenant General Gomes holds a bachelor’s degree in law from the Federal University, Brazil, and a master’s degree in military science and law from the Brazilian Army Staff College. He is fluent in English, French, Portuguese and Spanish. -
MIL-OSI Economics: African ministers welcome bold Mission 300 initiative to expand electricity access
Source: African Development Bank Group
African energy and finance ministers welcomed an ambitious new partnership to transform the continent’s power sector at the Mission 300 Africa Energy Summit in Dar es Salaam on January 27, while highlighting their countries’ distinct paths toward achieving universal access to electricity. -
MIL-Evening Report: What is the 90-year-old tax rule Trump could use to double US taxes on foreigners?
Source: The Conversation (Au and NZ) – By Miranda Stewart, Professor of Law, The University of Melbourne
US President Franklin D. Roosevelt. National Archives and Records Administration/Wikimedia Commons US President Donald Trump isn’t happy about the way some countries are taxing American citizens and companies. He has made clear he’s willing to retaliate, threatening to double taxes for their own citizens and companies.
Can Trump really do that, unilaterally, as president? It turns out he can, under a 90-year-old provision of the US tax code – Section 891.
In an executive memo signed on January 20 outlining his “America First Trade Policy”, Trump instructed US Treasury to:
investigate whether any foreign country subjects United States citizens or corporations to discriminatory or extraterritorial taxes pursuant to Section 891 of Title 26, United States Code.
A sweeping power
Section 891 of the US Internal Revenue Code is short, but it is in sweeping terms.
If the president finds that US citizens or corporations are being subjected to “discriminatory or extraterritorial taxes” under the laws of any foreign country, he “shall so proclaim” this. US income tax rates on the citizens or corporations of that country are then automatically doubled.
The extra tax that could be collected is capped at 80% of the US taxable income of the taxpayer. The president can revoke a proclamation, if the foreign country reverses its “discriminatory or extraterritorial” taxation.
Section 891 is an extraordinary provision – but it has never been applied. As far as I know, no other country has legislated such a rule. Importantly, it would only apply to a person or business subject to income taxation by the US.
Take, for example, a foreign national earning a wage in the US. If this individual’s home country became subject to a proclamation under Section 891, their individual tax rate in the US would be doubled – to as much as 74%.
A foreign company earning taxable profits in the US would face a doubling of the company tax rate from 21% to 42%.
A bit of history
A version of Section 891 has been in the US tax code since 1934, an earlier troubled time of tax disputes and economic depression.
It was signed into law by Democratic President Franklin D. Roosevelt on May 10 1934, amid a tax dispute between the US and France.
US President Franklin D. Roosevelt signed Section 891 into law in 1934, putting pressure on France to end a tax dispute.
Vincenzo Laviosa/Wikimedia CommonsAccording to US tax historian Joseph Thorndike, the move followed attempts by France to levy additional taxes on US companies operating there, beginning in the mid-1920s.
France had tried to use an 1873 law to tax US companies operating in France on profits earned in the parent company back in the US, and in other subsidiaries around the world, not just the French company profits.
The aim was to counter international profit-shifting, which could be used to reduce the tax payable by US subsidiaries operating in France by claiming deductions or shifting income to other group companies outside France.
The dispute was long-standing and France tried to assess taxes going back decades for some US companies. The potentially massive tax bill (it seems the tax was never actually collected) became a geopolitical issue, and the companies asked the US government to intervene on their behalf.
Thorndike explains that a bilateral tax treaty was negotiated between the US and France to remedy this “double tax” situation. But the French legislature refused to ratify it.
In retaliation, US Congress passed Section 891, and six months later, France ratified its bilateral tax treaty with the US.
Parallels with today
In 1934, there were no digital multinational enterprises like Meta or Google. But that tax dispute nevertheless has parallels with modern concerns about taxing companies internationally.
The French government was trying, with a rather heavy hand, to counter international profit-shifting by large US multinationals.
Section 891 was re-enacted in later US tax codes, up to today, with minor amendments and no attempt to invoke it. It has remained in the background as a potential exercise of US fiscal and market power, supported by both sides of US politics.
Tax professor Itai Grinberg, who worked in the Biden administration on the OECD tax deal, suggested it could be applied to the European Union decision that taxes Apple in Ireland.
The US tech giants are only the latest in a long line of powerful American multinational corporations.
Tada Images/ShutterstockWhat might Trump do?
President Trump has specifically targeted the OECD global tax negotiations with this threat, just a month after Australia has legislated the global minimum tax under “Pillar Two” of the OECD Global Tax Deal.
The OECD deal aims to ensure large multinational enterprises pay a minimum 15% effective tax rate in all the jurisdictions in which they operate, by applying a top-up tax and under-taxed profit tax.
Trump asserted in a memorandum that the OECD Global Tax Deal is “extraterritorial”, instructing the US Secretary of the Treasury and the US Trade Representative to investigate it.
Could Australia be singled out?
Trump’s memorandum also ordered an investigation into “other discriminatory foreign tax practices” that may harm US companies.
This includes whether any foreign countries are not complying with their US tax treaties or have, or are likely to put in place, any tax rules that “disproportionately affect American companies”.
Notably, this could put Australia’s proposed “news bargaining incentive” in the crosshairs.
Under this proposal, digital platforms (many of which are US-owned) would have to pay a new levy, which could be offset if they negotiate or renew deals with Australian news media publishers to pay for hosting news content.
Section 891 could apply to such taxes if they were found by Trump to be “discriminatory” against US companies. What “discriminatory” means is not clear.
Its been suggested that foreign citizens or companies could be protected from Section 891 by their country’s tax treaty with the US, under the standard approach that a later treaty prevails over an older code section. But Australia’s tax treaty with the US took effect in 1983, before the most recent re-enactment of Section 891 in the US tax code.
Miranda Stewart receives funding from the Australian Research Council. Miranda is on the Permanent Scientific Committee of the International Fiscal Association.
– ref. What is the 90-year-old tax rule Trump could use to double US taxes on foreigners? – https://theconversation.com/what-is-the-90-year-old-tax-rule-trump-could-use-to-double-us-taxes-on-foreigners-248154
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MIL-Evening Report: What is a ‘crime scene’, really? An expert explains how it’s more than just blue police tape
Source: The Conversation (Au and NZ) – By Vincent Hurley, Lecturer in Criminology. Police and policing. Dept of Security Studies & Criminology, Macquarie University
When you watch the news, one phrase usually comes up as soon as crime is mentioned: “police have established a crime scene”.
If you’re a fan of the forensics crime drama CSI: Crime Scene Investigation, it will conjure up images of police waving a blue, fluorescent UV light in a darkened room looking for blood, saliva, fingerprints, footprints or tooth impressions.
CSI has influenced an entire generation – this year, the franchise will celebrate its 25th anniversary. But the reality of crime scene investigation is far more complex.
As a criminology lecturer and ex-police officer, I know a thing or two about crime scenes, having managed hundreds of them. I have even been a crime scene myself. Here’s what they really entail.
There’s usually more than one crime scene
In the early 20th century, French forensic science pioneer Edmond Locard noted it’s impossible for criminals to act “without leaving traces of this presence”. No matter where a criminal steps or what they touch, they leave behind, even unconsciously, evidence that serves as a silent witness against them.
The idea that criminals will leave something behind at the crime scene while taking something with them is known today as Locard’s principle.
Crime scenes are incredibly diverse. They don’t just involve the physical location. A person’s body and any objects found in relation to the crime are also part of a crime scene.
The primary crime scene is where the event took place – for example, where a murder, arson attack or drive-by shooting occurred.
There will be several additional crime scenes, too. In the course of the investigation, a second crime scene might be established where the criminal planned the crime. If they dumped a getaway vehicle, that’s a third crime scene. If they stashed a weapon, clothes or other objects in a safe house after the crime, that’s a fourth crime scene.
A fifth crime scene will be established when the criminal is arrested – they themselves are also a crime scene. Their hair, clothing and fingernails will be tested for various residues, such as the skin or blood of a victim, or even illicit substances if the crime involves drug trafficking.
Lastly, the victim is a crime scene, too. They may have body fluids, skin, hair and other material from the criminal on them.
In my detective career, I myself have been a crime scene when I found a badly injured abduction victim who collapsed in my arms. At that point, traces of the offender’s blood and hair transferred onto my clothing. I had to take the clothes off and they were kept as evidence.
Hair found on a victim’s clothing can serve as evidence.
Sendo Serra/ShutterstockCrime scenes are confusing
Shows like CSI often portray crime scenes as neat and clear cut, with evidence easily obtained.
In reality, crime scenes are chaotic. They are full of clutter and the police don’t know what’s relevant and what’s not.
During a crime scene search, police have to speculate about what happened, as often there are no eyewitnesses. A bullet casing or a bloody knife would be obvious. But what of the more common household items in the house or room? Who owns the shirt or jumper? Why is the bedroom in disarray, is that normal? What did the criminal touch or not touch? Was there just one criminal or two? What belongs to the victim?
Unlike on TV, police don’t always know what they are looking for because often they don’t know how the crime occurred. The cause of a death can be obvious, but how it unfolded is not.
Crime scenes are fragile
With a murder on a TV show, the CSI team usually arrives at a home or an outdoor crime scene, surrounded by crime scene tape. The first thing they do is lift the tape and walk straight to the body.
This is the worst possible crime scene practice.
The detectives would be walking directly on and over the same entry or exit path the offenders used. This would destroy fragile microscopic residues of blood, dirt or plant vegetation.
In reality, walking in and out of a crime scene this way does not happen. Prior to entering any crime scene, police look around and try to figure out which way the offender may have come and gone.
Once weighing up the advantages and disadvantages of each option, they’ll pick a specific entry and exit point, and stick to that until the scene has been completely examined.
Lifting the police tape and walking straight to the body is bad practice – the tape is there for a reason.
Gordenkoff/ShutterstockA systematic search – and not just for DNA
Crime scenes are also searched in different ways.
One way to ensure no evidence is missed is with a “grid and height” search. This means searching one square metre at a time. As the police get closer to the walls of the room, they start looking from the floor up to the height of their knees.
Once this is done, they go from their knee to their waist, then from their waist to their shoulder, then their shoulder to the top of their head, and then from the top of their head to a metre above it – until they reach the ceiling. Then they examine the ceiling.
Police don’t look solely for the holy grail of DNA. Rather, they are trying to piece together a jigsaw puzzle of what happened, why it happened, and what the criminal unintentionally left behind.
Decades of forensic TV dramas have resulted in the “CSI effect” – the idea that finding, collecting and analysing evidence at a crime scene is straightforward, and that the evidence is infallible. This is not so. But shows like CSI have also spawned a generation of people interested in becoming real crime scene investigators and forensic scientists.
Vincent Hurley 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. What is a ‘crime scene’, really? An expert explains how it’s more than just blue police tape – https://theconversation.com/what-is-a-crime-scene-really-an-expert-explains-how-its-more-than-just-blue-police-tape-245369
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MIL-OSI Russia: Moscow enterprises will take part in 30 foreign exhibitions with the support of Mospromtsentr
Translartion. Region: Russians Fedetion –
Source: Moscow Metro
This year, Moscow-based export-oriented companies will have more opportunities to communicate with foreign partners: the MosProm center will organize 25 international business missions and ensure participation in 5 major international exhibitions. These initiatives, which include both face-to-face and virtual meetings, will provide Moscow manufacturers with important platforms for negotiations with foreign partners, said Maxim Liksutov, Deputy Mayor of Moscow for Transport and Industry.
Tastes of Moscow.
On behalf of Sergei Sobyanin, the city prioritizes supporting export-oriented enterprises in expanding their presence in global markets. Our main task is to increase the volume of exports of industrial goods and agricultural products of Moscow production to friendly countries. Moscow manufacturers will present their products at international exhibitions in China, Saudi Arabia, Uzbekistan and Azerbaijan. They will also hold direct negotiations with potential buyers and distributors from Mexico, the UAE, Iran, Kuwait, Jordan, Turkey, Thailand, Vietnam, India, Mongolia, African countries and the CIS, said Maxim Liksutov.
MosProm was established in 2019 with the aim of increasing the recognition and presence of Moscow-made products in foreign markets. One of the most effective programs offered by MosProm is the buyer program. It allows companies to participate in specialized international exhibitions and business missions, where they can negotiate with potential customers of Moscow-made products in the business-to-business (B2B) and business-to-government (B2G) formats. This enables local industrial companies to expand their export scope and product range, establish new partnerships and customer relationships, and attract valuable investments.
Tastes of Moscow.
MosProm specialists provide comprehensive support to Moscow producers at all stages of their foreign economic activity. Thanks to MosProm’s assistance, Moscow non-raw materials and non-energy producers have successfully reoriented their export flows and found new partners in the markets of Latin America, Africa, the Middle East, Southeast Asia and the CIS, – emphasized Anatoly Garbuzov, Minister of the Moscow Government, Head of the Moscow Department of Investment and Industrial Policy.
In addition, Moscow exporters benefit significantly from national support programs. The national project “International Cooperation and Export” is a set of measures of information, financial, insurance and logistics support. The project includes the digital platform “My Export”, which offers a range of business support services. These include free expert consultations, market analytics, assistance in promoting goods on international platforms, online training programs and much more.
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MIL-OSI USA: Kennedy, Peters champion bipartisan bill to end government payments to deceased Americans
US Senate News:
Source: United States Senator John Kennedy (Louisiana)
WASHINGTON – Sen. John Kennedy (R-La.) and Sen. Gary Peters (D-Mich.) introduced the Ending Improper Payments to Deceased People Act to save billions of federal dollars by curbing erroneous payments to individuals who have passed away.
Kennedy’s original bipartisan legislation set up provisions to save federal taxpayer dollars by curbing erroneous government payments to deceased individuals for a temporary three-year period, and the new bill would make the temporary provisions permanent.
“In 2023 alone, the federal government sent $1.3 billion to dead people. The Ending Improper Payments to Deceased People Act would permanently correct bureaucratic errors so that Americans’ tax dollars don’t get wasted or stolen,” said Kennedy.
“This bill would help save millions of taxpayer dollars by ensuring that the Social Security Administration can permanently share important data with the Treasury’s Do Not Pay system, preventing wrongful payments to deceased individuals. I have long supported this legislation because I believe it is a vital step in safeguarding taxpayer dollars and ensuring the integrity of our payment systems,” said Peters.
Earlier this month, the Treasury Department announced that it recovered $31 million in fraud and improper payments during the first five months of the implementation of Senator Kennedy’s Stopping Improper Payments to Deceased People Act in which the Social Security Administration shared it’s Death Master File with the Treasury Department in order to avoid erroneous payments on a temporary basis.
The Ending Improper Payments to Deceased People Act would permanently amend the Social Security Act to allow the Social Security Administration to share the Death Master File—a record of deceased individuals—with the Treasury Department’s Do Not Pay system. This change would rein in the government’s ability to make improper payments to deceased people into the future.
The bill would also allow Treasury’s Do Not Pay working system to compare death information from the Social Security Administration with personal information from other federal entities and to share this information with any paying or administering agency that is authorized to use the Do Not Pay system.
Background:
- In Dec. 2024, Kennedy urged his colleagues to save taxpayer dollars and support the Ending Improper Payments to Deceased Americans Act on the Senate floor.
- In May 2024, the Senate Committee on Homeland Security and Governmental Affairs unanimously passed Kennedy’s Ending Improper Payments to Deceased People Act.
- Kennedy’s Stopping Improper Payments to Deceased People Act became law in December 2020. The bill mandates the sharing of the Social Security Administration’s Death Master File with the Department of the Treasury’s Do Not Pay working system within three years after enactment. The three-year exchange runs from December 27, 2023 to December 27, 2026.
- In 2021, Kennedy wrote this op-ed sounding the alarm on the government’s sending more than $1 billion to deceased Americans.
- In 2019, Kennedy questioned U.S. Government Accountability Office Comptroller General Hon. Gene L. Dodaro about improper payments sent to deceased people.
Full bill text is available here.
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MIL-OSI Russia: IMF Executive Board Concludes 2024 Article IV Consultation with Bolivia
Source: IMF – News in Russian
January 28, 2025
Washington, DC: On March 22nd, the Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation1 for Bolivia. This also included a discussion of the findings of the Financial Sector Assessment Program (FSAP) exercise for Bolivia.[1]
Bolivia’s growth momentum moderated in 2023, to 2.5 percent, from declining natural gas production, less public investment, and financial market turmoil. Price controls, food and fuel subsidies, export restrictions, and strong agricultural production held inflation below 2 percent at year-end. However, the combination of lower natural gas exports, high fuel imports, a large fiscal deficit―increasingly financed by the central bank―and an overvalued exchange rate contributed to a wider current account deficit (estimated at 5 percent of GDP for 2023) and near-depletion of international reserves. Public debt increased to nearly 84 percent of GDP by end-2023. Sovereign spreads rose sharply in early 2023 as the foreign exchange (FX) shortage became apparent and a mid-sized bank (Banco Fassil) failed. Consequently, banks were forced to restrict the withdrawal of FX deposits, heightening financial sector stability risks.
Growth is anticipated to decelerate to 1.6 percent in 2024, holding at around 2.2-2.3 percent in the medium term under the continuation of the current policies. Inflation is forecast to reach 4.5 percent in 2024, stabilizing around 4 percent thereafter. The outlook is however predicated on significantly improved access to external financing, without which the risk of disorderly fiscal and/or exchange rate adjustment is elevated. External factors such as reduced demand, intensified global conflicts disrupting trade routes, commodity price volatility, or a renewed tightening of financial conditions could worsen fiscal and external imbalances, impede growth, and destabilize the domestic financial sector.
Additionally, extreme weather events, like the 2023 droughts and recent floods, pose a risk to Bolivia’s agricultural sector and critical infrastructure. Domestically, a faster decline in hydrocarbon production, higher inflation due to FX scarcity, or confidence shocks could further impact growth, hurt real incomes and exacerbate financial stability risks. Social unrest stemming from inequality and security concerns remains a concern, as evidenced by the prolonged road blockages of early 2024. On the upside, Bolivia could potentially benefit from the global shift towards green energy due to its vast lithium resources, although developing the lithium sector and scaling up domestic production capacity will likely take time.
Executive Board Assessment[2]
Executive Directors agreed with the thrust of the staff appraisal. They welcomed Bolivia’s socioeconomic progress over the past several years but expressed concerns about the difficult financial situation Bolivia currently finds itself in, with low reserves, uncertain fiscal financing, and pressures in parallel exchange markets. Directors stressed the urgency of a shift from current unsustainable policies to avoid a disorderly adjustment that would exert significant social and economic hardship.
Directors called for continued constructive engagement on a sustainable policy mix that is likely to require both fiscal adjustment phased in over the next few years and an up front step devaluation to more quickly address the external imbalance and allow for a build up of reserves. They emphasized the importance of improving the social safety net to shield poorer households from inflation pressures following a realignment of the exchange rate. Directors also emphasized the importance of strengthening fiscal institutions to underpin the credibility of the planned adjustment and to improve central bank governance in support of a shift to a crawling peg and, eventually, to inflation targeting.
Directors recommended a strengthening of the central banks’ capacity to conduct sterilization operations and to lift lending rate caps to improve the allocation of capital and enhance monetary policy transmission. They also underscored the need to improve crisis preparedness and contingency planning in line with FSAP recommendations to safeguard financial stability.
Directors recommended a range of supply side reforms to unlock private investment, boost productivity and enhance competitiveness. These should include phasing out export ceilings and price controls and better prioritizing public investment projects. A stronger regulatory framework for hydrocarbon and lithium exploration could be instrumental in increasing investment in those sectors. Directors also called for enhancing AML/CFT framework and ensuring the timely publication of key macroeconomic data.
Table 1. Bolivia: Selected Economic and Social Indicators, 2022–2026
Population (millions, 2021)
11.8
Poverty rate (percent, 2021)
36.3
Population growth rate (percent, 2021)
1.4
Adult literacy rate (percent, 2021)
94.8
Life expectancy at birth (years, 2021)
72
GDP per capita (US$, 2021)
3,437
Total unemployment rate (2021)
7.0
IMF Quota (SDR, millions)
240.1
Est.
2022
2023
2024
2025
2026
Income and prices
Real GDP
3.6
2.5
1.6
2.2
2.2
Nominal GDP
8.9
4.9
6.2
6.5
6.2
CPI inflation (period average)
1.7
2.6
4.5
4.2
3.9
CPI inflation (end of period)
3.1
2.1
4.8
4.0
3.9
Investment and savings 1/
Total investment
15.1
15.9
16.6
16.3
16.0
Of which: Public sector
5.7
5.0
6.0
6.0
6.0
Gross national savings
12.5
8.6
10.5
10.3
10.5
Of which: Public sector
-1.4
-2.0
-1.9
-1.5
-1.2
Combined public sector
Revenues and grants
28.9
28.3
27.6
27.4
27.1
Of which: Hydrocarbon related revenue
6.0
5.4
4.3
3.9
3.5
Expenditure
36.0
35.3
35.5
34.8
34.3
Current
30.3
30.3
29.5
28.8
28.3
Capital 2/
5.7
5.0
6.0
6.0
6.0
Net lending/borrowing (overall balance)
-7.1
-7.0
-7.9
-7.5
-7.2
Of which: Non-hydrocarbon balance
-12.8
-12.2
-12.0
-11.2
-10.5
Total gross NFPS debt 3/
80.4
83.6
86.7
88.9
90.9
External sector
Current account 1/
-0.4
-5.0
-5.7
-5.8
-5.6
Exports of goods and services
32.6
28.5
27.0
26.9
26.5
Of which: Natural gas
6.7
3.8
3.4
3.0
2.7
Imports of goods and services
32.9
34.4
33.6
33.6
32.7
Capital account
0.0
0.0
0.0
0.0
0.0
Financial account (-= net inflow)
-1.5
-0.5
-5.3
-5.8
-5.6
Of which: Direct investment net
-0.8
-0.6
-0.6
-0.9
-0.9
Of which: Other investment, net
-0.3
-0.3
-4.6
-4.7
-5.1
Net errors and omissions
-3.0
0.0
0.0
0.0
0.0
Terms of trade index (percent change)
-1.6
1.2
-0.6
0.0
0.2
Central Bank gross foreign reserves 4/ 5/ 6/
In millions of U.S. dollars
3,796
1,808
1,653
1,555
1,556
In months of imports of goods and services
2.8
1.3
1.1
1.0
1.0
In percent of GDP
8.6
3.9
3.4
3.0
2.8
In percent of ARA
44.5
20.8
18.2
16.2
15.5
Money and credit
Credit to the private sector (percent change)
6.3
-0.4
3.0
4.3
5.1
Credit to the private sector (percent of GDP)
74.2
70.5
68.4
67.0
66.3
Broad money (percent of GDP)
85.2
82.8
81.2
80.0
78.9
Memorandum items:
Nominal GDP (in billions of U.S. dollars)
44.3
46.5
49.3
52.5
55.8
Bolivianos/U.S. dollar (end-of-period) 7/
6.9
6.9
…
…
…
REER, period average (percent change) 8/
-0.9
-1.9
…
…
…
Oil prices (in U.S. dollars per barrel)
96.4
80.6
77.7
73.8
70.9
Energy-related subsidies to SOEs (percent of GDP) 9/
4.4
4.0
3.5
2.7
2.4
Sources: Bolivian authorities (MEFP, Ministry of Planning, BCB, INE, UDAPE); IMF; Fund staff calculations.
1/ The discrepancy between the current account and the savings-investment balance reflects methodological differences. For the projection years, the discrepancy is assumed to remain constant in dollar value.
2/ Includes nationalization costs and net lending.
3/ Public debt includes SOE’s borrowing from the BCB (but not from other domestic institutions) and BCB loans to FINPRO and FNDR.
4/ Excludes reserves from the Latin American Reserve Fund (FLAR) and Offshore Liquidity Requirements (RAL).
5/ All foreign assets valued at market prices.
6/ Includes a repurchase line of US$99.2 million maturing in 2025.
7/ Official (buy) exchange rate.
8/ The REER based on authorities’ methodology is different from that of the IMF (see 2018 and 2017 Staff Reports).
9/ Includes the cost of subsidy borne by public enterprises and incentives for hydrocarbon exploration investments in the projection period.1 Under Article IV of the IMF’s Articles of Agreement, the IMF holds bilateral discussions with members, usually every year. A staff team visits the country, collects economic and financial information, and discusses with officials the country’s economic developments and policies. On return to headquarters, the staff prepares a report, which forms the basis for discussion by the Executive Board.
[1] The Financial Sector Assessment Program (FSAP), established in 1999, is a comprehensive and in-depth assessment of a country’s financial sector. FSAPs provide input for Article IV consultations and thus enhance Fund surveillance. FSAPs are mandatory for the 47 jurisdictions with systemically important financial sectors and otherwise conducted upon request from member countries. The key findings of an FSAP are summarized in a Financial System Stability Assessment (FSSA).
[2] At the conclusion of the discussion, the Managing Director, as Chairman of the Board, summarizes the views of Executive Directors, and this summary is transmitted to the country’s authorities. An explanation of any qualifiers used in summings up can be found here: http://www.IMF.org/external/np/sec/misc/qualifiers.htm.
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https://www.imf.org/en/News/Articles/2025/01/28/PR25018-Bolivia-IMF-Executive-Board-Concludes-2024-Article-IV-Consultation-with-Bolivia
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MIL-OSI Australia: NANGKITA ROAD, NANGKITA (Grass Fire)
Source: Country Fire Service – South Australia
Homes that have been built to withstand a bushfire, and are prepared to the highest level, may provide safety.
You may lose power, water, phone and data connections.
Fire crews are responding but you should not expect a firefighter at your door.
What you should do
- Check and follow your Bushfire Survival Plan.
- Protect yourself from the fire’s heat – put on protective clothing.
- Tell family or friends of your plans.
If you are leaving
- Leave now, don’t delay.
- Roads may become blocked or access may change. Smoke will reduce visibility.
- Secure your pets for travel.
- If you become stuck in your car, park away from bushes, cover yourself, get onto the floor as the windows may break from the intense heat.
If you are not leaving – prepare to defend
- Identify a safe place inside, with more than one exit, before the fire arrives. Keep moving away from the heat of the fire.
- Bring pets inside and restrain them.
- Move flammable materials such as doormats, wheelie bins and outdoor furniture away from your house.
- Close doors and windows to keep smoke out.
- If you have sprinklers, turn them on to wet the areas.
- If the building catches fire, go to an area already burnt. Check around you for anything burning.
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MIL-OSI New Zealand: Update on Grey Lynn intentional damage
Source: New Zealand Police (National News)
A woman allegedly responsible for a raft of smashed windows will be out of the community for at least three months.
Police have been investigating recent reports of wilful damage on Sackville Street in Grey Lynn.
On Monday, frontline Police located a 39-year-old Grey Lynn woman and charged her with intentional damage.
Auckland City West’s Area Commander, Inspector Alisse Robertson, says Police have since successfully opposed the woman’s bail.
“The woman will be remanded in custody until her next appearance on 15 April in the Auckland District Court,” she says.
“I know these ongoing occurrences have caused angst and frustration amongst residents, so we are providing the community with an update for reassurance.”
ENDS.
Jarred Williamson/NZ Police
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MIL-OSI Security: Police seize more than 4500 XL Bully dogs since ban
Source: United Kingdom National Police Chiefs Council
500% increase in police costs for dealing with dangerous dogs expected by end of financial year
Almost one year on from the ban on XL Bully dogs in the UK, the latest figures show the huge burden this has placed on policing, with kennel spaces reaching capacity and costs increasing by the day.
Chief Constable Mark Hobrough is National Police Chiefs’ Council lead for dangerous dogs, he said:
“Since the introduction of the ban on XL Bully dogs police services have had to quickly adapt, taking positive action to respond to thousands of calls from the public and doing everything we can to remove these dangerous dogs from our communities.
“Undoubtedly the ban and our response to it has driven down the number of dog attacks and we are pleased that the public continues to support us by reporting suspected XL Bully dogs in their local area.
“However, the demand has been and continues to be simply huge. We are facing a number of challenges in kennel capacity, resourcing and ever-mounting costs and as of today, we have not received any additional funding to account for this.
“Veterinary bills and the cost of kennelling across policing has risen from £4m in 2018 to currently standing at more than £11m and this is expected to rise to as much as £25m by the end of April 2025. That’s a predicted 500% increase.
“Before the XL Bully ban was introduced there were 120 Dog Liaison Officers across England and Wales, we then trained an additional 100 with a further 40 identified to be trained this coming year. This means that in some areas established dog handlers have been called away from other policing duties. We have had to purchase additional vehicles, equipment and find countless extra kennel spaces from the finite that are available within the industry.
“Policing will uphold the government’s decisions, and we’ll act robustly to do so, but the bigger picture is a focus on responsible dog ownership. People need to be aware of the types of dogs that they’re bringing into their homes and make the right decisions to choose a breed which suits their lifestyle, environment and experience.
“We are also asking for amendments to the existing legislation so we have alternative options to deal with the specific circumstances of a particular case. At the moment, the only option you have is to go to court when someone is in possession of an unregistered XL Bully but we feel there are some situations which could be swiftly dealt with through out of court disposals. For example, there’s potentially a big difference in someone who has unwittingly ended up owning a dog from a young age they weren’t aware was an XL Bully or those who on veterinary advice were unable to have their dog neutered by the deadline versus an individual who is intentionally breeding and selling these dogs.
“At the top end, unscrupulous criminal dealers and breeders need to feel the full weight of the law going to court but alternative methods of out of court disposals would support us in taking a proportionate response as required.
“We will always protect our communities by ensuring these dangerous dogs are dealt with but we urgently need the Government to support us in coping with the huge demand the ban has placed on our ever-stretched resources.”
Statistics
- Police forces in England and Wales have seized and euthanised 848 dogs between February and September 2024 at an estimated cost of £340K. These were dogs which were surrendered to police by owners who had not complied with the ban, nor taken advantage of the compensation scheme.
- Between February and September 2024, policing has seized over 4,586 suspected S1 dogs * throughout England and Wales. People have been going to court, and will continue to do so, facing criminal convictions, fines and imprisonment for being in possession of these illegal types of dog.
- Since the start of the XL Bully ban police services have increased kennel capacity by a third.
- It can cost up to £1,000 a month to keep dogs in kennels and with up to an 18-month lead in time so both kennel demand / expenditure moving forward will become even more acute. We are aware of court cases not being scheduled until mid-2026 for some dangerously out of control cases.
- The police officer/staff overtime bill for forces between February 2024 and September 2024 was circa £560K.
*A section 1 dog is any of the specified banned breeds in the Dangerous Dogs Act.
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MIL-OSI Submissions: University Research – Genomic evidence confirms white shark liver is on the Aussie killer shark menu – Flinders
Source: Flinders UniversityFor the first time, DNA evidence has confirmed killer whales in Australia hunted a white shark for its liver.
Based on DNA analysis from the bite wounds on the carcass of a large white shark washed ashore near Portland in Victoria in 2023, the Flinders University-led study identified that killer whales were responsible for consuming the mid-section containing the nutritionally rich liver.
Around the world, killer whales (Orcinus orca) have been observed preying on various shark species including white sharks (Carcharodon carcharias) – as previously documented in California and South Africa.
The discovery of a 4.7 metre white shark missing its liver on a beach in southeastern Australia offered a rare opportunity to analyse distinctive bite wounds and unravel the predator’s identity.
“The liver, digestive and reproductive organs were missing, and there were four distinctive bite wounds, one of which was characteristic of liver extraction by killer whale, similar to what has been observed in South Africa,” says lead author Isabella Reeves, a PhD candidate with Flinders University’s Southern Shark Ecology Group and the West Australian Cetacean Research Centre (CETREC).
“Swabs were taken from bite wounds on the white shark and sequenced for remnant genetic material from the shark’s predator. We were able to confirm the presence of killer whale DNA in the primary bite area, while the other three wounds revealed DNA from scavenging broadnose sevengill sharks.
“These findings provide compelling evidence of killer whale predation on white sharks in Australian waters, with a strong indication of selective liver consumption. This suggests that such predation events may be more widespread and prevalent across the globe than previously believed.”
The study, published in Ecology and Evolution, used wildlife forensic techniques to confirm killer whales were responsible for excising and consuming the liver from the white shark. Civilian bystanders had witnessed several killer whales, including locally known individuals called ‘Bent Tip’ and ‘Ripple, catching a large prey in Bridgewater Bay two days before the white shark carcass washed ashore.
The beached large white shark carcass was collected by state government fisheries officers for investigation.
Killer whales in Australia have occasionally recorded preying on various shark species, including blue shark (Prionace glauca), porbeagle (Lamna nasus), shortfin mako (Isurus oxyrinchus), ground sharks (most likely school shark, Galeorhinus galeus), and tiger shark (Galeocerdo cuvier). But white shark liver consumption had yet to be observed in Australia – despite numerous reports of such behaviour in California and by notorious duo ‘Port’ and ‘Starboard’ in South Africa.
Several interactions between killer whales and white sharks have been reported in Australia, including at least one suspected kill at the Neptune Islands Group Marine Park in South Australia in February 2015. On that occasion, an oil slick indicative of a successful predation was observed following the interaction, although no carcass was recovered to confirm the kill.
Rhodes University (South Africa) marine biologist, Dr Alison Towner, an author in the study, says similar killer whale predation on white sharks have led to disruptions in local shark populations in both South Africa and California. “However direct observations of these interactions remain rare and their frequency is poorly understood,” she says.
Co-lead author, Flinders adjunct Associate Professor Adam Miller, says the study raises “really interesting questions around predator-prey interactions and the behaviour and intelligence of killer whales”.
“We don’t know how frequently these events occurred in Australian waters and therefore how significant these findings are. But, as Alison points out, these types of predation events in South Africa have further impacted on already declining white shark numbers,” says Associate Professor Miller, also a senior ecologist with Cesar Australia, where the genetic analyses were performed.
“Evidence suggests that the white sharks being displaced or directly killed as a result of the killer whale predation in South Australia has led to cascading shifts in the wider marine ecosystem.
“We know that white sharks are key regulators of ecosystem structure and functions, so it’s very important we preserve these top predators. Therefore it is important that we keep a tab on these types of interactions in Australian waters where possible.”
Another author, Flinders University Research Fellow Dr Lauren Meyer, adds, “This study also provides DNA evidence that scavenging is facilitated by killer whales’ tissue selection, whereby the liver and internal organs are consumed, but much of the carcass remains as a nutrient source benefiting local ecosystems.”
The ‘Nature Notes’ article ‘Genetic Evidence of Killer Whale Predation on White Sharks in Australia’ (2025) by Isabella MM Reeves, Andrew R Weeks, Alison V Towner, Rachael Impey, Jessica J Fish, Zach SR Clark, Paul A Butcher, Lauren Meyer, David M Donnelly, Charlie Huveneers, Nicky Hudson and Adam D Miller has been published in Ecology and Evolution (Wiley) First published: 27 January 2025 https://doi.org/10.1002/ece3.70786
The study was supported by experts from Victoria’s EnviroDNA, The University of Melbourne, Rhodes University in South Africa, the South African International Maritime Institute, Deakin University’s EcoGenetics Lab, the NSW Department of Primary Industries National Marine Science Centre, Killer Whales Australia and Dolphin Research Institute in Victoria and the Gunditj Mirring Traditional Owners Aboriginal Corporation, Victoria.
Acknowledgements: Researchers acknowledge the Traditional Owners of the land on which this research was conducted, the Gunditjmara and Wurundjeri peoples. Thanks to Cameron McCallum and John Melis from the Victorian Fisheries Authority and the Gunditj Mirring Traditional Owner Aboriginal Corporation. The carcass is now held by Museums Victoria.
