MarketSpace Capital and DigiShares Partner to Tokenize A 250-Unit Active Older Adult Housing Development in Dallas, Texas.

HOUSTON–(BUSINESS WIRE)–MarketSpace Capital, a real estate private equity firm headquartered in Houston, Texas, announced today it has partnered with DigiShares, a leading end-to-end white-label platform for tokenized securities, to digitize, tokenize and manage the share cap table for the Spot @ Myra Park, a real estate development project in Dallas, Texas.

The Spot at Myra Park is a 250-unit multifamily apartment complex that recently broke ground and is expected to be completed in Q4 2022. The equity interests in the Spot at Myra Park will be digitized by DigiShares using Ethereum blockchain technology. Subject to legal and regulatory due diligence and securities law considerations, MarketSpace Capital expects the digital securities to become tradable on the tZero ATS.

DigiShares CEO, Claus Skaaning stated, “We are excited to work with MarketSpace Capital to tokenize the Spot at Myra Park. This is one of the most significant and solid real estate projects in which we have been involved. We view MarketSpace as a highly professional and forward-looking player in the US real estate markets and are proud to be working with them on this project. At the same time, it marks a big step forward for DigiShares as a key player in the global security token ecosystem.”

MarketSpace Capital is focused on ground-up developments and value-add investments through the U.S and has over $400 million of cumulative asset value through 19 investment properties over the past decade. Out of these 19 investments, MarketSpace Capital has gone full cycle and sold six of these properties.

MarketSpace Capital Co-Founder and Chairman Dr. Masaki Oishi said, “we see great value in the tokenization of commercial real estate as a vehicle for enabling liquidity on a secondary market and democratizing access to a normally elusive asset class. Between MarketSpace Capital and our co-development partners, we have a combined existing portfolio of over $1 Billion, and we look forward to working with DigiShares, one of the leading providers of asset management and crowdfunding platforms for real assets and coordinating the trading of the Myra Park and future property’s digital securities through an integration with tZERO.”

Ownership interests of the Spot at Myra Park were distributed to approximately 45 accredited investors through a real estate limited partnership, which closed in May 2020 and raised approximately $6.5 million.

About MarketSpace Capital

MarketSpace Capital is a private equity real estate firm focused on ground-up developments and value-add investments throughout the U.S. Through its relationships, expertise and disciplined, data-driven analysis, MarketSpace Capital’s veteran staff has completed over $1 billion in transactions and has the capability and experience required to maximize value creation through a comprehensive, programmatic, and conservative investment and asset management approach. In addition to producing consistent returns, MarketSpace Capital seeks to create positive economic impact and long-term value for its investors, the properties it invests in, and the communities in which it works.

Website: https://marketspace.capital

About DigiShares A/S

DigiShares is one of the leading providers of asset management and crowdfunding platforms for real assets, including real estate and private equity. Our solutions enable asset owners and fund managers to digitize and automate processes, to reduce administrative cost, to reduce the ticket size to fractionalize and democratize and enable retail investors to participate, and finally to provide a huge increase in liquidity through the built-in marketplace that enables shareholders to trade their assets.

Website: https://www.digishares.io

Investor Notice

Investors should note that trading securities could involve substantial risks, including no guarantee of returns, costs associated with selling and purchasing, no assurance of liquidity, which could impact the price and ability to sell, and possible loss of principal invested. Further, an investment in single security could mean lack of diversification and, consequently, higher risk. Potential investors are urged to consult a professional adviser regarding any economic, tax, legal or other consequences of trading any securities as described herein.

No Offer, Solicitation, Investment Advice or Recommendations

This release is for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation for any security, nor does it constitute an offer to provide investment advisory or other services by any of the parties mentioned herein or any of its affiliates, subsidiaries, officers, directors or employees. No reference to any specific security constitutes a recommendation to buy, sell, or hold that security or any other security. Nothing in this release shall be considered a solicitation or offer to buy or sell any security, future, option or other financial instrument or to offer or provide any investment advice or service to any person in any jurisdiction. Nothing contained in this release constitutes investment advice or offers any opinion with respect to the suitability of any security, and the views expressed in this release should not be taken as advice to buy, sell or hold any security. In preparing the information contained in this release, we have not taken into account the investment needs, objectives, and financial circumstances of any particular investor. This information has no regard to the specific investment objectives, financial situation, and particular needs of any specific recipient of this information and investments discussed may not be suitable for all investors. Any views expressed in this release by us were prepared based upon the information available to us at the time such views were written. Changed or additional information could cause such views to change. All information is subject to possible corrections. Information may quickly become unreliable for various reasons, including changes in market conditions or economic circumstances.

Forward-Looking Statements

This release contains forward-looking statements. In addition, from time to time, the parties mentioned herein, their subsidiaries, or their representatives may make forward-looking statements orally or in writing. These forward-looking statements are based on expectations and projections about future events, which is derived from currently available information. Such forward-looking statements relate to future events or future performance, including financial performance and projections; growth in revenue and earnings; and business prospects and opportunities. You can identify forward-looking statements by those that are not historical in nature, particularly those that use terminology such as “may,” “should,” “expects,” “anticipates,” “contemplates,” “estimates,” “believes,” “plans,” “projected,” “predicts,” “potential,” or “hopes” or the negative of these or similar terms. In evaluating these forward-looking statements, you should consider various factors, including, without limitation: the ability of the parties mentioned herein and their subsidiaries to change the direction; their ability to keep pace with new technology and changing market needs; and competition. These and other factors may cause actual results to differ materially from any forward-looking statement. Forward-looking statements are only predictions. The forward-looking events discussed in this release and other statements made from time to time by the parties mentioned herein, their subsidiaries or their respective representatives, may not occur, and actual events and results may differ materially and are subject to risks, uncertainties and assumptions. The Parties mentioned herein, their subsidiaries, and their representatives are not obligated to publicly update or revise any forward-looking statement, whether as a result of uncertainties and assumptions, the forward-looking events discussed in this release and other statements made from time to time by the respective parties their subsidiaries or their representatives might not occur.

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The Battle for Digital Privacy Is Reshaping the Internet

“The internet is answering a question that it’s been wrestling with for decades, which is: How is the internet going to pay for itself?” he said.

The fallout may hurt brands that relied on targeted ads to get people to buy their goods. It may also initially hurt tech giants like Facebook — but not for long. Instead, businesses that can no longer track people but still need to advertise are likely to spend more with the largest tech platforms, which still have the most data on consumers.

David Cohen, chief executive of the Interactive Advertising Bureau, a trade group, said the changes would continue to “drive money and attention to Google, Facebook, Twitter.”

The shifts are complicated by Google’s and Apple’s opposing views on how much ad tracking should be dialed back. Apple wants its customers, who pay a premium for its iPhones, to have the right to block tracking entirely. But Google executives have suggested that Apple has turned privacy into a privilege for those who can afford its products.

For many people, that means the internet may start looking different depending on the products they use. On Apple gadgets, ads may be only somewhat relevant to a person’s interests, compared with highly targeted promotions inside Google’s web. Website creators may eventually choose sides, so some sites that work well in Google’s browser might not even load in Apple’s browser, said Brendan Eich, a founder of Brave, the private web browser.

“It will be a tale of two internets,” he said.

Businesses that do not keep up with the changes risk getting run over. Increasingly, media publishers and even apps that show the weather are charging subscription fees, in the same way that Netflix levies a monthly fee for video streaming. Some e-commerce sites are considering raising product prices to keep their revenues up.

Consider Seven Sisters Scones, a mail-order pastry shop in Johns Creek, Ga., which relies on Facebook ads to promote its items. Nate Martin, who leads the bakery’s digital marketing, said that after Apple blocked some ad tracking, its digital marketing campaigns on Facebook became less effective. Because Facebook could no longer get as much data on which customers like baked goods, it was harder for the store to find interested buyers online.

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North Korea Fires 2 Ballistic Missiles as Arms Rivalry Mounts

SEOUL — North Korea launched two ballistic missiles off its east coast on Wednesday, the country’s first ballistic missile test in six months and a violation of multiple United Nations Security Council resolutions that ban North Korea from conducting such tests.

Hours after the missiles were launched, South Korea announced that its president, Moon Jae-in, had just attended the test of the country’s first submarine-launched ballistic missile, making South Korea ​the seventh country in the world to operate S.L.B.M.s, after the United States, Russia, China, Britain, France and India.

​The missile tests by both Koreas on the same day dramatically highlighted the intensifying arms race on the Korean Peninsula as nuclear disarmament talks between Washington and North Korea remained stalled. They also underscored the growing concern over regional stability, with Prime Minister Yoshihide Suga of Japan calling the North Korean missile launch “outrageous” and a threat to peace.

In its announcement, South Korea revealed that it had successfully developed a supersonic cruise missile and a long-range air-to-land missile to be mounted on the KF-21, a South Korean supersonic fighter jet, and that it had developed a ballistic missile powerful enough to penetrate North Korea’s underground wartime bunkers.

test-fired what it called newly developed long-range cruise missiles over the weekend. But the United States has not imposed fresh sanctions against the North for weapons tests in recent years. When North Korea resumed testing short-range ballistic missiles in 2019, Donald J. Trump, then the president, dismissed them for being short range.

The Biden administration has said it would explore “practical” and “calibrated” diplomacy to achieve the goal of the complete denuclearization of the Korean Peninsula. But North Korea has yet to respond to the administration’s invitation to dialogue.

“Rather than strengthen sanctions and military exercises, the allies have emphasized a willingness for dialogue and humanitarian cooperation,” said Leif-Eric Easley, a professor of international studies at Ewha Womans University in Seoul. “The problem with less than robust responses to North Korea’s tests is that deterrence can be eroded while Pyongyang advances its capabilities and normalizes its provocations.”

The North Korean missiles on Wednesday — launched from Yangdok, in the central part of the country — flew 497 miles and reached an altitude of 37 miles before landing in the sea between North Korea and Japan, the South Korean military said. South Korean and United States defense officials were analyzing the data collected from the test to determine exactly what type of ballistic missiles were used, it said.

Japan’s Ministry of Defense issued a statement saying that it “assumed” the missile did not reach the country’s territorial waters or its exclusive economic zone.

The news of the North Korean missile test broke shortly after Foreign Minister Wang Yi of China, North Korea’s biggest supporter and only remaining major trading partner, finished a meeting with his South Korean counterpart, Chung Eui-yong, in Seoul.

“It’s not just North Korea, but other countries as well that engage in military activities,” Mr. Wang said when asked by reporters to comment on the North’s weekend cruise-missile test. “We must all work together to resume dialogue. We all hope to contribute to peace and stability on the Korean Peninsula.”

Mr. Wang didn’t elaborate, but appeared to be referring to the joint military exercises conducted by the United States and South Korea last month. North Korea has accused Washington and Seoul of preparing to invade the North, and usually counters joint military drills between the two allies with its own military exercise or weapons tests.

“The United States has no hostile intent toward” North Korea, Sung Kim, the Biden administration’s special envoy, said on Tuesday in Tokyo, where he met with representatives from Japan and South Korea to discuss the North’s arsenal. He said Washington hoped that North Korea would “respond positively to our multiple offers to meet without preconditions.”

The latest tests showed that North Korea continued to improve its arsenal of missiles despite a series of resolutions from the United Nations Security Council that banned North Korea from developing or testing ballistic missiles and nuclear weapons.

Tensions on the Korean Peninsula rose sharply in 2017, when North Korea tested three intercontinental ballistic missiles and conducted its sixth underground nuclear test, leading to the sanctions from the United Nations. After the tests, the country claimed an ability to target the continental United States with a nuclear warhead.

Mr. Trump met with Kim Jong-un, the North Korean leader, three times between 2018 and 2019, but the leaders failed to reach an agreement on lifting sanctions or rolling back the North’s nuclear and missile programs. Mr. Kim has since vowed to boost his country’s weapons capabilities.

With the recent tests, “North Korea is seeking to increase its leverage in coming talks” with Washington, said Lee Byong-chul, a North Korea expert at Kyungnam University’s Institute for Far Eastern Studies in Seoul.

By timing its latest test to Mr. Wang’s visit to Seoul, North Korea also appeared to “express discontent with Beijing” that it was not providing enough economic assistance during the global health crisis, Mr. Lee said.

North Korea’s economy, already battered by years of devastating international sanctions, has suffered greatly as trade with China has plummeted in the coronavirus pandemic.

Motoko Rich contributed reporting from Tokyo.

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A Million Afghan Children Could Die in ‘Most Perilous Hour,’ U.N. Warns

Millions of Afghans could run out of food before the arrival of winter and one million children are at risk of starvation and death if their immediate needs are not met, top United Nations officials warned on Monday, putting the country’s plight into stark relief.

Secretary General António Guterres, speaking at a high-level U.N. conference in Geneva convened to address the crisis, said that since the Taliban takeover in Afghanistan last month, the nation’s poverty rate has soared and basic public services have neared collapse and, in the past year, hundreds of thousands of people have been made homeless after being forced to flee fighting.

“After decades of war, suffering and insecurity, they face perhaps their most perilous hour,” Mr. Guterres said, adding that one in three Afghans do not know where they will get their next meal.

The deepening humanitarian crisis tops a dizzying array of challenges confronting the new Taliban regime as it navigates governing a country propped up for decades by aid from international donors.

face potential collapse. At a local hospital in Chak-e Wardak, administrators have been unable to pay salaries or purchase new medicines with banks still closed, according to Faridullah, the facility’s resident doctor.

as drought enveloped the nation.

On Monday, in his first public remarks to Congress, Secretary of State Antony J. Blinken defended the Biden administration’s withdrawal from Afghanistan, saying there was no reason to believe the country would have stabilized had the United States remained.

“There’s no evidence that staying longer would have made the Afghan security forces or the Afghan government any more resilient or self-sustaining,” Mr. Blinken told the House Foreign Affairs Committee, in a live teleconference call. “If 20 years and hundreds of billions of dollars in support, equipment, and training did not suffice, why would another year, or five, or 10, make a difference?”

international aid workers having fled the country out of safety concerns. Those who remain are unsure if they will be able to continue their work.

During the conference on Monday, the U.N. said it needed $606 million in emergency funding to address the immediate crisis, while acknowledging that money alone will not be enough. The organization has pressed the Taliban to provide assurances that aid workers can go about their business safely. By the end of the gathering, international pledges had surpassed the amount requested.

But even as the Taliban sought to make that pledge, the U.N.’s human rights chief, Michelle Bachelet, also speaking in Geneva, said Afghanistan was in a “new and perilous phase” since the militant Islamist group seized power.

“In contradiction to assurances that the Taliban would uphold women’s rights, over the past three weeks, women have instead been progressively excluded from the public sphere,” she said, a warning that the Taliban would need to use more than words to demonstrate their commitment to aid workers’ safety.

Monday’s conference was also intended to drive home the enormousness of the crisis and offer some reassurance to Western governments hesitant to provide assistance that could legitimize the authority of a Taliban government that includes leaders identified by the U.N. as international terrorists with links to Al Qaeda.

their origin story and their record as rulers.

On Sunday, Taliban authorities sent assurances that they would facilitate humanitarian aid deliveries by road, he said.

some $12 billion in assistance to Afghanistan over four years.

While the Taliban did not have a representative in Geneva for the meeting, Zabihullah Mujahid, the Taliban’s deputy information and culture minister, said the government welcomed all humanitarian efforts by any nation, including the United States.

He also acknowledged that not even the Taliban expected to be in control of the country so quickly.

“It was a surprise for us how the former administration abandoned the government,” he said. “We were not fully prepared for that and are still trying to figure things out to manage the crisis and try to help people in any way possible.”

More than half a million Afghans were driven from their homes by fighting and insecurity this year, bringing the total number of people displaced within the country to 3.5 million, Filippo Grandi, the U.N. refugee chief said.

The danger of economic collapse raised the possibility of stoking an outflow of refugees to neighboring countries.

Said, 33, lived in Kunduz before fleeing to Kabul, where he now lives in a tent in a park. He has been there with his wife and three children for a month.

“It’s cold here, we have no food, no shelter, and we can’t find a job in this city,” he said, adding that he had not received any aid. “We all have children and they need food and shelter, and it’s not easy to live here.”

Jim Huylebroek contributed reporting from Chak-e Wardak, Afghanistan. Sami Sahak also contributed reporting.

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Biden Offers Ambitious Blueprint for Solar Energy

Building and installing enough solar panels to generate up to 45 percent of the country’s power needs will strain manufacturers and the energy industry, increasing demand for materials like aluminum, silicon, steel and glass. The industry will also need to find and train tens of thousands of workers and quickly. Some labor groups have said that in the rush to quickly build solar farms, developers often hire lower-paid nonunion workers rather than the union members Mr. Biden frequently champions.

Challenges like trade disputes could also complicate the push for solar power. China dominates the supply chain for solar panels, and the administration recently began blocking imports connected with the Xinjiang region of China over concerns about the use of forced labor. While many solar companies say they are working to shift away from materials made in Xinjiang, energy experts say the import ban could slow the construction of solar projects throughout the United States in the short term.

Yet, energy analysts said it would be impossible for Mr. Biden to achieve his climate goals without a big increase in the use of solar energy. “No matter how you slice it, you need solar deployments to double or quadruple in the near term,” said Michelle Davis, a principal analyst at Wood Mackenzie, an energy research and consulting firm. “Supply chain constraints are certainly on everyone’s mind.”

Administration officials pointed to changes being made by state and local officials as an example of how the country could begin to move faster toward renewable energy. Regulators in California, for example, are changing the state’s building code to require solar and batteries in new buildings.

Another big area of focus for the administration is greater use of batteries to store energy generated by solar panels and wind turbines for use at night or when the wind is not blowing. The cost of batteries has been falling but remains too high for a rapid shift to renewables and electric cars, according to many analysts.

To some solar industry officials, the Energy Department report ought to help to focus people’s minds on what is possible even if lawmakers haven’t worked out the details.

“In essence the D.O.E. is saying America needs a ton more solar, not less, and we need it today, not tomorrow,” said Bernadette Del Chiaro, executive director of the California Solar and Storage Association, which represents solar developers in the state with by far the largest number of solar installations. “That simple call to action should guide every policymaking decision from city councils to legislatures and regulatory agencies across the country.”

Brad Plumer contributed reporting.

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Afghans Flee to Pakistan. An Uncertain Future Awaits.

TORKHAM, Pakistan — The Taliban, thankfully, didn’t figure out Mohammad was a police officer.

Mohammad, 55, had worked for years in Laghman Province east of Kabul, where chasing militants was part of the job. Then the Taliban seized control of Afghanistan. They killed his boss. Mohammad figured he and his family were next.

“We left Afghanistan mainly to protect our lives,” said Mohammad, who insisted on being identified only by his first name to protect his extended family from reprisals. On Aug. 16, he, his wife and their five children reached Spin Boldak, a town on the Afghanistan side of the border, before crossing to Chaman on the Pakistan side. To get there, they navigated watchful Taliban and paid Pakistan security forces $900 in bribes.

“On the highway, Taliban fighters were stopping and searching travelers,” said Mohammad. “But, luckily, they did not recognize me because, maybe, I was a low-ranked cop.”

The Pakistan authorities are watching worriedly to see whether more refugees like Mohammad and his family come pouring over the border. The government is expecting as many as 700,000 at a potential cost of $2.2 billion as the authorities set up camps and ways to track and feed them.

the United Nations, though experts say hundreds of thousands of undocumented immigrants live there, too.

The migration issue has at times added tension along the border. Already, on Wednesday Pakistan’s military fired artillery rounds over the border, citing firing from Afghanistan that killed five soldiers — the latest in long-running hostilities as Pakistan forces target suspected insurgents hiding on the other side.

Lt. Gen. Faiz Hameed, Pakistan’s powerful intelligence chief, listed terrorism and refugees among Pakistan’s top concerns at a meeting with Taliban leaders in Kabul over the weekend, according to Fawad Chaudhry, the Pakistani information minister.

1,600-mile border fence in recent years.

At Torkham, the dusty border crossing about 140 miles east of Kabul, the Pakistani authorities appeared to be keeping the flow of refugees under strict control. Only small groups of people crossed the border, where only Pakistan citizens and Afghans with visas are allowed to cross. Hundreds of empty container trucks sat idle on the Pakistan side, evidence of a sharp drop in trade because of the war.

raided by law enforcement, with young men rounded up, detained or beaten en masse, rights groups say.

their origin story and their record as rulers.

“Harassment and exploitation on the part of law enforcement agencies is a product of underlying perceptions of Afghans as violent, dangerous and suspicious,” said Zoha Waseem, a sociology professor at the University of Warwick and an expert on policing. “Refugees are therefore viewed with suspicion and seen as an alleged threat to the security of the nation-state. This makes an entire community, including refugee children, at risk of state harassment.”

Human Rights Watch. The group warned that the move risked adding to a population of hundreds of thousands of people in Afghanistan rendered essentially homeless by poverty and conflict.

The Taliban’s vengeful ways add to the risks. While the country’s new leaders have tried to strike a moderate tone, reports of reprisals against former members of the security forces and other Taliban opponents have trickled out of the country.

“I have no plans to go back to the Taliban’s Afghanistan,” said Khan, once a journalist in Kabul. He wanted to be identified only by his surname to protect his wife and two children, who remain in the Afghan capital.

Anticipating a Taliban victory by October, Khan had planned to get passports for his wife and two children to move to Pakistan. Kabul’s sudden fall last month spoiled those plans.

“Taliban has a list of journalists who were critical of the movement in their reporting,” said Mr. Khan, who had a visa to enter Pakistan, “and I am sure I am among them.”

In Camp Jadeed, a makeshift home for Afghan refugees on Karachi’s outskirts, residents said they had no plans to go back despite the temporary nature of their surroundings.

“With Taliban’s recapturing, a new era of uncertainty and fear starts in Afghanistan,” said Jan Ali, an Afghan in his 60s who arrived in Pakistan in 1980 and makes a living selling secondhand carpets.

He has seen arrivals from decades of conflict. “But the only good thing, this time,” he said, “is that bloodshed was avoided to gain Kabul’s throne.”

Salman Masood contributed reporting from Islamabad, Pakistan.

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Hedge Fund’s Insiders Agree to Pay as Much as $7 Billion to I.R.S.

A yearslong dispute between a pioneering hedge fund and the Internal Revenue Service ended Thursday with an enormous bill for taxes and penalties: as much as $7 billion.

James Simons, a mathematician whose algorithmic approach has been adopted by many other investment funds, and some of his former colleagues at Renaissance Technologies have settled a decade-long dispute with the government over the tax treatment of some of their investments, the firm said in letter to investors.

The settlement, which involves 10 years’ worth of trades made by the hedge fund, could be worth as much as $7 billion, according to a person with knowledge of the agreement. It is one of the largest federal tax disputes in history.

The deal ends a standoff that led to a congressional investigation and involved two politically connected financiers: Mr. Simons, a longtime patron of Democratic candidates with an estimated net worth of $25 billion, and Robert Mercer, a former Renaissance executive whose advocacy for conservative causes included helping to found Cambridge Analytica. After Donald J. Trump won the 2016 presidential election, the now-defunct political consulting firm became embroiled in a scandal for harvesting Facebook data without users’ consent to assist his campaign.

$10 million in Breitbart News, and was a key supporter of Stephen K. Bannon, who was Breitbart’s chairman before becoming Mr. Trump’s chief strategist.

The billions in payments to the I.R.S. will be made by current and former investors in a small group of Renaissance funds, but principally its Medallion fund. Those investors include seven people who were members of the firm’s board between 2005 and 2015, as well as their spouses. Mr. Simons will make a payment of $670 million on top of his obligation as part of that group, according to the letter.

“Renaissance’s board ultimately concluded that the interests of our investors from the relevant period would be best served by agreeing to this resolution with the I.R.S., rather than risking a worse outcome, including harsher terms and penalties, that could result from litigation,” Peter Brown, the firm’s chief executive, wrote.

Renaissance is best known for pioneering a data-intensive form of stock trading called quantitative strategy, which has been adopted by many other hedge funds and trading platforms on Wall Street. The settlement centers on the firm’s Medallion fund, which manages about $15 billion, mostly for employees and former employees of the firm and their family members.

Mr. Simons founded the firm in 1982. Once the head of the math department at Stony Brook University on Long Island, he was a code-breaker for the U.S. military during the Vietnam War. He stepped down from the firm’s day-to-day operations in 2010, handing the reins to Mr. Mercer and Mr. Brown as co-chief executives.

reported that contractors and employees of Cambridge Analytica, eager to sell psychological profiles of American voters to political campaigns, acquired the private Facebook data of tens of millions of users — the largest known leak in the company’s history. Facebook eventually said as many as 87 million users — mostly in the United States — had their data harvested by the firm.

Mr. Mercer’s decision to resign as co-chief of Renaissance shortly after Mr. Trump won the presidency came about in part because of his involvement in bankrolling Cambridge Analytica. Some of the hedge fund’s investors had voiced concerns about Mr. Mercer’s political activities.

The firm’s letter on Thursday said that aside from the board members and their spouses, other investors will be required to pay additional tax and interest owed, but no penalties. Renaissance’s outside clients, who include wealthy individuals, pensions and other investors, are not expected to be affected by the settlement.

The tax dispute involved Medallion’s fast-paced options trading and how those transactions should be taxed — a major consideration given that the firm’s rapid-fire trading had a history of generating big profits.

At the time of the transactions the federal tax rate on long-term capital gains was about half what it was for short-term capital gains. The hedge fund argued that many of its trades were eligible to be taxed at the lower rate because it had converted those options trades into longer-term holdings through the use of complex financial instruments.

These instruments involved baskets of stocks put together by a bank. But Medallion didn’t buy the actual basket of stocks; it instead bought an option on that basket and sometimes gave the banks instructions on how to trade those stocks. Basket options have been criticized for having allowed hedge funds to borrow money more easily and allowing them to make bigger and potentially riskier trades.

The I.R.S. argued that the basket option trades should have been taxed at the higher rate because they were mainly the result of short-term trading.

The disagreement drew the attention of Congress, and led to rule changes. Following a report from the Senate Permanent Committee on Investigations, the I.R.S. issued new guidance in 2015 that sought to clamp down on this type of trading by making it more difficult and costly for hedge funds to buy basket options. Such investment vehicles had to be declared on the tax returns of any investor who used them, the agency said.

The I.R.S. had said its guidance on basket options would be retroactive, and applied to all transactions as far back as Jan. 1, 2011.

Still, some senators were critical of the I.R.S. for taking so long to change its rules and start investigating the trading practice, including at Renaissance.

Senator Carl Levin, the Michigan Democrat who headed the Senate committee in 2014 and died in July, said the I.R.S. guidance would stop banks and hedge funds from using “dubious structured financial products” that had cost taxpayers billions.

Elise Bean, a former aide to Mr. Levin, said she wished her former boss had lived to see the settlement. “It’s good to see that, despite a yearslong, knock-down, bare-knuckles battle, the I.R.S. prevailed in compelling at least one set of billionaires to pay the taxes they owe,” she said.

Jesse Drucker contributed reporting.

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How Will The US Cope With Taliban Rule?

Even as the United States finalizes its departure from Afghanistan, it faces a dilemma there as wrenching as any during the 20-year war: how to deal with the new Taliban government.

The question is already manifest in the debate over how deeply to cooperate against a mutual enemy, the Islamic State branch in the region, known as ISIS-K.

Another: Whether to release $9.4 billion in Afghan government currency reserves that are frozen in the United States. Handing the Taliban billions would mean funding the machinery of its ultraconservative rule. But withholding the money would all but ensure a sudden currency crisis and halt on imports, including food and fuel, starving Afghan civilians whom the United States had promised to protect.

These are only the beginning. Washington and the Taliban may spend years, even decades, pulled between cooperation and conflict, compromise and competition, as they manage a relationship in which neither can fully tolerate nor live without the other.

already seeking from the United States.

Washington, for its part, sees Afghanistan as a potential haven for international terrorists, a center of geopolitical competition against its greatest adversaries and the site of two looming catastrophes — Taliban rule and economic collapse — that could each ripple far beyond the country’s borders.

At home, President Biden already faces a backlash over Afghanistan that would be likely to intensify if he were seen as enabling Taliban rule. But he may find that securing even the most modest American aims in the country requires tolerating the group that now controls it.

His administration got a taste of this new reality last week, when American forces evacuating Kabul relied on Taliban fighters to help secure the city’s airport.

testing quiet, mostly tacit coordination.

The United States has a long history of working with unsavory governments against terrorist groups.

But such governments have routinely exploited this to win American acquiescence, and even assistance, in suppressing domestic opponents they have labeled extremists.

This dynamic has long enabled dictators to disregard American demands on human rights and democracy, confident that Washington would tolerate their abuses as long as they delivered on terrorism matters.

less extreme opposition groups.

It may ultimately be a question of whether Washington prefers an Afghanistan divided by civil war — the very conditions that produced the Taliban and now ISIS-K — or one unified under the control of a Taliban that may or may not moderate itself in power.

The Taliban, desperate for foreign support, have emphasized a desire to build ties with Washington.

The longer the United States holds out recognition, formal or informal, the more incentive the Taliban have to chase American approval. But if Washington waits too long, other powers may fill the diplomatic vacuum first.

Iran and China, which border Afghanistan, are both signaling that they may embrace the Taliban government in exchange for promises related mostly to terrorism. Both are eager to avoid an economic collapse or return to war on their borders. And they are especially eager to keep American influence from returning.

“Beijing will want to extend recognition to the Taliban government, likely after or at the same time that Pakistan does so but before any Western country does,” Amanda Hsiao, a China analyst for the International Crisis Group, wrote in a recent policy brief.

Iran has already begun referring to the “Islamic Emirate,” the Taliban’s preferred name for its government. Iranian missions remain open.

eased. But the former enemies have drawn much closer over one issue that is not likely to apply in Afghanistan, extensive trade, and another that is — opposition to China.

Many Afghans fear that American recognition, even indirect, could be taken as a blank check for the group to rule however it wants.

Still, some who are fiercely opposed to both the Taliban and the American withdrawal have urged international engagement.

“Everyone with a stake in the stability of Afghanistan needs to come together,” Saad Mohseni, an Afghan-Australian businessmen behind much of the country’s media sector, wrote in a Financial Times essay.

their origin story and their record as rulers.

Neither engagement nor hostility is likely to transform the group’s underlying nature. And even when engagement works, it can be slow and frustrating, with many breakdowns and reversals on a road to rapprochement that might take decades to travel.

Perhaps the only scenario as dire as a Taliban takeover is one that is all but assured without American intervention: economic collapse, even famine.

Afghanistan imports much of its food and fuel, and most of its electricity. Because it runs a deep trade deficit, it pays for imports mostly through foreign aid, which amounts to nearly half of the country’s economy — and has now been suspended.

The country holds enough currency reserves to finance about 18 months of imports. Or it did, until the U.S. froze the accounts.

As a result, Afghanistan may soon run out of food and fuel with no way to replenish either.

“Acute famines generally result from shortages of food triggering a scramble for necessities, speculation and spikes in food prices, which kill the poorest,” a Columbia University economist, Adam Tooze, wrote last week. “Those are the elements we can already see at work in Afghanistan.”

As the United States learned in 1990s Somalia, flying in food does not solve the problem and may even worsen it by putting local farmers out of business.

according to Save the Children, a charity. The group also surveyed some of the thousands of families displaced from rural areas to Kabul and found that many already lack the means to buy food.

It is difficult to imagine a harder sell in Washington than offering diplomatic outreach and billions of dollars to the group that once harbored Al Qaeda, barred women from public life and staged public executions.

Republicans are already seizing on the chaos of the withdrawal to criticize Mr. Biden as soft on adversaries abroad.

He may also face pressure from Afghan émigrés, a number of whom already live in the United States. Diasporas, like those from Vietnam or Cuba, tend to be vocally hawkish toward the governments they fled.

The administration, which is pursuing an ambitious domestic agenda in a narrowly divided Congress, may be hesitant to divert more political capital to a country that it sees as peripheral.

Still, Mr. Biden has seemed to relish rejecting political pressure on Afghanistan. Whether he chooses to privilege geopolitical rivalry, humanitarian welfare or counterterrorism in Afghanistan, he may find himself doing so again.

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Hurricane Ida Exposes Grid Weaknesses as New Orleans Goes Dark

Most of New Orleans went dark on Sunday after Hurricane Ida took out transmission lines and forced power plants offline. It was an all too familiar scene in a city that has often lost power during big storms.

But this was an outage that was never supposed to happen. The utility company Entergy opened a new natural gas power plant in the city last year, pledging that it would help keep the lights on — even during hot summer days and big storms. It was one of two natural gas plants commissioned in recent years in the New Orleans area, the other one hailed by Gov. John Bel Edwards last year as a “source of clean energy that gives our state a competitive advantage and helps our communities grow.”

The storm raises fresh questions about how well the energy industry has prepared for natural disasters, which many scientists believe are becoming more common because of climate change. This year, much of Texas was shrouded in darkness after a winter storm, and last summer officials in California ordered rolling blackouts during a heat wave.

More than a million residential and commercial customers in Louisiana were without power on Monday afternoon, and Entergy and other utilities serving the state said it would take days to assess the damage to their equipment and weeks to fully restore service across the state. One customer can be a family or a large business, so the number of people without power is most likely many times higher. In neighboring Mississippi, just under 100,000 customers were without power.

some of California’s largest and deadliest wildfires.

impossible for Texas to import power by keeping the state grid largely isolated from the rest of the country to avoid federal oversight.

add more transmission lines to carry more solar and wind power from one region of the country to another. But some energy experts said the increasing frequency of devastating hurricanes, wildfires and other disasters argues against a big investment in power lines and for greater investment in smaller-scale systems like rooftop solar panels and batteries. Because small systems are placed at many homes, businesses, schools and other buildings, some continue to function even when others are damaged, providing much-needed energy during and after disasters.

Susan Guidry, a former member of the New Orleans City Council who voted against the Entergy plant, said she had worried that a storm like Ida could wreak havoc on her city and its energy system. She had wanted the city and utility to consider other options. But she said her fellow Council members and the utility had ignored those warnings.

“They said that they had dealt with that problem,” Ms. Guidry said. “The bottom line is they should have instead been upgrading their transmission and investing in renewable energy.”

Numerous community groups and city leaders opposed the gas-fired power plant, which is just south of Interstate 10 and Lake Pontchartrain, bordering predominantly African American and Vietnamese American neighborhoods. Nevertheless, the City Council approved the plant, which began commercial operations in May 2020. It generates power mainly at times of peak demand.

About a year earlier, Entergy opened a larger gas power plant in nearby St. Charles Parish. Leo P. Denault, Entergy’s chairman and chief executive, last year called that plant “a significant milestone along the clean energy journey we began more than 20 years ago.”

Some utilities have turned to burying transmission lines to protect them from strong winds and storms, but Mr. Gasteiger said that was expensive and could cause its own problems.

“Generally speaking, it’s not that the utilities are not willing to do it,” he said. “It’s that people aren’t willing to pay for it. Usually it’s a cost issue. And undergrounding can make it more difficult to locate and fix” problems.

Big changes to electric grids and power plants are likely to take years, but activists and residents of New Orleans say officials should explore solutions that can be rolled out more quickly, especially as tens of thousands of people face days or weeks without electricity. Some activists want officials to put a priority on investments in rooftop solar, batteries and microgrids, which can power homes and commercial buildings even when the larger grid goes down.

“We keep walking by the solutions to keep people safe in their homes,” said Logan Atkinson Burke, executive director of the Alliance for Affordable Energy, a consumer group based in New Orleans. “When these events happen, then we’re in crisis mode because instead we’re spending billions of dollars every year now to rebuild the same system that leaves people in the dark, in a dire situation.”

Some residents have already invested in small-scale energy systems for themselves. Julie Graybill and her husband, Bob Smith, installed solar panels and batteries at their New Orleans home after Hurricane Isaac blew through Louisiana in 2012. They lost power for five days after Isaac, at times going to their car for air-conditioning with their two older dogs, said Ms. Graybill, 67, who retired from the Tulane University School of Medicine.

“We would sit in the car about every hour,” she said. “My husband said, ‘We are never doing this again.’” Mr. Smith, 73, who is also retired, worked as an engineer at Royal Dutch Shell, the oil company.

The couple have set up a little power station on their porch so neighbors can charge their phones and other items. Only a few other homes on their street have solar panels, but no one else nearby has batteries, which can store the power that panels generate and dispense it when the grid goes down.

“We’re told we’re not going to have power for three weeks,” Ms. Graybill said. “The only people who have power are people with generators or solar panels. We lived through Katrina. This is not Katrina, so we’re lucky.”

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