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A new blueprint for financing community development – Part III

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A new blueprint for financing community development – Part III

Hegseth, a Fox News host who served in the Army National Guard, was named by President-elect Donald Trump on November 12 as his pick for defense secretary. Since then, Hegseth has been the subject of a number of allegations of sexual misconduct, alcohol abuse and financial mismanagement. The most recent spate of news stories have detailed allegations, which Hegseth has denied, related to excessive alcohol consumption and appear to be the main topic of concern on Capitol Hill.

“It’s just been very troubling to see how unconcerned many members of Congress are with men who are accused of sexual assault,” said Rep. Veronica Escobar of Texas, a member of the House Armed Services Committee. While the House does not vote to confirm Cabinet nominees, Hegseth met with Republican House members on Wednesday to shore up support.

“The issue that apparently, I heard, came up in his meetings was his alleged alcohol abuse,” she said. “But I guess his abuse of women doesn’t seem to bother as many folks.”

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Credible allegations of impropriety have often been cause for withdrawal or disqualification. Hegseth is one of a number of Trump’s Cabinet-level nominees who face accusations of sexual misconduct.

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In 2020, Hegseth paid a confidential settlement to a woman who filed a police report accusing him of raping her in 2017 at a Republican women’s conference in Monterey, California. No charges were filed against Hegseth in connection with the encounter, which he and his lawyer maintain was consensual. The New Yorker and other outlets have reported on additional allegations that Hegseth mismanaged funds and abused alcohol while leading two veteran-focused nonprofits, and that his colleagues at Fox News witnessed him drinking to excess while he was a weekend co-host at “Fox and Friends.” Hegseth has strenuously denied those claims, including in an op-ed published in the Wall Street Journal, and told Megyn Kelly in an interview on her SiriusXM show that he wouldn’t drink alcohol as defense secretary.

Representatives for Fox News and the Trump transition did not immediately return requests for comment. Several of Hegseth’s current and former Fox News colleagues, including current “Fox & Friends Weekends” co-host Will Cain, have spoken up in his defense.

“The press is peddling anonymous story after anonymous story, all meant to smear me and tear me down. It’s a textbook manufactured media takedown,” Hegseth wrote in the Journal. “They provide no evidence, no names, and they ignore the legions of people who speak on my behalf. They need to create a bogeyman, because they believe I threaten their institutional insanity. That is the only thing they are right about.”

Democratic women serving on the House and Senate Armed Services Committees argued that Hegseth getting confirmed would not only undercut years-long bipartisan efforts in Congress to address sexual assault and abuse in the military but also the armed services’ efforts to recruit more women.

“This is very concerning,” said Escobar, a Democrat. “We have been trying to address recruitment for a long time, and women are a key component of that. This is the last thing we needed, and it is my hope that those members of the Senate who are committed to these reforms and who know how important women are in the military will have very candid conversations with him, and he will drop out.”

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Nearly 1 in 4 women in the military report having experienced sexual assault and more than half report harassment, according to a 2016 analysis of articles published in the peer-reviewed journal Trauma, Violence and Abuse. The vast majority of incidents go unreported, according to the RAND Corporation, which provides research to the U.S. Armed Forces. In 2018 alone, about 6,000 sexual assaults were reported to the Department of Defense, but surveys suggested more than 20,000 service members were sexually assaulted. And amid a broader military recruitment crisis, a 2020 government study found that women were leaving the military at higher rates than men and citing sexual assault as a major factor.

Michelle Simpson Tuegel, a Texas-based lawyer who does not practice in the military justice system but has represented survivors in several high-profile sex abuse cases, said Hegseth’s nomination marks “a scary moment” for women service members.

“I get calls every year from women who have faced sexual assault and sexual harassment in the military, I’ve represented people on the bases when I used to do criminal defense,” Tuegel said. “There’s a lot of violence on our military bases.”

Reports of sexual assault in the military have risen by an estimated 25 percent since 2018, according to the military’s own data, which include both anonymous surveys and formal reports.

Military justice reform advocates have gained ground in recent years, particularly in regards to how military sexual assault and harassment investigations are handled. After the end of World War II, one Supreme Court ruling — known as the Feres doctrine — barred service members from suing the government over any injuries incurred while on active duty. Though typically applied to cases of medical malpractice, this ruling had expanded to include sexual assault allegations. However, the high-profile murder in 2020 of Vanessa Guillén, a soldier who was sexually harassed by a supervisor and violently murdered while stationed at Fort Hood, Texas, acted as a catalyst for reform. Guillén’s death led to major changes in the National Defense Authorization Act, guaranteeing that certain crimes like sexual assault and domestic violence would be prosecuted outside the chain of command.

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Democratic Sen. Tammy Duckworth of Illinois, a veteran, called it “insane” that Trump would nominate someone like Hegseth after the “decades” of efforts within the Armed Services.

“There are simply too many reasons proving that Pete Hegseth is not the right person to lead our military men and women, and he will not have my vote,” she said in a statement to The 19th. “Republicans confirming him to this position wouldn’t just be an insult to our men and women in uniform—it would be dangerous for our national security and military readiness.”

Rep. Mikie Sherrill of New Jersey was a student at the Naval Academy 30 years ago as part of the first class of women eligible for combat ships. She served for nearly a decade, including a stint in London when she worked for a Navy fleet commander overseeing the deployment of troops to Iraq, at a time when she said the culture was not great for women.

When young women interested in the service academies come to her office, Sherrill said, “they’re not interested in going into a force as second-class citizens, and they’re not interested in being given special treatment.”

“What they want is the challenge that all people that go into our military service want. What they want to do is to serve the public, to protect and defend the Constitution of the United States and to make sure that people here can sleep at night,” said Sherrill, who is also running for governor of New Jersey. “And so, why you would ever put someone in charge that didn’t respect that, that didn’t respect the service of about 20 percent of our armed forces, is shocking to me.”

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The implications stretch beyond the ranks of the Armed Forces, said Democratic Rep. Chrissy Houlahan of Pennsylvania, who served in the Air Force and Air Force Reserve. Changes that enabled women like her, Sherrill and others to serve in the military put them on the path to public service in Congress, she said.

“They served because we made some real reforms that mattered in how women are able to serve and what kind of roles they’re able to serve in,” Houlahan said. “And I think it’s not a coincidence that you then see those people, decades later, showing up in places like Congress, because they’ve had equal opportunity.”

The U.S. Senate vets and confirms the president’s nominees to Cabinet posts and other high-level positions. In some ways, Hegseth’s nomination and the scandal surrounding it are not new. The first time a new president’s initial Cabinet nominee was rejected was in 1989 when the Senate failed to confirm John Tower, former President George H.W. Bush’s pick for defense secretary, after he was accused of being an alcoholic womanizer.

Then Sen. Sam Nunn, a Democrat and Senate Armed Services Committee Chairman at the time, led the charge against Tower’s nomination on the grounds that his character was unfit for the position.

“The committee is also concerned about the personal example the secretary of defense must set for efforts of the Department of Defense to end discrimination toward, and any sexual harassment of, women. … Mr. President, leadership must be established from the top down,” Nunn said during the 1989 Senate debate.

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Secretary of Defense Lloyd J. Austin III, who was appointed by President Joe Biden, has made it a priority of his tenure to combat sexual assault in the military, establishing a commission early on to make recommendations to the military. Meanwhile, Hegseth has signaled a different set of values and priorities when it comes to women and people of color. He wrote a book arguing that military standards have been lowered for women, that “America’s white sons and daughters” are walking away from the military because of ideology that is too “effeminate” and that diversity, inclusion and equity efforts are bad for national security.

“I’m straight up just saying we shouldn’t have women in combat roles,” Hegseth said in November during a podcast interview. “It hasn’t made us more effective. It hasn’t made us more lethal. It has made fighting more complicated.”

On Wednesday, Hegseth mounted another lobbying blitz on Capitol Hill, meeting with several key Republican senators. GOP Sen. Joni Ernst of Iowa, an Army veteran and a sexual assault survivor herself who has been outspoken against sexual assault in the military, posted on X that she had a “frank and thorough” conversation with Hegseth.

His mother, Penelope Hegseth, is also doing a media tour on behalf of her son after The New York Times reported on an email she sent him in 2018, in the midst of his contentious divorce from his second wife, excoriating Hegseth as an “abuser of women.” It is against military law to commit adultery, which could result in dishonorable discharge. Penelope Hegseth, who said she since apologized for and disavowed the contents of the email, took to Fox News with her hopes that lawmakers, “especially our female senators,” to “not listen to the media and that you will listen to Pete.”

Houlahan said she’s using the influence she has as a woman veteran in Congress to register her concerns with her colleagues in the Senate about Hegseth’s nomination.

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“To the degree I can, I’m trying to have conversations, and directly have conversations with my Senate companions, to do my best to explain that I am really worried about this,” she said. “And I’m hoping that me being really worried is an indicator, a canary in the coal mine, of other people who are worried about it, who don’t have the voice that I have.”

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Cheers Financial Taps into AI to Build Credit – Los Angeles Business Journal

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Cheers Financial Taps into AI to Build Credit – Los Angeles Business Journal

A credit-building tool fintech founder Ken Lian built out of personal need just got an artificial intelligence-powered upgrade.

Lian and co-founders Zhen Wang and Qingyi Li recently launched Cheers Financial – a startup run out of Pasadena-based Idealab Inc. which combines fast-tracked credit-building with “immigrant-friendly” onboarding.

“Our mission is really to try to make credit fair to individuals who want to have financial freedom in the U.S.,” Lian said.

After coming to the U.S. as an international student from China in 2008, Lian said he struggled for four years to get a bank’s approval for a credit card. Since 2021, the USC alumnus’ fintech ventures have aimed to break down the hurdles immigrants like him often face in accessing and building credit.

Since its launch in November, Cheers Financial has seen “healthy growth,” Lian said, with thousands using its secured personal loan product to build credit through automated monthly payments. At the end of the 24-month loan period, users get their principal back minus about 12.2% interest.

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“The product is designed to automate the entire flow, so users basically can set and forget it,” Lian said.

Cheers, partnering with Minnesota-based Sunrise Banks, boasts an average 21-point increase in credit scores within a couple of months among its users coming in with “fair” scores from the high 500s to mid-600s.

With help from AI data summary and matching, the company reports to the three major credit bureaus every 15 days – two times as frequent as popular credit-building app Kikoff. Lian hopes to shave that down to seven days.

Cheers is far from Lian, Wang and Li’s first step into alternative financial tools. An earlier venture launched in 2021, Cheese Inc., served a similar goal as an online platform providing credit-building loans alongside other services, including a zero-fee debit card with cash back.

Cheese folded when the company it used as its middle layer, Synapse Financial Technologies, collapsed in April 2024 and locked thousands of users out of their savings.

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For Lian and other fintech founders, Synapse’s fall was a wake-up call to the gaps and risks of digital banking’s status quo. As he geared up for Cheers, Lian knew in-house models and a direct company-to-bank relationship were key.

“That allows us to build a very secure and stable platform for our users,” Lian said.

Despite cooling investment in fintech, Cheers nabbed backing from San Francisco-based Better Tomorrow Ventures’ $140 million fintech fund. Automating base-level processes with AI has given the company a chance to operate at a lower cost, Lian said.

“You don’t need to build everything from the ground up,” Lian said. “You can let AI build the basic part, and then you optimize from that.”

Strong demand from high-quality users who spread the word to friends and relatives has helped, too. Some have even started Cheers accounts before arriving in the U.S., Lian said, to get a head start on building credit.

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How The Narrative Around ConocoPhillips (COP) Is Shifting With New Research And Cash Flow Concerns

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How The Narrative Around ConocoPhillips (COP) Is Shifting With New Research And Cash Flow Concerns
ConocoPhillips’ fair value estimate has been adjusted slightly, moving from about US$112.37 to roughly US$111.48, as recent research blends confidence in the company’s execution and balance sheet with more cautious views on crude pricing and near term cash flow. The core discount rate has been held steady at 6.956%, while modest tweaks to revenue growth assumptions, from 1.92% to 1.69%, reflect tempered expectations around demand and realizations that some firms are flagging. Stay tuned to…
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Africa’s climate finance rules are growing, but they’re weakly enforced – new research

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Africa’s climate finance rules are growing, but they’re weakly enforced – new research

Climate change is no longer just about melting ice or hotter summers. It is also a financial problem. Droughts, floods, storms and heatwaves damage crops, factories and infrastructure. At the same time, the global push to cut greenhouse gas emissions creates risks for countries that depend on oil, gas or coal.

These pressures can destabilise entire financial systems, especially in regions already facing economic fragility. Africa is a prime example.

Although the continent contributes less than 5% of global carbon emissions, it is among the most vulnerable. In Mozambique, repeated cyclones have destroyed homes, roads and farms, forcing banks and insurers to absorb heavy losses. Kenya has experienced severe droughts that hurt agriculture, reducing farmers’ ability to repay loans. In north Africa, heatwaves strain electricity grids and increase water scarcity.

These physical risks are compounded by “transition risks”, like declining revenues from fossil fuel exports or higher borrowing costs as investors worry about climate instability. Together, they make climate governance through financial policies both urgent and complex. Without these policies, financial systems risk being caught off guard by climate shocks and the transition away from fossil fuels.

This is where climate-related financial policies come in. They provide the tools for banks, insurers and regulators to manage risks, support investment in greener sectors and strengthen financial stability.

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Regulators and banks across Africa have started to adopt climate-related financial policies. These range from rules that require banks to consider climate risks, to disclosure standards, green lending guidelines, and green bond frameworks. These tools are being tested in several countries. But their scope and enforcement vary widely across the continent.

My research compiles the first continent-wide database of climate-related financial policies in Africa and examines how differences in these policies – and in how binding they are – affect financial stability and the ability to mobilise private investment for green projects.

A new study I conducted reviewed more than two decades of policies (2000–2025) across African countries. It found stark differences.

South Africa has developed the most comprehensive framework, with policies across all categories. Kenya and Morocco are also active, particularly in disclosure and risk-management rules. In contrast, many countries in central and west Africa have introduced only a few voluntary measures.

Why does this matter? Voluntary rules can help raise awareness and encourage change, but on their own they often do not go far enough. Binding measures, on the other hand, tend to create stronger incentives and steadier progress. So far, however, most African climate-related financial policies remain voluntary. This leaves climate risk as something to consider rather than a firm requirement.

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Uneven landscape

In Africa, the 2015 Paris Agreement marked a clear turning point. Around that time, policy activity increased noticeably, suggesting that international agreements and standards could help create momentum and visibility for climate action. The expansion of climate-related financial policies was also shaped by domestic priorities and by pressure from international investors and development partners.

But since the late 2010s, progress has slowed. Limited resources, overlapping institutional responsibilities and fragmented coordination have made it difficult to sustain the earlier pace of reform.

Looking across the continent, four broad patterns have emerged.

A few countries, such as South Africa, have developed comprehensive frameworks. These include:

  • disclosure rules (requirements for banks and companies to report how climate risks affect them)

  • stress tests (simulations of extreme climate or transition scenarios to see whether banks would remain resilient).

Others, including Kenya and Morocco, are steadily expanding their policy mix, even if institutional capacity is still developing.

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Some, such as Nigeria and Egypt, are moderately active, with a focus on disclosure rules and green bonds. (Those are bonds whose proceeds are earmarked to finance environmentally friendly projects such as renewable energy, clean transport or climate-resilient infrastructure.)

Finally, many countries in central and west Africa have introduced only a limited number of measures, often voluntary in nature.

This uneven landscape has important consequences.

The net effect

In fossil fuel-dependent economies such as South Africa, Egypt and Algeria, the shift away from coal, oil and gas could generate significant transition risks. These include:

  • financial instability, for example when asset values in carbon-intensive sectors fall sharply or credit exposures deteriorate

  • stranded assets, where fossil fuel infrastructure and reserves lose their economic value before the end of their expected life because they can no longer be used or are no longer profitable under stricter climate policies.

Addressing these challenges may require policies that combine investment in new, low-carbon sectors with targeted support for affected workers, communities and households.

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Climate finance affects people directly. When droughts lead to loan defaults, local banks are strained. Insurance companies facing repeated payouts after floods may raise premiums. Pension funds invested in fossil fuels risk devaluations as these assets lose value. Climate-related financial policies therefore matter not only for regulators and markets, but also for jobs, savings, and everyday livelihoods.

At the same time, there are opportunities.

Firstly, expanding access to green bonds and sustainability-linked loans can channel private finance into renewable energy, clean transport, or resilient infrastructure.

Secondly, stronger disclosure rules can improve transparency and investor confidence.

Thirdly, regional harmonisation through common reporting standards, for example, would reduce fragmentation. This would make it easier for Africa to attract global climate finance.

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Looking ahead

International forums such as the UN climate conferences (COP) and the G20 have helped to push this agenda forward, mainly by setting expectations rather than hard rules. These initiatives create pressure and guidance. But they remain soft law. Turning them into binding, enforceable rules still depends on decisions taken by national regulators and governments.

International partners such as the African Development Bank and the African Union could support coordination by promoting continental standards that define what counts as a green investment. Donors and multilateral lenders may also provide technical expertise and financial support to countries with weaker systems, helping them move from voluntary guidelines toward more enforceable rules.

South Africa, already a regional leader, could share its experience with stress testing and green finance frameworks.

Africa also has the potential to position itself as a hub for renewable energy and sustainable finance. With vast solar and wind resources, expanding urban centres, and an increasingly digital financial sector, the continent could leapfrog towards a greener future if investment and regulation advance together.

Success stories in Kenya’s sustainable banking practices and Morocco’s renewable energy expansion show that progress is possible when financial systems adapt.

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What happens next will matter greatly. By expanding and enforcing climate-related financial rules, Africa can reduce its vulnerability to climate shocks while unlocking opportunities in green finance and renewable energy.

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