Business
Column: Progressives have ruined San Francisco. Just ask this heiress
Say what you would like concerning the recall final week of Chesa Boudin, San Francisco’s liberal district legal professional, it has been a present for pundits trying to find indicators of a pushback in opposition to progressive legal justice reforms.
“Most San Franciscans simply realized that doctrinaire progressivism had change into a suicide pact,” wrote Daniel Henninger of the Wall Avenue Journal, declaring an finish to “a serious metropolis’s lengthy transition to flowers-in-your-hair progressivism.” James Hohmann of the Washington Put up labeled Boudin’s defeat as “the most recent wake-up name for Democrats, who’ve misplaced the general public’s belief on legal justice.”
However the prize goes to Nellie Bowles, who weighed in with an almost 8,000-word screed within the Atlantic, calling her former house city a “failed metropolis” and ascribing its decline to “progressive leaders” and their “left-wing values.”
In San Francisco the phrase developer is mainly a slur.
— Nellie Bowles, within the Atlantic
Extra on Bowles and the Atlantic in a second. However first, some perspective on the election. There are few indicators, if any, that voters are literally “fed up” with legal justice reform, as Bowles would have it, whether or not in San Francisco particularly or the Bay Space usually.
In Alameda County throughout the bay, Yesenia Sanchez is poised to win her race for sheriff with out going through a runoff, regardless of espousing progressive reforms not dissimilar from Boudin’s. Diana Becton, one other progressive, seems to have received a second time period as Contra Costa D.A., whereas civil rights legal professional Pamela Worth will head to a runoff for Alameda County D.A. with a large lead.
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Boudin was saddled with distinctive negatives. These included clumsy political expertise that led him to make simply caricatured public statements. He received election in 2019 by a razor-thin margin, marking him from the primary as a weak officeholder.
(As he informed followers Monday, because of the peculiarities of recall voting, he truly acquired extra votes this time round — that’s, “no” on the recall — than he did in his authentic win.)
Boudin was focused by actual property builders and Realtors, who contributed to a battle chest of some $6.4 million, greater than double the sum raised to oppose the recall.
Most of the people, because it occurs, accredited of a lot of Boudin’s signature insurance policies, with majorities queried in a mid-May poll supporting his efforts to guard employee rights and evaluation previous circumstances for doable wrongful convictions. Pluralities within the ballot supported his dedication to not cost youngsters as adults and finish the apply of money bail.
The election-night returns confirmed Boudin dropping handily, resulting in experiences that metropolis residents had “voted overwhelmingly” in opposition to Boudin by greater than 60%. But the most recent, near-final tally reveals that about 55% of these casting votes selected to show Boudin out, however fewer than 45% of registered voters forged any vote. In different phrases, the recall vote amounted to 24.6% of San Francisco voters, which is lower than “overwhelming” any manner you chop it.
These information factors don’t match the preconceived narrative that’s the hallmark of low-cost punditry, which brings us again to the Bowles evaluation. A former New York Instances reporter now contributing to the Substack weblog run by her spouse, the conservative commentator Bari Weiss, Bowles described the Boudin recall as a residents’ response to crime, a surfeit of homeless folks, numerous filth and dirt, and crazy left-wing metropolis officers.
Bowles’ invoice of particulars wasn’t too completely different from many different analyses striving to make sense of the recall vote. One line in her article did catch my eye, nonetheless. It was Bowles’ obvious try to painting herself because the offspring of a working-class San Francisco household relationship again six generations by mentioning that on the time of the Gold Rush “my German great-great-great-grandfather labored at a butcher store on Jackson Avenue.”
I occur to know one thing about Bowles’ ancestor, as a result of I’ve discovered about him in the midst of researching my forthcoming guide, a historical past of California.
He was Henry Miller, and he didn’t labor in a butcher store for lengthy. By the early 1870s he was one of many richest males in California, a land baron who was recognized for exploiting the labor of itinerant homeless males to construct a fortune in farming and cattle ranching. (One other Miller descendant, through a distinct department of the household tree, is Tucker Carlson.)
Miller’s title doesn’t seem in Bowles’ article, nor do his wealth-building practices. A witness earlier than a congressional committee in 1914 labeled Miller’s practices, which included monopolizing water rights within the Central Valley by threatening their rightful house owners with costly lawsuits, “a reason behind social unrest.”
Miller established what was generally known as the “soiled plate route,” by way of which he let it’s recognized {that a} tramp may get a free meal at a Miller rancho, however just one meal and solely from an already-used plate. On this manner he saved a gradual stream of low-cost labor transferring by way of an empire that grew to greater than 1 million acres. The Miller empire lives on right this moment as Bowles Farming Co., a direct descendant of Miller & Lux.
The actual situation with Bowles’ depiction of the decline of San Francisco isn’t her household historical past. It’s using cherry-picking to create a deceptive image of circumstances in San Francisco, the causes of its ostensible “failure,” and the way they’re linked to the recall of Boudin. I reached out to Bowles for remark through Weiss and the Atlantic, however she didn’t reply.
The Bowles piece is one other installment within the Atlantic’s “dying of the California dream” style, which I reported on final yr. The Atlantic dangers getting addicted to those yarns due to their recognition amongst non-Californians, in the identical sense that the primary style of human blood has been reputed to show African lions into incorrigible man-eaters.
Like that earlier piece, Bowles employs exaggeration and particular pleading to make her case. She calls petty crime “rampant” and presents anecdotal proof to show it: The vintage retailer the place she purchased her spouse her marriage ceremony ring was “ransacked on the finish of December,” she experiences. She cites automotive break-ins and shoplifting, and quotes representatives of CVS and Walgreens complaining about retail theft.
But San Francisco Police Division statistics don’t point out that the town is beleaguered by against the law wave. Up to now this yr, burglaries and robberies are down from the identical interval a yr in the past, and each had been decrease in 2021 than in 2020.
Motorized vehicle thefts are at about the identical degree now that they’ve been because the starting of 2020; that’s unhealthy, clearly, if it’s your automotive that’s been stolen or subjected to a smash-and-grab, however not precisely a brand new phenomenon in a metropolis the place on-street parking is the norm in lots of residential neighborhoods.
As for larceny theft, the class that features shoplifting, it surged in 2021, however appears to be operating at a barely decrease charge this In any occasion, it’s about 25% under the pre-pandemic ranges of 2019 and 2018.
In any case, as my colleague Sam Dean documented, shoplifting statistics are notoriously unreliable. They seem like wildly exaggerated by the trade and retail chains, and sometimes wielded as an excuse by chains to shut shops which might be unprofitable for different causes.
Bowles dismisses the narrative informed by the actual numbers by remarking that “you may spend days debating San Francisco crime statistics and their that means, and many individuals do.” She acknowledges, too, that the town “has comparatively low charges of violent crime, and in comparison with equally sized cities, one of many lowest charges of murder.”
None of that is to say that notion is completely divorced from actuality. Let’s settle for for the needs of argument that the residents of San Francisco consider the place goes to hell. If that’s so, why? One reply could be the atrocious efficiency of the San Francisco police.
The division’s clearance charge, which already was one of many lowest within the nation, fell final yr to the bottom in a decade, with solely 8.1% of reported crimes resulting in an arrest. Among the SFPD’s defenders, together with Bowles, argue that the cops merely assume that, as a liberal, Boudin wouldn’t prosecute the culprits they arrest, so that they don’t trouble. However since they’re arresting fewer than one in 10 perpetrators, how would these supporters know?
Many ills Bowles and different critics ascribe to left-wing politicians and progressivism operating wild in San Francisco aren’t even resulting from metropolis initiatives.
Boudin was blamed for treating drug possession as a misdemeanor moderately than a felony, however that was the mandate of Proposition 47, which handed overwhelmingly statewide in 2014, as Bowles acknowledges. Voters handily rejected an try to roll again a few of Proposition 47 in 2020.
Drug deaths are up in San Francisco, however as Bowles acknowledges, that’s an artifact of the nationwide opioid disaster, not of native politics.
What does Bowles see as a solution to the town’s maladies? Much less neighborhood opposition to new actual property building. (“In San Francisco the phrase developer is mainly a slur,” she writes.)
An oft-cited manifestation of the town’s paralysis is the fixed battling between residents and actual property builders.
Amongst her examples of silly NIMBYism is neighborhood resistance to a plan for 63 housing items on a tract that was a flower farm, which locals wished to see repurposed as a group backyard and market. Bowles sneers at this as “a type of banjo-and-beehives utopian fantasy,” no matter which means.
Anyway, the developer is continuing with plans to place 63 housing items on the location. Bowles quotes an area lawyer observing “you could possibly home 50 children and their households on that website.” That could be true, however because the building value can be virtually $1 million per unit, one can think about that these households received’t resemble people who can be homeless if the event didn’t exist.
Like different critics of the municipal liberalism in San Francisco, Bowles is heartened by what she sees as the general public recapturing its voice and rising as much as flip the far-lefties out. Does that sq. along with her contempt for these standing within the developer’s manner?
No, but it surely provides the sport away. Conservative pundits love to advertise “free speech” and public activism, until it’s directed at folks of their class, like builders and people who suppose the best strategy to take care of drug addicts is to throw them in jail. If the Boudin recall actually mirrored the forces they reward, San Francisco may nicely flip into a distinct metropolis. It is perhaps higher, however the query can be: Higher for whom?
Business
Cookies, Cocktails and Mushrooms on the Menu as Justices Hear Bank Fraud Case
In a lively Supreme Court argument on Tuesday that included references to cookies, cocktails and toxic mushrooms, the justices tried to find the line between misleading statements and outright lies in the case of a Chicago politician convicted of making false statements to bank regulators.
The case concerned Patrick Daley Thompson, a former Chicago alderman who is the grandson of one former mayor, Richard J. Daley, and the nephew of another, Richard M. Daley. He conceded that he had misled the regulators but said his statements fell short of the outright falsehoods he said were required to make them criminal.
The justices peppered the lawyers with colorful questions that tried to tease out the difference between false and misleading statements.
Chief Justice John G. Roberts Jr. asked whether a motorist pulled over on suspicion of driving while impaired said something false by stating that he had had one cocktail while omitting that he had also drunk four glasses of wine.
Caroline A. Flynn, a lawyer for the federal government, said that a jury could find the statement to be false because “the officer was asking for a complete account of how much the person had had to drink.”
Justice Ketanji Brown Jackson asked about a child who admitted to eating three cookies when she had consumed 10.
Ms. Flynn said context mattered.
“If the mom had said, ‘Did you eat all the cookies,’ or ‘how many cookies did you eat,’ and the child says, ‘I ate three cookies’ when she ate 10, that’s a false statement,” Ms. Flynn said. “But, if the mom says, ‘Did you eat any cookies,’ and the child says three, that’s not an understatement in response to a specific numerical inquiry.”
Justice Sonia Sotomayor asked whether it was false to label toxic mushrooms as “a hundred percent natural.” Ms. Flynn did not give a direct response.
The case before the court, Thompson v. United States, No. 23-1095, started when Mr. Thompson took out three loans from Washington Federal Bank for Savings between 2011 and 2014. He used the first, for $110,000, to finance a law firm. He used the next loan, for $20,000, to pay a tax bill. He used the third, for $89,000, to repay a debt to another bank.
He made a single payment on the loans, for $390 in 2012. The bank, which did not press him for further payments, went under in 2017.
When the Federal Deposit Insurance Corporation and a loan servicer it had hired sought repayment of the loans plus interest, amounting to about $270,000, Mr. Thompson told them he had borrowed $110,000, which was true in a narrow sense but incomplete.
After negotiations, Mr. Thompson in 2018 paid back the principal but not the interest. More than two years later, federal prosecutors charged him with violating a law making it a crime to give “any false statement or report” to influence the F.D.I.C.
He was convicted and ordered to repay the interest, amounting to about $50,000. He served four months in prison.
Chris C. Gair, a lawyer for Mr. Thompson, said his client’s statements were accurate in context, an assertion that met with skepticism. Justice Elena Kagan noted that the jury had found the statements were false and that a ruling in Mr. Thompson’s favor would require a court to rule that no reasonable juror could have come to that conclusion.
Justices Neil M. Gorsuch and Brett M. Kavanaugh said that issue was not before the court, which had agreed to decide the legal question of whether the federal law, as a general matter, covered misleading statements. Lower courts, they said, could decide whether Mr. Thompson had been properly convicted.
Justice Samuel A. Alito Jr. asked for an example of a misleading statement that was not false. Mr. Gair, who was presenting his first Supreme Court argument, responded by talking about himself.
“If I go back and change my website and say ‘40 years of litigation experience’ and then in bold caps say ‘Supreme Court advocate,’” he said, “that would be, after today, a true statement. It would be misleading to anybody who was thinking about whether to hire me.”
Justice Alito said such a statement was, at most, mildly misleading. But Justice Kagan was impressed.
“Well, it is, though, the humblest answer I’ve ever heard from the Supreme Court podium,” she said, to laughter. “So good show on that one.”
Business
SEC probes B. Riley loan to founder, deals with franchise group
B. Riley Financial Inc. received more demands for information from federal regulators about its dealings with now-bankrupt Franchise Group as well as a personal loan for Chairman and co-founder Bryant Riley.
The Los Angeles-based investment firm and Riley each received additional subpoenas in November from the U.S. Securities and Exchange Commission seeking documents and information about Franchise Group, or FRG, the retail company that was once one of its biggest investments before its collapse last year, according to a long-delayed quarterly filing. The agency also wants to know more about Riley’s pledge of B. Riley shares as collateral for a personal loan, the filing shows.
B. Riley previously received SEC subpoenas in July for information about its dealings with ex-FRG chief executive Brian Kahn, part of a long-running probe that has rocked B. Riley and helped push its shares to their lowest in more than a decade. Bryant Riley, who founded the company in 1997 and built it into one of the biggest U.S. investment firms beyond Wall Street, has been forced to sell assets and raise cash to ease creditors’ concerns.
The firm and Riley “are responding to the subpoenas and are fully cooperating with the SEC,” according to the filing. The company said the subpoenas don’t mean the SEC has determined any violations of law have occurred.
Shares in B. Riley jumped more than 25% in New York trading after the company’s overdue quarterly filing gave investors their first formal look at the firm’s performance in more than half a year. The data included a net loss of more than $435 million for the three months ended June 30. The shares through Monday had plunged more than 80% in the past 12 months, trading for less than $4 each.
B. Riley and Kahn — a longstanding client and friend of Riley’s — teamed up in 2023 to take FRG private in a $2.8-billion deal. The transaction soon came under pressure when Kahn was tagged as an unindicted co-conspirator by authorities in the collapse of an unrelated hedge fund called Prophecy Asset Management, which led to a fraud conviction for one of the fund’s executives.
Kahn has said he didn’t do anything wrong, that he wasn’t aware of any fraud at Prophecy and that he was among those who lost money in the collapse. But federal investigations into his role have spilled over into his dealings with B. Riley and its chairman, who have said internal probes found they “had no involvement with, or knowledge of, any alleged misconduct concerning Mr. Kahn or any of his affiliates.”
FRG filed for Chapter 11 bankruptcy in November, a move that led to hundreds of millions of dollars of losses for B. Riley. The collapse made Riley “personally sick,” he said at the time.
One of the biggest financial problems to arise from the FRG deal was a loan that B. Riley made to Kahn for about $200 million, which was secured against FRG shares. With that company’s collapse into bankruptcy in November wiping out equity holders, the value of the remaining collateral for this debt has now dwindled to only about $2 million, the filing shows.
Griffin writes for Bloomberg.
Business
Starbucks Reverses Its Open-Door Policy for Bathroom Use and Lounging
Starbucks will require people visiting its coffee shops to buy something in order to stay or to use its bathrooms, the company announced in a letter sent to store managers on Monday.
The new policy, outlined in a Code of Conduct, will be enacted later this month and applies to the company’s cafes, patios and bathrooms.
“Implementing a Coffeehouse Code of Conduct is something most retailers already have and is a practical step that helps us prioritize our paying customers who want to sit and enjoy our cafes or need to use the restroom during their visit,” Jaci Anderson, a Starbucks spokeswoman, said in an emailed statement.
Ms. Anderson said that by outlining expectations for customers the company “can create a better environment for everyone.”
The Code of Conduct will be displayed in every store and prohibit behaviors including discrimination, harassment, smoking and panhandling.
People who violate the rules will be asked to leave the store, and employees may call law enforcement, the policy says.
Before implementation of the new policy begins on Jan. 27, store managers will be given 40 hours to prepare stores and workers, according to the company. There will also be training sessions for staff.
This training time will be used to prepare for other new practices, too, including asking customers if they want their drink to stay or to go and offering unlimited free refills of hot or iced coffee to customers who order a drink to stay.
The changes are part of an attempt by the company to prioritize customers and make the stores more inviting, Sara Trilling, the president of Starbucks North America, said in a letter to store managers.
“We know from customers that access to comfortable seating and a clean, safe environment is critical to the Starbucks experience they love,” she wrote. “We’ve also heard from you, our partners, that there is a need to reset expectations for how our spaces should be used, and who uses them.”
The changes come as the company responds to declining sales, falling stock prices and grumbling from activist investors. In August, the company appointed a new chief executive, Brian Niccol.
Mr. Niccol outlined changes the company needed to make in a video in October. “We will simplify our overly complex menu, fix our pricing architecture and ensure that every customer feels Starbucks is worth it every single time they visit,” he said.
The new purchase requirement reverses a policy Starbucks instituted in 2018 that said people could use its cafes and bathrooms even if they had not bought something.
The earlier policy was introduced a month after two Black men were arrested in a Philadelphia Starbucks while waiting to meet another man for a business meeting.
Officials said that the men had asked to use the bathroom, but that an employee had refused the request because they had not purchased anything. An employee then called the police, and part of the ensuing encounter was recorded on video and viewed by millions of people online, prompting boycotts and protests.
In 2022, Howard Schultz, the Starbucks chief executive at the time, said that the company was reconsidering the open-bathroom policy.
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