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The Value of Regional Banks

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The Value of Regional Banks

Stroll round any metropolis in America, and you may hardly miss the numerous branches of the Large 4 banks — JPMorgan Chase, Financial institution of America, Wells Fargo and Citigroup. They’re nearly as ubiquitous as fuel stations. With their $1 trillion-plus in belongings and nationwide attain, the Large 4 have dominated the banking panorama for the final quarter century.

So it’s not stunning that following the failure of Silicon Valley Financial institution and different regional banks, some depositors raced to maneuver their cash to nationwide banks, believing they provide extra security. The federal government gained’t enable a “Too Large To Fail” financial institution to, effectively, fail — so prospects know that even their uninsured deposits shall be lined. But when a regional financial institution craters, uninsured deposits might not be recovered.

To some, this raises the query of whether or not the U.S. even wants regional banks. Wouldn’t letting the Large 4 simply purchase all of the regional banks make the banking system each safer and extra environment friendly?

However banking specialists are fast to defend the worth of regional banks, and to grasp why, a brief historical past lesson helps. America has lengthy had a concern of huge banks, and for many years banking legislation forbade banks from crossing state traces. The thought was {that a} native banker understood his group higher than an enormous, impersonal financial institution, and would make loans that the large financial institution wouldn’t. This was particularly essential to farmers, who typically wanted their banker to be affected person in years when dangerous climate meant poor crops.

In 1994, Congress lastly allowed banks to cross state traces, whereas additionally permitting financial institution mergers. And merge the banks did — from 1995 to 2001, the variety of banks shrank to 4,200 from 10,000. On the identical time, the variety of branches really rose, to 72,000 from 59,000, as nationwide banks unfold.

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If solely deposits mattered, nationwide banks can be all you want. However for farmers, start-ups, small companies and corporations in sure sectors, what issues most is the power to get a mortgage. And right here, say the specialists, is the place the regional banks typically make extra sense than the Large 4.

“The large nationwide banks are working within the world capital markets,” mentioned Robert Hockett, a professor at Cornell Legislation Faculty and banking skilled. “A number of their belongings are based mostly on hypothesis. They’re not fueling financial progress. They’re not funding new corporations. Or farms. You want affected person capital for that, and capital on the Large 4 shouldn’t be affected person.”

“Regional banks have a mix of regional data and experience that makes lending extra environment friendly,” mentioned C. Michael Zabel, a former government at M&T, the Buffalo-based regional financial institution. “They’re additionally extra prone to put deposits to work of their group.”

Silicon Valley Financial institution was a basic “sector financial institution.” It understood its sector — enterprise capitalists and expertise start-ups — and made loans that nationwide banks would by no means have countenanced. Its failure was brought on by danger administration errors, not its start-up heavy mortgage portfolio, which was sound, and has been fortunately taken over by First Residents Financial institution.

Comerica, the Dallas-based regional financial institution, provides one other instance. Along with providing conventional mortgage lending, it has etched out specialties in female-owned enterprise and renewable power corporations, amongst others. Practically each regional financial institution is maniacally targeted on particular sectors. That’s how they’ve survived throughout 25 years of financial institution consolidation.

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The issue is that you would be able to’t make loans should you don’t have deposits. Proper now, mentioned Mark Williams, who teaches finance at Boston College, “there’s a large sucking sound, with the large banks sucking up all of the deposits from the regionals.” And whereas that will deliver a couple of sense of reduction for depositors, it’s finally not wholesome for the banking sector. — Joe Nocera

Donald Trump can have his day in courtroom. He turned the primary former US president to face felony prices after being indicted by a grand jury this week. Trump is anticipated to give up to prosecutors in Manhattan subsequent Tuesday on prices associated to hush cash funds made to the pornographic movie star Stormy Daniels. He has constantly denied any wrongdoing.

Twitter’s “blue test apocalypse” is right here. Beginning at present, the blue test marks bestowed upon some accounts, sometimes these of public figures whose id has been verified, will now not be free. To get a badge, people must pay $8 a month, and companies $1,000 per thirty days, for a Twitter Blue subscription. The change will assist Twitter generate income, however might make it harder to discern actual individuals or companies from impersonators.

Italy bans ChatGPT. As a part of the order, the nation’s knowledge safety watchdog additionally introduced it has opened an investigation into the chatbot’s creator, OpenAI. Luciano Floridi, the Italian and British thinker, referred to as the ban “a shame,” imploring the company to “unblock the platform quickly” in order that teachers might resume utilizing it.

A consequential typo. A footnote in U.S. Bancorp’s annual report misstated the worth of its loans by $50.6 billion, making it seem as if the financial institution’s loans had elevated in worth since they have been originated, when their worth had really declined by billions.

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A royal twist close to Cinderella’s Fort. As a part of an effort to limit Disney’s capacity to self-govern its theme park advanced, Gov. Ron DeSantis of Florida lately appointed a brand new oversight board for Disney’s particular tax district. He apparently didn’t know that Disney had already pushed via an settlement that restricted the brand new board’s energy, and that underneath a “royal lives clause, it might final “till twenty one (21) years after the demise of the final survivor of the descendants of King Charles III, King of England residing as of the date of this declaration.”

These seeking to assign blame for the collapse of Silicon Valley Financial institution, and the wave of chaos that arose from its failure, have already pointed fingers at financial institution executives and regulators. However there’s one other set of watchdogs that didn’t see the chaos coming: the foremost credit standing companies, Moody’s, Customary & Poor’s and Fitch.

Fifteen years in the past, they have been blamed not just for failing to establish the hazards of the mortgage-backed securities that led to the worldwide monetary disaster but additionally for turning a blind eye. However how a lot blame they need to shoulder this time is much less lower and dried.

What did the companies say within the run-up to the SVB disaster?

They accurately recognized as dangers a few of the components that led to Silicon Valley Financial institution’s demise months in the past, together with the impact of central banks’ elevating rates of interest on the belongings that lenders held. Customary & Poor’s additionally revised Silicon Valley Financial institution’s score outlook to secure, from constructive, in November.

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However not one of the companies really moved to downgrade SVB till Feb. 27 — the primary enterprise day after the lender printed its annual report — when Moody’s analysts mentioned they have been weighing a downgrade. Financial institution executives spoke with Moody’s the next week, urging the company to carry off whereas they sought to lift $2.5 billion in capital that week. Moody’s ultimately lower SVB’s score by one notch on March 8, the day the financial institution introduced its fund-raising plan.

What took the companies so lengthy?

They are saying they take longer-term views on corporations and don’t modify based mostly on probably short-term components like fluctuating values of banks’ asset holdings, an method referred to as score via the cycle. “Companies are usually reluctant to downgrade till they’re assured any elevated danger isn’t fleeting,” mentioned Samuel Bonsall, a professor at Penn State College’s Smeal Faculty of Enterprise.

Others take a blunter view: “The credit standing guys are usually sluggish in altering their opinions,” mentioned Lawrence White, a professor at NYU Stern Faculty of Enterprise.

Had been the conflicts of curiosity that took hearth after the 2008 disaster at play this time?

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Not fairly. Critics of the companies typically level to their enterprise mannequin, whereby corporations pay the companies to price their debt, as problematic. That got here to a head after the 2008 disaster when the companies have been accused of abetting unscrupulous Wall Avenue banks in peddling poisonous securities in an effort to preserve their enterprise.

However right here, the companies have been evaluating corporations, which White mentioned is usually much less vulnerable to issues. “They’re sluggish and sluggish,” he mentioned, “however they’ve fairly robust requirements” on the subject of score firms.

Would tighter regulation have prevented this?

Congress permitted plenty of methods to extend oversight of the scores companies through the Dodd-Frank banking overhaul in 2010. But a lot of these steps, together with recommending various enterprise fashions or rising authorized legal responsibility for dangerous scores, weren’t really put into apply, partly due to lobbying by the companies.

“There may be little penalty from scores being stale or fallacious,” mentioned Frank Partnoy, a professor on the College of California, Berkeley, Faculty of Legislation.

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However others questioned whether or not these adjustments would have modified the result. “Nothing the S.E.C. might have achieved or will do would take care of the truth that the credit standing companies weren’t paying consideration,” White mentioned.

From the attitude of the companies, Silicon Valley Financial institution was the sufferer of a rare financial institution run, and had its capital elevate succeeded, the lender would have survived.


Former C.E.O.s turned present C.E.O.s have been entrance and heart this week: UBS tapped former boss Sergio Ermotti to handle its takeover of Credit score Suisse; activist investor Carl Icahn referred to as for the gene-sequencing firm Illumina to deliver again its former C.E.O.; and Bob Iger, the Disney C.E.O. who began his second stint on the media firm in November, started eliminating 7,000 jobs as a part of his plan to chop $5.5 billion in spending. It was additionally an enormous week for Howard Schultz, who testified earlier than Congress about Starbucks’s labor insurance policies. He lately ended his third stint because the chief government — so far as we all know there’s no buzzphrase for that but.


Bennett Miller, the director of “Moneyball,” “Capote” and “Foxcatcher,” is exhibiting a brand new collection of prints on the Gagosian Gallery in New York. They aren’t work or drawings or pictures — however photographs created utilizing DALL-E, an A.I. software from OpenAI. Miller made the work after interviewing leaders in A.I., together with the OpenAI C.E.O. Sam Altman, for a documentary movie mission. Costs vary from $15,000 to $30,000 and the gallery has bought greater than 30 of the prints, together with every little thing on view in New York, in line with a spokesperson for Gagosian.


“Air,” a film that follows the historical past of Air Jordans, Nike’s basketball shoe that turned the mannequin for sports activities star-endorsed franchises, premieres on April 5. It’s the first movie from Artists Fairness, the unbiased movie manufacturing firm began by Ben Affleck and Matt Damon. Affleck mentioned his new enterprise and the film on the DealBook Summit final 12 months.

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Sarah Kessler contributed reporting.

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On a Hollywood studio lot, a new New York comes to life

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On a Hollywood studio lot, a new New York comes to life

Last summer, when the Hollywood writers’ strike had shut down film and television production, a crew of scenic painters at the legendary Fox Studio Lot took advantage of the lull to mess up New York City.

Work had recently been completed on a new set of façades meant to mimic Manhattan streets, but the result was too pretty and clean. Even the smooth gray concrete curbs looked suspiciously fresh.

“After the curbs were perfectly poured, we had a gentleman with a jackhammer come in here and chip away at them,” said Gary Ehrlich, president of studio operations. “It was slightly heartbreaking to see.”

Today, the curbs are suitably beaten up, with dings and black smears as if tires had been rubbing against them for decades. Fire escapes look corroded and other metal fixtures such as banisters have been coated to look old or rusty, while walls appear water-stained. A patina of age has settled over this faux city.

A film crew gets ready for a shoot at the new New York set at Fox Studios in Los Angeles on March 26, 2024. The new set that is different from conventional backlot façades because it has stages inside the New York “buildings” where filming can take place.

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The painstaking besmirchment of New York Street was one more twist in the long saga of one of filmdom’s most famous outdoor sets. Looming near the front gate like an adult-sized playhouse, an earlier version of the set and now the new one have long served notice to visitors that they have arrived at a movie studio that is itself a leading character in Hollywood lore.

Its lineage is suitably rich in Hollywood flavor: In 1967 Fox was preparing to shoot the film version of “Hello, Dolly!,” a Tony-award winning musical set in 1890s New York City that ran for years on Broadway. The script included a spectacular outdoor parade with thousands of extras, and studio executives determined that it would be impossible to shoot on location in New York because the city had changed too much.

Fox production designer John DeCuir, who had already won Academy Awards for his design of “The King and I” and “Cleopatra,” came up with a streetscape that required more than 500 workers to labor for four months to build. The $2.25-million price tag made it the most costly movie set built to date, the UPI news service reported at the time.

It required more than 300,000 feet of board lumber and 22 miles of telephone wire strung between poles, the way it was in old New York. A painted 11-story office building façade obscured the view of the Century Plaza Hotel looming next to the lot, according to Barbra Archives, which chronicles the career of “Hello, Dolly!” star Barbra Streisand.

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In a black-and-white film still, Barbra Streisand marches with a band in the movie "Hello, Dolly!"

Barbra Streisand marches with a band in a scene from the 1969 romantic comedy “Hello, Dolly!” filmed on Fox’s New York set in Century City.

(John Springer Collection / Getty Images)

Dominating the street was a replica of an elevated train station and a steam locomotive acquired from a sugar plantation in Hawaii, where it had been used to transport workers.

On July 16, 1968, the Valley Times reported, “The parade stretching one-fifth of a mile and comprised of 675 persons in 16 units passed through a crowd of 3,108 film extras” in period costumes. Among the performers were the UCLA marching band and the Budweiser Clydesdales. The director was actor-dancer Gene Kelly.

As impressive as the set was, it was intended to be temporary, said Michael Whetstone, a production designer who worked on building the new version of New York Street.

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“It was supposed to be torn down but wasn’t because it was too expensive” to remove, he said. At the time the studio was reeling from financial setbacks including a $30-million loss on “Hello, Dolly!,” according to the New York Times.

Two men on a scissor lift work on the façade of a brownstone building on Fox's New York set.

Maintenance and prop makers James Scobie, left, and Norm Greene, work on the façade of the new New York set at Fox Studios .

The set enjoyed a second, money-making act in the years that followed as Fox rented it out for use on pictures that included Warner Bros.’ comedy “Up the Sandbox,” starring Streisand, and MGM’s musical “New York, New York,” starring Liza Minnelli and Robert De Niro. Among the television shows that used it were “Charlie’s Angels” and “Moonlighting,” while Bruno Mars, Lady Gaga and other musicians used it for music videos.

But a few years ago, with the set showing its age, the studio started considering its replacement, Ehrlich said. “It had been exposed to the elements for five decades and was past its useful life.”

Fox tapped Culver City architect Nathan Moore of House & Robertson Architects to design something sturdier.

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Construction required 49 tons of rebar and more than 1,000 cubic feet of concrete. The set is held up by 260 tons of structural steel and backed inside with 4,400 square feet of catwalks. Lighting and other electrical functions are supported with 21,000 square feet of conduit and wire, allowing productions to hook up to house power instead of rolling in generators. The set also had to comply with building codes and be tracked by city building inspectors.

The new New York Street was made to look like the city in the mid 20th century, a decision that required detailed craftsmanship such as window heads and sills that would have been carved out of wood in years past but were instead fabricated out of plastic foam and finished with plaster. Windows were installed to be easily replaced so productions can break them when scenes call for it.

Whetstone oversaw the project and, as part of his research, made several trips to New York, spending long hours on foot trying to get a sense of how light plays on buildings at night.

“I was literally walking Lower Manhattan from 10 p.m. to 4 in the morning taking pictures,” he said.

Where the original “Hello, Dolly!” set was based on a commercial section of 1890s New York suitable for a parade, Fox elected to make the new set feel like a neighborhood from a later era.

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“It’s more Lower Manhattan, more Bowery,” Whetstone said. “Definitely the Lower East Side.”

A person leans against the wall of a building made to look like part of a New York City street.

A film crew member waits to set up for a shoot at the new New York set.

While the set is “a default vision of New York City,” said Whetstone, it also is intended to stand in for any major city. Through the years, Fox’s New York Street has subbed for Chicago, Washington, D.C., and Pasadena.

Even though improving camera technology through the years has made it easier to shoot on location, there are reasons filmmakers keep shooting on studio lots, said Jason E. Squire, entertainment podcaster and professor emeritus at USC School of Cinematic Arts.

As filming equipment and cameras got lighter and more portable, the more free-flowing New Wave cinema that emerged in the late 1950s and ’60s employed provocative camerawork.

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“This liberation led to people shooting off the studio lot,” Squire said. “Filmmakers wanted to get away from the studio.”

But it has remained expensive to shoot a large-scale production in the real world with all the vehicles, equipment and personnel required to be transported and managed on-site.

“One of the key decisions early in any production is whether to build sets on a lot or shoot in a real location,” Squire said. “That depends on how intricate the sequences are going to be, how intimate. It’s a judgment call and a money call, and the money usually wins.”

Shooting behind studio gates also prevents uncomfortable collisions between fantasy and reality.

“On the lot you don’t have interference from civilians,” Squire said. “You can control traffic, you can control lighting. All of the equipment is at your beck and call.”

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Whetstone recalled having to flee location shooting in downtown L.A.’s Arts District when working on Season 1 of “New Girl,” a Fox television comedy starring Zooey Deschanel that premiered in 2011.

“We started out shooting in downtown Los Angeles, and by the end of our fifth night shoot we had angered so many of the neighbors around in the community that we ended up building downtown L.A. on the Fox lot,” Whetstone said.

A man stands in an empty studio space, gesturing up at the lighting tracks crisscrossing the ceiling

Gary Ehrlich, president and general manager of studio operations at Fox Studio Lot, shows off the scaffolding for lighting inside one of the buildings in Fox’s new New York Street set.

The makeover of New York Street is in addition to a planned $1.5-billion upgrade of the Fox Studio Lot announced last year by Fox Corp. that is to include more soundstages and offices. Fox Corp. retained ownership of the lot when Walt Disney Co. bought most of 21st Century Fox’s entertainment assets in 2019.

The upgrades come as the real New York mounts an aggressive effort to lure TV and movie producers from L.A. by building new studios and soundstages.

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On New York Street in Los Angeles, Fox also was able to transform the set behind the façades, adding 4,000 square feet of interior space that makes it easier to meld outdoor and indoor action. The studio declined to reveal exactly how much the new multimillion-dollar set cost, but Fox wants it to stand for another half-century at least.

“This project was approached not just as temp architecture but as something more permanent,” Whetstone said. “We want this to last a long time.”

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As job growth in California falls back, unemployment rate remains highest in the country

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As job growth in California falls back, unemployment rate remains highest in the country

California posted another month of anemic job growth in April, keeping the state’s unemployment rate the highest in the country, 5.3%, the government reported Friday.

Statewide, employers added a net of just 5,200 jobs in April, down from 18,200 in March, according to California’s Employment Development Department.

Nationwide, employers added 175,000 jobs in April and 315,000 in March. The U.S. unemployment rate in April was 3.9%.

Major sectors of California’s economy — including manufacturing, information and professional and business services — showed job losses last month, and job opportunities aren’t as plentiful as before, even as the number of unemployed workers in the state has risen by 164,000 over the last 12 months.

In California, there were 140 unemployed workers for every 100 job openings in March, according to federal statistics released Friday. Less than two years ago, there were about two openings for every jobless person.

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Carol Jackson, an unemployed worker in South Los Angeles, says she has been pounding the pavement for months, hoping to make use of her recently minted associate degree in web management and database administration. But despite sending her resume to at least 100 employers, she has not had a single interview.

“I can tell you that California is pretty brutal now,” said Jackson, 57.

Hiring in California has been lagging behind national trends, with one notable exception. The state’s healthcare and social assistance sector added 10,100 jobs last month, bringing the gains over the last 12 months to about 155,000. That’s 75% of all new jobs added since April 2023.

Hospitals and doctors’ offices have been bulking up, but the fastest growth has been at outpatient centers, home healthcare firms, nursing facilities and, especially, social assistance, which includes vocational rehabilitation and child day-care services.

“Healthcare is the big gorilla in the room; it dominates everything,” said Mark Schniepp, director of the California Economic Forecast in Santa Barbara, adding that it’s likely to keep growing robustly with new and expanded medical facilities across the state.

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Leisure and hospitality businesses added 3,100 jobs last month. The gains included employment at hotels and restaurants — despite the added stress employers are feeling from a minimum wage increase to $20 an hour for fast-food workers that went into effect April 1.

While there are fears of layoffs as the food industry adopts technology to replace workers, California’s restaurants are getting a lift from a pickup in tourism. The leisure sector overall is close to fully recovering from the deep losses caused by the COVID-19 pandemic.

Public-sector payrolls also held up well last month, increasing by 2,600. Thus far, state and local government jobs seem to be showing little effects from California’s massive budget deficits.

“But clearly that will be another factor,” said Sung Won Sohn, economics professor at Loyola Marymount University in Los Angeles.

Sohn and other economists worry that there are national, cyclical and state-specific threats to California’s employment and broader economic outlook.

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Key pillars of the state’s economy continue to struggle.

Motion picture producers and other employers in the information sector show few signs of breaking out of the hiring doldrums, despite the film industry’s resolution of labor strikes last fall. Los Angeles’ motion picture and recording studio industries were down by 13,400 employees, or 12%, in April compared with the same month a year earlier. And many workers in the industry say conditions do not appear to be improving.

Large parts of the farm economy in the Central Valley remain sluggish, in part due to rising costs, tighter financial conditions and ongoing climate challenges.

Despite strong investments in artificial intelligence, layoffs have persisted at high-tech firms in the Bay Area and elsewhere. Scientific and technical companies shed jobs last month, and employment at computer systems design work and related services has been gradually declining.

Nationally, economists expect job growth to slow in the coming months, the result of persistently high interest rates and an expected pullback from consumers. The outlook is particularly dim in California.

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“On the ground, there are several signs of even more slowdowns,” said Michael Bernick, an employment lawyer at Duane Morris in San Francisco and former director of the state’s EDD. Among them, he said, “small businesses continue to struggle statewide with higher prices and tightened consumer spending.”

He and other experts have a similar refrain about what ails the state: high costs, excessive regulation and unaffordable home prices, among other factors.

“We just have real challenges here in California that other states don’t face,” said Renee Ward, founder of Seniors4Hire.org, a Huntington Beach-based organization that helps older workers find employment.

She said the number of job seekers registered with her service has jumped 26% so far in 2024 from a year ago.

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New Mexico weighs whether to toss Alec Baldwin criminal charges in 'Rust' shooting

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New Mexico weighs whether to toss Alec Baldwin criminal charges in 'Rust' shooting

A New Mexico judge is weighing whether to dismiss involuntary manslaughter charges against Alec Baldwin for his alleged role in the 2021 shooting death of the “Rust” movie cinematographer.

Baldwin’s attorneys argued during a court hearing Friday that special prosecutor Kari T. Morrissey had abused her power by allegedly withholding “significant evidence,” including witnesses favorable to Baldwin, during a January grand jury proceeding.

The 66-year-old actor‘s lawyers said he was a victim of an “overzealous prosecutor” who steered grand jury proceedings in an effort to win an indictment in the high-profile case. At issue is whether the grand jury had been fully advised that they could hear from Baldwin’s witnesses during the proceedings. The grand jurors spent a day and a half questioning witnesses who were introduced by the prosecutors.

“The fix was in,” Baldwin attorney Alex Spiro told the judge Friday.

The grand jury indicted Baldwin on an involuntary manslaughter charge in the shooting death of Halyna Hutchins, the 42-year-old cinematographer, who was rehearsing a scene with Baldwin on Oct. 21, 2021. Baldwin has pleaded not guilty.

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At the conclusion of Friday’s hearing, New Mexico First Judicial District Judge Mary Marlowe Sommer said she would issue her ruling next week. Should she dismiss the case, it would mark the second time that the felony charges against Baldwin were dropped.

Marlowe Sommer’s decision is expected less than two months before Baldwin is scheduled to go on trial in a Santa Fe courtroom.

During the hearing, which was conducted virtually, Morrissey denied that she had acted in bad faith. She said she didn’t prevent jurors from getting answers to their questions or from seeking additional information. She told the judge that grand jurors had been given written instructions that outlined their ability to quiz other witnesses, including those favorable to the defense.

But because the jurors didn’t ask to hear from the witnesses who were on a list supplied by Baldwin’s lawyers, several key figures in the tragedy, including film director Joel Souza, property master Sarah Zachry and assistant director David Halls, were not called to testify. Instead, jurors heard from police officers, a crew member who was in the church and expert witnesses hired by prosecutors.

On the day of the shooting, Hutchins, Baldwin, Souza and about a dozen other crew members were gathered in an old wooden church at Bonanza Creek Ranch, south of Santa Fe, preparing for a scene. Hutchins, according to the actor, told him to pull his Colt .45 revolver from his holster and point it at the camera for an extreme close-up view. That’s when the gun went off.

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Hutchins died from her wounds. Souza was injured and recovered.

Last month, Marlowe Sommer sentenced the film’s armorer, Hannah Gutierrez, to 18 months in a New Mexico women’s prison for her role in the shooting. Morrissey argued that Gutierrez was criminally negligent by allegedly bringing the live ammunition to the movie production and unwittingly loading one of the lead bullets into Baldwin’s gun. Gutierrez denies bringing the ammunition on set.

Baldwin’s prosecution has long been fraught.

Morrissey and her law partner Jason J. Lewis joined the case last year after the first team of prosecutors was forced to step down due to missteps, including trying to charge Baldwin on a penalty enhancement that wasn’t in effect at the time of the tragedy.

“The government looked a little sophomoric and unprofessional when they charged him for a crime that wasn’t a crime at the time,” said Los Angeles litigator Tre Lovell, who is not involved in the “Rust” shooting matter. “That was embarrassing.”

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The original prosecutors also displayed bluster in media interviews, making statements about the need to hold Baldwin responsible for his actions. Defense attorneys have argued that such commentary was out of line and prejudicial against the actor.

Shortly after Morrissey and Lewis joined the case, they dropped the charges against Baldwin. At the time, they said they needed more time to review evidence and address issues raised by Baldwin’s team. Morrissey and Lewis reserved the right to refile the charges.

Immediately after the charges were dropped, Baldwin traveled to Montana to finish the filming of “Rust.”

On Friday, Morrissey said last year’s decision to drop the charges was made at the request of Baldwin’s lead attorney, Luke Nikas, who had presented evidence that the gun Baldwin was using had been modified. Subsequent tests showed the gun was functional that day, but during FBI testing in 2022, the gun was broken by forensic analysts who wanted to see how much pressure needed to be applied for the hammer to drop.

The damaged gun is one of several complications that prosecutors are facing. Legal experts have said that winning a conviction in Baldwin’s case is expected to be more difficult than in the trial of Gutierrez, whose job was to make sure the weapons were safe.

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Baldwin was handed the prop gun that day and was told that it was “cold,” meaning there was no ammunition inside. In reality, the chamber of the revolver contained six rounds — five so-called dummies and the lead bullet that killed Hutchins.

“The state has not even alleged that Baldwin had a subjective awareness of a substantial risk that the firearm held live ammunition,” Nikas argued in the motion to dismiss the charges. “Without a subjective awareness, he could not have committed the crime of involuntary manslaughter, which requires that the defendant consciously disregarded a substantial and unjustifiable risk that his actions could cause another person’s death.”

Baldwin has argued, with support from Hollywood’s performers’ union SAG-AFTRA, that it wasn’t his job to be the gun safety officer on set.

The actor has said he was relying on other professionals to do their jobs to ensure a safe production.

Prosecutors have an obligation to present evidence in a “fair and impartial manner,” Baldwin’s attorneys said.

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The judge grilled Morrissey on her thinking at the time, including an instance when she had interrupted a sheriff’s deputy and prevented her from answering a question about gun safety measures on set. Morrissey said that deputy was not an expert in film set protocols and that she instead wanted jurors to get “the most accurate information,” which would come from a veteran film crew member who was an expert witness.

Baldwin’s attorneys were also sharply critical of Morrissey for divulging during a media interview the date the grand jury was expected to meet. Morrissey said she took responsibility for providing to a reporter the initial date, which had been scheduled for mid-November. However, the matter was postponed, and the case wasn’t brought before the grand jury until two months later, in mid-January.

Lovell, the L.A. entertainment attorney, said he believes the case will go to trial and that efforts to throw out the indictment will be unsuccessful.

“Courts are really reluctant to dismiss cases brought by a grand jury,” Lovell said. “Courts have limited ability to review what goes to a grand jury unless it was provided in bad faith.”

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