Education
Why Corporate America Is Worried About Affirmative Action
Washington cautions American companies about a Chinese counterespionage law. The National Counterintelligence and Security Center is warning that a newly revised law, which takes effect on Saturday, could give Beijing more access to and control over companies’ data, according to The Wall Street Journal. The notice comes as China has raided offices of Western-linked consulting firms, citing security concerns.
Warren questions Goldman over its SVB roles
Months after Silicon Valley Bank collapsed, Goldman Sachs’s role in its final days — as both an adviser to the lender and a buyer of its debt, potentially setting Goldman up for a big profit — has drawn scrutiny, including from federal authorities. Now, Senator Elizabeth Warren, Democrat of Massachusetts and a specialist in financial regulation, is demanding answers from Goldman, DealBook is first to report.
“This dual role — in which Goldman profited as the economy suffered — is reminiscent of the company’s behavior during the 2008 financial crisis, when it profited both from selling mortgage-backed securities and from placing bets against them,” Warren wrote on Thursday in a letter to David Solomon, the Wall Street firm’s C.E.O.
The letter reflects growing scrutiny of Goldman’s role. The firm sought to help Silicon Valley Bank shore up its finances ahead of a potential credit rating downgrade by Moody’s in two ways: by buying $21.4 billion worth of SVB’s debt, and by advising it on a planned $2.25 billion stock sale. (The equity raise failed when the debt sale forced SVB to take a $1.8 billion write-down, spooking investors.)
On the debt side, Goldman bought SVB’s loan book at a steep discount, seeking to profit by reselling it later. Though that’s a fairly typical move, it has drawn significant scrutiny here, given the fallout from SVB’s collapse. Goldman had offered its client the opportunity to hire another adviser for the debt deal, though SVB declined, DealBook previously reported.
“Goldman Sachs appears to have profited at nearly every stage of Silicon Valley Bank’s collapse,” Warren wrote. She asked Goldman to disclose any underwriter fees it received for advising on the failed capital raise, what the firm paid for the SVB loans and what happened to the value of that debt in the weeks after the bank’s collapse.
Education
Four Fraternity Members Charged After a Pledge Is Set on Fire
Four fraternity members at San Diego State University are facing felony charges after a pledge was set on fire during a skit at a party last year, leaving him hospitalized for weeks with third-degree burns, prosecutors said Monday.
The fire happened on Feb. 17, 2024, when the Phi Kappa Psi fraternity held a large party at its house, despite being on probation, court documents show. While under probation, the fraternity was required to “demonstrate exemplary compliance with university policies,” according to the college’s guidelines.
Instead, prosecutors said, the fraternity members planned a skit during which a pledge would be set on fire.
After drinking alcohol in the presence of the fraternity president, Caden Cooper, 22, the three younger men — Christopher Serrano, 20, and Lars Larsen, 19, both pledges, and Lucas Cowling, 20 — then performed the skit, prosecutors said.
Mr. Larsen was set on fire and wounded, prosecutors said, forcing him to spend weeks in the hospital for treatment of third-degree burns covering 16 percent of his body, mostly on his legs.
The charges against Mr. Cooper, Mr. Cowling and Mr. Serrano include recklessly causing a fire with great bodily injury; conspiracy to commit an act injurious to the public; and violating the social host ordinance. If convicted of all the charges, they would face a sentence of probation up to seven years, two months in prison.
Mr. Larsen himself was charged. The San Diego County District Attorney’s office said that he, as well as Mr. Cooper and Mr. Cowling, also tried to lie to investigators in the case, deleted evidence on social media, and told other fraternity members to destroy evidence and not speak to anyone about what happened at the party.
All four men have pleaded not guilty.
Lawyers representing Mr. Cooper and Mr. Cowling did not immediately respond to messages requesting comment on Tuesday. Contact information for lawyers for Mr. Serrano and Mr. Larsen was not immediately available.
The four students were released on Monday, but the court ordered them not to participate in any fraternity parties, not to participate in any recruitment events for the fraternity, and to obey all laws, including those related to alcohol consumption.
The university said Tuesday that it would begin its own administrative investigation into the conduct of the students and the fraternity, now that the police investigation was complete.
After it confirmed the details, the dean of students office immediately put the Phi Kappa Psi chapter on interim suspension, which remains in effect, college officials confirmed on Tuesday.
Additional action was taken, but the office said it could not reveal specifics because of student privacy laws.
“The university prioritizes the health and safety of our campus community,” college officials said in a statement, “and has high expectations for how all members of the university community, including students, behave in the interest of individual and community safety and well-being.”
At least half a dozen fraternities at San Diego State University have been put on probation in the last two years, officials said.
Education
Video: Several Killed in Wisconsin School Shooting, Including Juvenile Suspect
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transcript
transcript
Several Killed in Wisconsin School Shooting, Including Juvenile Suspect
The police responded to a shooting at a private Christian school in Madison, Wis., on Monday.
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Around 10:57 a.m., our officers were responding to a call of an active shooter at the Abundant Life Christian School here in Madison. When officers arrived, they found multiple victims suffering from gunshot wounds. Officers located a juvenile who they believe was responsible for this deceased in the building. I’m feeling a little dismayed now, so close to Christmas. Every child, every person in that building is a victim and will be a victim forever. These types of trauma don’t just go away.
Recent episodes in Guns & Gun Violence
Education
Video: Biden Apologizes for U.S. Mistreatment of Native American Children
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transcript
transcript
Biden Apologizes for U.S. Mistreatment of Native American Children
President Biden offered a formal apology on Friday on behalf of the U.S. government for the abuse of Native American children from the early 1800s to the late 1960s.
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The Federal government has never, never formally apologized for what happened until today. I formally apologize. It’s long, long, long overdue. Quite frankly, there’s no excuse that this apology took 50 years to make. I know no apology can or will make up for what was lost during the darkness of the federal boarding school policy. But today, we’re finally moving forward into the light.
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