Finance
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.”
Sign up for The Fulcrum newsletter
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.
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.”
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.
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.”
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.
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.
“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.”
Finance
Soft-saving era? Gen-Z embraces new financial trend that puts experiences over long-term planning
LOS ANGELES (KABC) — Many Gen-Zers are adopting a financial approach that prioritizes quality of life in the present, a trend that’s being called “soft saving.”
Bob Wheeler, a CPA, described the mindset as a shift in how young adults balance their current lifestyle with longterm planning.
“It’s really a financial approach of ‘I want to make sure I have a good quality of life, and I’m thinking about the future,’ but not as much as the present,” Wheeler said.
For many Gen Z consumers, that can mean spending more on experiences – like vacations or concerts – rather than saving for major purchases like a car or home.
Wheeler said the approach can offer emotional benefits.
“I think there are definitely benefits, I mean, less anxiety, feeling like life is what you want it to be, fulfillment, versus saving for later on,” he said.
Still, financial experts caution against ignoring longterm stability. Wheeler encouraged young workers to take advantage of employer-sponsored retirement plans.
“They’re not going to do the max. They’re going to do enough to make sure they’re getting the match from your employer, so maybe they’re doing 3% or 5%. Maybe they’re not maxing out their IRAs. Maybe they’re doing $2,500,” he said.
He also stressed the importance of building an emergency fund, typically enough to cover six months of expenses.
“I want people to enjoy their life now because tomorrow is not promised,” Wheeler said. “I also just really reiterate to them ‘and you need to have some money set aside because we don’t know.’”
But saving for a home may not be practical for everyone. In some places, renting can be cheaper, and tenants avoid maintenance costs.
Copyright © 2026 KABC Television, LLC. All rights reserved.
Finance
Local M&A advisory firm Matrix acquired by banking giant Citizens Financial – Richmond BizSense
Matri x Capital Markets Group is now a division of Citizens Financial Group. (Image Courtesy Citizens Financial Group)
Matrix Capital Markets Group is used to helping businesses line up mergers and acquisitions.
For its latest transaction, the Richmond-based M&A advisory and investment banking firm was itself the subject of the deal.
Matrix was acquired last week by Rhode Island-based banking giant Citizens Financial Group.
Matrix, along with its nearly three dozen employees, including 20 in Richmond, are now operating as a division of Citizens, within the $226 billion bank’s investment banking arm, Citizens JMP Securities.
Financial terms of the deal were not disclosed. It involved an asset purchase that bought out Matrix’s 15 shareholders.
The deal ends Matrix’s 38-year run as an independent firm, a notable streak in an industry where consolidation of smaller firms into larger ones is common.
Matrix was founded in Richmond in 1988 by Scott Frayser and Jeff Moore and has since hit its stride by building a niche in handling deals for companies in the downstream energy and convenience retail sector.
The firm has been run in recent years by president Spencer Cavalier and Cedric Fortemps, co-head of the firm’s largest investment banking team.
Fortemps said Matrix began to search for a larger acquirer last year.
Cedric Fortemps
“The board decided to see if we could find a partner and a transaction that could build on what we’ve built thus far,” Fortemps said.
Matrix enlisted investment banking firm Houlihan Lokey to help in the search and negotiate on its behalf, along with the law firm Calfee as its legal advisor.
Fortemps said Citizen rose to the top of the pack of suitors in part due to JMP Securities’ track record of acquiring smaller firms like Matrix.
“They have acquired four other firms very similar to ours. Seeing the successes they had with those groups… the playbook is really to let the firms continue to operate the way they had,” Fortemps said.
Matrix’s Richmond office in the Gateway Plaza building downtown will continue to operate, as will its second office in Baltimore.
The Matrix brand will continue to be used for the time being but will eventually be phased out.
Fortemps said the firm’s success and particularly its growth in recent years has been fueled by its expertise in working deals for downstream energy clients – such as wholesale fuels distributors, propane and heating oil distributors – and convenience store and gas station chains.
Matrix’s rise in that sector began in 1997, when it hired Tom Kelso, who lived in Baltimore and owned a heating oil fuels distribution business. Kelso, who would eventually serve as the firm’s president prior to Cavalier, had a vision to launch an M&A firm for that industry.
“It took seven to eight years to grow it but eventually we were able to get a reputation of really high quality work and those successes on smaller transactions resulted in us being considered for larger deals,” Fortemps said.
Today, 21of the firm’s 26 investment bankers work on the team that handles deals for those industries. It controls about 40% market share for the M&A market for those sectors, Fortemps said.
The firm closes nearly two dozen transactions a year over the last five years and has closed 500 deals since its inception.
The typical value of its deals is more than $20 million, though the transactions it has closed over the last three years in the energy and convenience retail sectors have grown to $140 million per deal, Matrix said.
Its largest deal to date was closed last year, involving the $1.6 billion acquisition of convenience store chain Giant Eagle.
Matrix also works deals in other industries such as lubricants distribution, automotive after-market suppliers and car washes, as well as outdoor recreation and the marine industry.
After decades of representing buyers and sellers in M&A, Fortemps said the Citizens deal was a new experience for the Matrix team: being the target of the transaction, rather than the ones facilitating it.
“It certainly made me appreciate everything our clients have to go through on the other side of the table,” he said.
Finance
Deutsche Bank’s Expanding Sports Finance Strategy
As the business side of team sports, such as football, becomes larger and more complex, the opportunities for banks to provide financing solutions for the individuals and institutions involved proliferate. At Deutsche Bank’s private bank, it sees considerable opportunities ahead.
With American and other non-UK investors/owners buying into UK
football teams, it has highlighted that handling the
financial side of sports is now a distinct asset class that even
those uninterested in sports should consider.
Deutsche Bank’s private banking arm certainly considers sports
finance a sufficiently large area to warrant a specialist
offering, as announced
a few days ago. The business focuses on Europe and the
US.
The financing business is led by Arjun Nagarkatti, who is the
head of the private bank for the US and Europe international
business. Deutsche
Bank has appointed Sowmya Kotha in London and Joshua Frank in
New York, who report to Adam Russ, head of wealth management and
business lending.
“Sport can be a local passion project. However, it is becoming
more of a legitimate asset class. Even a non-sports person should
look at sports,” Nagarkatti told WealthBriefing in a
meeting at the German bank’s London offices in the City. “These
are big businesses and a lot of people still don’t know how big
they are.”
Family offices/ultra HNW individuals are trying to take
a “more institutional” approach to transacting in sports
teams, he said.
Setting up such a business feeds into the specialist lending and
financial advisory work that Deutsche has discussed
with this publication in recent months. (See
an example here – via Hong Kong.) This work uses the
combined private bank/investment banking connections where
private clients will also have operating business concerns.
The sports financing business shows that this area is not simply
a private banking niche. Rival Citigroup, for example,
spoke to this news service in 2025 about its work with
ultra-wealthy people wanting to buy, sell and run sports teams.
Our US correspondent recently wrote about opportunities for
wealth management arising from changes in college
sports.
The expanded capability at Deutsche on the sports side is
“significant for the bank,” Nagarkatti said. “It is a core focus
for us.”
UHNW sports owners/potential owners tend to be ideal clients –
they are internationally minded, want advice and guidance on
financial/personal wealth matters, he continued. “This is a big
opportunity for us and it is a consistent connection we have had
with clients, and we have been doing this for 10 to 15
years.”
Deutsche is initially concentrating on the English Premier
League. As its US franchise has expanded, this has led to
financing across all four major US sports leagues: National
Football League; Major League Baseball; National Basketball
Association, and National Hockey League.
Mention of cross-border owners of clubs leads to potential owners
of, say, a UK football club needing to understand that when
they buy a team, they’re also buying into hopes and dreams.
Owners raise their heads above a parapet – not always a fun
experience.
“You become a public figure,” Nagarkatti said.
One example that springs to mind is Sir Jim Ratcliffe, the
billionaire founder of INEOS, the chemical producer who took
a 27.7 per cent stake in Manchester United more than a year
ago. While well known in business circles before buying into the
“Red Devils” –
one of the most famous sports institutions in the world – his
profile has risen since, with every comment – controversial or
otherwise – analysed, not always kindly.
American owners of teams have to adjust to the risk, for example
when a football (soccer) team gets relegated, Nagarkatti
said. Anyone looking to own a club must understand risks,
including how their public profile, assuming they were very
private people, rises rapidly, and in ways that are not always
comfortable if a team has problems, he said.
There is a need for realism.
“When you buy these top assets, you must spend time and work them
and increase their value. You must be prepared to invest time,
such as on the team, stadiums, facilities,” Nagarkatti said. “It
is like buying a hotel. You cannot just sit there and think it
will go up in value by 10 times.”
For the wealth management industry in general, the business of
sports teams, as well as the individual financial affairs of
sportsmen and women, has become a distinct – and large –
specialism. For example, the Rockefeller Global Family Office has
experts who look after athletes and entertainers. Other firms
that have expertise in and around sports include Carnegie Private
Wealth, for example, and Merrill Lynch Management. In the UK, the
private banking group Coutts has a sports, media and
entertainment division for its wealthy clients. Standard
Chartered, the UK-listed bank with a significant presence in
Asia, has launched a new alternative fund focused on sports for
ultra-high net worth and high net worth clients under its Global
Private Bank. Standard Chartered is a sponsor of Liverpool
FC.
Deutsche Bank announced 2025 full-year and fourth-quarter
financial results here.
-
Wisconsin1 week agoSetting sail on iceboats across a frozen lake in Wisconsin
-
Massachusetts7 days agoMassachusetts man awaits word from family in Iran after attacks
-
Maryland1 week agoAM showers Sunday in Maryland
-
Florida1 week agoFlorida man rescued after being stuck in shoulder-deep mud for days
-
Pennsylvania4 days agoPa. man found guilty of raping teen girl who he took to Mexico
-
News1 week ago2 Survivors Describe the Terror and Tragedy of the Tahoe Avalanche
-
Sports5 days agoKeith Olbermann under fire for calling Lou Holtz a ‘scumbag’ after legendary coach’s death
-
Virginia5 days agoGiants will hold 2026 training camp in West Virginia