Finance

Congress remains divided on budget negotiations as government shutdown looms: “Our financial ship is sinking”

Published

1 year ago

September 24, 2023

Congress remains divided on budget negotiations as government shutdown looms: “Our financial ship is sinking”

U.S. House Speaker Kevin McCarthy (R-CA) speaks with reporters as he arrives for the day at the U.S. Capitol in Washington, U.S. September 18, 2023.

Jonathan Ernst | Reuters

Lawmakers over the weekend expressed few signs of movement on a budget resolution that would keep the U.S. government funded for the remainder of the fiscal year, and the clock is ticking.

Current spending laws are due to expire on Sept. 30. That means if Congress does not reach an agreement before 12:01 a.m. on Oct. 1, the government will shut down. House Republicans on Thursday sent the chamber into recess, delaying further developments in the negotiations.

“I don’t know what to think,” said Senate Majority Whip Dick Durbin Sunday on CNN’s “State of the Union.”

House Speaker Kevin McCarthy, a Republican representative from California, is responsible for piecing together the splintered GOP caucus that is struggling to come to an agreement.

Durbin, D-IL, noted that the Senate had been “moving forward” in negotiating a deal before it was interrupted by disagreement from Republican Congress members and the “inability of the Speaker to get a majority for anything.”

A primary obstacle ahead of McCarthy is a group of Republican hard-liners in the House who refuse to budge on further spending cuts.

“All of a sudden we’re the bad guys because we want to balance our budget,” Tennessee GOP Rep. Tim Burchett said Sunday on CNN’s “State of the Union.”

Burchett is among the House Republicans who are, as he puts it, “sticking to our guns.” He said he would not endorse a short-term bill called a continuing resolution, or CR, which would provide a temporary budget until the government can negotiate a more permanent deal for the new fiscal year.

“I’ve not voted for a CR, a continuing resolution. I didn’t vote for one under President Trump, and I haven’t voted for any in the past,” said Burchett. “You have folks that come to Washington and say, ‘Oh, I’m going to be a fiscal conservative, I’m going to be this,’ and then they’re not.”

Some House representatives have come together in a bipartisan effort to avert a shutdown. Late Wednesday night, the Problem Solvers Caucus, a group of 64 House representatives, equally split between Democrats and Republicans, proposed a budgetary framework endorsed by its members.

“All we’re focused on is keeping the lights on,” New Jersey Democratic Rep. Josh Gottheimer said Sunday on CNN’s “State of the Union.” Gottheimer co-chairs the caucus alongside Republican Rep. Brian Fitzpatrick of Pennsylvania.

But that symbol of bipartisan cooperation has not been enough to rally all 435 members of the House into an agreement.

If Speaker McCarthy is unable to unite his fellow Republicans, he could look across the aisle to secure the votes he needs to pass the budget. But turning to Democratic votes would come with its own wave of political backlash.

Tennessee’s Burchett said that were McCarthy to allow a deal to pass via Democrats’ votes, he would “strongly look at” giving his support to oust the speaker.

“Our financial ship is sinking,” Burchett said.

A government shutdown would mean paused paychecks for millions of U.S. federal employees and a hiatus of many government services. Investors have also expressed worry about what a shutdown would mean for the fourth fiscal quarter in an already fragile stock market.

“Across the country, so many impacts would be felt. This has to be avoided,” U.S. Transportation Secretary Pete Buttigieg said Sunday on CNN’s “State of the Union.”

CORRECTION: This story has been updated to show that a continuing resolution, or CR, would provide a temporary budget until the government negotiates a more permanent deal for the rest of the fiscal year.

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Finance

KKR Real Estate Finance Trust Inc. to Announce Fourth Quarter 2024 Results

Published

5 hours ago

January 17, 2025

Press Room

KKR Real Estate Finance Trust Inc. to Announce Fourth Quarter 2024 Results

NEW YORK, January 17, 2025–(BUSINESS WIRE)–KKR Real Estate Finance Trust Inc. (“KREF”) (NYSE: KREF) announced today that it plans to release its financial results for the fourth quarter 2024 on Monday, February 3, 2025, after the closing of trading on the New York Stock Exchange.

A conference call to discuss KREF’s financial results will be held on Tuesday, February 4, 2025 at 9:00 a.m. ET. The conference call may be accessed by dialing (844) 784-1730 (U.S. callers) or +1 (412) 380-7410 (non-U.S. callers); a pass code is not required. Additionally, the conference call will be broadcast live over the Internet and may be accessed through the Investor Relations section of KREF’s website at http://www.kkrreit.com/investor-relations/events-and-presentations. A slide presentation containing supplemental information may also be accessed through this website in advance of the call.

A replay of the live broadcast will be available on KREF’s website or by dialing (877) 344-7529 (U.S. callers) or +1 (412) 317-0088 (non-U.S. callers), pass code 4697062, beginning approximately two hours after the broadcast.

About KKR Real Estate Finance Trust Inc.

KKR Real Estate Finance Trust Inc. is a real estate finance company that focuses primarily on originating and acquiring senior loans secured by commercial real estate properties. KREF is externally managed and advised by an affiliate of KKR & Co. Inc. For additional information about KREF, please visit its website at www.kkrreit.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250117176772/en/

Contacts

Investor Relations:
Jack Switala
(212) 763-9048
kref-ir@kkr.com

Media:
Miles Radcliffe-Trenner
Tel: (212) 750-8300
media@kkr.com

Finance

Finance Director Bill Poole named to Presidential Leadership Scholars Program

Published

13 hours ago

January 17, 2025

Press Room

Finance Director Bill Poole named to Presidential Leadership Scholars Program

The Presidential Leadership Scholars Program announced that State Finance Director Bill Poole has been selected as a member of the Presidential Leadership Scholars Class of 2025. As one of 57 Scholars, Director Poole will join accomplished leaders in education, healthcare, public service, business, and other sectors to learn and hone leadership skills through interactions with former presidents, noted academics and industry leaders.

For the past decade, PLS has united a broad network of established public and private sector leaders to collaborate and create positive change in their communities and across the world. Chosen for their demonstrated leadership and support of projects aimed at addressing challenges and improving communities, Scholars will participate in a six-month program focused on core leadership skills, including: vision and communication, decision making, and strategic partnerships.

“It is an incredible honor to be named to the 2025 Class of Presidential Leadership Scholars,” said Director Poole. “I look forward to interacting with and learning from past presidents and industry leaders. I am excited to work alongside peers from across the country that are dedicated to promoting civic engagement and working on issues that will improve our communities.”

In addition to visiting four presidential centers, scholars will participate in a personal leadership project addressing local and global issues.

“I am proud to surround myself with a dedicated team of public servants to help propel Alabama forward, and I am certainly glad that includes Bill Poole. It is very exciting Bill has been selected for the Presidential Leadership Scholars Program, and I know he will represent our state well,” said Governor Kay Ivey. “Congratulations to Bill as he continues taking steps to develop and best serve the people of Alabama.”

Bill Poole was appointed Finance Director for the State of Alabama on August 1, 2021. As Alabama’s chief financial officer, Poole serves as an advisor to the governor and the legislature on all financial matters and is charged with promoting and protecting the fiscal interests of the State of Alabama. He also serves as chairman of Innovate Alabama, the state’s first public-private partnership tasked with promoting entrepreneurship, technology and innovation. Poole was a member of the Alabama House of Representatives for eleven years, where he served as chairman of the House Ways and Means Education appropriations committee for eight of those years.

To learn more about the Presidential Leadership Scholars program, visit “Presidential Leadership Scholars.”

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Finance

US consumer finance watchdog fines payments firm Block over Cash App operations

Published

21 hours ago

January 17, 2025

Press Room

US consumer finance watchdog fines payments firm Block over Cash App operations

Block said the issues raised by the regulator were “historical” and did not “reflect the Cash App experience today” [File]
| Photo Credit: REUTERS

The Consumer Financial Protection Bureau (CFPB) on Thursday ordered payments firm Block to pay a penalty citing fraud and weak security protocols on its mobile payment service Cash App.

The regulator said Block, which is led by tech entrepreneur Jack Dorsey, directed Cash App users who experienced fraud-related losses to contact their banks for transaction reversals.

However, when the banks approached Block regarding these claims, Block denied that any fraud had occurred.

Cash App is one of the largest peer-to-peer payment platforms in the U.S. and allows consumers to send and receive electronic money transfers, accept direct deposits and use a prepaid card to make purchases.

“When things went wrong, Cash App flouted its responsibilities and even burdened local banks with problems that the company caused,” said CFPB Director Rohit Chopra.

In response, Block said the issues raised by the regulator were “historical” and did not “reflect the Cash App experience today.”

“While we strongly disagree with the CFPB’s mischaracterizations, we made the decision to settle this matter in the interest of putting it behind us and focusing on what’s best for our customers and our business,” the company said.

The move is one of the final regulatory actions under the Biden administration as Washington awaits the inauguration of President-elect Donald Trump. Billionaire Elon Musk, who is slated to co-head a new government agency to slash government spending, has called for the elimination of the CFPB.

The CFPB’s order includes up to $120 million in redress to consumers and a $55 million penalty to be paid into the CFPB’s victim relief fund.

The regulator also alleged that Block deployed a range of tactics to suppress Cash App users from seeking help in order to reduce its own costs.

Block’s gross profit rose 19% to $2.25 billion in the third quarter ended Sept 30, with Cash App accounting for $1.31 billion of the total income.

On Wednesday, the company also agreed to pay $80 million to a group of 48 state financial regulators after the agencies determined the company had insufficient policies for policing Cash App.

Published – January 17, 2025 09:14 am IST