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The rise of Israel's finance minister Bezalel Smotrich

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The rise of Israel's finance minister Bezalel Smotrich

A look at the rise Israel’s finance minister who has become perhaps the most influential man in the country, alongside Prime Minister Benjamin Netanyahu.



MARY LOUISE KELLY, HOST:

Israel’s finance minister has become arguably the most influential man in the country, alongside Prime Minister Benjamin Netanyahu. He’s an ultranationalist and a West Bank settler who has repeatedly called for Israel to resettle the Gaza Strip. He has threatened to collapse Netanyahu’s government if the war in Gaza ends. And this week, the war resumed after a 42-day ceasefire ended with Israeli strikes that killed more than 400 Palestinians. NPR’s Hadeel Al-Shalchi looks into his rise to power in Israel.

HADEEL AL-SHALCHI, BYLINE: Israeli Finance Minister Bezalel Smotrich was once a wanted man by Israel’s version of the FBI. In 2005, Israel was rocked by mass protests. Israeli settlers were demonstrating against the removal of Jewish settlements from Gaza. At the time, Dvir Kariv was an agent with Israel’s internal security agency, the Shin Bet.

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DVIR KARIV: (Non-English language spoken).

AL-SHALCHI: Kariv says late on July 11, 2005, they raided a home in central Israel.

KARIV: (Non-English language spoken).

AL-SHALCHI: He says, in the basement, we found several jerry cans filled with a lot of oil and fuel.

KARIV: (Non-English language spoken).

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AL-SHALCHI: They arrested five people there. One of them was a student called Bezalel Smotrich. Kariv says the men were interrogated for 3 1/2 weeks.

KARIV: (Non-English language spoken).

AL-SHALCHI: “From the Shin Bet’s perspective, we successfully thwarted what Bezalel Smotrich and his group had planned,” Kariv says. While he says he can’t divulge what that was, Israeli media has reported that Smotrich and his group were planning to blow up a major Israeli highway. Smotrich remained completely silent during his interrogations and was released without charge. He did not give away his secrets, but later, as a politician, he spoke a lot about what drives his political motivations.

(SOUNDBITE OF ARCHIVED RECORDING)

BEZALEL SMOTRICH: (Non-English language spoken).

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AL-SHALCHI: “My long-term desire is for the state of Israel to be governed according to the Torah or Jewish holy scripture,” he once told Israeli radio.

Smotrich is an ultranationalist religious Zionist, a type of Judaism that branched out from the secular Zionist movement that founded Israel. While many ultrareligious Jews historically rejected the Zionist movement, a minority accepted it. Many of them embraced the settlement movement after Israel took control of the West Bank and Gaza Strip in the war of 1967. Tomer Persico is a scholar of Jewish extremism.

TOMER PERSICO: The more Jews settle the lands that the state of Israel has conquered, the more redemption is coming close. So it’s a Messianic movement – very motivated, pious and devoted religion.

AL-SHALCHI: Persico says Smotrich is on the far right of the spectrum of religious Zionism, also known as ultra-Orthodox nationalists, who follow Jewish law and reject values like feminism, liberalism and LGBTQ rights. Smotrich and his followers believe that the Israeli-occupied West Bank is the Jewish people’s ancestral home featured in the Bible, a God-given land they must make a permanent part of Israel.

Smotrich, a lawyer, was first elected to parliament in 2015. Two years later, he wrote a manifesto called “Israel’s Decisive Plan.” In it, he writes how to tackle the main obstacle to settling the West Bank – the Palestinians.

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PERSICO: Smotrich gives the Palestinians basically three options – emigrate, surrender and live as, let’s say, subjects without the right to vote, or fight and die.

AL-SHALCHI: Only a few years later, Smotrich became the leader of the Religious Zionist Party. Ohad Tal is a lawmaker in Smotrich’s party.

OHAD TAL: I think that he’s a very clever and smart person who understands the reality. He’s presented as somebody radical because people find it hard to accept the truth.

AL-SHALCHI: Smotrich was perfectly poised for what happened in the most recent Israeli national election. Prime Minister Benjamin Netanyahu won and looked for allies to form a coalition, but he’s facing trial on corruption charges. Persico says Netanyahu was desperate.

PERSICO: He didn’t have anyone else. Because of his ongoing trial, people said they would not sit in parliament with him.

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AL-SHALCHI: The only parties that would agree to form a government with Netanyahu were the ultra-Orthodox and religious Zionists, including Smotrich’s party. Netanyahu formed a coalition with them, giving them more power than they had ever had before. The prime minister appointed Smotrich as finance minister and to the Ministry of Defense. Jewish extremism scholar Persico.

PERSICO: And in that position, he has basically taken over the civil management of settlers in the occupied territories, meaning he is on the verge of official annexation.

AL-SHALCHI: After the October 2023 attacks on Israel, Netanyahu called on Smotrich to be part of his war cabinet. The finance minister reached for his faith.

(SOUNDBITE OF ARCHIVED RECORDING)

SMOTRICH: (Non-English language spoken).

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AL-SHALCHI: “I struggled with this decision and gathered my rabbis to consult with them. After all, I want to influence the war,” he told a group of religious students last year in a video posted online.

Smotrich is reported to regularly consult with a group of rabbis known as the Five. Rabbi Yehoshua Shapira is one of them. He has opposed a hostage deal.

(SOUNDBITE OF ARCHIVED RECORDING)

YEHOSHUA SHAPIRA: (Non-English language spoken).

AL-SHALCHI: “There is joy that hostages will return, but despite that joy, this is a very bad deal for Israel,” Shapira said in an online lecture.

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Persico says Smotrich’s faithful devotion is evident every time he threatens to collapse Netanyahu’s coalition if the war doesn’t continue in Gaza, where he ultimately wants to see Jewish settlements rebuilt.

PERSICO: He is the primal force that is withholding the end of the war.

AL-SHALCHI: Smotrich has leveraged this power to further settler ambitions in the West Bank. Just days after Israel paused the war in January and agreed to a deal with Hamas for the release of hostages, Netanyahu ordered the escalation of incursions in the West Bank, causing massive destruction in urban refugee camps and displacing thousands of Palestinians. Israel says it’s to weed out Palestinian militants.

PERSICO: It’s very feasible to say this is just a card Netanyahu gave Smotrich in order to appease him when going into the hostage deal.

AL-SHALCHI: Smotrich was sidelined under President Biden’s administration for his anti-Palestinian rhetoric, and in Israel, polls show that he would not survive another election. Only 11% of the Israeli population voted for Smotrich’s party in the last elections in 2022. This month, Smotrich was invited to Washington, D.C., to meet with his counterpart in President Trump’s administration.

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(SOUNDBITE OF ARCHIVED RECORDING)

SMOTRICH: (Non-English language spoken).

AL-SHALCHI: Smotrich rarely gives interviews to U.S. Western media. This month, he gave his first press conference since his trip to the U.S., and I posed a question to him.

(SOUNDBITE OF ARCHIVED RECORDING)

AL-SHALCHI: I have two questions. Do you know anything about…

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I ask him about plans for the annexation of the West Bank. Smotrich objects to the word annexation.

(SOUNDBITE OF ARCHIVED RECORDING)

SMOTRICH: (Non-English language spoken).

AL-SHALCHI: “Annexation implies taking something that isn’t yours,” the minister says. “Judea and Samaria” – the biblical name for the West Bank – “belongs to us.”

Trump told reporters his administration would announce its position on West Bank annexation by early March. That date has passed.

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(SOUNDBITE OF ARCHIVED RECORDING)

SMOTRICH: (Non-English language spoken).

AL-SHALCHI: Smotrich says, “Israel and the U.S. are in dialogue about it, and I prefer not to go into details.” I reply…

(SOUNDBITE OF ARCHIVED RECORDING)

AL-SHALCHI: Is Trump the man who will make it happen for you? Will he support you to make it happen?

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SMOTRICH: (Non-English language spoken).

AL-SHALCHI: “We believe this is the right thing to do,” he says. “We’re engaged in discussions and dialogue.”

So while Smotrich firmly believes he has God’s mandate to take over the West Bank, the question is whether he also has Trump’s blessing.

Hadeel Al-Shalchi, NPR News, Jerusalem.

(SOUNDBITE OF MUSIC)

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Finance

Stamford Finance Students Wow Judges, Take Home Trophy in Regional CFA Competition – UConn Today

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Stamford Finance Students Wow Judges, Take Home Trophy in Regional CFA Competition – UConn Today

A tenacious team of finance majors, who sacrificed most of their winter break to prepare for the CFA Institute Research Challenge, took first place in that regional competition last week.

Students Hunter Baillargeon, Dylan Fischetto, Richard Opper, Philip Ochocinski and Rushit Chauhan were tasked with researching and analyzing a major utility company, and then producing a 10-page report about whether to buy, hold, or sell its stock. They chose to sell.

One of the CFA judges said both the team’s report and presentation were among the best he had seen in many years.

“As a team, we were thrilled our hard work paid off and our many hours of work allowed us to achieve what we did,’’ Baillargeon said. “What we accomplished couldn’t have been done without working with such a cohesive and collective unit.’’

“From a technical perspective, I realize how valuable true analysis is and the importance of looking where others don’t for a differentiated approach,’’ Baillargeon said.

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The first round of competition featured 24 college teams from the Stamford-Hartford-Providence region. The Stamford team, composed of seniors all of whom all participate in UConn’s Student Managed Fund program, received its first-place award Feb. 26 in a ceremony in Hartford. The team will advance to the East Coast competition later this month.

Stamford Finance Program is Robust

“The Stamford team’s advancement in this competition reflects not only the students’ exceptional talent and work ethic, but also the rigor and applied focus of the UConn finance curriculum,’’ said professor Yiming Qian, head of the Finance Department.

“Our Stamford campus hosts approximately 200 financial management majors. The Stamford program is a vital part of the School and continues to demonstrate outstanding strength,” she said.

Professors Steve Wilson and Jeff Bianchi, who combined have 75 years of experience in the investment industry, were the team’s advisers and were supported by academic director Katherine Pancak.

Wilson said the task of analyzing a utility is particularly complex because of the company’s structure and the regulatory environment in which it operates.

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“I believe the Stamford team stood out because of the depth of their research, and willingness to take a bold stand, including the decision to ‘go out on a limb’ and recommend selling the stock,’’ he said. “They didn’t ‘play it safe.’’’

“This clean-sweep was a true team effort. They were tireless throughout, and sleepless too often, but they never wavered from their desire to always dig deeper and uncover any information that would strengthen our investment case,’’ he said. “What a phenomenal job they did!’’

Competition in Hong Kong Is Ultimate Goal

The Stamford team will compete against Loyola, Canisius, Sacred Heart; Seton Hall, Villanova, St. Michaels, Western New England, University of Maine, Fordham and Penn State next. In total, some 8,000 students are expected to participate in various competitions worldwide, culminating in a championship round in Hong Kong in May.

Wilson said the financial industry is always welcoming of new talent. And when one of the judges told him that the Stamford team produced some of the best work that he’d seen in years, Wilson felt tremendous pride for the students.

“Finance is an open playing field. In investments, the best idea wins,’’ he said.

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Baillargeon said he will always appreciate the whole team’s dedication.

“What I’ll remember most is the help of our advisers and our cohesive, close-knit team where everyone pulled their weight,’’ Baillargeon said. “We put in long hours, did a tremendous amount of research, and collaborated well together. I hope when I enter the workforce I get to work with a team as committed as this one is.’’

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Finance

Board Advances Motion to Address LAHSA’s Failure to Pay Service Providers – Supervisor Lindsey P. Horvath

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Board Advances Motion to Address LAHSA’s Failure to Pay Service Providers – Supervisor Lindsey P. Horvath



Board Advances Motion to Address LAHSA’s Failure to Pay Service Providers – Supervisor Lindsey P. Horvath
















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Board Advances Motion to Address LAHSA’s Failure to Pay Service Providers


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How “impact accounting” can integrate sustainability with finance

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How “impact accounting” can integrate sustainability with finance

Around three years ago, Charles Giancarlo, CEO of data platform Pure Storage, came back from Davos and asked his sustainability team to look into an idea he’d encountered at the meeting: Impact accounting, a method for integrating emissions and other externalities into company balance sheets. 

The idea had been slowly picking up adherents in Europe for around a decade, but Pure Storage, which rebranded this month to Everpure, would go on to become the first U.S. company to join the Value Balancing Alliance (VBA), a group of 30 or so companies developing the approach. Trellis checked in last week with Everpure and the VBA for an update.

How does impact accounting work?

At the heart of the approach are a set of “valuation factors,” developed by third-party experts, that are used to convert activity data for emissions, water use, air pollution and other externalities into dollar figures that can be integrated into balance sheets. In the case of emissions, for example, the VBA uses $220 per ton of carbon dioxide equivalent, a figure based on the estimated social impact of rising greenhouse gases levels. 

At Everpure, one long-term goal is to have cost centers be aware of the dollar impact of relevant externalities. After an initial focus on identifying and collecting the most material data, the team is now rolling out a dashboard containing several years of impact accounting numbers.

“It’s catered to different personas,” explained Adrienne Uphoff, Everpure’s ESG regulations and impact accounting manager. Finance was an initial use case, with product managers also on the roadmap. “You can compare it to financial numbers to really understand the impact intensity.”

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What value does the approach bring?

“The essence of impact accounting is that you’re translating all these different metrics in the sustainability space into the language the decision makers understand,” said Christian Heller, the VBA’s CEO. “Everyone understands what you’re talking about, and you get a sense of the magnitude of your impact and the risks and opportunities.”

This has allowed Everpure to calculate what Uphoff called the “environmental costs of goods sold” and to estimate the impact of circular strategies, such as refurbishing hardware. The analysis reveals “impact savings across the full value chain across five different environmental topics all in a single dollar unit,” she said. 

Analyses like that can then be shared with customers and used to distinguish Everpure from competitors. “The long-term winners in this space are going to be those that can perform against sustainability goals,” said Kathy Mulvany, Everpure’s global head of sustainability. “Impact accounting gives us a way to bring comparability, so companies can understand how they’re truly stacking up.”

What does it take to implement impact accounting?

A great deal of technical work goes into creating valuation factors, but the system is designed so that outside experts create the numbers and hand them to sustainability professionals for use. Still, not every company will have the in-house environmental data that is also needed. Many companies have been collecting emissions data for five years or more, for example, but detailed datasets for water use are less common.

Internal teams also need to be familiar with the concepts. “One of the key learnings from our impact accounting implementation is that the socialization curve is longer than you expect,” said Uphoff. “Attaching monetary values on externalities introduces new metrics and mental models, and that can naturally make people a little nervous at first. It takes time and dialogue for teams to build confidence in how to interpret this new lens on performance.” 

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What’s next?

In the early days of impact accounting, companies and consultancies worked independently on different methodologies. Now that work is coalescing, said Heller. The International Standards Organization will start work on a standard this summer, he added, and the VBA is having conversations with the IFRS Foundation, which creates international financial reporting standards.

The approach may also be integrated into mandatory disclosure standards. Heller noted that the European Union’s Corporate Sustainability Reporting Directive mentions the potential benefits of companies putting a dollar figure on some environmental impacts. “It’s the next evolutionary step of any kind of sustainability disclosure regulations,” he said.

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