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How McCarthy survived the House chaos to win the speaker’s gavel | CNN Politics

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How McCarthy survived the House chaos to win the speaker’s gavel | CNN Politics



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Florida Rep. Matt Gaetz strode into Home GOP Chief Kevin McCarthy’s workplace on Monday evening with an inventory of calls for. Amongst them: The chairmanship of a key Home Armed Companies subcommittee.

McCarthy rejected the provide. That call set in movement a sequence of occasions that left Gaetz and McCarthy locked in open confrontation on the Home flooring late Friday evening. Gaetz, McCarthy’s staunchest opponent, dramatically denied McCarthy the ultimate vote he wanted to turn out to be speaker – then Gaetz and the final holdouts abruptly modified course permitting McCarthy to win the speaker’s gavel on his fifteenth try.

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See the second Rep. Kevin McCarthy was elected Home speaker

Earlier than the ultimate vote, pandemonium erupted on the Home flooring after Gaetz waited till the very finish of the 14th poll to vote “current” when McCarthy wanted yet one more “sure” vote. Shocked after believing he had the votes, McCarthy confronted his most embarrassing defeat but. McCarthy’s allies encircled Gaetz to attempt to discover a method ahead. McCarthy quickly made a bee-line for dialogue and began participating Gaetz, too.

After McCarthy walked away from Gaetz, wanting dejected, Armed Companies Chairman Mike Rogers moved towards the dialog and lunged at Gaetz, having to be bodily restrained by Republican Rep. Richard Hudson of North Carolina. Rogers, a Republican from Alabama who earlier within the week warned the GOP dissidents they’d lose their committee assignments, informed Gaetz he could be “completed” for persevering with to wreck the speaker’s vote.

Close by, Rep. Marjorie Taylor Greene of Georgia was making an attempt to persuade Rep. Matt Rosendale of Montana, one other McCarthy holdout, to take her cellular phone and communicate to former President Donald Trump, who was on the road.

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Lastly, the Home clerk introduced for the 14th time that nobody had the votes to be speaker. Republicans moved to adjourn the chamber till Monday. Because the vote timer counted down, 218 Republicans had voted sure, a majority that may have despatched McCarthy dwelling for the weekend and left the Home in paralysis by the hands of Gaetz and his allies.

The sign at McCarthy's office is installed on Capitol Hill in Washington, early Saturday on January 7, 2023.

However with lower than a minute left to go within the vote, Gaetz moved towards the entrance of the chamber, grabbing a pink index card to alter his vote on adjournment. Gaetz walked towards McCarthy, and the 2 briefly exchanged phrases. McCarthy then raised his hand and yelled out, “Another!” as he triumphantly walked towards the entrance of the chamber to alter his vote, too. It was the GOP chief’s remaining negotiation capping an emotional curler coaster over the course of 4 days as he was held hostage by a slim faction of his convention. Dozens of Republicans adopted McCarthy and Gaetz to defeat the adjournment measure, and McCarthy’s victory, finally, was at hand.

The six Republican holdouts all voted current on the fifteenth poll, giving McCarthy a 216-212 victory to finish the longest speaker’s race since 1859. Rep. Tom Emmer, one among McCarthy’s prime deputies, went up and down the aisles telling Republicans on the Home flooring to not clap for Gaetz or Rep. Lauren Boebert once they introduced their votes, like that they had for different holdouts who had flipped to McCarthy earlier within the day.

Requested why he reversed course on McCarthy, Gaetz mentioned, “I ran out of issues I might even think about to ask for.”

McCarthy expressed reduction as he left the ground: “I’m glad it’s over.”

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McCarthy denied Gaetz was supplied the subcommittee gavel he had sought earlier within the week in alternate for his vote. “Nobody will get promised something,” McCarthy mentioned.

Rep. Richard Hudson, R-N.C., left, pulls Rep. Mike Rogers, R-Ala., back as they talk with Rep. Matt Gaetz, R-Fla., and other during the 14th round of voting for speaker as the House meets for the fourth day to try and elect a speaker and convene the 118th Congress in Washington, Friday, Jan. 6, 2023. At right is Rep. Patrick McHenry, R-N.C. (AP Photo/Andrew Harnik)

GOP lawmaker needed to be restrained whereas confronting Gaetz. Hear what he informed him

The chaotic scramble to the speakership got here after days of marathon negotiations that uncovered deep divides throughout the GOP and threw into query their skill to control successfully within the 118th Congress. However McCarthy’s victory after dealing with 20 defectors on Tuesday additionally highlighted the profitable technique concocted by McCarthy and his prime lieutenants to defeat the self-proclaimed “By no means Kevin” motion led by Gaetz.

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McCarthy’s technique led to a breakthrough over two votes Friday afternoon, when McCarthy flipped 14 Republicans who had voted in opposition to him following marathon talks over Home guidelines – setting the stage for the Eleventh-hour chaos with the ultimate six holdouts.

It’s too quickly to say whether or not the four-day speaker drama will turn out to be little greater than an historic footnote for the 118th Congress, or if it’s an early indicator of much more bruising fights to return. However the struggle over the speaker’s gavel uncovered the bitter fault traces effervescent up within the Republican Celebration for the higher course of a decade that can hover over the Home for the following two years.

McCarthy’s concessions to the GOP dissidents are important and will finally minimize his tenure as speaker quick. Among the many guidelines adjustments: McCarthy agreed to revive a rule permitting a single Republican member to name for a vote to depose him as speaker, the identical rule that led to John Boehner’s choice to resign as speaker in 2015.

Nonetheless, McCarthy’s victory Friday now offers him the long-sought speaker’s gavel and the possibility to guide a Home that can rapidly flip its focus to investigating President Joe Biden, his administration and his household. More difficult for McCarthy and his convention are the looming fights later this yr over authorities spending and the debt ceiling, the place McCarthy minimize offers on spending throughout this week’s negotiations more likely to be unacceptable each to Democrats and the White Home in addition to Senate Republicans.

This account of how McCarthy lastly received the fifth longest speaker’s struggle in historical past relies on dozens of interviews all through the week because the drama performed out on and off the Home flooring with the destiny of McCarthy’s political profession and the legislative physique itself hanging within the steadiness.

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WASHINGTON, DC - JANUARY 06: U.S. Rep.-elect Marjorie Taylor Greene (R-GA) offers a phone to Rep.-elect Matt Rosendale (R-MT) in the House Chamber during the fourth day of voting for Speaker of the House at the U.S. Capitol Building on January 06, 2023 in Washington, DC. The House of Representatives is meeting to vote for the next Speaker after House Republican Leader Kevin McCarthy (R-CA) failed to earn more than 218 votes on several ballots; the first time in 100 years that the Speaker was not elected on the first ballot. (Photo by Chip Somodevilla/Getty Images)

Evaluation: Dana Bash reacts to McCarthy thanking Trump for speaker position

The morning following McCarthy’s Monday assembly with Gaetz, issues bought even worse for the GOP chief.

In a tense assembly within the basement of the Capitol with the total Home GOP Convention, McCarthy and Gaetz bought right into a screaming match. McCarthy known as out his detractors for asking for private favors, together with Gaetz, whom he mentioned knowledgeable him he didn’t care if Democrat Hakeem Jeffries was elected speaker as long as he didn’t get the job.

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Afterward, the Florida Republican accused McCarthy of appearing in dangerous religion by asking him for an inventory of calls for – after which by later berating him over it.

“It was very unseemly,” Rep. Dan Bishop of North Carolina, one of many 20 who initially opposed McCarthy.

That assembly – the place Rep. Lauren Boebert of Colorado known as out “bulls**t” on McCarthy and the place the GOP chief engaged in heated exchanges with Reps. Chip Roy of Texas and Scott Perry of Pennsylvania – set the stage for the livid four-day battle.

Afterward, McCarthy and his allies knew that they had an issue. They noticed his opposition rising amid anger over McCarthy’s threats and hard discuss. In order that they started to work on a technique: Take the temperature down and divide the opponents away from Gaetz and supply concessions to far-right members of the convention who need extra say within the legislative course of.

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McCarthy explains tense Home flooring dialogue with Gaetz

At midday, the Home gaveled within the 118th Congress, and lawmakers swarmed the Home flooring, kids in tow, for what was supposed to start a day of pageantry. In an indication of the brand new Republican guidelines, the magnetometers put in by outgoing Speaker Nancy Pelosi within the wake of the January 6, 2021, assault on the Capitol had been faraway from the doorways to the Home flooring.

The primary order of enterprise rapidly revealed the depth of the GOP opposition to McCarthy’s speakership bid.

McCarthy wanted 218 votes, a majority of the Home, that means he might solely lose 4 of the 222 Republicans so long as all Democrats voted for Jeffries. The clerk known as out the names of all 434 members to vote in alphabetical order. McCarthy was denied a majority earlier than the Home clerk was by the “C’s,” and 19 Republicans voted for somebody aside from McCarthy – leaving him 15 votes quick.

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Jeffries, the brand new Democratic chief, bought probably the most votes with 212.

McCarthy’s camp hunkered down, making ready to undergo a number of votes for speaker for the primary time in a century. “We’re going to conflict,” a senior GOP supply informed CNN.

McCarthy’s opponents had been simply as dug in. “We are going to by no means cave,” mentioned Rep. Bob Good of Virginia.

On the second poll, Rep. Jim Jordan of Ohio – the Republican rabble-rouser turned McCarthy ally – rose to appoint McCarthy, after he had obtained six votes from the holdouts. Gaetz adopted Jordan by nominating the Ohio Republican himself as a candidate. All 19 Republicans holdouts consolidated round Jordan, and the rely resulted in the identical place as the primary poll.

Earlier than the third vote, Rep. Byron Donalds of Florida, who had voted for McCarthy on the primary two ballots, informed CNN that McCarthy did not “shut the deal.” When his title was known as minutes later, Donalds introduced he was voting for Jordan, McCarthy’s first defection.

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The record of McCarthy’s opponents grew to twenty when the third vote was introduced, and the Home adjourned for the day.

Rep. Lauren Boebert stands next to Rep. Byron Donalds as she casts her vote in the House chamber during the second day of elections for speaker at the US Capitol on January 4, 2023.

After the Tuesday’s three failed votes, McCarthy had debated having one other GOP convention assembly. However the California Republican was suggested to not, fearful it might not be productive and would result in one other heated venting session that was leaked to the press in actual time.

WASHINGTON, DC - JANUARY 07: U.S. Speaker of the House Kevin McCarthy (D-CA) celebrates with the gavel after being elected in the House Chamber at the U.S. Capitol Building on January 07, 2023 in Washington, DC. After four days of voting and 15 ballots McCarthy secured enough votes to become Speaker of the House for the 118th Congress. (Photo by Win McNamee/Getty Images)

Hear Kevin McCarthy’s first speech as Home speaker

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As a substitute, McCarthy’s camp finally determined small conferences could be extra fruitful after the 2 factions retreated to their corners. McCarthy made his personal spherical of calls Tuesday night, together with to former President Donald Trump. Earlier than leaving the Capitol, McCarthy claimed to reporters he believed he was “not that far-off” from the votes he wanted.

McCarthy mentioned that the previous president “reiterated help” for his speaker bid.

The day earlier than the vote for speaker, the previous president had declined to concern an announcement reiterating his endorsement of McCarthy regardless of a behind-the-scenes effort from a number of McCarthy allies to get Trump to take action.

Lastly, on Wednesday morning, Trump did launch an announcement on his social media website urging the Home GOP to “VOTE FOR KEVIN.”

The previous president’s message had little impact.

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“I disagree with Trump. That is our struggle. This isn’t Trump’s,” mentioned South Carolina GOP Rep. Ralph Norman, one of many McCarthy dissenters.

Trump continued to maintain the Home drama at arms’ size till Friday, when he made calls to Gaetz and Rep. Andy Biggs of Arizona whereas they had been on the Home flooring. After McCarthy received the speakership, Trump congratulated him on his social media website.

Rep. Patrick McHenry, left, and Rep. Tom Emmer speak with McCarthy in the House chamber on January 4, 2023, as lawmakers meet for a second day to elect a speaker and convene the 118th Congress.

When the Home gaveled again into session Wednesday, McCarthy lacked the votes to adjourn the session, as a few of his allies had needed with a purpose to hold negotiating. So McCarthy headed towards a fourth poll.

Jordan urged McCarthy’s opponents to not nominate him once more. As a substitute, Rep. Chip Roy of Texas stood as a substitute to appoint Donalds – the very Republican who had defected the day prior.

Whereas the McCarthy opponents didn’t develop their ranks – a sigh of reduction for McCarthy – the California Republican nonetheless misplaced one vote: Rep. Victoria Spartz, an Indiana Republican, who voted current. Spartz informed reporters her vote was meant to encourage the 2 sides to get again to the negotiating desk.

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There have been different indicators that a few of McCarthy’s backers weren’t prepared to stay by him endlessly. Rep. Ken Buck, a Colorado Republican and Home Freedom Caucus member, informed CNN that “in some unspecified time in the future” McCarthy wanted to step apart and let now-Majority Chief Steve Scalise run. “What I’ve requested is that if Kevin can’t get there, that he step apart and provides Steve an opportunity to do it,” Buck mentioned.

The environment on the Home flooring on Wednesday was buzzing by the second vote. Whereas Tuesday’s session was comparatively calm, the opposing factions gathered on the ground to carry talks in actual time in between the speaker votes.

On the similar time the Home was taking vote after vote for speaker, Biden was talking in Kentucky at an occasion with Senate GOP Chief Mitch McConnell selling the 2021 infrastructure invoice McConnell helped move. Biden’s speech gave the White Home – and Senate Republicans – a break up display that laid naked the huge distinction with the Home Republican infighting.

“It’s embarrassing for the nation,” Biden mentioned of the Home chaos.

President Joe Biden greets Senate Minority Leader Mitch McConnell on arrival at Cincinnati Northern Kentucky International Airport in Hebron, Kentucky, on January 4, 2023.

After the sixth vote ended with an similar end result because the fifth, the Home adjourned for a number of hours. The break gave the 2 sides extra time to barter, and a number of the hardliners mentioned they noticed some progress.

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A bunch of Republicans decamped to the workplace of Minnesota Rep. Tom Emmer, the brand new Home majority whip. Bishop mentioned issues had modified over the previous couple of hours and he was “inspired” by the talks.

Nevertheless it wasn’t clear that the assembly would result in a breakthrough. Gaetz pledged that the McCarthy dissenters might proceed to carry votes “till the cherry blossoms fall off the timber.” Boebert mentioned the “boats are burned” in relation to any future negotiations with McCarthy.

When the Home gaveled again into session, Republicans moved to adjourn for the evening somewhat than take one other failed speaker vote. GOP leaders had been hopeful that the continued talks would persuade McCarthy’s opponents to vote for adjournment, however with simply 4 votes to spare, the roll-call vote was tight.

All Democrats and 4 McCarthy opponents voted in opposition to adjourning, and the movement was at risk of failing – which might have pressured the Home to maintain voting for speaker. However two Democrats weren’t in attendance, and the Home clerk gaveled an finish to the vote, 216 to 214.

McCarthy had not less than yet one more day to attempt to get his detractors to sure.

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Rep. Jim Jordan talks with  McCarthy in the House chamber as the House meets on January 4, 2023, to elect a speaker.

On Wednesday night, McCarthy agreed to a number of key concessions to attempt to flip not less than a few of his opponents.

McCarthy had been in talks with Roy, who informed GOP leaders he thought he might get 10 holdouts to return together with him. McCarthy additionally met individually Wednesday night with freshman members who voted in opposition to him.

In maybe the most important concession, McCarthy agreed to permit only one member to name for a vote to oust a sitting speaker. McCarthy had initially proposed a five-member threshold, down from present convention guidelines that require half of the GOP to name for such a vote.

McCarthy additionally pledged to permit extra members of the Freedom Caucus to serve on the Guidelines Committee and to carry votes for payments that had been priorities for the holdouts, together with on border safety and time period limits.

In one other signal of a breakthrough, a McCarthy-aligned tremendous PAC, the Congressional Management Fund, agreed to not get entangled in open primaries in protected seats – one of many calls for conservatives had requested for however McCarthy had resisted.

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“I believe we’re making progress,” McCarthy mentioned Thursday morning as he arrived on the Capitol for a 3rd day of votes.

The GOP dissidents additionally sounded a optimistic be aware. “We’re making some progress,” Bishop informed CNN as he was strolling into a gathering Thursday morning with different GOP hardliners.

McCarthy leaves a private meeting room off the floor at the US Capitol on January 5, 2023, as he negotiates with lawmakers in his own party to become the speaker of the House.

Regardless of the optimistic chatter Thursday morning, the Home gaveled into session at midday with out a deal. And whereas McCarthy’s allies had thought of making an attempt to postpone further votes so a deal might be finalized, McCarthy lacked the votes to adjourn.

As a substitute, lawmakers adopted two tracks into the night: taking vote after vote on the Home flooring for speaker, whereas negotiations continued behind closed doorways.

The result didn’t change with every flooring vote. Whereas the GOP holdouts shifted who obtained their anti-McCarthy votes – Boebert nominated Rep. Kevin Hern of Oklahoma on vote No. 9, and Gaetz nominated Trump on the Eleventh poll – none shifted to McCarthy’s facet.

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Twenty-one Republicans didn’t help McCarthy on poll quantity seven. Identical with eight, 9, 10 and 11.

Behind the scenes, nevertheless, the holdouts who weren’t within the “by no means Kevin” camp continued speaking with McCarthy and his allies, inching nearer to a deal.

By the early night Thursday, there was a suggestion “on paper.” Three of the important thing negotiators – Emmer, Roy and Donalds – huddled with McCarthy in his ceremonial workplace, following a session in Emmer’s workplace for one group to evaluate the written settlement to interrupt the stalemate. One other group huddled within the member’s eating room on the primary flooring of the Capitol to debate a separate a part of the written deal.

“We’re nonetheless working by it,” Roy mentioned leaving Emmer’s workplace.

“Every assembly is extra optimistic than the final. And that’s a really good signal,” Rep. Patrick McHenry, a key negotiator on McCarthy’s facet, informed reporters.

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The discussions in Emmer’s workplace continued late into the night Thursday in an try and get to sure. Chipotle was wheeled in for dinner.

One issue complicating the talks was a handful Republicans had been anticipated to depart Washington attributable to varied household points. Buck left Thursday afternoon for a deliberate medical process. Rep. Wesley Hunt flew again to Texas to be together with his spouse and new child, who needed to spend a while within the neonatal intensive care unit.

McCarthy reacts after losing the 14th vote in the House chamber as the House meets on January 6, 2023, for the fourth day to elect a speaker and convene the 118th Congress.

On Friday morning, Home Democrats marked the second anniversary of the January 6, 2021, assault on the steps of the Capitol. Only one Republican attended: Rep. Brian Fitzpatrick of Pennsylvania.

Republicans huddled as soon as once more as a convention for the primary time because the heated Tuesday assembly. This time, McCarthy organized a convention name, which might be extra simply managed, somewhat than an in-person session. On the decision, McCarthy informed his convention {that a} deal had not but been finalized however that progress had been made. He particularly thanked Roy, a key holdout, for his position.

Earlier than the Home gaveled again into session, McCarthy predicted he would win over some holdovers, although there have been nonetheless causes for him to be pessimistic the end line was in sight.

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“I’ll be voting for Byron Donalds,” Norman informed CNN on his technique to the ground, saying he was nonetheless reviewing the rising settlement.

The twelfth vote for speaker started the identical because the 11 earlier than it. Rep. Andy Biggs of Arizona was the primary Republican to vote in opposition to McCarthy. Then Bishop, the following McCarthy opponent within the roll name, rose to forged his vote.

“McCarthy,” Bishop mentioned, prompting his fellow Republicans to leap from their seats with a standing ovation.

Freshman Rep. John Brecheen of Oklahoma was the following to flip, prompting one other spherical of Republican cheers. By the tip of the roll name, 14 holdouts, together with Norman, had known as McCarthy’s title. He was nonetheless in need of the votes he wanted for speaker, however the tide had turned. Solely seven McCarthy opponents remained.

On the thirteenth vote, the GOP chief peeled off yet one more detractor, Rep. Andy Harris of Maryland. The Home voted to adjourn till 10 p.m. ET – offering time each for the 2 lacking McCarthy supporters time to return to Washington and for McCarthy’s allies to show up the warmth on the remaining holdouts.

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McCarthy wanted two extra votes. McCarthy and his allies targeted on Rep. Matt Rosendale of Montana and freshman Rep. Eli Crane of Arizona both to help McCarthy or vote current, decreasing the vote threshold to win a majority.

There have been a number of avenues to a majority and the speakership for McCarthy. The only path was to peel off two extra votes and hit 218. But when McCarthy’s remaining GOP opponents wouldn’t vote for him, the California might nonetheless get hold of a majority if three of the six detractors voted “current.” Along with Rosendale and Crane, McCarthy’s allies appeared to Boebert as a possible current vote.

Gaetz and Boebert appeared to acknowledge the tip of the speaker struggle was close to earlier than the Home returned to session, sitting for a joint interview with Fox’s Sean Hannity and expressing imprecise optimisms for the foundations adjustments the holdouts had received.

However because the Home gaveled again into session, Gaetz went to McCarthy’s senior aide and requested whether or not the Home might adjourn till Monday. Gaetz provide was rejected, resulting in the ultimate chaos over the course of the 14th and fifteenth votes for speaker.

Early Saturday morning, following 14 losses and greater than 84 hours after the start of the 118th Congress, the Home clerk lastly introduced McCarthy was elected Home speaker.

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Earlier than the chaos over the ultimate vote, McCarthy earlier Friday had sounded an optimistic be aware that the prolonged struggle over the gavel would truly assist Republicans. “So that is the nice half. As a result of it took this lengthy, now we’ve realized the way to govern,” McCarthy mentioned. “So now we’ll be capable of get the job carried out.”

Gaetz, nevertheless, instructed the historic struggle would have a special influence on McCarthy’s speakership. Because of the concessions, Gaetz argued, McCarthy shall be governing in a “straitjacket.”

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NYSE trading glitch costs Interactive Brokers $48mn

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NYSE trading glitch costs Interactive Brokers $48mn

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A trading glitch on the New York Stock Exchange earlier month has cost Interactive Brokers $48mn after its customers tried to pile into Berkshire Hathaway shares following a 99 per cent plunge.

The brokerage on Wednesday said it was considering its options “including any claims at law it could assert against NYSE” but said the hit was not material to earnings.

Berkshire Hathaway’s class A shares were among several that plummeted unexpectedly on June 3 because of a technical issue in early trade on the NYSE, which is part of Intercontinental Exchange.

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Berkshire’s shares collapsed from about $622,000 to $185 a share before the exchange halted trading.

The price plunge spurred a raft of buy orders during the halt, “presumably expecting those orders to be filled at approximately $185/share when trading resumed”, Interactive said.

The broker, founded by electronic trading pioneer Thomas Peterffy, is popular with retail investors as well as professional traders such as hedge funds.

When trading resumed almost two hours later Berkshire’s shares shot as high as $741,941 within minutes, leading Interactive’s customers to have their orders filled “at various prices during this run-up, including some who were filled at the peak price”.

After markets closed on June 3, NYSE said it would “bust” or cancel, all trades at or below $603,718.3 conducted before trading was halted.

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The loss stems from Interactive Brokers’ decision to take over a substantial portion of the trades through its platform “as a customer accommodation” after NYSE on the day told the brokerage that it would not cancel Interactive’s deals as the broker had asked.

NYSE on Tuesday denied Interactive’s subsequent claims for compensation, spurring Wednesday’s notice. NYSE declined to comment.

About 40 securities in total were affected by the June 3 episode, including Barrick Gold and restaurant chain Chipotle. The exchange said the glitch stemmed from a technical issue with price bands published by the group that consolidates the trading data from all the US securities exchanges, known colloquially as the “tape”.

Shares in Interactive Brokers were unaffected by Wednesday’s news, trading up 0.5 per cent by late morning on Wednesday and up about 48 per cent this year.

In 2020 the brokerage lost up to $88mn from the collapse in value of short-term WTI oil futures contracts when it stepped in to pay margin calls owed to clearing houses for customers caught on the wrong side of the trade.

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Congress poured billions of dollars into schools. Did it help students learn?

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Congress poured billions of dollars into schools. Did it help students learn?

Two new studies offer a first look at how much more students learned thanks to federal pandemic aid money.

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America’s schools received an unprecedented $190 billion in federal emergency funding during the pandemic. Since then, one big question has loomed over them: Did that historic infusion of federal relief help students make up for the learning they missed?

Two new research studies, conducted separately but both released on Wednesday, offer the first answer to that question: Yes, the money made a meaningful difference. But both studies come with context and caveats that, along with that headline finding, require some unpacking.

How much of a difference did the money make?

$190 billion is an enormous amount of money by any measure. But districts were only required to spend a fraction of the relief on academic recovery, by paying for proven interventions like summer learning and high-quality tutoring. So how much additional student learning did the federal aid actually buy?

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Study #1, a collaboration including Tom Kane at Harvard’s Center for Education Policy Research and Sean Reardon at Stanford’s Educational Opportunity Project, estimates that every $1,000 in federal relief spent per student bought the kind of math test score gains that come with 3% of a school year, or about six school days of learning. That’s during the 2022-23 academic year.

Improvements in reading scores were smaller: roughly three school days of progress per $1,000 in federal relief spending per student.

The federal relief “was worth the investment,” Reardon tells NPR. “It led to significant improvements in children’s academic performance… It wasn’t enough money, or enough recovery, to get students all the way back to where they were in 2019, but it did make a significant difference.”

Study #2, co-authored by researcher Dan Goldhaber at the University of Washington and American Institutes for Research, offers a similar estimate of math gains. The increase in reading scores, according to Goldhaber, appeared comparable to those math gains, though he says they’re less precise and a little less certain.

“It did have an impact,” Goldhaber tells NPR, an impact that’s “in line with estimates from prior research about how much money moves the needle of student achievement.”

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Who benefited the most?

The federal recovery dollars came in three waves, known as ESSER (Elementary and Secondary School Emergency Relief Fund) I, II and III. The first two waves were relatively small, roughly $68 billion, compared to the $122 billion of ESSER III.

The windfall was distributed to schools based largely on need – specifically, based on the proportion of students living in or near poverty. The assumption being: Districts with higher rates of student poverty would need more help recovering. COVID hit high-poverty communities harder, with higher rates of infection, death, unemployment and remote schooling than in many affluent communities.

“These and other factors likely caused greater learning loss during the pandemic and dampened academic recovery,” Goldhaber writes in Study #2, pointing out that, “the Detroit, MI public school district received about $25,800 per pupil across all waves of ESSER… [while] Grosse Pointe, MI (a nearby suburb) only received about $860 per pupil.”

Here’s where the story of these federal dollars gets complicated, because the learning they appear to have bought wasn’t experienced evenly, according to Goldhaber.

In Study #2, he and co-author Grace Falken, found larger academic benefits from federal spending in districts serving low shares of Black and Hispanic students. Though he tells NPR, these patterns “do not necessarily imply that ESSER’s impacts vary because of student demographics. Rather, the results could reflect other district characteristics that happen to correlate with the student populations the districts serve.”

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Reardon and Kane did not find statistically significant evidence of this kind of variation.

Goldhaber and Falken also found that towns saw more math gains than cities, while rural areas led the way in reading growth. Interestingly, suburban districts generally experienced “smaller, insignificant impacts” from the federal spending in both subjects.

But did the money help enough?

If your standard for “enough” is a full recovery for all students from the learning they missed during the pandemic, then no, the money did not remedy the full problem.

But the researchers behind both studies say that’s an unrealistic and unreasonable yardstick. After all, Congress only required that districts spend at least 20% of ESSER III funds on learning recovery. The rest of the relief came with relatively few strings attached.

Instead, the researchers say, the money’s effectiveness should be judged by a more realistic standard, based on what previous research has shown money can and cannot buy.

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Harvard’s Tom Kane, of Study #1, points out that their results do line up with pre-pandemic research on the impact of school spending, and suggest a clear, long-term return on investment.

“These academic gains will translate into improvements in earnings and other outcomes that will last a lifetime,” Kane tells NPR.

For example, the academic gains associated with every $1,000 in per student spending would be worth $1,238 in future earnings, Kane estimates. Increased academic achievement also comes with valuable social returns, he says, including lower rates of arrest and teen motherhood.

What’s more, Reardon tells NPR, because these federal dollars disproportionately went to lower-income districts, “not only do we find that the federal investment raised test scores, but we also find that it reduced educational inequality.”

But the work’s not over.

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In Study #2, Goldhaber and Falken write, “to recover from these remaining losses, our estimates suggest schools would need between $9,000 and $13,000 in additional funds per pupil, assuming the return on those funds is similar to what we estimated for ESSER III.”

They also warn that middle-income districts could continue to struggle – because they experienced academic losses but got less federal aid.

In a presidential election year, it’s unlikely Congress will agree to send schools more money. And Goldhaber worries, as ESSER funds begin to expire this year, districts will have to cut staff.

“Some districts, particularly high poverty, high minority districts, are going to lose so much money that I think teacher layoffs are inevitable,” Goldhaber tells NPR. “So I’m worried that the funding cliff – there’s a downside that we’re not thinking hard enough about.”

The good news, says Kane, is that ESSER was a massive, “brute force” effort, and a far smaller, state-driven effort could still make a big difference, so long as it’s hyper-focused on academic interventions.

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Kane says, “It falls to states to complete the recovery.”

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Atos crisis deepens as biggest shareholder ditches rescue plan

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Atos crisis deepens as biggest shareholder ditches rescue plan

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A rescue bid for French IT services group Atos led by its largest shareholder has collapsed, casting the future of the troubled group into doubt once again.

Atos said on Wednesday that the consortium led by Onepoint, an IT consultancy founded by David Layani, had withdrawn a proposal that would have converted €2.9bn of Atos debt into equity and injected €250mn of fresh funds into the struggling company.

“The conditions were not met to conclude an agreement paving the way for a lasting solution for financial restructuring,” Onepoint said in a statement on Wednesday.

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The decision by Onepoint comes less than a month after Atos had picked its restructuring proposal over a competing plan from Czech billionaire Daniel Křetínsky. Atos said on Wednesday that Křetínsky had already indicated he wanted to restart talks.

Once a star of France’s tech scene, Atos is racing to strike a restructuring deal by next month as it struggles under its €4.8bn debt burden. It has cycled through multiple chief executives over the past three years and its shares have collapsed. They were down 12 per cent in early trading on Wednesday.

Atos also said it had received a revised restructuring proposal from a group of its bondholders.

“Discussions are continuing with the representative committee of creditors and certain banks on the basis of this proposal with a view to reaching an agreement as soon as possible,” the company said. 

Jean-Pierre Mustier, former chief executive of Italian lender UniCredit, was installed as chair in October 2023 and given the task of putting Atos on a stable footing for the future. Since his appointment, several efforts to stabilise Atos through asset sales have fallen apart.

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If talks with Křetínsky do restart, it will mark the Czech businessman’s third attempt to do a deal with Atos after an earlier plan to buy its lossmaking legacy business unravelled.

One of the people close to the talks said creditors had not necessarily become more receptive to Kretinsky’s plan given it cutting a larger chunk of the group’s debt.

The crisis at Atos has prompted the French government to intervene. It is currently seeking to acquire three parts of Atos that are deemed of importance to national security for up to €1bn.

Atos said on Wednesday it had concluded a deal with the French state that would give it so-called “golden shares” in a key Atos subsidiary, Bull SA. The agreement also gives the government the right to acquire “sensitive sovereign activities” in the event a third party acquired 10 per cent of the shares — or a multiple thereof — in either Atos or Bull.

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