Tag: banks

Warren Whines As Senate Banking Committee Advances Crypto CLARITY Act, Two Democrats Break Ranks

The Senate Banking Committee advanced the Digital Asset Market Clarity Act on a 15–9 vote Thursday, with Sens. Ruben Gallego (D‑Ariz.) and Angela Alsobrooks (D‑Md.) joining all 13 Republicans to move the sweeping crypto market structure bill to the full Senate.

The Clarity Act is the Senate’s bid to build a federal framework for digital asset trading, stablecoins and intermediaries, splitting oversight between the SEC and CFTC and setting registration, disclosure and compliance rules for exchanges, brokers and custodians. It now advances alongside a related bill from the Senate Agriculture Committee, with the two texts expected to merge before a floor vote.

Chair Tim Scott (R‑S.C.) cast the markup as a turning point after years in which crypto firms operated in what he called a “regulatory gray zone” under “outdated rules.” 

He said the bill aims to protect consumers, keep innovation in the United States and “close the doors that criminals, terrorists and hostile regimes have tried to exploit,” after months of cross‑party talks that expanded the draft by more than 200 pages.

Sen. Cynthia Lummis (R‑Wyo.), who leads the committee’s digital assets panel, called the Clarity Act “the hardest piece of legislation” she has worked on across decades in state and federal office. She described it as a “case of first impression” that tries to fit new asset types and software into a regulatory code built for earlier markets.

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Treasury Department Alerts US Banks To Suspected Iranian Money Laundering Efforts

The U.S. Treasury Department’s Financial Crimes ​Enforcement Network (FinCEN) on May 11 issued an alert to financial institutions warning them of efforts by ​the Iranian Islamic Revolutionary Guard Corps (IRGC) to evade sanctions.

FinCEN said in a statement that the IRGC has been facilitating and laundering the proceeds of illicit oil sales using networks of financial facilitators and shell companies. The alert provides red flags on the IRGC’s oil smuggling, digital assets, and front-company abuse to aid financial institutions in detecting and reporting suspicious activity, the statement said.

Treasury Secretary Scott Bessent said that financial institutions have a responsibility to stop this activity.

“Degraded by Economic Fury, the Iranian military is desperately trying to fund its weapons programs and terrorist proxies,” Bessent said.

“Treasury will continue to deny the Islamic Revolutionary Guard Corps access to the financial networks it exploits to fund its terrorist acts. Financial institutions should be on notice that they have a responsibility to detect suspicious activity and stop it in its tracks.”

The Treasury network describes the IRGC as a parallel organization to Tehran’s regular armed forces, which reports directly to the leader, Ayatollah Mojtaba Khamenei. The IRGC is a U.S.-designated foreign terrorist organization.

Shadow Banking

FinCEN says the IRGC can make money from oil sales by misrepresenting its commercial activities. It smuggles oil using a “shadow fleet” of vessels that operate outside normal maritime rules and are often owned and operated by companies outside Iran.

Proceeds are then laundered through “shadow banking” networks to sell their oil and commodities abroad.

“By using front company accounts outside Iran to receive and remit payments, sanctioned entities like the IRGC are able to conduct transactions through the international financial system without repatriating funds to Iran,” FinCEN said.

The network says that with these proceeds, Iran can fund the procurement and development of weapons, as well as fund terrorist activity abroad.

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American Bankers Attempt Last Ditch Effort To Kill Crypto Market Structure Bill Regarding Stablecoins

American Bankers Association (ABA) CEO Rob Nichols sent an emergency Sunday letter to every bank CEO in the country, urging “immediate engagement” against what he called a stablecoin yield loophole in the Digital Asset Market Clarity Act, days before a Senate Banking Committee markup scheduled for Thursday.

The letter, dated May 11 — Mother’s Day — and addressed to ABA member bank CEOs, asked bank leaders to contact their senators and mobilize their employees to do the same before the committee convenes for a scheduled May 14 executive session on the bill.

“I am reaching out to make every bank leader in this country aware of an urgent advocacy fight that requires your immediate engagement,” Nichols wrote, according to the letter.

He warned that, without further changes, “we believe the current proposal would unnecessarily incentivize the flight of bank deposits into payment stablecoins, putting both economic growth and financial stability at risk”.

The timing of the letter drew sharp public pushback from Coinbase Chief Legal Officer Paul Grewal, who posted on X that the ABA’s alarm bells were misplaced.

“Maybe the CEO didn’t get the message from the people actually in the room at the WH in meeting after meeting,” Grewal wrote.

“We’ve already had ‘immediate engagement.’ You got ‘idle yield’ killed. I know because I was there — you weren’t. Take yes for an answer. Move on. Stop wasting the time of the Senate and the American people.”

Sen. Bernie Moreno, a member of the Senate Banking Committee, fired back at the ABA in a social media post, saying “the banking cartel in full panic mode” and accusing it of deceiving lawmakers by characterizing stablecoin yield as a “loophole” – a term he said was an insult to the bipartisan work already done during the GENIUS Act debate. 

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Big Finance Might Be Dooming the SPLC — Even Before Its Day in Court

The Southern Poverty Law Center is preparing for the legal fight of its life with the U.S. government — but its most immediate threat is coming from the financial system, rather than the courts.

Fidelity Charitable, Charles Schwab affiliate DAFgiving360, and Vanguard Charitable have begun blocking donor-advised fund, or DAF, donations to the SPLC — effectively cutting off one of the organization’s most important funding pipelines at a critical moment. The decision arrives alongside a politicized and bogus indictment announced late last month by the Trump Department of Justice, which is attempting to paint one of the country’s most prominent watchdogs against hate and racial violence as a promoter of it.

A letter from Democratic Reps. Jamie Raskin and Mary Gay Scanlon notes the House Judiciary Committee has received whistleblower reports that the DOJ “ordered the U.S. Attorney’s Office for the Middle District of Alabama to rush through the indictment of the SPLC despite serious concerns about the strength of the case.” As Alabama Reflector editor Brian Lyman wrote, “DOJ has no evidence of SPLC committing a crime. The organization’s real offense, in the eyes of Trump’s toadies, is its lack of obedience.”

But before any courts can assess the merits of the case, the SPLC is already suffering severe financial consequences.

Donor-advised funds have become a key part of American philanthropy. Managed by firms like Fidelity and Vanguard, DAFs allow donors to receive immediate tax benefits while recommending grants to IRS-recognized nonprofits over time. They are one of the primary channels many nonprofits use to connect with donors.

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Time To End the Fed and Its Mismanagement of Our Economy

Every major economic downturn of the last 110 years bears the mark of the Federal Reserve. In fact, as long as the Fed has been around, it has swung the economy between inflation and recession. Yet Americans, surprisingly, have tolerated it.

But we shouldn’t expect that to go on forever. We had three central banks before the Fed and confined each to the ash heap of history. The problems inherent to central banking are cause to scrap the Fed as well.

Central banking dates to 1694, when the Bank of England was founded for the purpose of creating the hidden tax of inflation to provide cheap money to government—above all, for Britain’s many foreign wars. In exchange, the central bankers were paid well with interest.

Like any government-favored bank, the Bank of England lent money it didn’t have, lending far more than the silver in its vaults. The British government endorsed this fraud because the king and Parliament wanted the money. 

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IMF warns of systemic threat from AI

Artificial intelligence could make cyberattacks a systemic threat to global finance, the International Monetary Fund has warned, saying advanced models can help attackers exploit vulnerabilities faster than institutions can fix them.

In a blog post published on Thursday, the IMF said its latest analysis suggests that “extreme cyber-incident losses could trigger funding strains, raise solvency concerns, and disrupt broader markets.”

According to the organization, the current financial system relies on shared digital infrastructure, including software, cloud services and networks for payments and other data. The fund warned that advanced AI models can sharply reduce the time and cost needed to identify and exploit weaknesses, raising the risk of simultaneous attacks on widely used systems.

The fund cited Anthropic’s recent controlled release of Claude Mythos Preview, which it described as “an advanced AI model with exceptional cyber capabilities.” According to the IMF, Mythos could find and exploit vulnerabilities in every major operating system and web browser, “even when used by non-experts.”

AI-driven cyber risks could destabilize the financial system if they are not managed carefully, the IMF stressed, noting that attacks could spread beyond finance because banks share digital foundations with energy, telecommunications and public services. 

“Defenses will inevitably be breached, so resilience must also be a priority,” the IMF warned, calling for cyber stress testing, scenario analysis, board-level oversight, public-private cooperation and stronger international coordination.

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JPM Tried $1 Million Payoff To Bury Banker’s Sexual Assault Claims Before Daily Mail Bombshell

Why?

The Wall Street Journal has released a new report stating that JPMorgan reportedly offered former investment banker Chirayu Rana $1 million to settle his sexual assault, harassment, and racial discrimination claims against Hajdini before he filed the lawsuit.

Rana’s lawsuit was refiled on Monday after being withdrawn for a week. The lawsuit went viral after a Daily Mail report, which was later followed by a New York Post article citing sources who said the bank “found no evidence of wrongdoing” and Hajdini’s lawyer, who rejected the claims in the suit.

“The original lawsuit was not withdrawn,” said David Kramer, Rana’s lawyer. “After filing, the court clerk informed us that the suit required review and sign-off from the judge before being formally filed under a pseudonym. Upon signature by the judge yesterday, the suit was formally filed under a pseudonym.”

Rana alleges that Hajdini sexually assaulted him and that co-workers subjected him to racial harassment related to his Nepalese background.

JPM’s settlement offer was reportedly intended to avoid litigation and reputational damage. JPM maintains that the claims are baseless.

The report stated that Rana’s lawyers did not accept the $1 million offer and later countered JPM with a proposed settlement of $11.75 million.

Rana joined JPM’s leveraged finance team in May 2024, filed an internal HR complaint in May 2025, was placed on paid leave, and later left the bank. He then joined private equity firm Bregal Sagemount in October 2025 but was reportedly let go last month.

“If you don’t f— me soon, I’m going to ruin you… Never forget, I f—ing own you,” Hajdini allegedly said, as detailed in the suit. “If you don’t f— my brains out tonight, I’m going to sabotage your promotion.”

The lawsuit continued, “She then told Plaintiff to suck her toes, repeating that she would facilitate his promotion and bonus.”

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Brazil Quietly Shifts Away from the Dollar to Gold

The Banco Central do Brasil has raised gold’s share of reserves from 3.55% to 7.19% in just one year, effectively doubling its exposure and making gold the second-largest reserve asset after the US dollar, while total reserves stand at approximately $358.23 billion and the dollar’s share has declined to about 72%, marking a record low. This is not a marginal adjustment or routine diversification, it is a structural repositioning that reflects a growing unease with sovereign debt markets.

When a central bank reduces dollar exposure while increasing gold holdings, it is not acting randomly but responding to a shift in confidence, and this aligns directly with the broader trend we are witnessing globally as central banks collectively purchased roughly 863 tonnes of gold in 2025 and are expected to remain strong buyers into 2026. The driving forces behind this are not inflation in the traditional sense, but geopolitical fragmentation, the weaponization of reserves, and the realization that sovereign debt levels are no longer sustainable without continued central bank intervention.

Brazil’s move mirrors what we have been warning about for years, which is that capital flows, not trade balances, dictate the strength of currencies, and once confidence begins to erode in government debt, that capital begins to migrate into assets that are not someone else’s liability. Gold fulfills that role because it cannot be printed, defaulted on, or frozen by a foreign government, and this becomes critical in a world where sanctions and financial restrictions are increasingly used as political tools.

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Bombshell sex harassment suit against Lorna Hajdini, JPMorgan branded ‘complete fabrication’ as John Doe is unmasked

A former JPMorgan staffer whom sources identified as Chirayu Rana has been accused of making fabricated sexual harassment claims against a high-ranking executive at the bank after an internal investigation found no evidence of wrongdoing, The Post has learned.

Multiple sources told The Post that 35-year-old Rana, now a principal at investment firm Bregal Sagemount, is the man who brought the bombshell lawsuit against Lorna Hajdini earlier this week.

Rana’s suit, filed on Monday under the pseudonym John Doe, accused the 37-year-old executive director of turning him into her “sex slave” by drugging him with Rohypnol and Viagra and threatening to slash his bonus if he did not comply.

The Daily Mail broke the story on Wednesday evening, citing lurid details from a now-retracted court document that has been withdrawn for “corrections.”

The British tabloid, quoting the now-deleted court papers, reported that Hajdini, executive director on JPMorgan’s leveraged finance team, even turned up unannounced at Rana’s apartment and forced him to have sex.

Hajdini hit back in a statement issued to The Post via her lawyers: “Lorna categorically denies the allegations. She never engaged in any inappropriate conduct with this individual of any kind and has never even been to the location where the alleged sexual assault supposedly took place.”

Rana, who did not reply to The Post’s multiple requests for comment, claimed that the alleged coercion began shortly after he joined JPMorgan’s leveraged finance team in the spring of 2024.

He filed an internal complaint in May 2025, alleging race- and gender-based harassment and abuse of power, before trying to negotiate a payoff that ran into “millions” to leave the company, sources said.

The suit also named JPMorgan Chase as a defendant, accusing the bank of retaliation and failing to investigate properly.

Daniel J. Kaiser, the attorney listed on the New York County Supreme Court docket as representing “John Doe,” did not return The Post’s calls seeking comment.

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Trump Admin Finalizes Rule Scrapping ‘Invasive’ DEI Requirements for Small Business Lending

The Consumer Financial Protection Bureau (CFPB) has finalized a rule that scraps diversity, equity, and inclusion (DEI) requirements and other burdensome regulations that affect small business lending, saving more than $166 million annually.

“This is a long-awaited win for both borrowers and small businesses. Annual savings from replacing the Biden-Harris rule will exceed an estimated $166 million annually,” Acting CFPB Director Russ Vought said in a statement to Breitbart News. “These reforms not only make borrowing more affordable for America’s small businesses, including our farmers, but minimize burdens on those needing quick access to credit without requiring them to answer unnecessary and invasive DEI questions introduced by the Biden-Harris-Chopra Administration.”

The CFPB, under the Trump administration, has moved to replace the Biden-era Section 1071 rule that was believed to be too invasive, and the Trump administration’s proposal would have the rule go back to the regulation’s intent as stipulated by the Dodd-Frank banking law. The rule intends to help with the administration’s mission to increase affordability as it would seek to save money for borrowers and small businesses who loan to them. It would also help farmers who get access to credit.

The Dodd-Frank Act directed the CFPB to adopt regulations governing the collection of small business lending data. Section 1071 amended the Equal Credit Opportunity Act to require financial institutions to compile, maintain, and submit to the CFPB data on applications for credit from women-owned, minority-owned, and small businesses.

The CFPB rule would reduce the discretionary data points adopted during the Biden administration and focus on data points set out in the Dodd-Frank ACT and only include a few essential discretionary data points such as time in business, number of principal owners, and NAICS code. The rule eliminates:

  • Application method (in-person, online, etc.)
  • Application recipient (direct vs. third-party submission)
  • Denial reasons
  • Pricing information (interest rates, fees, prepayment penalties)
  • Number of workers
  • LGBTQI+-owned business status

The rule modified demographic data collection to comply with the Trump administration executive order that requires binary sex categories of male or female and removes references to gender identity. It also eliminated disaggregated race and ethnicity categories and collects only aggregate categories to limit complexity.

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