Tag: billionaires

San Francisco Dems move to break with state party to oppose ‘Billionaire Tax’

In a move signaling a deepening ideological rift within Northern California’s political establishment, leaders of the San Francisco Democratic County Central Committee (DCCC) are preparing to formally oppose Proposition 40, breaking ranks with the California Democrat Party.

The statewide measure, known as the Billionaire Tax Act, was narrowly endorsed by the state party’s executive board following an intense debate, setting the stage for an unprecedented local rebellion in one of the nation’s most left-wing strongholds.

To clear the path for this rare divergence, the San Francisco DCCC quietly altered its local bylaws to allow the party committee to take an independent position on statewide ballot initiatives when the state party’s stance conflicts with local priorities.

While state party rules strictly forbid local chapters from endorsing alternative candidates, ballot measures reportedly fall into a procedural loophole, allowing San Francisco leaders to break from the broader party platform.

Proposition 40 would levy a one-time 5% wealth tax on the state’s roughly 200 billionaires, generating an estimated $100 billion primarily designated to backfill projected federal cuts to Medi-Cal, California’s healthcare program for low-income residents, non-citizens and illegal aliens.

Despite the measure’s strong backing from healthcare unions, Senator Bernie Sanders (I-Vt.), and Representative Ro Khanna (D-Calif.), local party leaders in San Francisco have expressed deep skepticism over its economic ramifications.

San Francisco DCCC Chair Nancy Tung and prominent local “moderate” figures argue that the measure poses a severe threat to California’s fragile budget dynamics. Opponents warn that an aggressive targeted tax will accelerate an exodus of high-net-worth individuals and corporate headquarters out of San Francisco and the whole state, ultimately gutting broader income tax revenues.

In taking this stance, the local committee aligns itself with Democrat leaders who also oppose the proposition, including Governor Gavin Newsom (D-Calif.), gubernatorial candidate Xavier Becerra, Mayor Daniel Lurie and organizations like Planned Parenthood.

Meanwhile, the impending vote has notably drawn criticism from more far-left members inside the local committee, who argue that defecting from the state party “undermines Democrat unity” and “shields the ultra-wealthy from contributing to basic social safety nets.”

However, with more moderate members holding a majority on the committee, the local party is widely expected to vote against Proposition 40 ahead of the upcoming election.

Beyond the ideological issues, the potential break carries financial implications for local campaign operations. Aligning against the initiative positions the local party to receive substantial financial support from well-funded anti-tax committees, tech leaders and venture capitalists who are pouring tens of millions of dollars into defeating Proposition 40.

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What JPMorgan Saw Inside Tesla’s Fremont Factory As Humanoid Production Nears

Retail flows across Asia remained heavily concentrated in newly listed, high-beta names, most notably Chinese robotics maker Unitree following its blockbuster Shanghai debut. The retail craze surrounding physical AI merely shows Beijing’s accelerating push to dominate the humanoid market.

To close out the week, we pivot across the Pacific for a peek inside the US humanoid-robotics supply chain, where Tesla’s Fremont buildout provides a timely indicator of how quickly physical AI is advancing.

Rajat Gupta, a JPMorgan analyst who covers Tesla, recently toured Tesla’s Fremont factory and reported to clients this week that the facility, once the birthplace of the company’s electric vehicles, is now pivoting toward producing robotaxis and humanoid robots.

Gupta and his colleagues toured the roughly 5-million-square-foot facility and found that the discontinued Model S and Model X production lines are being replaced by manufacturing equipment for Tesla’s Optimus humanoid.

“On Optimus, production lines are being installed at Fremont (the area was tarped off at the time of our visit), and TSLA remains largely on schedule for the targeted four-month transition following the end of S/X production in May, with initial humanoid deployments in 2H26 expected to focus on Optimus Academy for training and data collection, followed by internal factory use and external sales as early as 2H27,” the analyst said.

He said that Optimus robots are not currently working inside the Fremont plant. Initial deployments in the second half of 2026 will instead take place at the “Optimus Academy,” where the robots will collect real-world training data before being deployed in factories.

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Mark Walter Probe Puts Wall Street’s Insurance-Private Credit Machine Under DoJ Scrutiny

An ongoing federal investigation into billionaire Mark Walter’s business empire is raising alarm bells about Wall Street’s use of insurance capital to finance private credit and other illiquid investments. 

Bloomberg reported that Walter’s TWG Global holding company said in a filing that it will wind down its exposure to affiliated businesses by up to $6.5 billion after the transactions drew scrutiny from federal investigators. This comes after the Department of Justice homed in on loans that should’ve been marked as affiliated transactions. 

Walter’s TWG Global holding company will buy up to $6.5 billion of affiliated assets from Delaware Life Insurance Co. in exchange for an equal amount of unaffiliated investments. Clear Spring Life and Annuity Co., another TWG-controlled insurer, separately reduced related-party transactions by $90 million.

The moves begin unwinding more than $20 billion of loans and investments that the insurers acknowledged should have been classified as affiliated transactions. 

“Tripping over these requirements can constitute fraud,” said Derek Reisfield, co-founder and former chairman of MarketWatch, as well as a former McKinsey consultant, who was quoted by The New York Post. 

Reisfield said that heavy exposure to businesses connected to an insurer’s owner poses a very high risk. 

“The risk is that concentrated loans to related parties go south, and the insurance companies and their policyholders can’t be made whole,” Reisfield said, adding, “It’s bad risk management and leaves the companies vulnerable.”

Last week, Walter agreed to sell the Los Angeles Lakers to Josh Kushner and Bob Iger at a record $12.5 billion valuation, and earlier this week, a report stated that he is mulling over selling his stake in Chelsea Football Club to the majority owner, Clearlake Capital. 

Insurance companies are allowed to do business with related parties, but such dealings must be disclosed and properly labeled to ensure that owners do not put their interests ahead of those of policyholders. 

The investigation into Walter’s empire is a major wake-up call about Wall Street’s use of insurance capital to finance private credit and other illiquid investments. 

Walter was one of the earliest adopters of the strategy of acquiring insurers and investing their long-term policyholder capital in higher-yielding private assets. A number of other asset managers, including Apollo, KKR, and Brookfield, have followed suit by building out insurance operations. Private-capital firms now manage more than $1 trillion of insurance assets.

“We have always acted in good faith, and insinuations that we have in any way attempted to circumvent our obligations are simply false,” a TWG spokesman told The Wall Street Journal. 

More problems: Walter, CEO of Guggenheim Partners, saw a financing entity tied to the investment firm report a sharp decline in second-quarter earnings, driven by the delayed recognition of advisory fees. The disclosure sent the entity’s term loan tumbling below 80 cents on the dollar.

To sum up, the affiliated transactions were not inherently illegal, provided they had regulatory approval. That appears to be where the process broke down in Walter’s case.

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FBI Seized Mark Walter’s Devices Months Before Record $12.5 Billion Lakers Sale

One day after billionaire Mark Walter announced the record $12.5 billion sale of the Los Angeles Lakers to a group led by Josh Kushner and former Disney chief Bob Iger, the Financial Times reported that the FBI seized the phone of Guggenheim Investments President Dina DiLorenzo last year as part of a federal investigation into entities controlled by Walter.

DiLorenzo’s device was taken the same day federal agents seized Walter’s phone and laptop in September, according to people familiar with the federal probe. Important to note, Walter is the co-founder and CEO of Guggenheim Partners. 

They noted that prosecutors focused on whether Guggenheim Investments properly recorded revenue within Guggenheim Private Investments.

Guggenheim said auditors issued “unqualified opinions” on the 2024 and 2025 financial statements of the subsidiary that owns the private-investments business. Walter-controlled insurers previously disclosed subpoenas from the Manhattan U.S. Attorney’s Office and the Securities and Exchange Commission.

The report continued:

Insurance companies controlled by Walter disclosed in June that they had received subpoenas in connection with investigations by the US attorney’s office in Manhattan and the Securities and Exchange Commission. The US attorney’s office declined to comment. The FBI did not respond to a request for comment.

While the scrutiny of the insurers has been publicly disclosed, the seizure of DiLorenzo’s phone suggests authorities have also examined Walter’s other companies, including Guggenheim, the securities firm and asset management giant. It was not clear what stage of the investigations authorities were at.

. . .

Walter’s holdings, including insurers Delaware Life and Clear Spring Life and Annuity, now sit inside TWG. The insurers disclosed in June that they held more than $20bn of investments in affiliated entities, which they had previously marked as unaffiliated. They are now seeking to divest or restructure these holdings to bring down their percentage of related-party investments.

Yahoo Sports reporter Jack Baer noted earlier, “Mark Walter is reportedly facing a cash crunch.” 

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The Rise of the Ellison Empire

There was a time when America’s industrial titans built railroads, steel mills, and oil companies. Today, influence is measured in data, artificial intelligence, cloud computing, media, and information. Few families illustrate that transformation better than the Ellisons.

Larry Ellison built Oracle from a small software company into one of the world’s largest technology firms. His background and rags-to-riches story are quite interesting. Today Oracle is one of the dominant providers of enterprise databases and cloud infrastructure, serving governments, financial institutions, healthcare providers, defense contractors, and many of the world’s largest corporations. Oracle’s software touches enormous portions of the global economy. When governments collect taxes, hospitals manage patient records, banks process transactions, or corporations analyze data, Oracle systems are often operating behind the scenes.

Larry Ellison’s personal fortune has placed him among the wealthiest individuals in the world for decades. His influence extends well beyond technology. He has invested billions in real estate, owns nearly all of the Hawaiian island of Lanai, has backed medical research, invested heavily in artificial intelligence, and has maintained relationships with political and business leaders from both parties. The TikTok debacle this year was solved when the power was handed over to Ellison’s conglomerate. The sheer data this family has access to is staggering. Wealth at that level naturally provides access to decision makers across government and industry.

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Billionaire heiress who backed Mamdani now shoveling cash to House Dems in hopes of party takeover

Billionaire heiress Elizabeth Simons is pouring hundreds of thousands of dollars into the Democratic Party’s campaign to retake the House — even as she bankrolls the socialist causes and candidates that have Democrats’ establishment leaders increasingly on edge.

Simons, who previously cut a $250,000 check to a super PAC backing Mayor Zohran Mamdani, has donated $354,000 to the Democratic Congressional Campaign Committee — the party’s chief House campaign arm — and thousands more to individual House candidates this election cycle.

The donations, ironically, put Simons behind the same Democratic leadership forces trying to prevent the party’s increasingly powerful progressive wing from taking over.

“I can see why a lot of the very woke left is lining up with Hakeem [Speaker Jeffries] because the goal is winning the House,” said one longtime Democratic fundraiser.

The DCCC is headed by Rep. Suzan DelBene (D-Wash.), a member of the party’s centrist New Democrat Coalition, which is the under guidance of House Minority Leader Hakeem Jeffries, who is positioned to take power if Dems snatch back the House. Republicans rule by a narrow 218-212 majority.

Simons is hardly a conventional Democratic establishment donor — she has has poured millions into progressive education initiatives while backing candidates like Mamdani.

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California Democrats Overwhelmingly Back Billionaire Tax Ahead of High-Stakes November Ballot

California’s proposed billionaire tax cleared a major political hurdle on Sunday after winning the endorsement of the California Democratic Party.

The endorsement provides fresh momentum to the initiative just months before voters decide the measure at the ballot box.

The proposal secured the 60 percent threshold required for the party’s endorsement during a meeting of hundreds of Democrat officials in San Diego.

The approval came despite fierce opposition from some of the state’s most prominent Democrats.

If endorsed by voters in November, the measure would impose a one-time 5 percent tax on Californians with a net worth of at least $1 billion, affecting roughly 200 of the state’s wealthiest residents.

The endorsement is a significant victory for supporters after months of infighting within the Democratic Party.

California Gov. Gavin Newsom and Democratic gubernatorial candidate Xavier Becerra have both publicly opposed the proposal, warning it could encourage wealthy taxpayers to leave the state.

The initiative was placed on the ballot by the Service Employees International Union United Healthcare Workers West (SEIU-UHW), which claims the tax will raise an estimated $100 billion.

The money will be primarily used to offset healthcare funding reductions enacted by the Trump administration.

“This endorsement puts to rest the idea that California Democrats are not united by the billionaire tax—they are,” said Dave Regan, president of SEIU-UHW.

The measure has drawn support from far-left Democrats, including Sen. Bernie Sanders and Rep. Ro Khanna, who argue California’s wealthiest residents should contribute more to fund healthcare programs.

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Bill Gates Held A Top Secret ‘Q’ Clearance For Seven Years – And The DOE Won’t Say Why

Microsoft co-founder Bill Gates held a top-tier “Q” security clearance at the Department of Energy from 2014 to 2021 – though the DOE didn’t grant it. Another federal agency vetted him first, and the letter confirming the clearance doesn’t say which one.

The detail comes from a DOE letter entered into the Congressional record by Sen. Rand Paul (R-KY). The letter emerged as Fauci faced fierce Republican blowback during his Senate hearing last week, where the longtime face of COVID policy pleaded the Fifth more than 100 times.

A “Q” clearance is the Energy Department’s highest classification level, the kind normally reserved for people working on nuclear weapons design, national labs, critical energy infrastructure, and highly classified scientific research. Gates kept that clearance for seven years, starting under President Obama and running through the entirety of the COVID-19 pandemic.

One explanation as to why; Gates founded and chairs TerraPower, the advanced nuclear reactor company that has spent years working alongside DOE national laboratories and won Nuclear Regulatory Commission construction approval in March. A nuclear executive holding a nuclear clearance is not, on its own, a scandal.

But the letter doesn’t mention TerraPower – or why he had it at all. What it does say is that the clearance was granted reciprocally on June 11, 2014 – meaning it originated at another federal agency, and DOE simply honored it – before terminating on December 6, 2021. The letter does not name the agency that vetted him in the first place.

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Musk Refused To Meet Zelensky, Who Asked Trump for Help Getting Starlink Tech To Guide Deep Strikes Inside Russian Territory

Musk would not even meet him, and Trump would not commit to the idea.

During his US visit for the burial of Senator Lindsay Graham, Kiev regime leader Volodymyr Zelensky attempted to meet billionaire Starlink owner Elon Musk, without success.

Voennoe Delo reported:

“SpaceX chief Elon Musk refused to meet Vladimir Zelensky during the Ukrainian leader’s visit to the United States, The Atlantic reported.

According to the publication, Zelensky had sought talks with the billionaire, but Musk declined the proposed meeting.”

Zelensky’s objective has become clear: he wants access to Starlink technology for missile guidance in strikes deep into Russian territory.

Unable to meet Musk, Zelensky reportedly asked Donald J. Trump to help secure Elon Musk’s permission to use Starlink technology.

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Musk’s America PAC Reportedly Plans $120 Million Midterm Blitz, Setting Stage For Renewed Left-Wing War On Elon

The New York Times reports that Elon Musk’s America PAC plans to spend as much as $120 million to help Republicans in November’s midterm elections, signaling that the world’s richest man is preparing to reenter the political game with fewer than 100 days until voters head to the polls.

America PAC’s spending surge will likely spark a coordinated opposition campaign from Democratic groups and left-wing NGOs, ranging from protests and activist pressure to sustained negative press coverage of Musk, as well as attempts to damage his brands, including Tesla, SpaceX, and xAI.

The Democrats’ playbook could resemble their coordinated pressure campaign against Musk when he was involved with DOGE and the dismantling of most of USAID. This sparked street demonstrations by left-wing and far-left activist networks supported by left-wing NGOs, along with an aggressive left-leaning media campaign that sought to make him the public face of the administration’s agenda.

The NYT report is based on “two people briefed on the plans,” and like many stories run by left-leaning corporate media. Musk usually denies the reports on X, but if this report is correct, it says Musk authorized America PAC to build a field operation across at least eight states, targeting Senate races in Alaska, Iowa, Maine, Michigan, and Ohio, while considering contests in North Carolina, Georgia, and Texas.

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