Tag: Region Americas

When KPMG LLP gave Silicon Valley Bank a clean bill of health just 14 days before the lender went under, the Big Four audit firm pointed to potential losses on loans to its customers as one of its so-called critical audit issues. But the audit opinion didn’t mention what really brought the bank down: its unrealized losses on bonds and its ability to sustain them, given its reliance on potentially volatile deposits.

“The auditors didn’t mention the fire in the basement or the box of dynamite on the second floor, but they did mention the peeling paint on the planter,” says Erik Gordon, a business professor at the University of Michigan.”How could they have overlooked interest rate risk?” The current banking crisis is the first litmus test of the system of critical audit issues, a measure designed to help investors decipher hidden risks and uncertainties in financial statements.

Auditors are required to record any critical audit issues when approving a public company’s books. Regulators define them as matters that have a significant impact on financial statements and involve “especially difficult, subjective or complex” judgments by auditors.

SEOUL (Reuters) – South Korea’s antitrust regulator has fined Alphabet Inc’s Google 42.1 billion won ($31.88 million) for blocking the release of mobile video games on a competitor’s platform.

The Korea Fair Trade Commission (KFTC) said on Tuesday that Google bolstered its market dominance, and hurt local app market One Store’s revenue and value as a platform, by requiring video game makers to exclusively release their titles on Google Play in exchange for providing in-app exposure between June 2016 and April 2018.

The KFTC said the move against the U.S. technology giant is part of efforts by the government to ensure fair markets.

Game makers affected by Google’s action include Netmarble, Nexon and NCSOFT, as well as other smaller companies, the antitrust regulator added.

In 2021, Google was fined more than 200 billion won by the KFTC for blocking customised versions of its Android operating system.

One of the most closely watched US defamation cases in decades is set to begin this week as a Delaware court picks a jury to decide whether Fox News should pay Dominion Voting Systems $1.6bn (£1.3bn) for spreading falsehoods on election rigging.

A critical task for jurors over the five-week trial will be to decide who was responsible for the cable network’s decision to broadcast the claims, despite internal doubts about their veracity. Dominion asserts that Fox’s top brass approved of the coverage, but the network disputes this.

Last week, Delaware Superior Court Judge Eric Davis said he would not block Dominion from calling Rupert Murdoch, chairman of Fox News parent company Fox Corp, to testify in person about his involvement in the coverage, which Judge Davis has ruled was false and defamatory.

“The more complicit the whole organisation is in perpetuating these known falsehoods, the more likely a jury would be to return a big dollar figure,” said Mary-Rose Papandrea, a constitutional law professor.

A senior South Korean security official said on Tuesday that information contained in purportedly leaked US confidential documents that appeared to be based on internal discussions among top South Korean officials is “untrue” and “altered.”

Deputy National Security Adviser Kim Tae-hyo made the remark as he departed for Washington ahead of President Yoon Suk Yeol’s state visit to the U.S. on April 26, stressing that the two countries’ alliance remained strong. Several documents have recently been posted on social media offering a partial, month-old snapshot of the war in Ukraine, including one that gives details of internal discussions among South Korean officials about US pressure on Seoul to help supply weapons to Ukraine.

“The two countries have a same assessment that much of the information disclosed is altered,” Kim told reporters, adding that the report on South Korea is “untrue.” He did not elaborate which part of the document was untrue.

A U.S. judge rejected requests to sever JPMorgan Chase & Co’s lawsuit accusing former executive Jes Staley of concealing what he knew about Jeffrey Epstein from two related lawsuits over its work for the late sex offender.

Monday’s decision by U.S. District Judge Jed Rakoff in Manhattan is a defeat for Staley, who said the scheduled Oct. 23 trial for all three cases left him too little time to defend against JPMorgan’s “slanderous” accusations.

It is also a defeat for women who claim that Epstein sexually abused them and are suing the largest U.S. bank.

They claimed that JPMorgan sued Staley as a means to “harass and intimidate” them into revealing private medical records and communications in their case.

Epstein was a JPMorgan client from 2000 to 2013. The U.S. Virgin Islands, where the financier had a home, is also suing JPMorgan.

+ Walmart is suing Capital One in an attempt to end its credit-card contract with the bank.
+ The retailer said the McLean, Virginia-based bank has repeatedly failed to meet a number of contractual obligations in its card partnership deal, according to a lawsuit filed Friday in the U.S. District Court for the Southern District of New York.
+ Capital One “was consistently unable to meet the customer-service standards” outlined in its contract, such as issuing replacement cards and promptly processing payments and posting transactions, Walmart alleged in the suit.

+ China’s military claimed that its troops are “ready to fight at all times”
+ China’s People’s Liberation Army earlier stated that its drills were a “stern warning” to Taiwan
+ The White House expressed confidence that it can defend Taiwan and U.S. interests in the region

Most Wall Street banks are likely to report lower quarterly earnings and face a dour outlook for the rest of the year, with last month’s regional banking crisis and a slowing economy expected to hurt profitability.

Earnings per share for the six biggest U.S. banks are expected to be down about 10% from a year earlier, analyst estimates from Refinitiv I/B/E/S show. Banks start reporting results on April 14.

Access to cheap deposits, which swelled for bigger banks as savers fled smaller lenders in the wake of Silicon Valley Bank’s collapse last month, likely boosted net interest income for the largest banks, analysts said.

US Secretary of State Antony Blinken on Monday officially declared Evan Gershkovich to be “wrongfully detained” by Russia. The Wall Street Journal reporter was arrested in Yekaterinburg last month and charged with espionage. “Journalism is not a crime. We condemn the Kremlin’s continued repression of independent voices in Russia, and its ongoing war against the truth,” State Department spokesman Vedant Patel said in a statement. Blinken’s designation means that the State Department will now involve its office that negotiates the release of “wrongfully detained” Americans abroad, and provide “all appropriate support” for Gershkovich.

Thousands of Israelis, including ministers in Prime Minister Benjamin Netanyahu’s right-wing government, marched to an evacuated Jewish outpost in the West Bank on Monday in support of settlements viewed as illegal under international law. As tensions mounted between Israelis and Palestinians, Israelis from across the country travelled to the outpost of Evyatar while waving Israeli flags and chanting religious songs…

The Department of Defense has sent over a criminal referral to the DOJ to trigger the probe, according to Pentagon press secretary Sabrina Singh. Meanwhile, an internal investigation has been launched to “review and assess the validity” of the documents, which “appear to contain sensitive and highly classified material.”  Photographs of scanned briefing slides were first posted on a messaging platform called Discord in January, but went unnoticed until last week. Since then, more documents have appeared on Twitter and Telegram as well, with the latest batch emerging on Friday.  According to Financial Times, their release has “sown chaos and paranoia among Washington’s national security apparatus ahead of a critical moment” in the Ukraine conflict, just as Kiev is about to launch a highly anticipated “counter-offensive.”

Germans appear to be particularly susceptible to what Bild described as Moscow’s “propaganda,” the newspaper said, adding that experts in the West are “alarmed” over this development. The tabloid then blamed this tendency on the “historically friendly relations” between the two nations, as well as the “legacy” of East Germany, which was once a part of the “socialist camp” and “a large number of Russian-speaking people” living in Germany nowadays. The paper then admitted that pro-Russian views have been spreading both among native Germans and the Russian-speaking part of the population.

Russian airline Aeroflot [Russian Airlines] has sent its aircraft to Iran for repairs for the first time in its history amid Western sanctions.

Source: Kremlin-aligned news outlet RBC, citing two sources close to the airline

“An Airbus A330-300 wide-body airliner with registration number RA-73700 flew to Tehran on 5 April, where the aircraft will be serviced by technicians from Mahan Air, i.e., Iran’s largest airline,” the statement said.

President Emmanuel Macron, following a trip to Beijing in which he met with Chinese President Xi Jinping, said in a new interview Sunday he does not believe Europe should follow the “American rhythm” on Taiwan. “We don’t want to get into a bloc versus bloc logic,” Macron said in an interview for French business daily Les Echo,arguing that Europe “should not be caught up in a disordering of the world and crises that aren’t ours.” “The question asked of us Europeans is the following: is it in our interest for there to be acceleration on the topic of Taiwan? No. The worst thing we Europeans could do would be to be followers on this topic and to adapt to the American rhythm and a Chinese overreaction,” he said. “Why should we go at a rhythm chosen by someone else?”

DES MOINES, Iowa (AP) — The Iowa Attorney General’s Office has paused its practice of paying for emergency contraception — and in rare cases, abortions — for victims of sexual assault, a move that drew criticism from some victim advocates. Federal regulations and state law require Iowa to pay many of the expenses for sexual assault victims who seek medical…

WASHINGTON (AP) — A Texas judge who sparked a legal firestorm with an unprecedented ruling halting approval of the nation’s most common method of abortion is a former attorney for a religious liberty legal group with a long history pushing conservative causes.

U.S. District Judge Matthew Kacsmaryk, an appointee of former President Donald Trump, on Friday ordered a hold on federal approval of mifepristone in a decision that overruled decades of scientific approval. His ruling, which doesn’t take immediate effect, came practically at the same time that U.S. District Judge Thomas O. Rice, an appointee of former President Barack Obama, essentially ordered the opposite in a different case in Washington. The split likely puts the issue on an accelerated path to the U.S. Supreme Court.