Masks and the Law: An Unusual Twist

From Magistrate Judge Robert W. Lehrburger’s decision today in Webber v. Dash (S.D.N.Y.), a libel and copyright case against Damon Dash, a controversial music and film industry figure (he had been a business partner of Jay-Z, a romantic partner of Aaliyah, and husband of designer Rachel Roy) (emphasis added):

Once again, Defendant Dash has frustrated completing his deposition, and the fact that he was the only person involved in the deposition who could not be clearly heard is highly suspect.

That said, the Court cannot conclude from the transcript submitted, the videographer’s affidavit (which is not notarized) and Plaintiff’s affidavit (also not notarized), that the problems with Dash’s audibility were intentionally caused by Dash purposefully speaking in a low voice behind the two masks he was wearing. The transcript reflects several instances where Dash’s testimony is recorded, where Dash directly answered the question asked, and where Dash apparently brought the microphone in closer proximity to his face.

There also are no recorded instances where Dash expressed his desire to be elsewhere or that he did not have time to be at the deposition. Accordingly, the motions for terminating sanctions are denied without prejudice. Defendants’ request for sanctions is denied. The parties shall cooperate to complete Mr. Dash’s deposition by March 10, 2021. The burden is on Dash to make sure that the deposition is completed without incident. Failure to comply with this order may result in sanctions, including termination sanctions.

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This Draconian Bill Would Turn Millions of Peaceful Gun Owners Into Felons

Sheila-Jackson-Lee-1-3-21-Newscom

A gun control bill that Rep. Sheila Jackson Lee (D–Texas) recently introduced gives you an idea of what Democrats might do if they did not have to worry about the Second Amendment. The Sabika Sheikh Firearm Licensing and Registration Act would establish a national database that is supposed to include every gun in the country, make it a felony to own a firearm or ammunition without a license from the Justice Department, ban magazines that hold more than 10 rounds and “ammunition that is 0.50 caliber or greater,” and criminalize possession of a “military-style weapon” without a special license. Violating the bill’s provisions would be punishable by hefty fines and long minimum prison sentences, which Lee ordinarily claims to oppose.

The registration requirement applies to both currently owned firearms and guns purchased after the bill takes effect. The bill would give current owners three months to report “the make, model, and serial number of the firearm, the identity of the owner of the firearm, the date the firearm was acquired by the owner, and where the firearm is or will be stored” as well as “the identity of any person to whom, and any period of time during which, the firearm will be loaned to the person.” New buyers would have to report that information on the date of purchase. Failure to comply would be punishable by a minimum fine of $75,000, a minimum prison sentence of 15 years, or both.

Licenses would be limited to people 21 or older who pass a criminal background check, undergo a “psychological examination,” complete at least 24 hours of training, and pay an $800 “fee” for liability insurance. The examination, which may include assessing “other members of the household in which the individual resides,” would be conducted by a government-approved psychologist charged with determining whether the applicant is “psychologically unsuited to possess a firearm.”

The psychologist would be required to interview “any spouse of the individual, any former spouse of the individual, and at least 2 other persons who are a member of the family of, or an associate of, the individual to further determine the state of the mental, emotional, and relational stability of the individual in relation to firearms.” Denial of a license would be mandatory if the applicant has ever been “hospitalized” because of “conduct that endangers self or others,” a “brain disease” such as “dementia or Alzheimer’s,” or a “mental illness, disturbance, or diagnosis,” including (but not necessarily limited to) depression, homicidal ideation, suicidal ideation, attempted suicide, and addiction to a controlled substance or alcohol.

That disqualification goes far beyond the psychiatric restrictions that federal law currently imposes on gun ownership, which are already overly broad but apply only to people who have undergone court-ordered treatment. Lee is saying that anyone who has ever been treated in a hospital for any of these conditions, whether voluntarily or involuntarily, should never be allowed to own a gun, no matter how long ago it was and regardless of his current mental state.

In addition to those mandatory disqualifications, the attorney general “may” deny a gun license to someone who “has a chronic mental illness or disturbance, or a brain disease,” is addicted to drugs or alcohol, has attempted suicide, or has “engaged in conduct that posed a danger to self or others,” as determined by “prior psychological treatment or evaluation.” That casts the net even wider, since it includes people who were never hospitalized for these reasons and leaves open the question of how the government determines that someone is “addicted” or has a “mental illness or disturbance.” According to some estimates, nearly half of Americans qualify for a psychiatric diagnosis at some point in their lives, which gives you a sense of how expansively “mental illness” is defined but is hardly a sound basis for denying people their Second Amendment rights.

If an applicant does not survive this gauntlet, it would be a felony for him to possess a firearm, punishable by the same fines and prison sentences as failure to register. That applies to current owners as well as new buyers. People who have been licensed for less than five years would have to renew their licenses every year; people who have been licensed five years or longer would be eligible for three-year licenses. If a gun owner neglects to renew his license, he would be subject to the same fines and prison time as someone who never got a license.

Lee lists a bunch of specific models that qualify as “military-style weapons,” a.k.a “assault weapons.” The definition also includes semi-automatic rifles that accept detachable magazines and have two or more of these features: “a folding or telescoping stock,” “a pistol grip that protrudes conspicuously beneath the action of the weapon,” a “bayonet mount,” a “flash suppressor or threaded barrel designed to accommodate a flash suppressor,” or a “grenade launcher.”

That last feature is not much use without grenades, which are banned as “destructive devices” under federal law, and the rest have nothing to do with rate of fire, muzzle velocity, or ammunition caliber. A rifle without these features is just as lethal as a rifle with them. Lee nevertheless wants to require a special license for “military-style weapons,” requiring completion of “a training course, certified by the Attorney General, in the use, safety, and storage of the weapon, that includes at least 24 hours of training and live fire training.” Except for specifying “live fire training,” this is the same as the requirement for a standard gun license. The main point seems to be identifying owners of “military-style weapons,” in case Congress later decides to ban them.

Lee is not waiting to ban large-caliber ammunition and magazines that hold more than 10 rounds, which are standard for many popular handguns and rifles. Possessing the former would be punishable by a minimum fine of $50,000, a minimum prison term of 10 years, or both. Possessing the latter would be punishable by a minimum fine of $10,000, at least a year in prison, or both.

Any gun possessed by someone who has failed to register it or does not have a current federal license likewise would be subject to confiscation. That person could then be prosecuted and sent to prison for at least 15 years.

These are odd prescriptions for an avowed critic of mandatory minimums to offer. Here is what Lee said when she introduced a sentencing reform bill in 2015:

We come together today armed not only with the knowledge that our criminal justice system is deeply flawed, but with the commitment to fix these flaws. The cost of this system is incredibly high, not just in dollars spent, but also in dollars lost. Every person taken out of a community and placed into a prison is a person who cannot contribute to a family, a community, and our society. Worse, this system takes an incredible human toll, with the cycle of incarceration in a constant state of destruction. Today, with this legislation, we unify to reject a system that is often more effective at creating criminals and collateral damage than actual justice.

Yet Lee now wants to transform millions of Americans into felons, threatening them with long prison terms for peaceful conduct that violates no one’s rights. A clearer example of how readily partisans forsake their supposed principles when they prove inconvenient is hard to imagine.

Lee’s bill is named after Sabika Sheikh, a foreign exchange student from Pakistan who was murdered in the 2018 mass shooting at Santa Fe High School in Texas. The perpetrator of that attack was 17, meaning it was already illegal for him to possess the .38-caliber revolver he used (except for temporary possession in specified circumstances, such as hunting or target shooting). In addition to the revolver, he had a 12-gauge shotgun. Neither would qualify as a “military-style weapon” under Lee’s bill. In other words, her legislation has nothing to do with the crime she invokes to justify it, which is par for the course with anti-gun politicians.

The system Lee imagines is completely impractical, since gun owners would be understandably reluctant to identify themselves and their firearms so they could be entered in a federal database and required to apply for licenses. Politicians pursuing far less ambitious gun registration schemes have found that voluntary compliance is the exception rather than the rule. Since the Justice Department would not have the resources to go after millions of recalcitrant gun owners even if it knew who they were, the result would be random application of Lee’s draconian penalties to the few who happened to attract the government’s attention.

Who would those people tend to be? As a legislator who decries racial bias in policing, Lee ought to know. Current restrictions on gun ownership already disproportionately hurt African Americans, who are more likely than whites to have felony records that permanently bar them from possessing firearms for self-defense, no matter the nature of the offense or how long ago it happened. Lee’s bill would only compound that problem. Call that what you want, but it is manifestly not an attempt to fix a “deeply flawed” criminal justice system that is “often more effective at creating criminals and collateral damage than actual justice.”

It should go without saying that violent criminals will be even less motivated to comply with Lee’s requirements than the average gun owner. They already obtain, possess, and use guns illegally. They will not be fazed by another layer of criminality.

Lee’s bill so far has no cosponsors, and it is unlikely to make much progress. But it reflects a broader mindset in the Democratic Party, which used to at least pay lip service to the Second Amendment but lately talks and acts as if it does not exist. After promising to respect the Second Amendment in 2004, 2008, and 2012, the Democrats erased the constitutional provision from their 2016 platform, although they did mention “the rights of responsible gun owners.” The  2020 platform omitted even that phrase.

President Joe Biden does occasionally mention the Second Amendment, which he says he respects. “It’s within our grasp to end our gun violence epidemic and respect the Second Amendment, which is limited,” his campaign website said. How limited?

We know that Biden’s Second Amendment does not cover guns he does not like. He concedes that the federal ban on “assault weapons,” which was part of what he has proudly called “the 1994 Biden Crime Bill” but expired in 2004, had no impact on the lethality of legal firearms. Yet he supports a new and supposedly improved version, including a magazine ban similar to Lee’s and a requirement that current owners of the targeted firearms either surrender them to the government or follow the same tax and registration requirements that apply to machine guns.

During an argument with a Detroit autoworker last year, Biden suggested that the Second Amendment no more protects the right to own “assault weapons” than the First Amendment protects the right to falsely cry “Fire!” in a crowded theater. And although the Supreme Court has described handguns as “the quintessential self-defense weapon,” possession of which for home protection is indisputably protected by the Constitution, Biden thinks shotguns are better for that purpose. While Biden has not said his preference should be enforced by law, his policy prescriptions might be different if the Court had not ruled so clearly on the issue. His explanation of why he is willing to let people own guns, which focuses on hunting rather than self-defense, does not inspire much confidence that his avowed respect for the Second Amendment is based on a clear understanding of its function.

Proposals like Lee’s help make Biden’s gun control agenda look moderate and reasonable by comparison. But his attitude, like hers, shows that Democrats would be perfectly happy to expurgate the Bill of Rights if only the courts would let them.

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Masks and the Law: An Unusual Twist

From Magistrate Judge Robert W. Lehrburger’s decision today in Webber v. Dash (S.D.N.Y.), a libel and copyright case against Damon Dash, a controversial music and film industry figure (he had been a business partner of Jay-Z, a romantic partner of Aaliyah, and husband of designer Rachel Roy) (emphasis added):

Once again, Defendant Dash has frustrated completing his deposition, and the fact that he was the only person involved in the deposition who could not be clearly heard is highly suspect.

That said, the Court cannot conclude from the transcript submitted, the videographer’s affidavit (which is not notarized) and Plaintiff’s affidavit (also not notarized), that the problems with Dash’s audibility were intentionally caused by Dash purposefully speaking in a low voice behind the two masks he was wearing. The transcript reflects several instances where Dash’s testimony is recorded, where Dash directly answered the question asked, and where Dash apparently brought the microphone in closer proximity to his face.

There also are no recorded instances where Dash expressed his desire to be elsewhere or that he did not have time to be at the deposition. Accordingly, the motions for terminating sanctions are denied without prejudice. Defendants’ request for sanctions is denied. The parties shall cooperate to complete Mr. Dash’s deposition by March 10, 2021. The burden is on Dash to make sure that the deposition is completed without incident. Failure to comply with this order may result in sanctions, including termination sanctions.

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This Draconian Bill Would Turn Millions of Peaceful Gun Owners Into Felons

Sheila-Jackson-Lee-1-3-21-Newscom

A gun control bill that Rep. Sheila Jackson Lee (D–Texas) recently introduced gives you an idea of what Democrats might do if they did not have to worry about the Second Amendment. The Sabika Sheikh Firearm Licensing and Registration Act would establish a national database that is supposed to include every gun in the country, make it a felony to own a firearm or ammunition without a license from the Justice Department, ban magazines that hold more than 10 rounds and “ammunition that is 0.50 caliber or greater,” and criminalize possession of a “military-style weapon” without a special license. Violating the bill’s provisions would be punishable by hefty fines and long minimum prison sentences, which Lee ordinarily claims to oppose.

The registration requirement applies to both currently owned firearms and guns purchased after the bill takes effect. The bill would give current owners three months to report “the make, model, and serial number of the firearm, the identity of the owner of the firearm, the date the firearm was acquired by the owner, and where the firearm is or will be stored” as well as “the identity of any person to whom, and any period of time during which, the firearm will be loaned to the person.” New buyers would have to report that information on the date of purchase. Failure to comply would be punishable by a minimum fine of $75,000, a minimum prison sentence of 15 years, or both.

Licenses would be limited to people 21 or older who pass a criminal background check, undergo a “psychological examination,” complete at least 24 hours of training, and pay an $800 “fee” for liability insurance. The examination, which may include assessing “other members of the household in which the individual resides,” would be conducted by a government-approved psychologist charged with determining whether the applicant is “psychologically unsuited to possess a firearm.”

The psychologist would be required to interview “any spouse of the individual, any former spouse of the individual, and at least 2 other persons who are a member of the family of, or an associate of, the individual to further determine the state of the mental, emotional, and relational stability of the individual in relation to firearms.” Denial of a license would be mandatory if the applicant has ever been “hospitalized” because of “conduct that endangers self or others,” a “brain disease” such as “dementia or Alzheimer’s,” or a “mental illness, disturbance, or diagnosis,” including (but not necessarily limited to) depression, homicidal ideation, suicidal ideation, attempted suicide, and addiction to a controlled substance or alcohol.

That disqualification goes far beyond the psychiatric restrictions that federal law currently imposes on gun ownership, which are already overly broad but apply only to people who have undergone court-ordered treatment. Lee is saying that anyone who has ever been treated in a hospital for any of these conditions, whether voluntarily or involuntarily, should never be allowed to own a gun, no matter how long ago it was and regardless of his current mental state.

In addition to those mandatory disqualifications, the attorney general “may” deny a gun license to someone who “has a chronic mental illness or disturbance, or a brain disease,” is addicted to drugs or alcohol, has attempted suicide, or has “engaged in conduct that posed a danger to self or others,” as determined by “prior psychological treatment or evaluation.” That casts the net even wider, since it includes people who were never hospitalized for these reasons and leaves open the question of how the government determines that someone is “addicted” or has a “mental illness or disturbance.” According to some estimates, nearly half of Americans qualify for a psychiatric diagnosis at some point in their lives, which gives you a sense of how expansively “mental illness” is defined but is hardly a sound basis for denying people their Second Amendment rights.

If an applicant does not survive this gauntlet, it would be a felony for him to possess a firearm, punishable by the same fines and prison sentences as failure to register. That applies to current owners as well as new buyers. People who have been licensed for less than five years would have to renew their licenses every year; people who have been licensed five years or longer would be eligible for three-year licenses. If a gun owner neglects to renew his license, he would be subject to the same fines and prison time as someone who never got a license.

Lee lists a bunch of specific models that qualify as “military-style weapons,” a.k.a “assault weapons.” The definition also includes semi-automatic rifles that accept detachable magazines and have two or more of these features: “a folding or telescoping stock,” “a pistol grip that protrudes conspicuously beneath the action of the weapon,” a “bayonet mount,” a “flash suppressor or threaded barrel designed to accommodate a flash suppressor,” or a “grenade launcher.”

That last feature is not much use without grenades, which are banned as “destructive devices” under federal law, and the rest have nothing to do with rate of fire, muzzle velocity, or ammunition caliber. A rifle without these features is just as lethal as a rifle with them. Lee nevertheless wants to require a special license for “military-style weapons,” requiring completion of “a training course, certified by the Attorney General, in the use, safety, and storage of the weapon, that includes at least 24 hours of training and live fire training.” Except for specifying “live fire training,” this is the same as the requirement for a standard gun license. The main point seems to be identifying owners of “military-style weapons,” in case Congress later decides to ban them.

Lee is not waiting to ban large-caliber ammunition and magazines that hold more than 10 rounds, which are standard for many popular handguns and rifles. Possessing the former would be punishable by a minimum fine of $50,000, a minimum prison term of 10 years, or both. Possessing the latter would be punishable by a minimum fine of $10,000, at least a year in prison, or both.

Any gun possessed by someone who has failed to register it or does not have a current federal license likewise would be subject to confiscation. That person could then be prosecuted and sent to prison for at least 15 years.

These are odd prescriptions for an avowed critic of mandatory minimums to offer. Here is what Lee said when she introduced a sentencing reform bill in 2015:

We come together today armed not only with the knowledge that our criminal justice system is deeply flawed, but with the commitment to fix these flaws. The cost of this system is incredibly high, not just in dollars spent, but also in dollars lost. Every person taken out of a community and placed into a prison is a person who cannot contribute to a family, a community, and our society. Worse, this system takes an incredible human toll, with the cycle of incarceration in a constant state of destruction. Today, with this legislation, we unify to reject a system that is often more effective at creating criminals and collateral damage than actual justice.

Yet Lee now wants to transform millions of Americans into felons, threatening them with long prison terms for peaceful conduct that violates no one’s rights. A clearer example of how readily partisans forsake their supposed principles when they prove inconvenient is hard to imagine.

Lee’s bill is named after Sabika Sheikh, a foreign exchange student from Pakistan who was murdered in the 2018 mass shooting at Santa Fe High School in Texas. The perpetrator of that attack was 17, meaning it was already illegal for him to possess the .38-caliber revolver he used (except for temporary possession in specified circumstances, such as hunting or target shooting). In addition to the revolver, he had a 12-gauge shotgun. Neither would qualify as a “military-style weapon” under Lee’s bill. In other words, her legislation has nothing to do with the crime she invokes to justify it, which is par for the course with anti-gun politicians.

The system Lee imagines is completely impractical, since gun owners would be understandably reluctant to identify themselves and their firearms so they could be entered in a federal database and required to apply for licenses. Politicians pursuing far less ambitious gun registration schemes have found that voluntary compliance is the exception rather than the rule. Since the Justice Department would not have the resources to go after millions of recalcitrant gun owners even if it knew who they were, the result would be random application of Lee’s draconian penalties to the few who happened to attract the government’s attention.

Who would those people tend to be? As a legislator who decries racial bias in policing, Lee ought to know. Current restrictions on gun ownership already disproportionately hurt African Americans, who are more likely than whites to have felony records that permanently bar them from possessing firearms for self-defense, no matter the nature of the offense or how long ago it happened. Lee’s bill would only compound that problem. Call that what you want, but it is manifestly not an attempt to fix a “deeply flawed” criminal justice system that is “often more effective at creating criminals and collateral damage than actual justice.”

It should go without saying that violent criminals will be even less motivated to comply with Lee’s requirements than the average gun owner. They already obtain, possess, and use guns illegally. They will not be fazed by another layer of criminality.

Lee’s bill so far has no cosponsors, and it is unlikely to make much progress. But it reflects a broader mindset in the Democratic Party, which used to at least pay lip service to the Second Amendment but lately talks and acts as if it does not exist. After promising to respect the Second Amendment in 2004, 2008, and 2012, the Democrats erased the constitutional provision from their 2016 platform, although they did mention “the rights of responsible gun owners.” The  2020 platform omitted even that phrase.

President Joe Biden does occasionally mention the Second Amendment, which he says he respects. “It’s within our grasp to end our gun violence epidemic and respect the Second Amendment, which is limited,” his campaign website said. How limited?

We know that Biden’s Second Amendment does not cover guns he does not like. He concedes that the federal ban on “assault weapons,” which was part of what he has proudly called “the 1994 Biden Crime Bill” but expired in 2004, had no impact on the lethality of legal firearms. Yet he supports a new and supposedly improved version, including a magazine ban similar to Lee’s and a requirement that current owners of the targeted firearms either surrender them to the government or follow the same tax and registration requirements that apply to machine guns.

During an argument with a Detroit autoworker last year, Biden suggested that the Second Amendment no more protects the right to own “assault weapons” than the First Amendment protects the right to falsely cry “Fire!” in a crowded theater. And although the Supreme Court has described handguns as “the quintessential self-defense weapon,” possession of which for home protection is indisputably protected by the Constitution, Biden thinks shotguns are better for that purpose. While Biden has not said his preference should be enforced by law, his policy prescriptions might be different if the Court had not ruled so clearly on the issue. His explanation of why he is willing to let people own guns, which focuses on hunting rather than self-defense, does not inspire much confidence that his avowed respect for the Second Amendment is based on a clear understanding of its function.

Proposals like Lee’s help make Biden’s gun control agenda look moderate and reasonable by comparison. But his attitude, like hers, shows that Democrats would be perfectly happy to expurgate the Bill of Rights if only the courts would let them.

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JPMorgan Fears Gamma-Imbalance ‘Fragility-Events’ In These Stocks

JPMorgan Fears Gamma-Imbalance ‘Fragility-Events’ In These Stocks

Single stock option gamma imbalances have become a focus for market participants recently amid concerns of the role they may have played in recent price and volatility spikes in Technology stocks, and most recently in high short interest stocks.

Specifically, SoftBank’s “Gamma Whale,” which has now been replaced by Reddit-Raiders, provides a lesson on how a gamma squeeze operates. Before explaining the scheme, we define option Delta and Gamma. As a quick reminder, we explained previously, delta quantifies the rate of change of the options price per the change in the underlying stock price. A delta of .50 means the option price will increase 50 cents for every $1 in the stock.

Delta is not a linear function, meaning it will not change proportionately with the stock price. Gamma quantifies how Delta will change per the change in the stock price. The chart below shows the non-linear “S-like” shape of Delta and the Gamma curve that warps it.

Options trade on leverage of sorts as a relatively small option premium can control many shares. In most cases, the premium is a tiny fraction of the price of the underlying shares. However, if the option is in the money at expiration, the option’s holder takes delivery of the underlying stock and must pay fully for the shares. In most cases, options traders sell the option or roll it to a future month to avoid payment.

A Gamma squeeze relies on the hedging actions of options dealers.

The banks and brokers who are the largest sellers of options must hedge their trades. Most dynamically hedge, meaning they frequently adjust the hedge amount according to the Delta of the option. If the Delta is .35, then they buy 35 shares for every option contract they are short. If the Delta then rises to .40, they buy five more shares. Conversely, they sell when the Delta falls.

If the Whale buys enough calls, they can trigger a Gamma squeeze. The option purchases force the dealers to buy the stock, which pushes the share price higher. As this happens, the dealers’ buying activity increases the Delta at a non-linear rate (gamma). In circular fashion dealers then must buy more of the stock, and on and on.

Like Hunt’s strategy, this one works as long as you can keep buying calls, and the stock price keeps rising. As the Hunt’s found out, that is not always possible. Here are a few problems the Whale and others face.

  • If they elect to sell the calls, the dealers will also sell the underlying stocks, which hurts their underlying large share positions.

  • The popularity of such strategies results in increased options premiums, making it costlier to execute.

  • Since they do not take delivery of the underlying stock, they have to continue to roll the positions until they sell the underlying stock. Again, selling the options will force dealer selling. Further, there are times they may not want to buy or roll calls, such as heading into the coming election or at quarter/year ends.

  • Dealers will get tired of being on the losing end of a trade and purposely push stock prices lower. Lower prices have the reverse effect, as dealers must sell when deltas decline.

It is also worth considering; the Whale (or angry horde of Redditors) can short a stock and then buy puts to create a squeeze but one that pushes share prices lower.

All of which brings us to the latest note from JPMorgan’s Marko Kolanovic quant derivatives group, who highlight 30 stocks with significant gamma-imbalances.

Specifically, Kolanovic explains that an elevated Put or Call imbalance may position a stock for elevated levels of volatility, particularly in low liquidity environments or during impactful events, such as earnings

The following list are the 15 stocks with the biggest put-imbalance in the S&P 500…

And this list is the 15 stocks with the biggest call-imbalance in the S&P 500…

Finally, JPMorgan point out that while a single stock gamma imbalance alone is often insufficient to spark a fragility event as under a normal operating environment these imbalances are typically hedged by dealers, low liquidity environments do lay the groundwork for dealer positioning that can exacerbate existing market trends and volatility.

Typically, an unexpected or underappreciated event sparks this fragility feedback loop.

Tyler Durden
Fri, 02/05/2021 – 14:45

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Bongino: “Monday Looks Good” For Parler To Return Online

Bongino: “Monday Looks Good” For Parler To Return Online

Authored by Annaliese Levy via SaraACarter.com,

Dan Bongino, co-owner of Parler, told “Hannity” Thursday night that Parler may be up and running by Monday of next week.

Parler has been offline for nearly a month after Amazon, Apple and Google all removed the app from their platforms for failure to moderate “egregious content” related to the Jan. 6 Capitol riot.

“We’re shooting for Monday,” Bongino told Hannity.

“Monday looks good. Fingers crossed.”

This announcement comes one day after a memo was released explaining why former CEO, John Matze, was terminated by Parler’s board of directors.

Matze claimed he was met with “constant resistance” on how Parler should be managed following the site shutdown.

“Over the past few months, I’ve met constant resistance to my product vision, my strong belief in free speech and my view of how the Parler site should be managed. For example, I advocated for more product stability and what I believe is a more effective approach to content moderation,” Matze said in the memo.

In a Facebook video published Wednesday, Bongino said they did not share the same vision for the future of Parler.

Here’s what really happened. We were the ones, in fact, fighting to get Parler back up. There was some really bad decisions made from people on the inside, and listen, this isn’t us airing dirty laundry. This is protecting a company that is absolutely committed to free speech, that I put the last year of my life into. Do you actually believe that someone else was on the side of free speech?”

“There were two separate visions for the company,” Bongino added. “The relationship with Parler and the CEO did not work out because the CEO’s vision was not ours. Everybody clear on that? Our vision was crystal clear. We needed to get up and fight back, some terrible decisions were made in the past that led to this. That led to us getting put down by Amazon and others.”

Tyler Durden
Fri, 02/05/2021 – 14:27

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Clover Health Says DOJ Inquiry “Not Material”, Hindenburg Responds: “Regular Investors Shouldn’t Be Last to Know”

Clover Health Says DOJ Inquiry “Not Material”, Hindenburg Responds: “Regular Investors Shouldn’t Be Last to Know”

Shares of Clover Health are down for the second day in a row after the company published a response to Hindenburg Research on its blog this morning. Yesterday, we noted that short seller Hindenburg released a critical report on SPAC Clover Health that was brought to the market by Chamath Palihapitiya. Hindenburg disclosed yesterday it had no position in Clover but rather was publishing so people could “understand the role short sellers play in exposing fraud and corporate malfeasance”. 

“The alleged ‘report’ is rife with ad-hominem attacks, sweeping inaccuracies and gross mischaracterizations,” Clover wrote Friday morning.

The main allegation of yesterday’s Hindenburg report, among other issues, was that Clover was in the midst of an undisclosed DOJ investigation. Based on this morning’s response from the company, this was accurate and, even better, Chamath knew about it. “Chamath and Clover were fully aware of the DOJ inquiry,” Clover wrote on Friday.

The company also claimed it felt the Department of Justice’s investigation was not material and didn’t need to be disclosed: 

…we concluded that the fact of DOJ’s request for information was not material and was not required to be specifically disclosed in our SEC filings.

As heavily regulated organizations participating in Medicare Advantage, Clover and its peers receive frequent requests for information from regulatory bodies. These are typically confidential. We promptly respond to these requests as and when they come in. As the short selling firm points out, the DOJ also often reaches out to ex-employees, including by civil investigative demands, as part of their information-gathering process.

“At a minimum, we are pleased to see that now, for the first time, regular investors know what Clover and @chamath knew the whole time: that the company has been under active DOJ investigation,” Hindenburg responded early Friday morning.

Additionally, Clover disclosed an SEC investigation letter that launched ostensibly as a result of yesterday’s report. “Chamath Palihapitiya-backed Clover Health Investments said Friday it received a notice of investigation from the Securities and Exchange Commission and that it intends to cooperate,” CNBC reported on Friday.

Hindenburg then released a response to Clover’s response on Friday, making several points about the company’s blog post. “The only people who didn’t know about the DOJ investigation into Clover were the public,” Hindenburg writes. “The idea that a DOJ investigation is non-material when Clover derives nearly all its revenue from the government is farcical.” 

Hindenburg also pointed out that [Clover] “admits that its Clover Assistant software ‘resurfaces’ old diagnoses annually, even when doctors try to remove them.”

“We found it amusing that the company accused us of posturing as ‘white knight’ altruists for publishing a public interest piece,” Hindenburg wrote Friday, “especially given the comprehensive media tour Chamath has undertaken over the last 3 weeks. Clover is also, after all, the same company that released an investor presentation calling an investment in Clover’s SPAC a ‘once in a generation opportunity to do the right thing’.”

“We have no pecuniary interest in publishing our research on Clover, no short position in Clover stock and/or options, nor have we or will we receive any monetary compensation for this work,” Hindenburg wrote.

Recall, calling Palihapitiya a “celebrity promoter”, Thursday’s report claimed he “misled investors about critical aspects of Clover’s business in the run-up to the company’s SPAC go-public transaction last month.”

“But while we agree with the ideals being supported by Chamath, we’re also skeptics by nature. And we were intrigued to see a billionaire taking media calls from his mansion, making hundreds of millions of dollars selling SPACs to retail investors, all while positioning himself as the de facto leader of the average Joe,” the report says.

“Since then, while Chamath has seemingly taken every opportunity available to present himself as a beacon of rigorous due diligence and Wall Street know-how, our 4-month investigation led us to conclude that Clover Health’s culture is rooted in deception and has taken every opportunity to push or break the rules to mislead its customers, investors, and Medicare.”

Tyler Durden
Fri, 02/05/2021 – 14:14

via ZeroHedge News https://ift.tt/3rp6OYZ Tyler Durden

Democrats Move At Breakneck Speed To Fast-Track Biden Stimulus; Pelosi Predicts Passage ‘Before’ March 15

Democrats Move At Breakneck Speed To Fast-Track Biden Stimulus; Pelosi Predicts Passage ‘Before’ March 15

Congressional Democrats are fully mobilized over the Biden administration’s $1.9 trillion stimulus – with House Speaker Nancy Pelosi (D-CA) announcing that her chamber will draft Biden’s bill “before the end of February,” with final passage “before” March 15, according to Bloomberg‘s Jennifer Jacobs and CNN‘s Manu Raju.

The White House won’t commit to a timeline on the stimulus, while President Biden told reporters on Thursday with a straight face: “I’m not cutting the size of the checks. They’re going to be $1,400. Period.

Adding to the urgency was Biden economic adviser Heather Boushey, who told BloombergTV following today’s jobs report: “The numbers that we got this morning really do underscore the cost of inaction,” adding “Without further aid, our economy is going to continue to struggle.”

I think what’s really important, is that all those kindergarten teachers, those firefighters, those folks who are pulling in $60,000 or so, that they get this aid,” Boushey added, referring to the $1,400 stimulus checks – which are notably less than the $2,000 checks Biden promised, should Democrats regain control of the Senate following January’s special election in Georgia.

The current Democratic proposal would send $1,400 payments to individuals earning $50,000 or less, and $2,800 to married couples earning under $100,000. Heads of household earning up to $75,000 would also qualify.

In total, approximately 71% of Americans would receive the full benefit, and other 17% would receive partial benefit, according to Kyle Pomerleau, a fellow at the American Enterprise Institute who specializes in tax policy (via the Washington Post). This is less than Biden’s original proposal which would cap earnings at $75,000 for individuals and $150,000 for married couples.

As JPMorgan noted on Thursday, the Senate voted this morning to adopt a budget measure to fast-track Biden’s bill – paving the way for the fiscal package to pass via Reconciliation. They note that March should be viewed as the most likely time for the bill to pass, whether or not it has the votes to go through the “normal” 60 vote process, or via Reconciliation. Looking forward, the market “will continue to focus on fiscal policy and vaccines as the macro drivers.”

Tyler Durden
Fri, 02/05/2021 – 13:49

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Pennsylvania Lawmakers Introduce Bill To Allow Drivers’ Licenses For Illegal Aliens

Pennsylvania Lawmakers Introduce Bill To Allow Drivers’ Licenses For Illegal Aliens

Authored by Tom Ozimek via The Epoch Times,

Pennsylvania lawmakers have put forward a largely partisan bill that would grant drivers’ licenses to illegal aliens.

Sponsored by 27 House Democrats and 2 Republicans, House Bill 279 is currently pending in the House Transportation Committee. The bill would let people without a Social Security number, including those living in the United States illegally, obtain a driver’s license or a learner’s permit.

“In today’s fast-paced world, a driver’s license is essential to earn a living, travel safely, and live a dignified existence,” the sponsors wrote in a January memo.

The bill amends current state law to allow people without a Social Security number to apply for a driver’s license or learner’s permit using such alternatives as a federal taxpayer identification number, foreign passport, consular identification document, or birth certificate.

“Unfortunately, countless undocumented persons are unable to apply for a driver’s license in Pennsylvania because they do not have the required Social Security number,” the lawmakers wrote.

“As a result, they contribute to our economy without the equal protections and basic rights that the rest of us enjoy, such as the ability to drive safely to work, school, and businesses.”

The co-sponsors argue that, since a road test is required to receive a license, passage of the bill will make roads safer by reducing the number of unlicensed and uninsured drivers on the roads. Illegal immigrants who obtain licenses will also be more inclined to report accidents and cooperate with police, they argue.

Thais Carrero, the Pennsylvania director of immigrant advocacy group CASA, which is one of a dozen groups in the state that supports the bill, told local outlet WGAL that she believes illegal immigrants should be allowed to legally drive.

“It’s about folks being able to move around, have a meaningful job, be able to take care of themselves and their families, so we just continue pushing until we get this legislation passed,” she said.

The Capitol building in Harrisburg, Pa., on Jan. 17, 2021. (Mark Makela/Getty Images)

Meanwhile, Republican senators recently introduced legislation that would block certain federal funds flowing to states that allow illegal aliens to obtain driver’s licenses.

Sen. Marsha Blackburn (R-Tenn.) said on Jan. 28 that she and a number of other GOP senators, including Sens. Ted Cruz (R-Texas), Tom Cotton (R-Ark.), Joni Ernst (R-Iowa), Steve Daines (R-Mont.), Jim Inhofe (R-Okla.), and Mike Braun (R-Ind.), have introduced the Stop Greenlighting Driver Licenses for Illegal Immigrants Act. The bill targets sanctuary states that allow immigrants to get driver’s licenses without proof that they legally reside in the United States.

“No town in America is secure from criminals and terrorists if our borders aren’t policed and federal immigration laws aren’t fully enforced,” Blackburn said in a statement.

“This country is governed by the rule of law. We should not reward illegal aliens with driver licenses when they fail to follow the proper legal process.”

The act halts Department of Justice grant funding under the Edward Byrne Memorial Justice Assistance Grant (JAG) Program to states that defy federal immigration law.

Blackburn said that in the fiscal year 2020, states that issued driver licenses to illegal aliens received more than $53 million from the JAG program.

“This law will require states that issue driver licenses to illegal aliens or states that fail to share immigration enforcement information with the DHS to return unallocated funds to the JAG program within 30 days,” she said.

It would also make states that don’t comply with the driver’s license and federal information-sharing provisions ineligible to receive future JAG funds.

According to the National Conference of State Legislatures, 15 states and the District of Columbia have passed laws to allow illegal aliens to obtain driver’s licenses: California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maryland, Nevada, New Jersey, New Mexico, New York, Oregon, Utah, Vermont, and Washington.

Tyler Durden
Fri, 02/05/2021 – 13:20

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Russia Blasts Biden’s “Aggressive” Speech; Navalny Back In Court On New Charges

Russia Blasts Biden’s “Aggressive” Speech; Navalny Back In Court On New Charges

The Kremlin has blasted what a spokesman called “aggressive and unconstructive rhetoric” after President Biden in a Thursday key foreign policy address from the State Department demanded the immediate release of dissident activist and politician Alexei Navalny. 

Underscoring that Moscow will ignore and rebuff such measures to interfere in internal legal matters, the spokesman said Friday, “This is a very aggressive and unconstructive rhetoric, unfortunately,” and added, “any hints of an ultimatum are absolutely unacceptable to us,” according to TASS.

During the Thursday speech outlining his foreign policy vision, Biden said that “we will not hesitate to raise the costs on Russia” while specifically invoking Navalny by name, also pinpointing alleged Russian involvement in cyber attacks related to the SolarWinds breach.

Via Moscow City Court/AP

Notably he also said the days of the United States “rolling over in the face of Russia’s aggressive action… are over” and demanded that Russian authorities release Navalny “immediately and without condition”. Biden said Putin has “targeted” Navalny for “exposing corruption”. 

At a moment Russian opposition leaders are lobbying Washington for the targeted use of Magnitsky sanctions on Putin’s inner circle, Biden actually mentioned the imprisoned opposition activist by name, something very significant.

On Tuesday a Moscow court sentenced Alexei Navalny to three-and-a-half years in prison for “unlawful conduct” stemming from probation violations related to a 2014 embezzlement conviction. It ends up being a little over 2.5 years given time already served previously under house arrest. Navalny and his supporters have called the proceedings a “shameless fabrication” of justice. For a couple weekends running his supporters have taken to the streets in what authorities have deemed ‘illicit’ demonstrations. 

Navalny is back in court Friday where he faces separate charges. Specifically he’s accused of “defaming a World War Two veteran” according to reports. 

According to CNN this new case relates to “comments he made last June on social media. He had criticized a video by state media channel RT in which various people expressed support for controversial changes to the Russian constitution. Veteran Ignat Artemenko, 94, was among them.”

More details on the case are as follows:

Last June, Russia’s Investigative Committee launched a probe into Navalny on charges of defamation, after the politician slammed people featured in a video promoting the constitutional reform that allowed an extension to President Vladimir Putin’s rule as “corrupt stooges,” “people without conscience” and “traitors.”

The authorities maintained that Navalny’s comments “denigrate (the) honor and dignity” of a World War II veteran featured in the video. If convicted, Navalny faces a fine or community service.

Also on Friday EU foreign policy chief Josep Borrell made a controversial trip to Russia to meet with Foreign Minister Sergey Lavrov in Moscow. The trip has reportedly angered Navalny supporters. Despite Borrell previously condemning Navalny’s arrest and court proceedings, he still made the trip with no pre-conditions.

Opposition activists hoped that he would cancel the trip in protest, or at least make the Navalny affair the focus of his trip. 

Tyler Durden
Fri, 02/05/2021 – 13:03

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