Month: November 2024

Israeli attacks on Syria have become daily, and now the United States is ramping up its own attacks in the northeast of the country as well.

On Thursday Israeli warplanes launched attacks on two residential buildings in the Damascus suburbs – one in Mazzeh and the other in Qudsaya, which lies west of the capital. Regional reports said that many people were killed, and Syrian state SANA posted photos of bombed-out apartments.

Israeli Army Radio in a rare acknowledgement appeared to confirm the Israeli attack while claiming the fresh attacks targeted the Syrian headquarters the Palestinian Islamic Jihad (PIJ) group, which is fighting alongside Hamas in Gaza, and has held Israeli citizens captive since Oct.7, 2023.

Al Jazeera reports on the rising death toll as emergency crews comb through the rubble: 

At least 15 people have been killed and 16 injured in Israeli attacks on suburbs of the Syrian capital, according to a Syrian military source cited by the SANA news agency.

We have reported earlier that one building was hit in the suburb of Mazzeh and the other in Qudssaya, west of Damascus.

Israel had launched multiple airstrikes on Syria last week as well, and in the past weeks has even struck coastal targets near Tartus and Latakia – an area where Russian military forces are present.

Israel’s air war against Syria is nothing new, but more rare these days are US air raids on Syria. This week has already seen at least two separate actions by CENTCOM forces which are supporting Kurds in the Deir Ezzor region:

US Central Command announced that its forces launched strikes in Syria for a second day on Tuesday against “Iranian-aligned” targets, referring to Shia militias that operate in the country.

CENTCOM said in a press release that its forces “conducted strikes against an Iranian-backed militia group’s weapons storage and logistics headquarters facility.” It said the strikes came after a “rocket attack on US personnel at Patrol Base Shaddadi,” referring to a US occupation base in eastern Syria.

One war monitor said that at least five members of the Iran-aligned militia were killed in the US airstrikes. These locations which come under US attack often include Syrian national militias, or even Syrian Army personnel.

Four other militants were killed the day prior, Monday, when CENTCOM said it hit “nine targets in two locations associated with Iranian groups in Syria.”

The week kicked off with regional reports of explosions at US bases, likely the result of missiles or mortars being used to attack US troops. Such attacks by militias in the area have been somewhat a regular occurrence, but these instances don’t always make headlines in the West.

⚡️Scenes from Damascus now pic.twitter.com/GhQOsaz4SB

— War Monitor (@WarMonitors) November 14, 2024

All of this is part of the broader proxy war between the pro-Iran ‘resistance axis’ and the US-Israel-Gulf powers. Currently there are still some 1,000 or more US troops occupying eastern Syria. Trump during his first term said he wanted to bring the troops home, and it’s unclear if this will remain a priority during his second administration.

The longer the Pentagon stays, that more that US troops are put in harm’s way – for little strategic purpose other than ‘securing the oil’ – as Trump has said before. But the Syrian Kurds could soon make their own peace deal with Damascus, making it easier to force out the American presence. Turkey has also long wanted to see the US go.

Authored by Eric Lendrum via American Greatness,

On Wednesday, the chairman of the Federal Election Commission (FEC) admitted that the outgoing Biden-Harris Department of Justice (DOJ) violated federal policies and illegally targeted “perceived political opponents” by sending a threatening letter to Elon Musk.

According to the Washington Examiner, FEC Chairman Sean Cooksey sent a letter to DOJ Inspector General Michael Horowitz, saying that the letter to Musk concerning his efforts to encourage people to support freedom of speech constituted an attempt “to intimidate and chill private citizens and organizations from campaigning on behalf of President Trump.”

Cooksey also recommended that Horowitz, along with the DOJ’s Office of Professional Responsibility (OPR), open investigations into the incident and “hold accountable any individuals responsible for any violations of federal law or department policies.”

The letter in question was sent to Musk by the DOJ just weeks before the election on November 5th.

In it, DOJ officials warned Musk’s America PAC that the pledge to give away $1 million every day to a randomly-selected voter who signed the PAC’s petition in support of freedom of speech was allegedly a violation of federal law.

The letter also accused Musk of making “a mockery of democracy.”

Musk defended his PAC’s actions, pointing out that participants at the time did “not need to register as Republicans or vote in the Nov. 5 elections.”

“The underlying motivation behind this stunt is obvious,” said Cooksey in his scathing letter to the DOJ.

“Employees of President Biden’s Department of Justice wanted to stop an independent political committee from campaigning for President Trump in crucial swing states just prior to election day.”

Cooksey further accused the DOJ’s Public Integrity Section of deliberately leaking the Musk letter to the New York Times, which was a violation of the department’s media policies.

“Writing such a letter and then leaking it also violates the department’s long-standing policy against the identification of uncharged parties and the disclosure of prejudicial information,” Cooksey continued.

Elon Musk, the founder and owner of Tesla and SpaceX, as well as the owner of the social media platform X (formerly known as Twitter), is the wealthiest man in the world. He was previously a Democrat who supported politicians such as Barack Obama, but has shifted further to the right in recent years, due primarily to the Democrats’ increasingly radical stances, including support for censorship and transgenderism. Musk gave his official endorsement of President-elect Donald Trump’s 2024 campaign following the assassination attempt against him on July 13th.

President-elect Trump has since announced that Musk, alongside businessman and former presidential candidate Vivek Ramaswamy, will lead an entirely new federal agency called the Department of Government Efficiency (DOGE), with the purpose of significantly reducing the size of the federal government over the course of the next two years. The agency plans to complete its work by July 4th, 2026, which will be the 250th anniversary of the founding of the United States.

The final chapter of the electric vehicle price war, sparked by Tesla’s Elon Musk, hinges on President-elect Donald Trump’s plan to eliminate the $7,500 consumer tax credit. Sources with direct knowledge told Reuters that the Trump team has discussed ending the EV tax credit as part of broader tax reform legislation.

Sources indicated that Tesla – the largest EV automaker in the US and the only one not reliant on EV credits for survival – told the Trump transition committee that it fully supports the federal government ending the subsidy.

Here’s more from Reuters:

Repealing the subsidy, which has been a signature measure of President Joe Biden’s Inflation Reduction Act (IRA), is being discussed in meetings by an energy-policy transition team led by billionaire oilman Harold Hamm, founder of Continental Resources, and North Dakota Governor Doug Burgum, the two sources said.

The group has had several meetings since Trump’s Nov. 5 election victory, including some at his Florida Mar-a-Lago club, where Tesla chief executive Elon Musk has also spent considerable time since the election.

In mid-July, Trump stated at a campaign rally that he would “end the Electric Vehicle Mandate on Day One — thereby saving the US auto industry from complete obliteration, and saving US customers thousands of dollars per car.” 

On X, around that time, Musk explained to the Whole Mars Catalog why repealing the tax credit would only benefit Tesla: 

Take away the subsidies. It will only help Tesla.

Also, remove subsidies from all industries!

— Elon Musk (@elonmusk) July 16, 2024

In October, the Alliance for Automotive Innovation, a trade group representing all automotive brands besides Tesla, penned a letter expressing to lawmakers in Congress how crucial the EV tax credit is in “cementing the US as a global leader in the future of automotive technology and manufacturing.” 

In the markets, Rivian shares tumbled by 10% in the early afternoon, while Tesla shares fell by 3.5%.

We knew the playbook in July. Here it is again: “Musk’s strategy to win the EV price war: Build the largest EV business with taxpayer dollars, popularize EVs, allow other startups and OEMs to enter the market, and then support politicians who want to end EV subsidies, crushing the competition and leaving Tesla reigning supreme.” 

It is no secret that Israeli leaders are overjoyed both at Donald Trump winning the US Presidency, and especially many of his very pro-Israel picks for foreign policy related positions in his administration. On Wednesday night The Washington Post issued an usual headline which says Israel is seeking to forge a Lebanon ceasefire plan as a “gift” the Trump.

“There is an understanding that Israel would gift something to Trump… that in January there will be an understanding about Lebanon,” an unnamed Israeli official told the Post.

“A close aide to Prime Minister Benjamin Netanyahu told Donald Trump and Jared Kushner this week that Israel is rushing to advance a cease-fire deal in Lebanon, according to three current and former Israeli officials briefed on the meeting, with the aim of delivering an early foreign policy win to the president-elect,” the report details.

US special envoy for Lebanon Amos Hochstein has this week said “there is a shot” of securing a ceasefire deal in Lebanon soon. Axios wrote that “It would be a major achievement for Biden in his final months in office.”

But clearly the Israelis are making it be known that they would rather deal with Trump in matters of war and peace in the region. Thus it’s expected that the war raging in south Lebanon will at least go on into January.

Like with Ukraine, Trump is pledging to quickly bring to an end wars which have Washington involvement; however, in a phone call last month he told PM Netanyahu to “do what you have to do” against Hezbollah and Hamas.

One career US diplomat in the Middle East region was cited in WaPo as saying “Netanyahu has no loyalty to Biden and will be focused entirely on currying favor with Trump.”

Starting days ago Israel began making contacts with the Trump transition team. On Sunday Israeli Strategic Affairs Minister Ron Dermer met with Trump at Mar-a-Lago resort. Dermer and Trump reportedly discussed Israel’s plans for Gaza, Lebanon, and Iran over the course of the coming months. The Israelis notified the White House about the meeting in Florida.

A US-backed ceasefire plan currently being discussed would heavily rely on UN peacekeeping forces and Lebanese army soldiers deploying near the Israeli border to ensure Hezbollah doesn’t move back in once the Israeli army departs.

“The ceasefire proposal begins with a 60-day implementation period, during which time the Lebanese army will deploy along the border and confiscate Hezbollah arms in southern Lebanon,” Times of Israel described in late October.

Imagine if this had happened in a residential area of any major capital; the media would be in an uproar. Yet, when it occurs in Lebanon, we are met with silence.

Israeli Airstrikes an hour ago on Chiyah area, Beirut Suburbs. pic.twitter.com/HN3PtsQJpI

— Marwa Osman || مروة عثمان (@Marwa__Osman) November 13, 2024

“The IDF will be required to pull all troops from Lebanon within seven days of the end of hostilities, and will be replaced by the Lebanese Armed Forces (LAF),” the report added. UN peacekeeping troops will reportedly facilitate the transition, and some 10,000 Lebanese national army troops. This plan is being negotiated by Biden administration officials, but time is running out.

In the meantime Israel’s airstrikes on positions in the south, Beirut, and even in the northeast have continued. They’ve even expanded, with the Bekaa Valley getting pounded and other parts of easter Lebanon getting hit. Israel has also kept up its ground offensive, and both sides have sustained losses.

By Elwin de Groot, head of macro strategy

The Short Straw?

That Europe will probably draw the short straw in a scenario of rising protectionism and potential trade tensions with the US has been a key theme in markets since Trump’s smashing victory. Overnight, the Associated Press has called a House majority for the Republicans, which only further supports the view that this will give the incoming Trump team the confidence to make swift and broad-ranging policy changes from day one. So swift that it could overwhelm its European partners, especially since they are distracted at home.

Since mid-September, when Trump’s star started to climb in earnest, the interest rate differential between the US and Europe has widened considerably and the euro-dollar has lost some 6% of its value (offsetting the impact of a 6% US import tariff on European goods, by the way).

What seems fairly obvious is that the US will use tariffs (and maybe other policies) to attract more business to the US and will pressure allies to redirect supply chains from China. Although many businesses, sectors or states may wish not to take sides, the US’s ability to apply statecraft pressure makes this unrealistic. Compared to Europe, China is more likely to retaliate in a tit-for-that fashion (as it has already reduced its price-sensitive imports from the US, replacing them with imports from, for example, Brazil).

China could –if really pressed– also unleash domestic demand stimulus, as it is not bound by a “Growth and Stability Pact” straightjacket.

Europe’s position, on the other hand, is much more fragile.

If the US opts to raise significant additional tariffs on Chinese goods, European exporters may partly benefit from substitution (assuming that US producers cannot make up for the entire gap between demand and imports from China that arises). But a universal tariff could be a serious headache for Europe as tit-for-tat is much more complicated. First and foremost because Europe would shoot itself in the foot (think of LNG imports from the US). At best Europe will be able retaliate partially, selectively and with some delay. It may also hope to enter negotiations that will lead to reduced tariffs or avoiding them altogether (think of large purchases of LNG, defence goods, etc.). Given that Trump has a knack for making deals this is not a completely unrealistic scenario either.

But is Europe truly in a position to negotiate? French president Macron is a lame duck with a coalition that depends on support from the extreme right, and Germany is facing elections in February. This could be fertile soil for a negative feedback loop. It could accelerate decisions in board rooms to either cut back on staff (following large-scale labor hoarding) or accelerate plans to move (uncompetitive) production out of the Eurozone. Bundesbank President Nagel yesterday warned that the implementation of Trump’s tariff plans could cost Germany 1% of economic output, suggesting that German growth could even slip into negative territory next year.

Germany’s export-driven model is ill-equipped to deal with rising protectionism. This week, the German IG Metall union reached a 25-month deal with employers in the electrotechnical sector. A one-time €600 payment, a 2% pay rise from April 2025 onwards, and another 3.1% from April 2026 plus increases in sector performance surcharges are – according to our estimates – worth some 5.5 to 6%. This is a smaller increase than in the previous 2-year wage deal, but it is still more consistent with a gradual slowdown in wage growth rather than a fast one. And whilst it provides clarity and stability and may support a consumer recovery (since it is above the projected inflation rate) it will not take away any concerns about competitiveness.

The pessimism isn’t hard to grasp, but it is perhaps also the kind of sentiment that is necessary to get things moving. For one, the German elections open up the possibility for a renewed freeze or reform of the constitutional debt brake. Yesterday, Chancellor Scholz pleaded for additional measures to boost the economy. The government’s advisors, who slashed their growth forecast for 2025 to 0.4% from 1.1% previously, are also urging the government to durably increase public spending in infrastructure, defense and education. But even the CDU’s Merz, who may well be the future Chancellor, told Süddeutsche Zeitung that he is open to a reform of the strict borrowing rules, as long as additional debt is used to finance investment and not consumption or social spending. It’s just an opening shot, but it does suggest there is some sense of urgency even among some of the staunchest budget hawks.

Ultimately, European joint debt issuance and/or a freezing of the freshly-revamped EU budget rules may be required to unlock the required funds to finance Europe’s ambition to regain strategic autonomy. However, this looks politically unfeasible in the near term. Therefore, the EU has already started to look at other resources. The FT reported Tuesday that cohesion funds may be used to fund investments in military infrastructure and defence industries under certain conditions. These cohesion funds amount to 30% of the EU budget, or €392 billion. However, so far, only some 5% of the budget for the period 2021-2027 has been spent, suggesting that Member States have struggled to find good purposes for these funds. So, this is potentially a significant funding source for one of the key pillars of the strategic agenda.

It’s easy to succumb to pessimism over Europe, and we certainly agree that some very challenging years lie ahead. But this time, Europe is not completely unprepared. The Commission has a host of tools that allows them to respond to trade tensions relatively quickly. And the Draghi and Letta reports offer a host of concrete ideas to act purposefully. In the past few days we have perhaps seen a first glimpse of the age-old adage that Europe needs a crisis to grow stronger.

Briefly returning to the US, inflation for October was fully in line with expectations. The headline inflation rate rebounded to 2.6% y/y from 2.4% in September, albeit largely due to base effects. Core inflation remains sticky at 3.3% with a slightly elevated month-on-month rate of 0.3% for several months. Services less rent of shelter rebounded to 4.5% from 4.4%; it slowed down a little in month-on-month terms but remains elevated at 0.4%. This mixed picture served both hawks and doves. Minneapolis Fed’s Kashkari took the data as “headed in the right direction” and consistent with the “easing path” that the Fed is on, whilst Dallas Fed’s Logan called for caution in the cutting pace. The market took the CPI report as a sign that a December cut is very much in play, with the likelihood rising to 68% from less than 50% the other day. The relatively strong market reaction to the “in-line” figures indicates that markets have been dominated by Trump news flow: a figure just north of consensus would have forced the Fed to weigh future risks to inflation – stemming from tariffs and tax cuts – in its near-term deliberations).

Authored by Eric Lendrum via American Greatness,

The last race for the United States Senate in the 2024 cycle that has not yet been called is now heading for a recount, even as the Republican candidate has a decisive lead over the Democratic incumbent.

 

As the Daily Caller reports, the statewide recount in the Pennsylvania Senate race began on Wednesday, as challenger Dave McCormick (R-Penn.) leads Senator Bob Casey (D-Penn.) by about 28,000 votes.

 

Although Casey himself chose not to pursue a recount, Pennsylvania Secretary of State Al Schmidt (D-Penn.) decided to order a recount anyway, as the margin between the two is less than the 0.5% threshold required for a recount.

The recount must begin by November 20th and finish by November 26th. However, it is widely expected that the outcome will not change and McCormick will successfully unseat Casey. McCormick has already attended his Senate orientation in Washington D.C., after outgoing Senate Majority Leader Chuck Schumer (D-N.Y.) initially refused to let him attend due to the close margin.

The race has been called for McCormick by the Associated Press, NPR, and Fox News, as well as multiple statewide and local media outlets, while all other national outlets have refused to call it.

Spokesmen from both sides have accused the other campaign of trying to suppress voters before and during the recount. Adam Bonin, an attorney for Casey’s campaign, claimed that Republican activists are trying to hinder the counting of provisional ballots. McCormick advisor Mark Harris fired back by claiming that Democratic counties are deliberately slowing down the count by withholding processed ballot totals.

“This is clearly an effort to use lawfare to chip away at our lead,” said Harris.

“This is not going to work. Dave McCormick is the senator-elect and will be the senator.”

Some of the disputes during the count include an effort by Democratic officials in Bucks County to count over 400 mail-in ballots that lack handwritten dates, with Republicans suing to block the inclusion of these ballots.

Casey was first elected to the Senate in the blue wave of 2006, defeating Republican Senator Rick Santorum (R-Penn.). McCormick, a hedge fund manager, first tried to run for the Senate seat vacated by the retirement of Pat Toomey (R-Penn.) in 2022, only to narrowly lose the Republican primary to TV host Dr. Oz by less than 1,000 votes. McCormick was unchallenged in this year’s primary, and is set to become the only successful Republican candidate for the U.S. Senate in the three critical Rust Belt states.

McCormick is one of four Republicans who successfully flipped a Democratic seat in the Senate this year, alongside Senators-elect Jim Justice (R-W.V.), Bernie Moreno (R-Ohio), and Tim Sheehy (R-Mont.).

Oil price are trading higher this morning after treading water for two days (lower than pre-election) following API’s report of a (unexpected) small crude inventory draw and despite a strong dollar.

However, the IEA on Thursday warned that the oil market faces a surplus of more than 1 million barrels a day next year, which could swell further if OPEC+ decides to press ahead with supply hikes.

“World oil supply is rising at a healthy clip. Following the early November US elections, we continue to expect the United States to lead non-OPEC+ supply growth of 1.5 mb/d in both 2024 and 2025, along with higher output from Canada, Guyana and Argentina,” the report noted.

” … Total growth from the five American producers will more than cover expected demand growth in 2024 and 2025 … Our current balances suggest that even if the OPEC+ cuts remain in place, global supply exceeds demand by more than 1 mb/d next year.”

In its Short-Term Energy Outlook released Wednesday the Energy Information Administration also predicted supply will exceed demand beginning in the second quarter of next year.

API

• Crude -800k

• Cushing -1.9mm

• Gasoline +300k

• Distillates  +1.1mm

DOE

• Crude +2.09mm

• Cushing -688k

• Gasoline -4.41mm

• Distillates -1.39mm

US Crude stocks unexpectedly rose last week according to the official DOE data (as opposed to the small draw reported by API). Product inventories tumbled though (as did stocks at the Cushing hub)…

Source: Bloomberg

Total US crude stocks are back at their highest since early August…

Source: Bloomberg

The Biden admin added 567k barrels to the SPR last week…

Source: Bloomberg

US Crude production dipped from record highs…

Source: Bloomberg

WTI was trading around $69 ahead of the official print.

“The coming weeks will be critical in shaping the near-term outlook for the oil market,” said Ole Hvalbye, an analyst at SEB AB. “The continued strength of the US dollar is exerting downward pressure on commodities overall, while ongoing concerns about demand growth are weighing on the outlook for crude.”

Advance Auto Parts reported a third-quarter loss, slashed its full-year outlook, and announced plans to close stores and distribution centers by summer 2025. The top automotive aftermarket parts provider for professionals and do-it-yourself consumers was pressured by soft demand for vehicle parts, as elevated inflation and broader economic pressures left fewer consumers repairing their vehicles. 

For the third quarter ending October 5, Advance Auto reported a narrowed quarterly loss of $6 million, or 10 cents per share, compared to $62 million, or $1.04 per share, in the same quarter one year ago. Analysts tracked by FactSet had forecast a profit of 49 cents per share for the quarter, making the loss a notable surprise.

Sales fell 3% to $2.15 billion, missing the FactSet consensus of $2.62 billion. Comparable sales slid 2.3%, while higher labor costs dented margins, but only partially offset by a reduction in marketing expenses. 

For the balance of 2024, Advance Auto provided investors with a downshift in guidance and now sees comparable sales -1%, versus the previous guidance of -1% to 0%. 

Advance Auto’s board approved a restructuring plan to reduce its US footprint by 700 stores and four distribution centers by mid-2025. Plans to slash jobs were also in place, yet official figures were not given. Th company has about 5,000 stores nationwide.

“We are pleased to have made progress on our strategic actions, including the completion of the sale of Worldpac and a comprehensive operational productivity review of our business,” Shane O’Kelly, president and chief executive officer, wrote in a statement. 

O’Kelly noted, “We are charting a clear path forward and introducing a new three-year financial plan, with a focus on executing core retail fundamentals to improve the productivity of all our assets and to create shareholder value.”

Shares in New York were marginally lower in premarket trading. The company has lost 33% of its market value year-to-date (as of Wednesday’s close). Three years of steep annual losses. 

Shares are trading at 15-year lows. 

Goldman’s Kate McShane remains “Neutral” on Advanced Auto with a 12-month price target of $60. 

Meanwhile, inflationary headwinds and increasing competition from Chinese automakers have crushed the Western auto industry. 

Part suppliers such as BorgWarner and Aptiv have recently slashed annual sales forecasts due to lower vehicle production and consumers dialing back on spending. 

The takeaway appears to be consumers are opting out of repairing their cars. This comes as subprime consumers hit a proverbial brick wall. 

Authored by Turner Wright via CoinTelegraph.com,

Silk Road founder Ross Ulbricht, currently serving life in federal prison, posted on X for the first time since the United States election to express hope President-elect Donald Trump would fulfill a campaign promise by commuting his sentence.

In a Nov. 12 X post, Ulbricht said he could “finally see the light of freedom at the end of the tunnel” for his time in prison after Trump’s election victory.

The Silk Road founder was sentenced to life imprisonment without the possibility of parole following a 2015 conviction for money laundering, computer hacking and conspiracy to traffic narcotics.

Source: Ross Ulbricht

Ulbricht launched the Silk Road marketplace in 2011, which soon drew attention from US authorities for facilitating the sale of drugs and other illegal products.

The Federal Bureau of Investigation arrested the Silk Road founder and took the platform offline in 2013. He is currently housed at the United States Penitentiary in Tucson, Arizona.

In his first term as US president from 2017 to 2021, Trump did not commute Ulbricht’s sentence, despite pleas from advocates for the Silk Road founder after the Republican lost the 2020 election to Joe Biden.

However, speaking at the Libertarian Party’s National Convention in May, then-candidate Trump pledged to ensure Ulbricht’s freedom “on day one” if elected.

Some crypto users are skeptical of Trump’s intentions

Many crypto and blockchain advocates have been calling for any US president to pardon Ulbricht since his conviction, but some were skeptical that Trump would keep his promise to the Silk Road founder.

The Republican reiterated his pledge in a pre-election social media post, but PolitiFact reported in 2020 that Trump only kept or partially kept roughly 27% of campaign promises during his first three years at the White House.

“I don’t trust Trump,” said Franklin in a Nov. 12 reply to Ulbricht’s X post. “He already had 4 years to free you but dropped the ball.”

Among Trump’s other campaign promises to the crypto industry included firing Securities and Exchange Commission Chair Gary Gensler – which he may not be able to do without cause – having all Bitcoin  “made in the USA,” and blocking the US government from developing a central bank digital currency (CBDC).

During his first term, Trump said that BTC was “not money” and based on “thin air.”

Trump met with President Biden at the White House on Nov. 13 as part of the process to take office in January. Reports suggested the two men anticipated a “smooth” transition.

Washington Post reports the Consumer Financial Protection Bureau (CFPB) is moving to place Google under federal supervision, potentially subjecting the tech giant to strict monitoring similar to that imposed on financial institutions.

Two people familiar with the situation said Google resisted the move to be placed under federal supervision, setting the stage for a potential legal battle with the CFPB.

Formed after the 2008 GFC meltdown, the CFPB has broad powers to shield consumers from unfair, deceptive, or predatory financial practices. The reasons behind CFPB’s potential move remain unclear, and the agency’s future direction under Director Rohit Chopra faces uncertainty with President-elect Trump’s return to the White House. 

WaPo said: 

The CFPB already conducts these inspections at large banks and credit unions, which have been subject to supervision — by other state and federal regulators — for many years. But Chopra has expressed recent alarm that the government does not always apply the same oversight to technology companies, even at a time when the financial tools they provide are similar to the bank accounts and payment systems long under close watch.

WaPo noted:

Google, for example, offers financial services including Google Wallet, which stores credit cards digitally and allows users to pay at registers with their mobile phones. (It previously offered another app, called Google Pay, which allowed U.S. users until this June to send each other cash.) Hundreds of customers have complained about Google’s services in comments to the CFPB in recent years, alleging that they experienced trouble with unauthorized charges on their accounts.

…

To supervise Google, the agency must identify the company’s activities as a risk to consumers. Simultaneously, the CFPB has also worked to finalize a broader set of rules that could allow it to impose supervision across the tech industry, covering not only the search giant but other large firms, including Amazon, Apple and PayPal-owned Venmo.

Meanwhile, big tech firms have lobbied against the oversight proposal and warned that the CFPB’s legal authorities threaten mom-and-pop businesses. 

“Digital payment apps and nonbank entities differ from banking institutions in their function, characteristics, and capabilities,” the Computers & Communication Industry Association, a lobbying group for big tech firms, told the CFPB earlier this year, adding, “Hence, they should not be subject to the same supervisory authority as banks and credit unions.”