On The Money – Senators Turn Up The Pressure On FTX

FTX founder Sam Bankman-Fried is facing calls for a criminal investigation from Congress. We’ll also look at rising jobless claims, rising new home sales, and the most recent attempt by the UN to write international tax rules.

But first, see former President Trump’s reaction to the Supreme Court’s ruling on tax returns.

welcome to money, your nightly guide to everything related to your bills, bank account, and bottom line. For The Hill, we are Sylvan Lane, Aris Folley and Karl Evers-Hillstrom. Did someone forward this newsletter to you?

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Senate Democrats call for investigation into FTX’s Bankman-Fried

The senses. Elizabeth Warren (D-Mass.) and Sheldon Whitehouse (DR.I.) sent a letter to the Department of Justice (DOJ) on Wednesday calling for a criminal investigation into what they called Sam Bankman’s “fraudulent tactics.” -Fried, the founder and CEO of FTX Trading Ltd., which filed for bankruptcy this month.

  • The collapse of FTX, one of the largest cryptocurrency exchanges in the world, which was once valued at $32 billion, leaves investors facing losses of up to $8 billion.
  • The senators pointed out that in the days leading up to FTX’s collapse, Bankman-Fried tweeted that the exchange “has enough to cover all client holdings” and claimed “we don’t invest client assets ( even in treasury bills).
  • Bankman-Fried later admitted that an affiliated trading platform owed FTX approximately $10 billion in customer deposits that were loaned out without customer consent, which Warren and Whitehouse called a “violation of both U.S. securities laws and FTX’s own terms of service”.

“FTX’s downfall was not simply the result of shoddy business and management practices, but rather appears to have been caused by intentional and fraudulent tactics employed by Mr. Bankman-Fried and other FTX executives to enrich themselves. “, wrote the senators.

The Hill’s Alexander Bolton has more here.

📈 CLAIM AGAIN

Unemployment claims at highest since August

Unemployment claims last week rose to their highest level since August but remained relatively weak as economists feared a recession was looming on the horizon in the near future.

  • The Labor Department reported Wednesday that 240,000 people applied for unemployment benefits last week, an increase of 17,000 from the previous week.
  • The four-week moving average also jumped 5,500 to 226,750, but the jobless rate stands at 3.7%, just above a half-century low.

Despite rising interest rates and record inflation, the unemployment rate has always remained low. While jobless claims are up from their all-time lows earlier this year, the United States added 261,000 jobs last month.

Jared Gans has more here.

🏠 INCREASE IN HOME SALES

New home sales up in October

New home sales surged last month despite persistently high mortgage rates that experts said have hampered affordability and pushed potential buyers out of the market.

Sales of new single-family homes rose 7.5% in October to a seasonally adjusted annual rate of 632,000, according to Census Bureau data released Wednesday.

  • The rise comes after mortgage rates fell from their highs. Rates fell further this week to 5.58%, according to Freddie Mac data released on Wednesday.
  • Still, new sales fell 5.8% from the October 2021 estimate.

Adam Barnes has more here.

🇺🇳 TAKING CHARGE OF TAX RULES?

UN votes to take the reins of global tax standards

The Finance Committee of the United Nations (UN) General Assembly voted unanimously on Wednesday to open discussions on international tax standards.

The move effectively challenges a similar, long-running initiative led by advanced economies at the Paris-based Organization for Economic Co-operation and Development (OECD).

Wednesday’s resolution calls for “the development of a framework or instrument for international tax cooperation that is developed and agreed upon through a United Nations intergovernmental process.”

At stake in the deal are new rules on whether multinational corporations should be allowed to store profits in offshore tax havens and in which jurisdictions corporations can be taxed for the use of their products.

Tobias Burns breaks it down here.

Good to know

Your refund for the 2022 tax year could be lower than in previous years, the Internal Revenue Service said Wednesday. This is because of several recent changes to the tax code.

The IRS said taxpayers who take the standard deduction instead of itemizing their taxes will no longer be able to deduct their charitable contributions. Additionally, the American Rescue Plan Act of 2021 lowered the reporting threshold for third-party networks that process payments for those doing business.

Other things we keep an eye on:

  • Sen. Chuck Grassley (Iowa), the top Republican on the Senate Judiciary Committee, lobbied new Twitter CEO Elon Musk over data security concerns raised by a Twitter whistleblower. is manifested before Musk completes his acquisition of the company.
  • An accountant for former President Trump said the former president reported large losses on his tax returns every year for a decade, including a $700 million loss in 2009.

That’s all for today. Thanks for reading and check out The Hill’s Finances page for the latest news and coverage. We’ll see you next week.

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