More stories

  • in

    After Fierce Lobbying, Regulators Soften Proposed Rules on Banks

    A top Federal Reserve official said that blowback to proposed rules on capital requirements led him to “relearn the lesson of humility.”Regulators on Tuesday watered down an effort to layer new oversight on banks to protect against losses, which led to a fierce outcry from big banks and their lobbyists.The new standards, known as “Basel III endgame,” had been debated for years. They would have raised the amount of capital banks were required to maintain, funds intended to ensure stability and provide a financial cushion. Banks argued that the stricter rules would force them to crimp lending.The newly proposed rules will largely erase extra requirements on banks with between $100 billion and $250 billion in assets. It also slashes in half the capital reserve requirements on the largest, so-called systematically important lenders.Michael S. Barr, the Federal Reserve vice chair who is no favorite of the bank lobby, acknowledged the blowback in a speech laying out the changes: “Capital has costs, too,” he said in a speech at the Brookings Institution in Washington. In its statements pushing against the rules over the years, the banks’ main lobbying organization has said that “capital isn’t free.”“Life gives you ample opportunity to learn and relearn the lesson of humility,” Mr. Barr said.This is a developing story. Check back for updates. More

  • in

    Prosecutors Preview Aggressive Strategy in Hunter Biden’s Tax Case

    They stopped short of accusing Mr. Biden of violating foreign lobbying laws but said they would show how foreign interests paid him to influence the government while his father was vice president.Prosecutors signaled in a court filing on Wednesday that they intended to mount an aggressive strategy in Hunter Biden’s tax trial in California, saying they would show how foreign interests paid him to influence the U.S. government while his father was vice president.The special counsel in the case, David C. Weiss, has wrangled for weeks with Mr. Biden’s lawyers over what evidence can be introduced when he is to be tried in September on charges of evading taxes on millions in income from foreign businesses. Already, Mr. Weiss has overseen Mr. Biden’s conviction tied to the purchase of a gun in Delaware in 2018.Mr. Biden’s team had moved to disqualify evidence about his lucrative foreign business activities and lifestyle from a time when he was addicted to crack cocaine and alcohol. Mr. Weiss’s deputies rejected those arguments on Wednesday, in a preview of what promises to be a bare-knuckled courtroom strategy.Prosecutors stopped short of accusing Mr. Biden of violating foreign lobbying laws, which are not among the charges for which he faces trial. While they intend to introduce evidence that Mr. Biden and his business partners contacted government officials, they said they did not plan to accuse him of having “improperly coordinated with the Obama administration.”Instead, they plan to cite evidence related to his foreign business dealings to prove how he willfully engaged in a scheme to obtain vast amounts of cash without paying taxes.To that end, prosecutors said they would introduce testimony from an American business associate of Mr. Biden’s to detail a lucrative arrangement with a Romanian real estate magnate who faced corruption charges at home.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

  • in

    Tom Korologos, Sherpa of Republican Nominees, Dies at 91

    As a White House official and later as a lobbyist, he guided about 300 nominees through their confirmation hearings, including Supreme Court justices.Tom Korologos, an influential Republican lobbyist and adviser whose specialty was shepherding presidential nominees through their Senate confirmation hearings, died on July 26 at his home in Washington. He was 91.His son, Philip, confirmed the death.Mr. Korologos (pronounced core-a-LOW-gus) was a strategist, hand-holder and stage manager for about 300 nominees to the United States Supreme Court, the cabinet and other positions in the federal government. He coached them in the politics of the confirmation process, which grew more contentious over the course of his lifetime; squired them to meetings with senators; counseled them to speak with caution; and conducted tough mock hearings that he called “murder boards.”“I fire the rottenest, most insulting questions in the world at them,” he told The New York Times in 1986.He was the successful sherpa for major figures like William H. Rehnquist and Antonin Scalia when they were nominated to the Supreme Court, and once again for Judge Rehnquist when he was named chief justice; Nelson A. Rockefeller as vice president; Edwin Meese III as attorney general; Alexander M. Haig Jr. as secretary of state; and Donald H. Rumsfeld both times he was nominated for secretary of defense.Mr. Korologos developed his expertise in Senate confirmations while working from 1971 to 1975 as special assistant to President Richard M. Nixon, and later as deputy assistant for legislative affairs under both Mr. Nixon and President Gerald R. Ford. He continued that work, without pay, as the president of Timmons & Company, a lobbying firm he helped start, whose clients included Eastern Airlines, Major League Baseball and Anheuser-Busch.Mr. Korologos, right, conferred with Senator Bob Dole of Kansas, President Gerald R. Ford’s running mate, at a platform committee meeting in advance of the 1976 Republican National Convention in Kansas City, Mo.George Tames/The New York TimesWe are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

  • in

    Cori Bush, ‘Squad’ Member and Vocal Critic of Israel, Loses Her Primary

    Representative Cori Bush of Missouri, one of the most outspoken progressives in the House, lost her primary on Tuesday, according to The Associated Press, falling to a campaign by powerful pro-Israel political groups intent on ousting a fierce critic of the nation’s war in Gaza.Her opponent, Wesley Bell, a county prosecutor, ran as a progressive and a pragmatist. But he was boosted by more than $8 million in spending from a super PAC affiliated with the country’s largest pro-Israel lobby, the American Israel Public Affairs Committee, or AIPAC, and other similar entities. That outside money transformed the race into one of the most expensive House primaries in history.The contentious contest came just weeks after Representative Jamaal Bowman of New York, another outspoken progressive and vocal Israel critic, suffered a stinging primary defeat. The same pro-Israel groups that poured $15 million into defeating Mr. Bowman were aiding Mr. Bell, and all eyes were on Ms. Bush to see if she would be the next member of the ultraliberal “squad” to see defeat.Ms. Bush, a former nurse, was first elected in 2020 as part of a wave of progressive victories over establishment figures that elevated forceful Black voices, including Mr. Bowman, during a summer of protests against police brutality. Ms. Bush first made a name for herself in her community in 2014, as a leading Black activist who took to the streets in Ferguson after the killing of Michael Brown, a Black teenager, by a white police officer.The district is solidly Democratic, and Mr. Bell is expected to easily win the general election.But since Ms. Bush’s first election, the political terrain has shifted, in large part because of Israel’s war against Hamas. The country’s retaliation for the deadly massacre on Oct. 7 carried out by Hamas has divided mainstream Democrats from progressives like Ms. Bush, who has vocally condemned Israel’s government over its military campaign and the rising civilian death toll in Gaza.Ms. Bush made herself vulnerable to a serious primary challenge through a string of controversial votes and positions. She was one of two Democrats who voted in January against a resolution to bar members of Hamas and anyone who participated in the attacks against Israel on Oct. 7 from the United States.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

  • in

    Washington Prepares for the ‘Super Bowl of Tax’

    Even with control of the White House and Congress up in the air, lawmakers and lobbyists are gearing up for a big debate next year over expiring measures in former President Donald Trump’s tax law.President Biden’s decision not to seek re-election is upending expectations about who will control Washington next year. But there is one thing lawmakers and lobbyists are certain of: A tax fight is coming.Across the nation’s capital, preparations are quietly starting for what some are calling the “Super Bowl of tax.” On Capitol Hill, Republicans and Democrats are holding strategy and education sessions. Lobbyists are pressing their case to lawmakers and preparing multimillion-dollar publicity campaigns to defend tax breaks for corporations. Think tanks are churning out research assailing or lauding elements of the byzantine tax code.On the line is the future of the Tax Cuts and Jobs Act, which a Republican Congress passed and former President Donald J. Trump signed into law in 2017.To avoid blowing too large of a hole in the federal budget at the time, Republicans scheduled many of the tax cuts to expire after 2025. That deadline has created a rare opportunity to reshape federal tax policy next year, and lawmakers in each party intend to be ready to wield whatever power voters give them in November.“We’re studying and preparing,” said Senator Michael D. Crapo of Idaho, who as the top Republican on the Senate Finance Committee has been holding meetings and gathering ideas about next year. “It’s preseason.”Many of the expiring tax measures are ones that benefit middle-class Americans, including a larger standard deduction, lower marginal income tax rates and a more generous child tax credit. Republicans chose to let those tax cuts expire — while making other measures like a lower 21 percent corporate rate permanent — in a bet that Democrats would eventually vote to protect them.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

  • in

    A White-Collar Indictment Shatters Representative Henry Cuellar’s Blue-Collar Image

    Representative Henry Cuellar started from humble origins, but records show he welcomed the trappings of power afforded by his position.Over the years, Representative Henry Cuellar often harked back to the small house in Laredo, Texas. It was there that his parents, one-time migrant workers who spoke no English, raised him and his seven siblings to value hard work and beware the dangers of debt.The references in speeches, campaign advertisements and interviews were intended to forge affinity with the largely Hispanic residents of his hometown. They demonstrated that “I am one of you,” as his campaign website put it in 2004, when he first won election to Congress as a Democrat representing Laredo, one of the poorest cities in the country.By 2013, those hardscrabble beginnings seemed a distant memory.Mr. Cuellar had become the hub of a bustling small enterprise that blurred the lines between his political operation, his businesses and his family, affording him trappings of affluence even as he sometimes strained to make ends meet.He had recently purchased a penthouse apartment in Washington’s bustling Navy Yard neighborhood near Nationals Park and a pair of properties in Laredo, including a 6,000-square-foot house with a pool and cabana in a gated community on a street called Estate Drive. He took on an increasing amount of debt, and his net worth declined.A new source of cash soon revealed itself, federal prosecutors are now saying.Starting in 2014, Mr. Cuellar and his wife, Imelda Cuellar, accepted at least $598,000 over seven years from a Mexican bank and an oil company owned by the Azerbaijani government, according to prosecutors.The Cuellars were charged earlier this month with accepting bribes, money laundering and violating foreign lobbying laws by trying to influence the government on behalf of their foreign paymasters. They pleaded not guilty and were released after each paid a bond of $100,000.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

  • in

    Charges Against Cuellar Lay Bare Azerbaijan’s Influence Attempts

    Federal prosecutors say Representative Henry Cuellar tried to shape policy for Azerbaijan in exchange for bribes. The country has spent millions in the past decade lobbying Washington.As tensions flared over disputed territory in the Caucasus region in the summer of 2020, Azerbaijan’s squadron of high-priced Washington lobbyists scrambled to pin the blame on neighboring Armenia and highlight its connections to Russia.Unbeknown to members of Congress, Azerbaijan had an inside man who was working closely with the Azerbaijani ambassador to Washington at the time on a parallel line of attack, according to text messages released by federal prosecutors.Representative Henry Cuellar, a Texas Democrat now charged with accepting bribes and acting as a foreign agent in a yearslong scheme, indicated in a text that he planned a legislative maneuver to try to strip funding from Armenia because it hosted Russian military bases.Azerbaijan’s ambassador responded enthusiastically.“Your amendment is more timely than ever,” the ambassador, Elin Suleymanov, wrote to Mr. Cuellar. “It is all about Russian presence there,” added Mr. Suleymanov, who referred to the congressman as “Boss.” Mr. Cuellar’s legislative gambit did not go far. But by the time of the text exchange, his family had accepted at least $360,000 from Azerbaijani government-controlled companies since December 2014, according to a federal indictment unsealed in Houston on Friday.The 54-page indictment highlights the importance of U.S. policymaking to foreign interests, and the lengths to which they go to try to shape it to their advantage, notwithstanding high risks and sometimes questionable results.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

  • in

    A Chinese Firm Is America’s Favorite Drone Maker — Except in Washington

    U.S. authorities consider DJI a security threat. Congress is weighing legislation to ban it, prompting a lobbying campaign from the company, which dominates the commercial and consumer drone markets.The drones circled over the caves and crevices scattered around the mountain trails in northern Utah, feeding real-time video back to a search team on the ground looking for a missing hiker. Nineteen minutes later, they had her coordinates, bringing the rescue — a drill — closer to conclusion.“In this kind of environment, that’s actually pretty quick,” said Kyle Nordfors, a volunteer search and rescue worker. He was operating one of the drones, made by the Chinese company DJI, which dominates sales to law enforcement agencies as well as the hobbyist market in the United States.But if DJI’s drones are the tool of choice for emergency responders around the country, they are widely seen in Washington as a national security threat.DJI is on a Defense Department list of Chinese military companies whose products the U.S. armed forces will be prohibited from purchasing in the future. As part of the defense budget that Congress passed for this year, other federal agencies and programs are likely to be prohibited from purchasing DJI drones as well.The drones — though not designed or authorized for combat use — have also become ubiquitous in Russia’s war against Ukraine.Launching a DJI drone in the Donetsk region of Ukraine in March 2023.Tyler Hicks/The New York TimesCommercially available DJI drones have been widely used throughout Ukraine’s war with Russia.David Guttenfelder for The New York TimesWe are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More