Category: Wires

  • White House hits road block in effort to get top colleges to sign deal

    White House hits road block in effort to get top colleges to sign deal

    Despite strong pressure from the Trump administration, including a call with the White House on Friday, colleges and universities are largely rejecting the president’s offer of preferential treatment for funding in exchange for compliance with his ideological priorities.

    Six of nine universities offered the deal earlier this month had publicly said no to the White House request by Monday’s deadline.

    The administration has said it is seeking to make sure the country’s schools are merit-based, but many universities and higher education advocates said the White House’s proposed agreement would undermine the merit-based process currently utilized to award research grants.

    The “Compact for Academic Excellence in Higher Education” is a new attempt by the administration to get schools to eliminate diversity, equity and inclusion policies and ensure more conservative viewpoints and values are integrated into campus life.

    The Trump administration offered it to nine colleges earlier this month, casting it as a means to gain competitive advantage for federal and philanthropic benefits and invitations to White House events in return for what the administration described as compliance with civil rights law and “pursuing Federal priorities with vigor.”

    The ideological tension was reflected during a call on Friday, which the White House organized and presented as a chance to workshop the terms of the compact in partnership with colleges and universities that had not yet responded, according to a person close to the situation, who spoke on the condition of anonymity because of the sensitivity of the matter.

    From the Trump administration, Education Secretary Linda McMahon; White House Domestic Policy Director Vincent Haley, Special Assistant Eric Bledsoe and adviser May Mailman; Josh Gruenbaum of the General Services Administration; and billionaire Marc Rowan were on the call, the person said.

    But within a day of the call, University of Virginia and Dartmouth College rejected the compact, joining ranks with MIT, Brown University, the University of Pennsylvania and the University of Southern California. The University of Texas at Austin was invited to sign on and the chair of the University of Texas System Board of Regents expressed enthusiasm. The University of Arizona and Vanderbilt University have not publicly responded.

    Echoing a term that has been often used by the Trump administration, U-Va.’s president said the agreement violated the merit-based nature of the competition for federal research funding. The federal government currently awards billions of dollars in research grants based on peer reviews and scientific merit.

    On Saturday, Dartmouth President Sian Beilock wrote to McMahon, Mailman and Haley that she welcomed further engagement on enhancing the partnership between the federal government and research universities and ensuring that higher education “stays focused on academic excellence.” But, she wrote, “I do not believe that the involvement of the government through a compact-whether it is a Republican- or Democratic-led White House-is the right way to focus America’s leading colleges and universities on their teaching and research mission.”

    White House spokeswoman Liz Huston described the Friday call as “productive.”

    “The Administration hosted a productive call with several university leaders. They now have the baton to consider, discuss, and propose meaningful reforms, including their form and implementation, to ensure college campuses serve as laboratories of American greatness,” Huston said in a statement. “These leaders are working steadfastly to improve higher education and have been invited to the table to share ideas with the Administration, and we look forward to discussing transparent ways that, together, we will produce future generations of American excellence.”

    A White House official, speaking anonymously to discuss private conversations, said universities will not lose their federal funding because they decided not to engage in the compact.

    The sweeping terms of the compact called on schools to adopt the administration’s priorities, including pledging to freeze tuition for five years, cap international enrollment at 15 percent of a college’s undergraduate student body, and bar the consideration of factors such as gender, race and political views in admissions and other areas.

    Some legal scholars said the terms were unconstitutional. Trump administration officials have insisted they are protecting free speech by compelling universities to reject a culture that suppresses far-right thought.

    Officials asked for “limited, targeted feedback” in writing no later than Oct. 20, with hopes of a signed agreement by Nov. 21.

    As schools turned it down, citing similar concerns – Christina H. Paxson, Brown’s president, wrote in a letter to the White House that provisions in the compact restricting the university’s academic freedom and institutional autonomy would impede its mission – the Trump administration invited more universities to participate. Washington University in St. Louis, the University of Kansas and Arizona State University joined Friday’s call.

    In a Monday statement, Washington University Chancellor Andrew Martin said he had not endorsed or signed on to the compact but agreed to discuss it with the Trump administration. “We believe it is in the best interest of our university, and higher education more broadly, for us to participate constructively, share our experience and expertise, and help inform policies that strengthen the nation’s research and education ecosystem,” Martin said.

    Some of the wording in the compact is vague. But the magnitude of the stakes is clear: The Trump administration has frozen billions of dollars of federal research funding at multiple colleges that it has accused of violating federal civil rights laws for issues such as having diversity, equity and inclusion policies and allegedly not doing enough to prevent antisemitism.

    At Harvard University, which has filed two lawsuits to fight the government’s actions, the administration has tried to bar international students and scholars from campus, threatened to revoke the university’s tax-exempt status and has begun an effort to block the school from receiving any federal grants.

    Faculty, alumni and students at many of the nine schools urged university leaders not to sign. Rallies against the compact occurred on multiple campuses, and student leaders from seven of the nine original schools issued a joint statement opposing it. More than 30 higher education associations issued a statement of opposition Friday, saying “the conditions it outlines run counter to the interests of institutions, students, scholars, and the nation itself.” A coalition formed of alumni groups opposed to the compact.

    President Donald Trump wrote on social media that the administration would continue efforts to swiftly enforce federal law at universities that “continue to illegally discriminate based on Race or Sex,” but that “those Institutions that want to quickly return to the pursuit of Truth and Achievement” were “invited to enter into a forward looking Agreement with the Federal Government to help bring about the Golden Age of Academic Excellence in Higher Education.”

  • Trump’s Venezuelan drug boats claims obscure reality, officials and locals say

    Trump’s Venezuelan drug boats claims obscure reality, officials and locals say

    MEXICO CITY – The Trump administration’s justification for blowing up suspected drug traffickers off the Venezuelan coast has been clear and consistent: These people aren’t just criminals; they’re “narco-terrorists” smuggling a “deadly weapon poisoning Americans” at the behest of terrorist organizations.

    “We take them out,” Trump told the nation’s three- and four-star generals and admirals last month. “Every boat kills 25,000 on average – some people say more. You see these boats, they’re stacked up with bags of white powder that’s mostly fentanyl and other drugs, too.”

    Claiming the power to summarily kill traffickers as though they’re enemy troops, Trump has authorized the U.S. military to strike at least six speedboats the administration has deemed suspicious, killing dozens of people since the beginning of September. At least half of the strikes and 21 of the killings, locals say, have transpired in the waters between Venezuela and Trinidad and Tobago – nations so close that on clear days they’re within eyesight of each other.

    But records and interviews with 20 people familiar with the route or the strikes, including current and former U.S. and international officials, contradict the administration’s claims. The passage, they said, is not ordinarily used to traffic synthetic opioids such as fentanyl, present in 69 percent of drug overdose deaths last year. Nor are the drugs typically headed for the United States.

    Trinidad and Tobago, a Caribbean nation more than 1,000 miles south and 1,200 miles east of Miami, is both a destination market for marijuana and a transshipment point for South American cocaine bound for West Africa and Europe, according to U.S. officials, Trinidadian police and independent analysts. The fentanyl seized in the United States, in contrast, is typically manufactured in Mexico using precursors from China and smuggled in through the land border, most often by U.S. citizens.

    The military strikes are unlikely, as a result, to cut overdose deaths in the United States, officials say – but it has brought U.S. forces into striking distance of Venezuelan President Nicolás Maduro. Trump has accused the authoritarian socialist, who claimed reelection last year despite ballot audits showing he lost the vote, of leading the Venezuela gang Tren de Aragua to push lethal drugs into America.

    “When I saw [an internal document on the strikes],” a senior U.S. national security official said, “I immediately thought, ‘This isn’t about terrorists. This is about Venezuela and regime change.’ But there was no information about what it was really about.”

    The official, like others quoted in this report, spoke on the condition of anonymity to provide his candid assessment.

    The White House declined to share evidence to support the claims that Trump has used to justify the strikes. A spokeswoman defended the killings as necessary to protect Americans.

    “All of these decisive strikes have been against designated narco-terrorists bringing deadly poison to our shores,” spokeswoman Anna Kelly said. “The president will continue to use every element of American power to stop drugs from flooding into our country and to bring those responsible to justice.”

    Two family members of the 11 men killed in September in the first attack acknowledged by Trump did not deny that the men aboard had been taking marijuana and cocaine from Venezuela to Trinidad. But they said Trump’s allegation in his announcement was inaccurate that they’d worked for the Venezuelan gang Tren de Aragua.

    “I knew them all,” said one of the family members, who spoke on the condition of anonymity for fear of retribution. “None of them had anything to do with Tren de Aragua. They were fishermen who were looking for a better life” by smuggling contraband.

    On Tuesday, Trump said, a new strike had killed “six male narco-terrorists” off the Venezuelan coast. That afternoon, one mother in the Trinidadian community of Las Cuevas received a call from her brother, a fisherman. Her son Chad Joseph, the second of her six children, had been killed in the explosion.

    Speaking by phone Thursday morning, Leonore Burnley was furious. Her son had been deprived a trial. And she’d been deprived of any chance of closure.

    “You can’t get the body to bury it,” she said.

    Joseph had spent the last three months in Venezuela working odd jobs, Burnley said. He had written her recently to say he would be returning home.

    She called Trump’s claim he had been involved in trafficking drugs a lie.

    “They are judging him wrong,” she said. “He was no drug dealer. Chad was a good boy, anything you want, he would help; he was a loving child.”

    “Twenty-six years he have,” she said.

    Claiming the power to summarily kill traffickers as though they’re enemy troops, Trump has authorized the U.S. military to strike at least six speedboats the administration has deemed suspicious, killing dozens of people since the beginning of September.

    How cocaine courses through Venezuela

    In recent years, drug cartels in Colombia and other South American nations have supercharged cocaine production. The rush to bring it to market – largely the United States and Europe, but increasingly West Africa – has transformed the continent’s criminal landscape, fueling the rise of new transnational gangs and threatening weaker national governments with limited power of state.

    Venezuela, too, has been swept into the boom. Economically battered by years of socialist mismanagement and punishing international sanctions, a nation that was once Latin America’s wealthiest has become increasingly involved in the trade. Along its border with Colombia, cocaine is now produced for sale and shipment abroad.

    U.S. federal prosecutors in March 2020 accused senior government officials in the Maduro regime, including Maduro himself, of leading the Cártel de Los Soles – “Cartel of the Suns” – a criminal network that extorts drug trafficking groups and controls routes and product itself.

    Venezuela, U.S. investigators say, is now a narco free-for-all filled with armed groups from throughout Latin America.

    “The Mexicans are there,” one former Drug Enforcement Administration agent said. “The Colombians are there, sometimes on behalf of the Mexicans. Sometimes the Hondurans and Guatemalans have guys there, too.”

    Most of the South American cocaine bound for North America flows through the Pacific, but some does depart Venezuela through the Caribbean, according to U.S. officials and analysts who track drug routes. Much of it courses overland through the western states of Zulia and Falcón before shipping northward to Puerto Rico, the U.S. Virgin Islands and the Dominican Republic. Some travels by air, departing clandestine airstrips in Maracaibo or Apure state for Central America and onward to Mexico and the United States.

    It’s less common, investigators say, to ship U.S.-bound cocaine northeast into the Sucre peninsula and across the narrow Bocas del Dragón channel to Trinidad – the route the administration has targeted. Trinidad is used far more frequently as a gateway to Europe. Spanish authorities seized 1.65 tons of cocaine that had transited through the island, the State Department reported in 2024. Portuguese authorities in June recovered 1.66 tons of cocaine that traversed the same route.

    “When you look at a map, countries like Trinidad and Tobago and Suriname are used as transshipment points of massive amounts of cocaine from Colombia into Venezuela [and then onward] to West Africa and Europe,” a former senior U.S. security official said. He added that routes may change based on pressure.

    One recently retired senior Trinidadian police official, asked whether Sucre traffickers were bringing drugs intended for the United States, chuckled.

    “Why would they use Trinidad and Tobago to transport drugs to the United States, when you have Colombia and Mexico and all of these other places that are closer?”

    The waters between Sucre and Trinidad

    The Sucre peninsula, known for its paradisiacal beaches and green-thatched mountains, has always been poor. But its fortunes turned decidedly for the worse in recent years, as the economy melted down and the state slipped into lawlessness.

    With few opportunities to work, fishermen turned to the smuggling route that has long tethered Sucre to Trinidad, a half-hour boat ride away.

    The former senior Trinidadian police official has investigated the route since 1989. It has historically carried many kinds of contraband: guns, cigarettes, alcohol, honey, exotic animals and people. But in recent years, as more drugs poured into Venezuela, it began to be used as a route to bring over marijuana and cocaine.

    “It’s 80 percent marijuana,” said one Trinidad criminologist who has studied seizure data. “Cocaine is a much, much smaller amount.”

    While Tren de Aragua has had a presence in Sucre, locals and drug trafficking analysts say it doesn’t control the trade. The drugs are instead moved by other local gangs.

    “We have found no links between Tren de Aragua and multinational smugglers,” said Jeremy McDermott, co-founder of Insight Crime, whose team recently visited the region. “There was an attempt by them to penetrate Sucre, but they were ejected by local gangs.”

    “The evidence,” he added, “does not support the claims” by the Trump administration.

    One man who grew up in San Juan de Unare along the Sucre coast, but moved to Caracas after his community plunged into poverty, said his cousin Reibys Gomez was among the first fishermen to take drugs to Trinidad. He said his cousin had a young family to support.

    “People are in need,” he said. “They live off fishing and hunting, and that’s it.”

    Now Reibys is dead, and the man said his family has “deteriorated” in San Juan de Unare – unable to collect his body and haunted by questions over why the U.S. military killed him.

    “They were going to Trinidad,” he said. “They weren’t going to the United States.”

  • Regional banks’ bad loans spark concerns on Wall Street

    Regional banks’ bad loans spark concerns on Wall Street

    NEW YORK — Wall Street is concerned about the health of the nation’s regional banks, after a few of them wrote off bad loans to commercial customers in the last two weeks and caused investors to wonder if there might be more bad news to come.

    Zions Bank, Western Alliance Bank, and the investment bank Jefferies surprised investors by disclosing various bad investments on their books, sending their stocks falling sharply this week. JPMorgan Chase CEO Jamie Dimon added to the unease when he warned there might be more problems to come for banks with potentially bad loans.

    “When you see one cockroach, there are probably more,” Dimon told investors and reporters on Tuesday, when JPMorgan reported its results.

    The KBW Bank Index, a basket of banks tracked by investors, is down 7% this month.

    There were other signs of distress. Data from the Federal Reserve shows that banks tapped the central bank’s overnight “repo” facilities for the second night in a row, an action banks have not needed to take since the COVID-19 pandemic. This facility allows banks to convert highly liquid securities like mortgage bonds and treasuries into cash to help fund their short-term cash shortfalls.

    Zions Bancorp shares sank Thursday after the bank wrote off $50 million in commercial and industrial loans, while Western Alliance fell after the bank alleged it had been defrauded by an entity known as Cantor Group V LLC. This came on top of news from Jefferies, which told investors it was might experience millions of dollars in losses from its business with bankrupt auto parts company First Brands.

    All three stocks recovered a bit Friday. Jefferies’ CEO told investors that the company believes it was defrauded by First Brands and that there were no broader concerns in the lending market.

    The last banking flare-up, in 2023, also involved midsize and regional banks that were overly exposed to low-interest loans and commercial real estate. The crisis caused Silicon Valley Bank to fail, followed by Signature Bank, and led to the eventual sale of First Republic Bank to JPMorgan Chase in a fire sale. Other banks like Zions and Western Alliance ended up seeing their stocks plummet during that time period.

    While banks do fail or get bought at fire sale prices, all bank deposits are insured by the Federal Deposit Insurance Corporation, up to $250,000 per account, in case of a bank failure. In the nearly 100 years since the FDIC was created in 1933, not one depositor has lost their insured funds.

    Still, even the larger banks aren’t immune in this latest round of trouble. Several Wall Street banks disclosed losses this week in the bankruptcy of Tricolor, a subprime auto dealership company that collapsed last month. Fifth Third Bank, a larger regional bank, recorded a $178 million loss from Tricolor’s bankruptcy.

    That said, the big banks believe that any losses will be manageable and do not reflect the broader economy.

    “There is no deterioration, we’re very confident with our credit portfolio,” Deutsche Bank CEO Christian Sewing said, in an interview on Bloomberg Television on Friday.

    While the big Wall Street banks get most of the media and investor attention, regional banks are a major part of the economy, lending to small- to medium-sized businesses and acting as major lenders for commercial real estate developers. There are more than 120 banks with between $10 billion and $200 billion in assets, according to the FDIC.

    While big, these banks can run into trouble because their businesses are not as diverse as the Wall Street money center banks. They’re often more exposed to real estate and industrial loans, and don’t have significant businesses in credit cards and payment processing that can be revenue generators when lending goes south.