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TUESDAY, JANUARY 2, 2024
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‘Down-payments cut’ as bank removes indemnity By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net THE CENTRAL Bank of the Bahamas (CBB) has released new “relaxed” lending rules for residential mortgages. The banking regulator removed the mortgage indemnity insurance requirement on residential mortgages, which should bring the minimum downpayment to 15 percent. CBB noted that the change is not anticipated to have “significant impact” on personal lending it should reduce the costs associated with home ownership for qualified borrowers. “The Central Bank of The Bahamas is relaxing the guidelines for domestic banks and credit unions on the minimum equity
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CENTRAL BANK OF THE BAHAMAS
injection requirement for residential mortgages. While this is not anticipated to have a significant impact on personal lending, it should reduce the cost burden for suitably qualified borrowers and allow some additional individuals to qualify for credit,” the Central Bank said. “With immediate effect, the mortgage indemnity insurance is removed from the Central Bank’s stipulation for borrowers to qualify for a reduced equity or down-payment amount on residential mortgages. In the absence of the insurance, the minimum down-payment for such mortgages was 15 percent.” CBB explained that although financial institutions are responsible for
SEE PAGE B2
Residents prepare to sue two years after BPL leak By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net ANDROS Chamber of Commerce president Darrin Bethel says residents of North Andros are preparing to take legal action after becoming “impatient” with clean-up efforts after a Bahamas Power and Light oil spill. Darrin Bethel told Tribune Business residents are tired of the lack of effort being put into clean-up efforts from BPL’s oil spill that happened in January two years ago. He said the residents have seen no
action and are becoming frustrated with the lack of concern. Mr Bethel said: “They want to sue BPL but they are not moving on it very quickly. I told them this does not come before the chamber, and they would have to organise it among themselves.” Despite the leak being reported two years ago, there is very little that can be seen with regard to the remediation of contamination. One resident, Daran Corporation Holdings, already has a lawsuit against the power company,
SEE PAGE B3
Contractors hopeful of uptick - but cautious on bank rules By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net BAHAMAS Contractors Association president Leonard Sands does not see construction slowing down for 2024 and could see a 20 percent uptick, but warned restrictive banking policies could put a damper on the growth. Mr Sands told Tribune Business the economy has stabilised to such an extent that it would boost investor confidence and that would equate to more spending, which would bode well for everyone. He added: “Obviously, this would mean new projects on the horizon. Other
LEONARD SANDS than that there are still challenges that exist. Namely, the restrictive policies have impacted the amount of construction and starts. And I think that’s an area of opportunity, we need to address.”
SEE PAGE B2
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Pintard seeks answers on JDL air freight management deal By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net OPPOSITION leader Michael Pintard has pressed the government on its relationship with air freight management firm JDL and if it has been contracted at Lynden Pindling International Airport (LPIA). In a letter to the Prime Minister Philip “Brave” Davis, he said: “You would be aware of the questions raised in the House of Assembly, as well as the press reports in respect to the alleged arrangement with a company known as JDL for airfreight management that either has been executed or is being contemplated by your administration. “There are many elements of this reported arrangement that create significant concerns for the Opposition. We ask therefore that you confirm whether or not any arrangement related to the management or handling of airfreight coming into any port of The Bahamas
MICHAEL PINTARD has been executed or is being contemplated by the government involving this JDL Company or any other interested parties?” JDL is rumoured to be involved with the publicprivate partnership (PPP) outsourcing of the LPIA air freight terminal, an agreement that would see a $25m transformation of the terminal and increase the cost of imported goods by placing a 40 cents per pound fee for cargo x-rays. Simon Wilson, the Ministry of Finance’s financial secretary, previously told this newspaper that JDL’s fees have yet to be finalised
SEE PAGE B3
PAGE 2, Tuesday, January 2, 2024
THE TRIBUNE
Realtor urges push to buy amid soaring rental prices By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net A BAHAMIAN realtor has urged more emphasis on buying a home for 2024 considering the rise in rental rates. Matt Sweeting, chief executive at 1oak Bahamas, told Tribune Business that Bahamians looking for a house should be asking themselves if whether or they really want to buy a house or rent for the rest of their life as he expects rental rates to continually increase. “We’ve been seeing these considerable increases in rental rates and
t PBL #BIBNBT $&0 VSHFT mOBODJBM QSJPSJUJ[BUJPO GPS IPNFPXOFSTIJQ t 4FDVSJUZ DPODFSOT ESJWF JOUFSFTU JO HBUFE DPNNVOJUJFT a two bedroom that was $700 three years ago is now a $1,500 a month rental. So from that perspective we’re seeing anywhere from a 40 percent to 70 percent increase in rental rate.” Mr Sweeting also said: “What this means is that is that people who have the ambition of buying are now limited in their ability to do so because a lot of their
money is going towards survival, so you can’t save if you are spending all of your money on rent. “To compound that you have an appreciating market, which is a seller’s market, with very little inventory and now we’re seeing appraisal prices appreciate considerably, which makes it even hard for a single person and even
MATT SWEETING couples to afford the type of real estate that they want.” While there are many Bahamians who may be trapped in the rental market for longer than they wish to, 1oak Bahamas did see success with home buys
for 2023. “We did just shy of $10m in sales in 2023, which is a 40 percent increase from last year. One of our biggest transactions was $3m and we’re a local firm as 90 percent of our business is local,” Mr Sweeting said. He also said: “I think for 2024 we want to get more into the hand holding. While we appreciate that most people are in the market for a developed piece of property, nevertheless we want to help the buyer through the entire process and for people who want to build as well.” There is a lot of uncertainty when buying a vacant piece of land so buyers may
be intimidated by the process, but “handholding”, people will help them to feel more comfortable with the process for both developed and undeveloped land. Also for 2024, Mr Sweeting sees more interest in gated communities as more Bahamians wish to move out traditional neighbourhoods in search for safety now that they can afford it. “Security is the major concern. Because if you have a couple that’s making over six figures annually, why shouldn’t they move to a gated community where it is safer?” he said.
Share index up over Sanctions without hearing part of new securities bill year, reports BISX By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net THE Bahamas International Securities Exchange (BISX) reported equity of $5.96bn and debt totalling $4.51bn as at September 2023, representing a 1.57 percent increase for the nine-month period. This according to the BISX quarterly statistical report, which revealed that the all-share index closed at 2,686.59 in September 2023, compared to 2,633.40 in September 2022.
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Commonwealth Bank (CBL) remained the top trading stock in equity, volume and value with FOCOL Holdings (FCL), Bank of the Bahamas (BOB) and Cable Bahamas Limited (CAB) following in volume for the nine-month period. “Trading volume for the nine-month period 1 January 2023, to 30 September 2023, was 3,846,482 securities for a value of $68,837,634.24. By comparison, trading volume for the nine-month period 1 January 2022, to 30 September 2022, was 7,602,357 securities for a value of $52,341,463.70,” the BISX report said. “Trading volume for the three-month period 1 July 2023, to 30 September 2023, was 1,245,478 securities for a value of $24,417,971,65. By
comparison, trading volume for the three-month period 1 July 2022, to 30 September 2022, was 2,201,129 securities for a value of $19,267,371.68” The report also revealed that although the average daily volume per day decreased from the same period last year, the value increased. It said: “For the ninemonth period from 1 January 2023, to 30 September 2023, the average volume per trading day was 21,369 securities for a value of $381,431.30. “By comparison, For the nine-month period from 4 January 2022, to 30 September 2022, the average volume per trading day was 42,126 shares for a value of $292,525.85.”
By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net
THE Securities Commission of The Bahamas (SCB) issued the Securities Industry Bill 2024 for public consultation last week - which seeks to ensure laws are “current, competitive, and reflect international best practice and standards”. A key update is the regulator’s right to impose sanctions for statutory breaches without a prior hearing. The SEC said: “The Bill updates and clarifies the commission’s supervisory authority framework to enable the Commission to address non-compliance with specific statutory obligations immediately through automatic administrative action without a hearing or disciplinary action process. “These supervisory actions include: Automatic fines; Ability to issue orders to licensees and registrants to take specific actions or to cease and desist specific activities; and ability to require/access any
information needed by the Commission to assess the current status of the licensee or registrant as it relates to non-compliance; and attach specific conditions to the license or registration of the non-compliant licensee or registrant.” The proposed bill also includes updates to the legislative framework to provide specific enforcement authority related to AML/CFT obligations and address deficiencies in the current enforcement regime. Provisions to publish penalties levied by the regulator have also been included in the proposed bill with penalties to be made public “as soon as practicable” along with the reason for the breach and identity of the offender. It said: “Provisions addressing when and what information regarding penalties is appropriate for publication are included in the Bill. Penalties will be required to be published as soon as practicable after the person on whom the penalty is imposed has been informed of that decision and the Notice should include the final decision or
summary thereof, the reasons for the decision and the identity of the person against whom the decision is made.” The proposed bill also updates the requirements for winding up and freeing a company’s assets. It said: “Updated the legislative standards around freezing assets including scope, of authority and the duration of freeze orders, standards around court involvement and flexibility to extend, remove or refer matters for continuation in courts etc. “The Bill updates the legislative framework to establish the Commission’s authority and locus standi in any matter relating to the dissolution of a licensee or registrant of the Commission. This includes initiating the winding up of registrants. In this regard the Bill sets the foundation for legislative provisions in subsidiary legislation which will address the framework for winding up licensees and registrants by the Commission including: Approval to windup;… and ongoing reporting.” The consultation period for the bill ends on March 1.
‘Down-payments cut’ as bank removes indemnity FROM PAGE B1 setting their down-payment requirements, they must observe the borrower’s 50 percent debt service ratio unless restructuring or consolidating a debt for an individual that has exceeded that threshold. It said: “Moreover, in line with the Central Bank’s relaxed rules for other personal lending, issued in August 2022, financial institutions may also vary or set lower down payment requirements for residential mortgages, in line with their internal frameworks for assessing and managing individual borrower risks. “However, lending institutions are directed to
observe that personal lending is still subject to the borrower’s total debt service ratio remaining within a prudent limit of 50 percent. The exceptions are debt restructurings and/ or consolidations for borrowers who are already indebted beyond this threshold, and for whom outstanding obligations are not increased as a result of the restructuring and/ or consolidations.” Additionally, CBB advised financial institutions to “exercise continued prudence” with the loan – to value ratio when issuing residential mortgages. It said: “Lending institutions are also directed to
exercise continued prudence around the amount of credit extended as a percentage of the appraised valuation of the real estate, or the resulting loan-tovalue (LTV)ratio. The LTV ratio also determines the risk-weighted treatment for mortgages when estimating banks’ capital adequacy. “In particular, in accordance with The Bahamas Capital Regulations, 2022, residential real estate exposures are weighted at either 25 percent, 50 percent, or 100 percent, respectively, according to whether the LTV is less than or equal to 60 percent, between 60 and 80 percent, or exceeds 80 percent.”
Contractors hopeful of uptick - but cautious on bank rules FROM PAGE B1 Mr Sands went further to explain that banking policies have become too restrictive for the construction sector, pushing people away from building homes and the amount of housing starts for 2024 could be increased by 20 percent if these restrictive policies would be removed that was put in place immediately
after the pandemic came to an end. He also said: “Banks have really turned the screws on consumers and asking them to increase their outlay of capital. Certainly some banks have decided not to give mobilisation, which is the 10 percent to start the project. “They are now even asking some contractors to come out of pocket to start
the project for clients and the banks reimburse them.” Requiring a contractor to come up with a ten percent mobilisation fee on a $500,000 project would not be doable in many instances with small and mid-sized contractors. If this growing problem could be addressed, the construction industry could have strong growth for 2024.
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Tuesday, January 2, 2024, PAGE 3
PINTARD SEEKS ANSWERS ON JDL AIR FREIGHT MANAGEMENT DEAL FROM PAGE B1 and the government is “hoping it will be less than 40 cents”. He argued that whatever fee is selected will have “a very minimal” impact on import costs, and said claims to the contrary by the courier industry and Opposition were “disingenuous”. Mr Pintard, however, requested a “full breakdown” of the government’s arrangement with JDL inclusive of financial and contractual commitments, the names of beneficial owners and the company’s history in providing this service as well as the fees
that will be imposed on the public. He said: “Would you provide a full breakdown of the elements any such arrangement as currently contemplated or agreed, including any financial, administrative and contractual commitments or considerations, as well as copies of documents related to same? “Would you provide the names of the beneficial owners of JDL and an outline of the track record of this company in providing this type of service? “Would you indicate what specific additional
mandatory fees and charges to shippers, if any, are being contemplated or have been approved, and also provide the legal provisions that would enforce any such charge?” Mr Pintard said that the Opposition “objects in the strongest terms”’ to the potential arrangement and questioned whether the firm went through the bidding process, subject to the Procurement Act, whether a third-party agent will conflict with the duties and responsibilities outlined in the Customs Management Act and when the arrangement will commence.
He said: “Given that the Public Procurement Act 2023 requires all public works and services - with limited and prescribed exceptions - to be subject to competitive bidding, would you provide the information on the bidding process for this arrangement, including when the matter went out to bid and how many bids were received? “Would you indicate how the reported plans for this company to handle and manage landed goods comport with the provisions of the Customs Management Act and the responsibilities
of the Customs Department as the agent for landed goods into the country? “Would you indicate the date that this arrangement is supposed to commence and provide an outline of all public announcements and public education efforts undertaken to date regarding same?” JDL is speculated to begin managing cargo this month and Mr Pintard said that it was ‘preposterous’ since the government has not made an announcement to the public or offered an explanation of how the arrangement will work.
He said: “It has been reported that this arrangement is to commence in January 2024 which would be preposterous given that as far as we know, your government has made no formal announcement regarding this arrangement, nor undertaken any significant public education and outreach. Given the incredible expansion in public relations and communications staff and resources undertaken by your administration, the failure to inform the public on this reported initiative must, in our view, be deliberate.”
STOCK MARKET TODAY
Resilient economy energizes investors, as financial markets end 2023 up 24% By DAMIAN J. TROISE AP Business Writer THE S&P 500 closed out 2023 with a gain of more than 24% and the Dow finished near a record high, as easing inflation, a resilient economy and the prospect of lower interest rates buoyed investors, particularly in the last two months of the year. Stocks closed Friday with modest losses. The S&P 500 slipped 13.52 points, or 0.3%, to 4,769.83. The benchmark index still posted a rare ninth consecutive week of gains and is just 0.6% shy of an all-time high set in January of 2022. The Dow Jones Industrial Average fell 20.56 points, or 0.1%, to 37,689.54 after setting a record Thursday. The Nasdaq slipped 83.78 points, or 0.6%, to 15,011.35, but that was barely a blemish on an annual gain of more than 43%, its best performance since 2020. For most of the year, gains in the broader market were driven largely by seven stocks -- Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta Platforms and Tesla. Dubbed the Magnificent 7, they accounted for about two-thirds of the gains in the S&P 500 this year, according to S&P Dow Jones Indices. Nvidia lead the group with a gain of about 239%, driven by the mania surrounding artificial intelligence. A strong rally in November and December marked a big psychological shift for investors, said Quincy Krosby, chief global strategist at LPL Financial, because it went beyond the
big technology companies. The Russell 2000 index of smaller companies jumped more than 20% over the two months and finished 2023 with a 15.1% gain after falling 21.6% in 2022. "It was broad participation in the market that reinforced and confirmed gains for smaller company stocks that were particularly important," Krosby said. Investors in the U.S. came into this year bearing the bruises of sharp losses for both stocks and bonds in 2022. They expected inflation to ease further as the Federal Reserve pushed interest rates higher. The trade-off would be a weaker economy and possibly a recession. But while inflation has come down to around 3%, the economy has chugged along thanks to solid consumer spending and a healthy job market. The stock market is now betting the Fed can achieve a "soft landing," where the economy slows just enough to snuff out high inflation, but not so much that it falls into a recession. As a result, investors now expect the Fed to begin cutting rates as early as March. The Fed has signaled three quarter-point cuts to its benchmark interest rate next year. That rate is currently sitting between 5.25% and 5.50%, its highest level in two decades. Lower rates could add more fuel to the broader market's momentum in 2024. Wall Street is forecasting stronger earnings growth for companies next year after a largely lackluster 2023, when companies wrestled with higher input and labor costs and a shift in consumer spending.
Bond market investors appeared headed for a third losing year in a row until things turned around starting in late October. Excitement about potential cuts to interest rates sent bond prices soaring and yields dropping. The yield on the 10-year Treasury, which hit 5% in October, stood at 3.88% Friday, up from 3.85% on Thursday. The yield on the twoyear Treasury, which more closely tracks expectations for the Fed, fell to 4.25% from 4.28% from late Thursday. It also surpassed 5% in October. Many global markets also saw solid gains this year. Indexes in France and Germany made double-digit advances, while Britain's has climbed just under 4%. Tokyo's Nikkei 225 gained 27% in 2023, its best year in a decade as the Japanese central bank inched toward ending its longstanding ultra-lax monetary policy after inflation finally exceeded its target of about 2%. The Shanghai Composite index lost about 3% this year and the Hang Seng index in Hong Kong fell nearly 14%. Weakness in the property sector and in global demand for China's exports, as well as high debt levels and wavering consumer confidence have weighed on the country's economy and the stock market. U.S. and international crude oil prices were relatively stable on Friday. The price of oil tumbled by more than 10% this year, defying predictions from some experts that it could cross $100 per barrel.
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BAHAMAS POWER AND LIGHT (BPL) HEADQUARTERS
Residents prepare to sue two years after BPL leak FROM PAGE B1 alleging its property was contaminated with diesel following the spill. More residents are poised to follow suit. Mr Bethel said he is encouraging “patience” with BPL and the process. He said: “I think sometimes you have to be a little patient. I think that BPL
might get around to it. I think the residents could be a little more patient, but I guess to each his own and who feels it knows it.” He added: “I do understand their frustration, but I don’t support the idea. Because it may make it more difficult that way when you take that approach and you will
harden the government’s heart in a sense and you might not get anything.” Meanwhile, residents have a real fear that groundwater in Nicholls Town has been contaminated with diesel, potentially harming the community’s health. Further prolonged exposure and its side effects are foremost on their minds.
PAGE 4, Tuesday, January 2, 2024
THE TRIBUNE
Embezzlement of Oregon weekly newspaper’s funds forces it to lay off entire staff and halt print By CLAIRE RUSH Associated Press AN Oregon weekly newspaper has had to lay off its entire staff and halt print after 40 years because its funds were embezzled by a former employee, its editor said, in a devastating blow to a publication that serves as an important source of information in a community that, like many others nationwide, is struggling with growing gaps in local news coverage. About a week before Christmas, the Eugene Weekly found inaccuracies in its bookkeeping, editor Camilla Mortensen said. It discovered that a former employee who was “heavily involved” with the paper’s finances had used its bank account to pay themselves $90,000 since at least 2022, she said. The paper also became aware of at least $100,000
in unpaid bills — including to the paper’s printer — stretching back several months, she said. Additionally, multiple employees, including Mortensen, realized that money from their paychecks that was supposed to be going into retirement accounts was never deposited. When the paper realized it couldn’t make the next payroll, it was forced to lay off all of its 10 staff members and stop its print edition, Mortensen said. The alternative weekly, founded in 1982, printed 30,000 copies each week to distribute for free in Eugene, the second-largest city in the state and home to the University of Oregon. “To lay off a whole family’s income three days before Christmas is the absolute worst,” Mortensen said, expressing her sense
NOTICE Bahamas First Holdings Limited (“BFH” or the “Company”) wishes to advise that Patrick G. Ward retired as a Director of the BFH Board on November 30, 2023 and as President and Chief Executive Officer of the Company on December 31, 2023.
BAHAMAS FIRST HOLDINGS LIMITED 32 Collins Avenue, Nassau, NP, Bahamas www.bahamasfirst.com
A RED Eugene Weekly newspaper distributor box stands outside its office in Eugene, Ore. on Friday, Dec. 29, 2023. The weekly newspaper had to lay off its entire staff three days before Christmas and halt print because its funds were embezzled by a former employee, its editor said. The Eugene police are investigating and the paper’s owners have hired forensic accountants to piece together what happened. Photo:Todd Cooper/AP
of devastation. “It was not on my radar that anything like this could have happened or was happening.” The suspected employee had worked for the paper for about four years and has since been fired, Mortensen said. The Eugene police department’s financial crimes unit is investigating, and the paper’s owners have hired forensic accountants to piece together what happened, she said. Brent Walth, a journalism professor at the
journalism students seeking internships or launching their career. He said there were feature and investigative stories that “the community would not have had if not for the weekly’s commitment to make sure that journalism students have a place to publish in a professional outlet.” A tidal wave of closures of local news outlets across the country in recent decades has left many Americans without access to vital information about their local governments
and communities and has contributed to increasing polarization, said Tim Gleason, the former dean of the University of Oregon’s journalism school. “The loss of local news across the country is profound,” he said. “Instead of having the healthy kind of community connections that local journalism helps create, we’re losing that and becoming communities of strangers. And the result of that is that we fall into these partisan camps.”
CHINESE FACTORY ACTIVITY SLOWS IN DECEMBER IN A 3RD STRAIGHT MONTH OF CONTRACTION
the country's response to the pandemic, which at times involved the shut downs of factories and parts of or entire cities. China's economy has become "more resilient and dynamic than before," Xi said in remarks carried by the official Xinhua News Agency. Global demand for manufactured goods has suffered as central banks around the world have raised interest rates to battle decades-high rates of inflation. Price pressures have eased in recent months, but demand has yet to rebound to prepandemic levels. That has ramifications across the region since supply chains linked to China are scattered across many Asian countries. Reliance on exports to fuel growth in China means more competition as the government invests in still more industrial construction, Stephen Innes of SPI Asset Management said in a commentary.
By ELAINE KURTENBACH AP Business Writer A SURVEY of factory managers in China shows manufacturing contracted in December in the latest sign the world's secondlargest economy remains sluggish. The official purchasing managers index, or PMI,
University of Oregon, said he was concerned about the loss of a paper that has had “an outsized impact in filling the widening gaps in news coverage” in Eugene. He described the paper as an independent watchdog and a compassionate voice for the community, citing its obituaries of homeless people as an example of how the paper has helped put a human face on some of the city’s biggest issues. He also noted how the paper has made “an enormous difference” for
fell to 49 last month in what officials said was evidence of weak demand, the National Bureau of Statistics reported on Sunday. It was the third straight month of contraction. The PMI is on a scale up to 100 where 50 marks the cutoff between expansion and contraction. The index has fallen in eight of the past nine months, with an
increase only in September. In November, the index was at 49.4, down from 49.5 the month before. Despite unexpectedly prolonged weakness after the pandemic, China's economy grew at a 5.2% pace in the first three quarters of the year and showed signs of improvement in November, with factory output and retail sales rising. In recent months, the government has raised spending on construction of ports and other infrastructure, cut interest rates and eased curbs on homebuying to try to stimulate the domestic demand that economists say is needed to sustain growth. In his New Year speech, leader Xi Jinping said China had achieved a "smooth transition" from
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Tuesday, January 2, 2024, PAGE 5
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FTX founder Sam Bankman-Fried leaves Manhattan federal court, June 15, 2023, in New York. A second trial of BankmanFried on charges not in the cryptocurrency fraud case presented to a jury that convicted him in November is not necessary, prosecutors told a judge Friday, Dec. 29. Photo:Bebeto Matthews/AP
PROSECUTORS SAY THERE’S NO NEED FOR A SECOND TRIAL OF FTX FOUNDER SAM BANKMAN-FRIED By LARRY NEUMEISTER Associated Press A SECOND trial of FTX founder Sam BankmanFried on charges not in the cryptocurrency fraud case presented to a jury that convicted him in November is not necessary, prosecutors told a judge Friday. Prosecutors told U.S. District Judge Lewis A. Kaplan in a letter that evidence at a second trial would duplicate evidence already shown to a jury. They also said it would ignore the "strong public interest in a prompt resolution" of the case, particularly because victims would not benefit from forfeiture or restitution orders if sentencing is delayed. They said the judge can consider the evidence that would be used at a second trial when he sentences Bankman-Fried on March 28 for defrauding customers and investors of at least $10 billion. Bankman-Fried, 31, who has been incarcerated since several weeks before his trial, was convicted in early November of seven counts, including wire fraud, wire fraud conspiracy and three conspiracy charges. He could face decades in prison. Last spring, prosecutors withdrew some charges they had brought against Bankman-Fried because the charges had not been approved as part of his extradition from the Bahamas in December 2022. They said the charges could be brought at a second trial to occur sometime in 2024.
However, prosecutors at the time said that they would still present evidence to the jury at the 2023 trial about the substance of the charges. The charges that were temporarily dropped included conspiracy to make unlawful campaign contributions, conspiracy to bribe foreign officials and two other conspiracy counts. He also was charged with securities fraud and commodities fraud. In their letter to Kaplan, prosecutors noted that they introduced evidence about all of the dropped charges during Bankman-Fried's monthlong trial. They said authorities in the Bahamas still have not responded to their request to bring the additional charges at a second trial. A lawyer for BankmanFried declined comment. A conviction on the additional charges would not result in a potential for a longer prison sentence for Bankman-Fried, prosecutors said. "Proceeding with sentencing in March 2024 without the delay that would be caused by a second trial would advance the public's interest in a timely and just resolution of the case," prosecutors wrote. "The interest in avoiding delay weighs particularly heavily here, where the judgment will likely include orders of forfeiture and restitution for the victims of the defendant's crimes."
SHOPPING ON NEW YEAR'S DAY 2024? FROM COSTCO TO WALMART, SEE WHAT STORES ARE OPEN AND CLOSED By WYATTE GRANTHAM-PHILIPS AP Business Writer
Target is open with regular operating hours on New Year's Day.
THE New Year is almost upon us. And as the world prepares to ring in 2024, many are winding down from the holidays and getting back into their regular routines — give or take some fresh resolutions. If you're planning on grabbing groceries or doing some other shopping to kick off the new year, it's wise to double check stores' hours. While more businesses typically stay open on New Year's Day compared to Christmas Day, a handful of chains still cut back on hours or shut their doors to commemorate the holiday. Some also close up shop early for New Year's Eve. Operations can vary on location. When in doubt, call ahead or check hours of stores in your neighborhood online. Here's a rundown of major store hours and which businesses are open and closed in the U.S. this New Year's Day. Walmart is open with normal hours on New Year's Day.
IS COSTCO OPEN ON NEW YEAR'S DAY?
IS TARGET OPEN ON NEW YEAR'S DAY?
All Costco warehouses in the U.S. are closed on New Year's Day. IS CVS OPEN ON NEW YEAR'S DAY? Many CVS Pharmacy locations will operate with normal hours on New Year's, but some non-24 locations may have reduced hours. You can call ahead or double check local hours online. IS WALGREENS OPEN ON NEW YEAR'S DAY? Walgreens will be open with regular hours on New Year's Day, but pharmacy hours can vary by location. It's best to check ahead online. IS STARBUCKS OPEN ON NEW YEAR'S DAY? Many Starbucks locations will be open on New Year's Day, but hours can vary — with the coffee company noting that "stores may occasionally adjust their hours based on business and customer needs" throughout the holiday season. It's best to check ahead online.
PAGE 6, Tuesday, January 2, 2024
THE TRIBUNE
Consulting firm McKinsey agrees to $78 million settlement with insurers over opioids By DEE-ANN DURBIN AP Business Writer
OXYCONTIN pills are arranged for a photo, Feb. 19, 2013, at a pharmacy in Montpelier, Vt. In an agreement revealed late Friday, Dec. 29, 2023, consulting firm McKinsey and Co. has agreed to pay $78 million to settle claims from insurers and health care funds that its marketing work with Purdue Pharma, the maker of OxyContin, helped fuel an opioid addiction crisis. Photo:Toby Talbot/AP
CONSULTING firm McKinsey and Co. has agreed to pay $78 million to settle claims from insurers and health care funds that its work with drug companies helped fuel an opioid addiction crisis. The agreement was revealed late Friday in documents filed in federal court in San Francisco. The settlement must still be approved by a judge. Under the agreement, McKinsey would establish a fund to reimburse insurers, private benefit plans and others for some or all of their prescription opioid costs. The insurers argued that McKinsey worked with Purdue Pharma – the maker of OxyContin – to create and employ
aggressive marketing and sales tactics to overcome doctors' reservations about the highly addictive drugs. Insurers said that forced them to pay for prescription opioids rather than safer, non-addictive and lower-cost drugs, including over-the-counter pain medication. They also had to pay for the opioid addiction treatment that followed. From 1999 to 2021, nearly 280,000 people in the U.S. died from overdoses of prescription opioids, according to the U.S. Centers for Disease Control. Insurers argued that McKinsey worked with Purdue Pharma even after the extent of the opioid crisis was apparent. The settlement is the latest in a years-long effort to hold McKinsey accountable for its role in the opioid
epidemic. In February 2021, the company agreed to pay nearly $600 million to U.S. states, the District of Columbia and five U.S. territories. In September, the company announced a separate, $230 million settlement agreement with school districts and local governments. Asked for comment Saturday, McKinsey referred to a statement it released in September. "As we have stated previously, we continue to believe that our past work was lawful and deny allegations to the contrary," the company said, adding that it reached a settlement to avoid protracted litigation. McKinsey said it stopped advising clients on any opioid-related business in 2019.
US seizes more illegal e-cigarettes, but thousands of new ones are launching By MATTHEW PERRONE AP Health Writer FEDERAL officials are seizing more shipments of unauthorized electronic cigarettes at U.S. ports, but thousands of new flavored products continue pouring into the country from China, according to government and industry data reviewed by The Associated Press. The figures underscore the chaotic state of the nation’s $7 billion vaping market and raise questions about how the U.S. government can stop the flow of fruit-flavored disposable e-cigarettes used by 1 in 10 American teens and adolescents. More than 11,500 unique vaping products are being sold in U.S. stores, up 27% from 9,000 products in June, according to tightly held industry data from analytics firm Circana. “FDA whacks one product and then the manufacturers get around it and the kids get around it,” said Bonnie Halpern-Felsher, a Stanford University psychologist who develops anti-vaping educational materials. “It’s too easy to change your product a little bit and just relaunch it.” Halpern-Felsher says she is “constantly” updating her curriculum to keep pace with new vaping brands and trends. Nearly all the new products are disposable e-cigarettes, according to the sales data gathered from gas stations, convenience stores and other shops. The products generated $3.2 billion in the first 11 months of this year. The FDA has authorized a handful of e-cigarettes for adult smokers and is still reviewing products from several major companies, including Juul. Regulators consider nearly all other e-cigarettes to be illegal. “Those committing illegal acts don’t advertise their crimes, and those trying to import illegal tobacco products into the United States are no different,” said FDA’s tobacco director,
Brian King, in a written response to AP questions. “The FDA and our federal partners are using tools, like import alerts, to stop these illegal tobacco products at the border and to deter countless others.” The rise in e-cigarettes sold continues despite a record number of products detained. An FDA database shows officials “refused” entry to 148 containers or pallets of “tobacco” goods last month, consisting almost entirely of vaping products from China. Refused imports are typically destroyed. Through the end of November, U.S. officials had refused 374 such shipments this year, more than double the 118 refused in 2022. This year’s items included $400,000 worth of Esco Bars, a disposable brand placed on a list of banned imports in May. The agency’s posted data is often preliminary because it takes time to finalize refusals. But recent history shows how easily companies can maneuver around import bans. In July 2022, the FDA barred dozens of e-cigarettes from Chinese manufacturer Fume, including flavors Pineapple Ice and Blue Razz. Fume sales dipped after the ban, but the company launched a slew of new products, posting $42 million in U.S. sales in the third quarter of 2023, the data shows. Roughly 98% of sales came from products not on the FDA’s “red list” of products that can be detained. Industry shipping tactics are also challenging the usefulness of import restrictions. In July, FDA and customs officials intercepted $18 million worth of illegal vapes, including leading brand Elf Bar. But the shipments were mislabeled as shoes, toys and other items — not e-cigarettes — requiring officials to individually open and verify
the contents of more than two dozen containers. Circana, formerly IRI, restricts access to its data, which it sells to companies and researchers. A person not authorized to share it gave the AP access on condition of anonymity. The FDA has no schedule for updating its import lists but said it is “closely monitoring” instances where companies try to avoid detection. “The FDA has a variety of tools at our disposal to take action against these tactics,” FDA’s King said. The agency has limited powers to penalize foreign companies. Instead, regulators have sent hundreds of warning letters to U.S. stores selling their products, but those are not legally binding. Even as the FDA attempts to work with customs officials, it is struggling to complete a yearslong review of applications submitted by manufacturers hoping to market their products to adults. The few tobacco-flavored products currently authorized by FDA are deeply unpopular. Their combined sales were just $174 million, or 2.4% of the vaping marketplace this year, according to Circana. “Nobody wants them,” says Marc Silas, owner of 906 Vapor shop in Michigan. “If people wanted them, they’d be on the shelves and they’re not.” Deeply frustrated with the pace of FDA’s review, public health groups have successfully sued the agency to speed up the process. The agency aimed to complete all major outstanding applications this year, but it recently said the process would stretch into next year. The delays have raised questions about the viability of the the current regulatory framework for e-cigarettes. “FDA is trying to operate with an old model when the whole environment has changed,” said Scott Ballin, a health policy consultant who previously worked for the American Heart Association. “They have this long line of products that have to be reviewed one by one and now they’re in a giant hole.” One alternative approach would be to make decisions about entire classes of e-cigarettes, rather than individual products. The idea initially came from small vaping manufacturers who did not have the money to conduct the large studies typical of FDA applications. Public health advocates concerned about the persistence of underage vaping have embraced it. Halpern-Felsher, of Stanford University, is among those urging the FDA to ban all flavored disposable e-cigarettes, the products used by most of the 2 million underage teens who vape.