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CFTC slaps lawsuit on Binance, crypto industry looks shaky

CFTC — The crypto market in the United States is in turmoil, with businesses battling with regulators.

Crypto fans in the United States, for example, are not permitted to trade crypto derivatives.

To add salt to the wound, major foreign trading platforms for crypto derivatives are not allowing Americans to trade the instruments.

They may only do so if they are registered with the Commodity Futures Trading Commission (CFTC), a powerful federal regulator.

The CFTC has sued Binance, the world’s most renowned cryptocurrency exchange, for trading items without first registering with the agency.

Binance allegedly considered bailing out its competitor exchange FTX in November 2022.

Nevertheless, after closely watching the exchange platform, Binance withdrew, avoiding a major government fraud probe into FTX.

What happened?

The CFTC charged Binance and its CEO, Changpeng Zhao, with violating US laws.

Among the alleged infractions is privately counseling “VIP” clients residing in the US on how to avoid compliance laws.

The commission also oversees derivatives trading in the United States.

Binance and Zhao, according to the CFTC, directed staff and consumers to circumvent compliance safeguards in order to enhance business profits.

The CFTC lacks the authority to file criminal charges.

But, the regulator can demand large fines, which might prevent Binance from registering in the US in the future.

The prospective ban might be devastating for the corporation, as the United States is home to hundreds, if not millions, of cryptocurrency fans.

The response

Binance stated that the lawsuit was unexpected and disappointing when the news broke.

The business emphasized that it has made considerable expenditures in the last two years to ensure that US-based investors are not active on the platform.

After the lawsuit was announced on Monday, Zhao tweeted the number 4, referring to a prior comment he made:

“Ignore FUD, fake news, attacks, etc.”

FUD is a frequently used acronym in the crypto field that stands for “fear, uncertainty, and doubt.”

Binance contended for years that it was not subject to US regulations since it did not have a physical presence in the country.

Although being based in China, the crypto trading platform does not have a physical headquarters.

Changpeng Zhao claims that the company’s headquarters are wherever he is.

According to the CFTC’s lawsuit, Binance’s method was an intentional attempt to circumvent regulation.

Read also: Nvidia executive dismisses crypto

The bigger picture

The CFTC’s case may be a setback for Binance, but it has broader implications for the cryptocurrency industry.

Yet, the case is not as significant as everything else that transpired in 2022.

The FTX bankruptcy, for example, caused a domino effect throughout the crypto industry, prompting enterprises and projects exposed to the corporation to either freeze or shut down.

Terra/Luna also underwent a breakdown, causing the value of crypto assets and NFTs to plummet.

Nonetheless, the Terra/Luna problem has seen major advances in 2023.

Prices for the two main cryptocurrencies, Bitcoin and Ethereum, plummeted by more than 3% on Monday, which was a normal day for crypto trading.

Worst-kept secret

The CFTC’s case is most notable for naming one of its worst-kept secrets in cryptocurrency.

Consumers in the United States have extremely easy access to hazardous offshore crypto derivatives that should be forbidden.

Because crypto derivatives are leveraged wagers on extremely volatile assets, anybody with a VPN may access them.

While this approach is simple, it is strongly discouraged.

The endgame

According to Blockchain Intelligence Group crypto compliance and regulation specialist Timothy Cradle, the most likely consequence is that Binance will pay hundreds of millions of dollars in fines to the CFTC.

In addition, the business would be barred from registering derivatives exchanges.

The move would not only be devastating for US consumers, but it would also affect a large chunk of Binance’s earnings.

According to the complaint, American consumers generate 16% of the income for Binance’s derivatives products.

Other regulators

The Monday announcement only increases regulatory pressure on one of cryptocurrency’s most famous figures.

According to Bloomberg, the US Revenue Agency and the Securities and Exchange Commission are also looking into Binance.

The SEC issued a Wells Notice to Coinbase, one of the largest US-listed crypto exchanges, last week for suspected securities law breaches.

Silvergate and Signature Bank, two important linkages to the conventional banking sector, were lost to the crypto business in early March.

Image source: Jones Day

Alameda payments gave SBF bulks of cash

Alameda – On Wednesday, the new management of discredited crypto exchange firm FTX made an unexpected disclosure about its founder’s payouts.

Sam Bankman-Fried, the company’s co-founder and ex-boss, allegedly received $2.2 billion in payments and loans from Alameda Research.

The amount is astounding and stands out when compared to other bosses.

Caroline Ellison, the former CEO of Alameda Research, was paid only $6 million.

According to documentation provided by the new management, a total of $3.2 billion was distributed to ex-FTX employees, the majority of whom came from the company’s sister trading firm.


When FTX went bankrupt in late 2022, Alameda Research was at the epicenter of the turmoil.

Sam Bankman-Fried also created the quantitative trading business.

Alameda has the authority to exploit FTX client assets for its own purposes without monitoring, according to newly appointed FTX CEO John J. Ray III, who inherited leadership when SBF fled.

Conversely, FTX was once considered one of the pinnacles of the Web3 era.

It was a digital asset exchange where clients could buy, trade, and speculate on the future prices of various cryptocurrencies.

Before collapsing, FTX had over 134 firms under its banner and was based in the Bahamas, which was more receptive to cryptocurrency.

SBF launched Alameda in 2019, although he claims he quit the trading firm’s leadership role in 2021, putting day-to-day operations in the hands of others.

Prosecutors believe that FTX’s abrupt insolvency was caused by management placing extremely hazardous wagers with client funds provided by Alameda Research.

The payouts

SBF got the majority of the $3.2 billion in compensation, according to records revealed this week by FTX’s new administration.

While he got the biggest share of the pie, former FTX director of engineering Nishad Singh got $587 million.

Meanwhile, Gary Wang, co-founder, received $246 million.

Former FTX Digital Markets co-CEO Ryan Salame received $87 million, while former Alameda Research co-head Sam Trabucco received $25 million.

They did not include the large sum of more than $240 million spent to purchase luxury property in the Bahamas, according to the release.

Also, it should be noted that Trabucco resigned as CEO of Alameda in August.

He hasn’t been seen or heard from since.

Prosecutors have neglected to charge Sam Trabucco, despite the fact that the rest of SBF’s inner circle has already been charged.

Read also: Sam Bankman-Fried made donations to lawmakers before elections


Caroline Ellison was elevated to be Alameda Research’s sole CEO in October 2021, following Trabucco’s retirement.

They were previously the platform’s co-CEOs.

Ellison had an on-again, off-again romance with Sam Bankman-Fried.

While her participation in the company’s demise was well publicized, her history drew her even more attention, since her now-deleted Tumblr blog provided a fairly unusual view on what happened in the Bahamas penthouse.

The penthouse had ten housemates, including Ellison and SBF, who made high-level decisions there.

The group was defined as a “polycule,” or a network of people in a polyamorous relationship, so choices were not the only thing going on around the house.

Ellison’s blog, which was active from 2014 until 2022, displayed material in November that corresponded precisely with her history.

The contents of her blog revealed a great interest in racial science and polyamory.

It also gave greater insight into the author’s perspective on the crypto sector, as stated in one post:

“I didn’t get into this as a crypto true believer. It’s mostly scams and memes when you get down to it.”

The charges and the company today

In the United States, Sam Bankman-Fried is now facing 12 criminal counts, some of which were handed down in a superseding indictment in February.

The charges also involve a conspiracy to perpetrate fraud on FTX clients in connection with derivatives purchases and sales.

SBF pleaded not guilty to the original accusations in January.

He has been awaiting his trial in October since then.

Meanwhile, Ellison, Wang, and Singh have admitted to the deception and are collaborating with authorities.

Now, billions of dollars in FTX customer funds are missing, with a large portion alleged to have been stolen.

Image source:

Mary Daly says more rate hikes is needed, gold price paused

Mary Daly – A succession of incidents have blighted the last year, but the repercussions of inflation are still being felt today.

While it has lessened considerably, the Federal Reserve is on track to hike interest rates again in order to address the remaining issue.

The necessity of another rate rise was also emphasized by Mary Daly, President of the San Francisco Fed.

The news

On Saturday, Mary Daly stated that the Federal Reserve should not only raise but also maintain interest rates at current levels.

She said that doing so would allow them to deal with the rising prices brought on by inflation.

“There is more work to do,” said Daly at Princeton University.

“In order to put this episode of high inflation behind us, further policy tightening, maintained for a longer time, will likely be necessary.”

“Restoring price stability is our mandate, and it is what the American people expect. So, the FOMIC remains resolute in achieving this goal.”

Mary Daly also admitted that excessive inflation and the Fed’s aggressive rate increases to bring prices down caused fear on Main Street and Wall Street.

“The responses range from fearing these actions will tip the economy into a recession to fearing they won’t be enough to get the job done.”

With the announcement of new economic data, the concern drove dramatic market fluctuations, as uncertainty motivates investors to seek rapid solutions.

Nonetheless, Daly believes that accomplishing the stated target will take time and “a broader view.”

Additionally, Mary Daly stated that the Fed’s current tightening strategy was (and continues to be) reasonable given the volume and duration of high inflation readings.

Daly also challenges the disinflationary trend, citing substantial inflation in the goods, housing, and associated sectors, as well as robust economic indicators.

While Mary Daly does not presently vote on Fed policy, she is a member of the Federal Open Market Committee and attends policy meetings.

Federal Reserve warnings

The Federal Reserve issued similar warnings a week before Mary Daly’s address.

Minneapolis Federal Reserve President Neel Kashkari stated last Wednesday that he is open to the potential of a higher interest rate rise during the Fed’s March policy meeting.

“Whether it’s 25 or 50 basis points,” said Kashkari.

Similarly, Atlanta Fed President Raphael Bostic shared similar comments, stating that the Fed’s policy rate should be raised by half a percentage point at the next meeting.

A day later, Fed Governor Christopher cautioned that interest rates might rise faster than expected.

He alluded to a string of better-than-expected economic figures.

Read also: Stocks dropped in 2nd month of the year

Interest rate progress

The Federal Reserve has done a lot in the last year to keep inflation under control.

It increased its goal range from nearly zero to 4.5% to 4.75%.

They lowered their raises to a quarter of a percentage point in February, after dropping half a percentage point in December.

Inflation had reached a four-decade high in 2022, but it began to recede in the last quarter.

Yet, January inflation figures revealed that the rate of price rises was gradually increasing again.

Gold price

Gold prices have paused as a result of the several warnings issued in recent weeks.

Prices fell from an early two-and-a-half-week high on Monday, as traders awaited US Federal Reserve Chair Jerome Powell’s judgment for signals on future rate rises.

Spot gold had earlier reached a high of $1,858.19 per ounce on February 15, but it is presently down 0.3% at $1,849.33 per ounce.

Meanwhile, gold futures in the United States climbed modestly, reaching $1,855.10.

Also, the dollar index rose 0.1%, making greenback-priced bullion more costly for foreign purchasers.

Awaiting testimony

Many are anticipating Powell’s testimony to Congress on Tuesday and Wednesday, followed by the February jobs report on Friday.

“Currently, gold is in a wait-and-see mode,” said UBS analyst Giovanni Staunovo.

“There’s unlikely to be a change of script from Powell, reiterating the need for further rate hikes to bring inflation under control.”

While gold is often used as a hedge against inflation, increasing interest rates may reduce demand for zero-yielding metal.

Mary Daly discussed the potential of interest rates rising (and remaining there) if data continues to be hotter than expected on Saturday.

According to Reuters technical expert Wang Tao, current gold might continue advances into a range of $1,867 to $1,876 per ounce due to resistance breaching at $1,853.

Image source: CNN

GPT-4 is OpenAI’s latest innovation

GPT-4 –  The world was shook in late 2022 when OpenAI released ChatGPT, a revolutionary tool that would transform work and academics.

Since its launch, companies in the tech sector have increased their attempts to compete with ChatGPT’s popularity.

Google has been determined to catch up, but they have been methodical in their approach.

Although competitors seek to develop their own AI technology, OpenAI has already released its next innovation: GPT-4.

The news

About four months after launching ChatGPT, OpenAI is releasing the next-generation version of the popular chatbot platform.

OpenAI released a blog post on Tuesday to reveal GPT-4 and extend the gap with its competitors.

According to the firm, GPT-4 can perform a variety of standardized exams.

Following several reports of ChatGPT running “off the rails,” OpenAI has addressed the concerns with their answers.


The updated system, according to OpenAI, passed a simulated law school bar exam, ranking in the top 10% of test takers.

However, the previous version, GPT-3.5, performed poorly, falling into the bottom 10%.

GPT-4 may now execute the following functions:

  • Read
  • Analyze
  • Generate over 25,000 words of text
  • Write code in all major programming languages

The upgrade was hailed by OpenAI as the company’s most recent milestone.

While technology is still less proficient than people in real-world circumstances, GPT-4 outperforms humans in professional and academic standards.


GPT-4 is the most recent addition to OpenAi’s extensive language model.

The model is trained on large volumes of web data in order to produce unique and engaging replies to user inputs.

The most recent version is now accessible, but customers must sign up for a waitlist.

GPT-4 is already being gradually integrated into a number of third-party applications, including Microsoft’s future AI-powered Bing.

Microsoft issued a statement on Tuesday expressing its delight over the upgraded edition.

“We are happy to confirm that the new Bing is running on GPT-4, which we’ve customized for search,” the company wrote.

“If you’ve used the new Bing preview at any time in the last five weeks, you’ve already experienced an early version of this powerful model.”

Read also: ChatGPT makes waves in real estate industry


Users have been delighted with OpenAI’s ChatGPT technology since its introduction in November 2022.

ChatGPT has been praised for its capacity to generate unique stories, essays, and song lyrics depending on user input.

Despite its innovative nature, ChatGPT has prompted certain concerns.

AI chatbots in general have been criticized in recent weeks for the following reasons:

  • Being emotionally reactive
  • Making factual errors
  • Engaging in outright “hallucinations”

Hallucinations, according to AI specialists, occur when AI systems provide a constructed result that appears convincing but has no real-world basis for its answer.

Microsoft and Google have notably been criticized for their AI products generating hallucinations.


Although GPT-4 has been improved, the upgraded technology still has the same restrictions as prior GPT versions.

On Tuesday, OpenAI CEO Sam Altman revealed the upgrade via a series of tweets.

“It is more creative than previous models, it hallucinates significantly less, and it is less biased,” Altman started.

“It can pass a bar exam and score a 5 on several AP exams. There is a version with a 32k token context.”

“We are previewing visual input for GPT-4; we will need some time to mitigate the safety challenges.”

“We now support a “system” message in the API that allows developers (and soon ChatGPT users) to have significant customization of behavior,” he continued.

“If you want an AI that always answers you in the style of Shakespeare or in json [SIC], now you can have that.”

“We are open-sourcing OpenAI Evals, our framework for automated evaluation of AI model performance, to allow anyone to help improve our models.”

“We have had the initial training of GPT-4 done for quite a while, but it’s taken us a long time and a lot of work to feel ready to release it.”

Third-party business

The GPT-4 announcement comes just two weeks after OpenAI revealed that third-party firms now had access to ChatGPT tools.

The decision allows the chatbot to be linked into a variety of apps and services, including:

  • Instacart
  • Snap
  • Tutor app Quizlet

Microsoft announced a multibillion-dollar investment in OpenAI in January.

Since then, the technology has been integrated into the company’s products, most notably the search engine Bing.

Image source: BBC

Severance deals won’t be as strongly enforced by NLRB

Severance Parting ways with an employee, whether by mutual accord or not, is never painless.

Severance money is frequently given to sacked workers regardless of how the decision was reached.

It is a critical strategy for reducing the consequences of an involuntary termination.

When an employee signs a release for severance, it is also utilized to avert future claims.

The National Labor Relations Board recently announced a judgment prohibiting companies from compelling dismissed employees to sign contracts.

According to the ruling, they must sign non-disparagement and secrecy agreements in exchange for the severance benefits.

The news

The National Labor Relations Board (NLRB) issued a rule to employers last week, noting that corporations may no longer prohibit laid-off employees from conveying information in two methods that violate employees’ rights.

Companies are not permitted to include a confidentiality clause requiring the laid-off employee to divulge the specifics of their severance agreement.

They also cannot add non-discrimination clauses that prevent them from publicizing their employment terms and conditions.

“A severance agreement is unlawful if it preludes an employee from assisting coworkers with workplace issues concerning their employer, and from communicating with others, including a union, and the Board, about his employment,” the board wrote.

Who does the change apply to?

Although the transition is significant, it does not influence all businesses in all industries.

Because the NLRB has power over them, the new laws apply to the vast majority of American private-sector businesses.

As a result, private-sector employers must follow the most recent rule.

It will also apply to employees of both union and non-union businesses.

Blank Rome LLP’s Andrew Herman responded to the judgment, saying:

“This board is signaling and reminding employers that the NLRB applies to employers regardless of whether workers are unionized.”

The exemption

While employers in the private sector in the United States must follow the NLRB’s decision, there are a few exceptions.

Federal, state, and municipal governments are not covered, nor are the following:

  • Public schools
  • Libraries
  • Parks
  • Railways
  • Airlines

Because the NLRB is in charge of implementing the National Labor Relations Act, some sorts of employees are unlikely to be affected.

Read also: Job cuts and hiring creates headache for US market

Those excluded from the Act include:

  • Supervisors and managers who are authorized to hire, fire, set pay, and discipline employees
  • Independent contractors
  • Agricultural workers
  • Domestic workers
  • People employed by a parent or spouse

Influence on past legislations

Andrew Herman emphasized that the ruling does not state whether it is retroactive, and thus the outcome is impossible to pinpoint accurately.

The NLRB verdict is retroactive, according to Michael Healey of Wagner, Falconer & Judd Ltd.

Yet, it is only pardoned if it causes an injustice or is unjust to the employer.

He believes it is unlikely to be retroactive since firms made severance agreements in past years in response to an NLRB judgment announced in 2020 that was overturned by the present verdict.

Some attorneys think that if an employee sues for an alleged labor breach involving a severance agreement signed or enforced within the preceding six months, the labor board will consider making it retroactive.

Generally, bringing such infractions to the board’s notice has a six-month deadline, equivalent to a statute of limitations.

The new severance agreement condition

The NLRB’s new rule raises an essential question: is it illegal for employers to encourage employees to keep silent about the firm in exchange for severance pay?

Despite the rule’s appearance, employers can add the requirement in specific circumstances.

Herman noted that companies might still persuade existing workers not to expose trade secrets or confidential information in order to safeguard company interests.

Employers might nevertheless request that workers relinquish their ability to make future claims or lawsuits against them.

Impact on future severance decision

Employers are not required by law to provide a severance agreement, which affects future severance decisions.

Yet, in order to retain goodwill with employees and the surrounding community, most firms continue to issue severance compensation, which may have a financial impact on the company’s workforce.

Employees offer severance pay to prevent being sued, suffering negative word-of-mouth assessments, discouraging new employees from applying, or having their secrets revealed.

Jon Hyman, a management-side lawyer who also leads the employment and labor practice at Wickens Herzer Panza, summarized his severance payout as follows:

“I’m doing it because I want to get something from the employee in return. I’m buying finality [in having to deal with that employee].”

He did, however, point out that the lack of the clause reduces an employer’s protection.

Employers, according to Hyman, can decide to pay a lower price for it.

“There’s a real risk to employees that the case will have a negative impact on the size of severance packages going forward,” Hyman elaborated.

Image source: The Crone Law Firm

The stock market gets a good start in October as the market rallies

Image source: Bankrate

A new month often brings new opportunities for businesses, and October started well with positive news for the stock market.

Despite growing concerns about the financial health of European banking giant Credit Suisse and weak economic data, the stock market rallied early in the fourth quarter.


The Dow jumped to 765 points (2.7%), with the biggest gain last seen in mid-July.

Meanwhile, the Nasdaq and the S&P 500 gained 2.3% and 2.6%, respectively.

The third quarter and stocks ended on the last Friday of September, with stocks reaching a low milestone.

However, all 30 Dow stocks but one closed higher on Monday, a sign of market volatility.

Johnson & Johnson (JNJ) was the only title that didn’t reach the same height as the others.

Investor concerns

Persistent inflation continues to worry investors amid aggressive rate hikes by the US Federal Reserve.

Many fear that attempts to rein in price increases could push the economy into recession.

During 2022, stocks fell dramatically.

The CNN Business Fear & Greed Index, CNN’s way of measuring stock market movements, continues to show extreme levels of fear.

However, Monday’s market rally could signal that perverse bad news is good news.

Meanwhile, fears of escalating tensions at Credit Suisse (CS) could prompt the Fed to ease aggressive rate hikes.

Bond market investors are relying on the stress.

Treasury bonds and inflation

Benchmark 10-year government bond yields have fallen in recent days.

Although it rose briefly above 4% last week, it fell to 3.66% on Monday.

Inflation also remains a problem.

However, if the Fed and other central banks are concerned that a troubled European bank could lead to another financial contagion, now is not the time to raise interest rates by an historic amount.

Last week, traders estimated there was a more than 70% chance that the Fed would raise interest rates by three-quarters of a percentage point for the fourth consecutive session at the November 2 stock market meetings.

Today, the probability of a rate hike of this magnitude has fallen to 50%, with the probability of a more modest hike increasing by half a point.

The latest US manufacturing data could also prompt the Fed to reconsider how it should raise interest rates.

Economic progress

The economic nonprofit, the Institute for Supply Management, reported that the influential manufacturing index fell in August.

The index also fell below Wall Street forecasts.

Both can be seen as a sign that Fed rate hikes to slow the economy and reduce inflation are having the desired effect.

Jim Baird, chief investment officer of Plante Moran Financial Advisors, released a report on Monday stating:

“The economy is slowing – a reality that is increasingly apparent in the manufacturing sector.”

“The good news is that there are welcome signs that prices are stabilizing.”

The price of oil and other stocks

A hike in oil prices on Monday stimulated energy supplies, but also brought bad news to consumers.

Chevron (CVX) was the highest share in the Dow, while the energy sector was the best in the S&P 500.

Oil stocks rose after reports suggested that the OPEC+ blockade on oil producers is considering a cut in production.

The cut should mitigate the recent steep drop in crude oil prices.

Investors will also be relieved that the British pound, which has recently fallen to record lows against the US dollar, has recovered after the new UK government abandoned plans to cut taxes on wealthier Brits.

However, a stronger pound could add to fears of higher bond yields and higher borrowing costs in the UK.

Meanwhile, Tesla (TSLA) was among the stocks that did not participate in Monday’s rally.

The company’s stock dropped nearly 9%, putting it among the worst performers in the S&P 500.

Disappointing delivery and production figures for the third quarter were also reported over the weekend.

In contrast, Tesla’s competitor, GM (GM), rebounded after posting positive sales in the third quarter.


Stocks kick off October with a huge rally

Entrepreneur Rashad Bailey Cites Racism as the Reason Behind His Chicago Restaurant Closing Down

Image source: YouTube

In the city of Chicago, a restaurant owner is in turmoil after the city decides to revoke his license amid a fight over his restaurant.

The source of the conflict? A debate if the place is a restaurant or a nightclub.

The restaurant

Rashad Bailey is an entrepreneur who finally realized his dream last year when he opened Dinner and a Movie in 2021.

Dinner and a Movie was based in Chicago’s Lincoln Park, where it advertised serving waffles, booze, movies and music.

According to Bailey, the facility hosts class reunions and birthday parties to celebrate Black love and gatherings.

The complaints

Although Dinner and a Movie sounds like one of the best places in town, it has been the subject of complaints from neighbors.

Those who live near the property have reported noise coming from the restaurant.

Since Dinner and a Movie opened its doors to customers, it has been the scene of several fights.

In June 2021, a shootout erupted after a brawl broke out. Fortunately, no one was hit.

Read also: Leaked Video Reveals Starbucks’ Plan to Close 16 Stores


In the last week of July, the Department of Business and Consumer Protection decided to revoke Dinner and a Movie’s business license.

The decision comes after months of dispute, during which the department said the restaurant operated more like a tavern.

It is also noted that Bailey has taken no action to address the noise complaints.

What Rashad Bailey had to say

Despite the number of people complaining about the noise and violence in the restaurant, founder Rashad Bailey said his business was targeted by police upon opening.

“This year, (during hearings with the city), I found out I had about 10 undercover officers in my restaurants within a week’s time of me opening with no incidents happening,” he revealed.

Bailey also said Chicago police harass his business and often show up unannounced in large numbers.

A month after the shooting by Dinner and a Movie, video showed police entering the facility.

However, the restaurant was closed during the incident.

Read also: Narrowing Down Ten of the Best Restaurants in Portland

Rashad Bailey revealed that the Chicago Commercial Department began investigating the restaurant shortly after it opened for selling alcohol beyond its license.

At the time, the ministry revoked Bailey’s restaurant privileges to serve lunch and operate after midnight.

Bailey also blamed the neighbors for closing Dinner and a Movie and accused them of making false complaints because of the large Black customer base.

“This is racism,” Bailey said.

“They’re putting crime and the problems of the city on me. They see Black music, Black people, and they think that’s the problem.”

Meanwhile, Yelp reviews on Dinner and a Movie claim that the restaurant only offers a small menu, conducts security checks at the entrance, and an additional fee for coverage.

Rashad Bailey threw his hands up in exhaustion and said that he was finished fighting town hall.

Bailey decided he will leave Chicago.

“Because Dinner and a Movie was Black,” he said. “The Black birthday is a problem and some days, we are.”

“I told someone else, there are people out here in Chicago that shoot people and reb people, and they are savages and should be locked up.”

“Because hardworking Black people, we don’t want to deal with that, and they group us together,” Bailey added. “I don’t want to deal with that.”


Chicago man says city shut down his business, Dinner and a Movie, because he’s Black

Chicago man believes city shut his business down because he’s Black

Tax credit rules for next year not entirely clear

Image source: PC Mag

Tax credit: Several electric vehicle models from General Motors and Tesla could qualify for tax incentives in 2023, which is just a few days away.

Some EVs weren’t qualified for tax credits worth $7,500 this year.

Although the change is positive, the eligibility can only be valid for a limited time.

The August Inflation Reduction Act’s restrictions are to blame for the continued eligibility.

This Monday, the Treasury Department announced that the Act’s limitations on newly generated tax credits would not take effect right away.

As a result, during the first few months of 2023, the rules will be temporarily more lenient and permit higher tax credits on more EVs.

The rules

The restrictions on the new tax credits have been delayed until at least March 2023, according to the US Treasury Department.

The new restrictions apply to both the manufacturing location of the battery and the places where its minerals were obtained.

It also announced proposed regulations that would carry out the requirements.

The law specifies that the tax credit reductions will begin as soon as the “proposed guidance” is issued.

Vehicles can be eligible for larger tax credits after three months have passed.

For instance, General Motors said that its electric vehicles will only be eligible for a $3,750 tax incentive if the full restrictions are in place.

For two to three years, the company’s automobiles won’t be qualified for the $7,500 tax credit.

Read also: Electric vehicles enjoy successful year


Despite the buying possibilities they would present in early 2023, the restrictions have the drawback of making the regulations unclear.

Chris Harto, a senior policy analyst at Consumer Reports, stated that he prefers more transparency over less.

“It seems like things just seem to get more confusing each time they say something,” said Harto.

To encourage manufacturers to produce their electric vehicles (and their parts) in the US or other countries with which they have trade relations, tax laws have been implemented in place.

Additionally, they ensure that wealthy Americans who purchase luxury vehicles do not receive tax credits.

Customers will surely profit from the most recent announcement because it temporarily boosts the amount of accessible tax credit money.


One of the many ambiguous parts of the Act is the tilted tax credit for early 2023.

According to updated EV tax credit standards, the Chevrolet Bolt EV and EUV are now qualified for tax credits for the next year.

They were previously ineligible despite the fact that they were built in North America.

The 200,000 electric vehicle sales cap for any firm under the previous tax credit limitations was exceeded by General Motors and Tesla.

The cap will be raised under the new regulations, which are a part of the Inflation Reduction Act.

Despite the adjustment, not all customers (or electric vehicles) will be qualified for credits.

For instance, in addition to the demand for North American output, there will be pricing restrictions.

The maximum sticker price for a car is $55,000, while the maximum price for an SUV is $80,000.

As a result, a majority of Tesla cars (including the Model X SUV, Model S sedan, and Model 3) won’t qualify for tax credits at their present prices.

Since it is produced in the US, the Mercedes EQS SUV now eligible for tax benefits would stop by 2023.

“It shuffles the deck as to who’s eligible, and then the deck will get shuffled again when this guidance comes out [in March],” said Chris Harto.

“And it makes a giant mess for consumers, and automakers, and dealers.”

Read also: Robots were influential to restaurants, but how far is the progress?


Buyers cannot flip because of the restrictions on tax credits.

This implies that the final user must be the one who buys the vehicle.

Individuals are not qualified for the tax credit if they purchase a car with the purpose of reselling it later.

Additionally, the buyer’s income is subject to limitations.

The highest “modified adjusted gross income” for purchasers is $150,000 for individuals, $300,000 for married couples filing jointly, or $225,000 for the head of household.

High-end electric vehicle buyers won’t be able to get tax credits because of the restrictions.

The best thing buyers can do, in the opinion of Andrew Koblenz, vice president of the National Automobile Dealers Association, is find out if the vehicle they are considering purchasing is eligible for the tax credit.

Because some models are made in multiple factories, similar-looking SUVs purchased from the same dealer might not be eligible for the same level of credit.

“It’s a great time to be shopping,” said Koblenz.

“It’s great that there will be more vehicles eligible now, but you’ve still got to make sure the one you’re interested in is eligible.”

“You need to ask your dealer and your manufacturer that question, and you’ve got to make sure that you qualify too.”


Tax credit confusion could create a rush for electric vehicles in early 2023

Several US Stocks Decline Again, Major Banks to Kick Off Earnings Season

Several American stocks decreased on Monday as the Dow Jones share decreased by 0.5%, the S&P 500 1.2%, and the Nasdaq Composite 2.3%. A day later, the shares finished lower, prompting investors to prepare for the most significant inflation in four decades.

Market leader

The inflation report threw a shadow on the economic calendar. As a result, investors are currently hesitating to open new positions, even if the White House rejected the report and explained that it was obsolete.

“The overarching driver of trade today is the CPI report tomorrow and investors’ reluctance to get out directionally one way or the other in advance of it,” said Janney Montgomery Scott chief investment March Luschini. 

Operators also remain wary of corporate earnings prospects amid signs of slowing global economic growth. However, the drop in commodity prices has given hope that the Federal Reserve will cut interest rates again next year.

“There’s been some talk of peak inflation in the US due – among other reasons – to a fall in some agriculture food prices,” said City Index financial markets analyst Fawad Razaqzada. “After all, it was the soaring prices of wheat, corn, and other soft commodities, as well as energy, that have boosted inflation so much over the past year or so.”

“With these prices coming down a little, this is clearly some good news – and some light at the end of the tunnel,” Razaqzada added.

Despite his optimism, Fawad Razaqzada believes the decline in commodity prices won’t be reflected in the June consumer price index. “So, just like May, there is a risk that inflation could overshoot again. If so, this will likely trigger fresh gains for the dollar.”

Investors have expressed concern about the currency’s impact on corporate earnings as the dollar’s value skyrockets.

“Investors are thinking about what it means in terms of tightening financial conditions,” said Luschini. “Plus the fact that it will work to be counterproductive to earnings.”

The dollar rose higher than its major rivals, but pulled back from a two-decade high for the ICE US Dollar DXY Index on Tuesday after the EURUSD approached parity with the US currency for the first time in over 20 years.

Major banks kick off the earnings season

According to FactSet, analysts expect an average 4.3% increase for companies in the S&P 500, the weakest since late 2020. Analysts predicted 5.9% growth in April, but the difference reflects growing concerns that inflation and rising borrowing costs imposed by central banks are pushing down profit margins.

Turning to economic data, the National Federation of Independent Business said Tuesday that the small business optimism index took a hit, last seen in the early months of the 2020 pandemic, showing that the index has collapsed in five of the past six months.

A survey found that 34% of respondents cite inflation as their top concern, indicating that inflation continues to hurt small businesses.

Meanwhile, the US 10-year yield BX: TMUBMUSD10Y fell 2.958% as traders sought security from public debt. However, the rally in Treasuries caused the spread between 2-year and 10-year bonds to narrow to -8.5 basis points, the deepest inversion since early 2007.

Diane Hendricks’ Journey to Becoming the Richest Self-Made Woman in America

Stories of people building success from nothing are rare in real life, but Diane Hendricks is one of the extraordinary figures that stems directly from fiction.

In early June, Diane Hendricks continued her five-year streak from the top of Forbes’ list of America’s richest self-made women as president of ABC Supply, a construction materials company she developed alongside her late husband in 1982.

Here we shed some light on how she has built such a successful career.

Growing up

While other people grew up on the legacy of their political, business or celebrity parents, Hendricks’ success stems from her work ethic and determination to survive.

Growing up on a dairy farm in Wisconsin, she helped develop a work ethic that ultimately paid off when she and her late husband built their business empire in 1982. During her childhood, Diane Hendricks was exposed 24/7 to her parents’ farm work, which gave her a sense of discipline.

At the age of 17, she became pregnant and completed senior year while she lived at home. Four years later, Hendricks filed for divorce from her high school sweetheart.

While most single parents take on a variety of jobs, Hendricks focused on success in a single career by taking on various odd office jobs.

Finally, she pursued a real estate license. 

“Motherhood got in the way real quick and I grew up real fast,” she revealed.

“It didn’t stop me from wanting to reach my dream. In fact, I think I became more focused on what I wanted to achieve.”

Diane Hendricks shed some light on her dream, sharing that she hopes to move to the office in costume in the city.

ABC Supply

Life took her in a different direction when she met roofer Ken Hendricks in the 1970s, and the two were eventually married.

As a couple, they combined their talents to found ABC Supply in Beloit, Wisconsin. Diane and Ken’s partnership proved fruitful when the company opened 100 locations in 1994, but their success only increased when it hit $1 billion in annual sales four years later.

Managing the company

Ken Hendricks passed away in 2007, and Diane Hendricks leads ABC Supply to date.

Under her leadership, the company expanded to over 840 locations and became the 23rd largest privately held company in the United States.

ABC Supply’s website also revealed that it acquired the businesses of 18 other companies in half a decade, proving to be an industrial behemoth with its market dominance.


Although successful in her endeavors, Hendricks endured a myriad of controversies. The first came in 2016 when she topped the Forbes list.

The Milwaukee Journal Sentinel accused her of not paying a penny in income tax between 2012 and 2014. However, it was also reported that she no longer owed any state taxes in 2010.

However, ABC Supply’s tax manager, Scott Bianchi, made it clear that the company changed its tax classification from C-corp to S-corp during those years.

Wisconsin state law states corporations can apply for federal S-Corps and state-level C-Corps, allowing ABC Supply to elect out-of-state tax option status, including checks made by the company to Hendricks only if all federal taxes are paid at the stop. 


Diane Hendricks continues to operate out of Beloit, with a population of less than 37,000.

Forbes reports that she has spent millions on local projects, rebuilding abandoned properties and bringing new businesses to the state.

Five years ago, Hendricks also founded a local career center that runs workshops and teaches students skills like coding and building. Her goal with the program was to introduce teenagers to “the value of the job.”