![]() ![]() The Securities and Exchange Commission (SEC) also filed a complaint against Bankman-Fried on Dec. “The Bahamas and the United States have a shared interest in holding accountable all individuals associated with FTX who may have betrayed the public trust and broken the law,” Bahamian Prime Minister Philip Davis said in a statement.īankman-Fried likely faces charges of wire fraud, securities fraud, securities fraud conspiracy and money laundering. Attorney for the Southern District of New York (SDNY) shared its indictment with the Bahamian government. 12 by Bahamas law enforcement after the U.S. SBF, as he’s commonly referred to in the crypto world, was arrested on Dec. ![]() The latest seismic disruption brought down FTX, which used to be the fourth largest crypto exchange in the world, and its ex-CEO Sam Bankman-Fried. ![]() Not only would it spark "a financial crisis and economic recession," she testified to Congress on Tuesday, but she also said she couldn't "think of anything more harmful to the role of the dollar." She also said the government is set to run out of money by October 18.Crypto investors have endured more than their fair share of sudden market meltdowns this year thanks to shocking revelations about poorly managed crypto projects. The White House has warned about potential cuts for programs at the state and local level, such as Medicaid, while Treasury Secretary Janet Yellen has repeatedly stressed the " economic catastrophe" that would ensue. A default on existing US debt would send financial markets into chaos, and government payments ranging from Social Security checks to military paychecks could abruptly halt. Reaching a point where the US government is no longer able to meet its obligations would likely be a financial and economic calamity. And Treasury Secretary Janet Yellen warned on Tuesday that there's a specific deadline: The US is set to run out of money on October 18, barring a resolution to the debt ceiling fiasco. While the treasury secretary has a bit of leeway to use "extraordinary measures" to keep paying the bills for a few months using cash on hand and shuffling money around, that only works for so long. This causes a problem once the department hits that debt limit, as it did at the end of July. ![]() The gap between congressionally mandated spending and congressionally mandated revenues then needs to be paid for by borrowing money.īut the debt limit requires yet another act of Congress to authorize the Treasury Department to actually borrow the money needed to pay for the spending lawmakers already authorized. The debt ceiling sets up a frustrating conundrum: Congress can pass budgets that direct the government to spend a fixed amount of money across its departments and programs, and it sets tax rates at particular levels to fund some of it. "There were all kinds of wacky ideas about how potentially you could have this massive coin." The huge conundrum with a coin-size solution "We were having these conversations with Jack Lew and others about what options in fact were available, because it had never happened before," Obama said, referring to the treasury secretary at the time. There's no clear path out for lawmakers as they confront a barrage of deadlines this month, including another spending brawl that could end in a government shutdown.įormer President Barack Obama said in a 2017 interview with Crooked Media that senior officials had considered minting a coin to stave off a potentially catastrophic default. The Biden administration and Democrats are pressuring Republicans to back down, ruling out raising the debt limit on their own and reminding the GOP that it played a role in racking up $8 trillion in new debt under the Trump administration. The debt ceiling places a fixed limit on the total amount of money the Treasury Department can borrow in order to fund government activities, and Congress has to vote to either raise or suspend that limit from time to time as the federal debt grows ever larger. A loophole in the law that prescribes the types of coins that can legally be minted in the US theoretically allows the Treasury Department to mint a $1 trillion platinum coin, deposit it at the Federal Reserve, and then continue paying its bills as normal. After saying for weeks that the Republicans wouldn't join Democrats in a vote to raise the ceiling, the entire Senate GOP caucus voted down a Democratic measure on Tuesday to raise it and avert a shutdown, moving the country closer to a potential crisis.īut the conundrum could have a coin-size solution. Senate Minority Leader Mitch McConnell has firmly dug in on the GOP refusing to help renew the US's ability to pay off its bills, known as the debt ceiling. It often indicates a user profile.Ī new fight over the debt ceiling is brewing on Capitol Hill. Account icon An icon in the shape of a person's head and shoulders. ![]()
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