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A Collision Between Trump, House Dems Is Inevitable

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WASHINGTON -- The report from special counsel Robert Mueller provides a devastating portrait of President Trump's behavior that may invite the beginning of an impeachment inquiry and a constitutional confrontation. A collision of some kind between the president (along with his attorney general) and Democrats who control the House of Representatives is now inevitable.

The report's bottom line is easily lost in the details about Trump himself: that the United States has a president whom Russia actively intervened in our politics to elect. The Russian-controlled Internet Research Agency, Mueller's report concluded, created "a targeted operation that by early 2016 favored candidate Trump and disparaged candidate [Hillary] Clinton."

Mueller also clearly did not in any way encourage Attorney General William Barr to end further inquiry into whether the president obstructed justice. On the contrary, Mueller went out of his way to tell Congress that it has every right to decide that issue itself. "Congress has authority to prohibit a President's corrupt use of his authority in order to protect the integrity of the administration of justice," he wrote.

Mueller also noted: "The conclusion that Congress may apply the obstruction laws to the President's corrupt exercise of the powers of office accords with our constitutional system of checks and balances and the principle that no person is above the law."

The report will only embolden House Democrats who are already investigating the president and may increase pressure to launch formal impeachment inquiries, even though Democratic leaders have been reluctant to move in that direction.

Barr's behavior has been truly shameful. From the moment he issued his letter on March 24 suggesting that the final Mueller document would clear the president -- now we know it has done quite the opposite -- Barr has behaved less like an attorney general than as a defense lawyer doubling as the president's spokesman.

Hours after the report was released, Rep. Jerrold Nadler, D-N.Y., chairman of the House Judiciary Committee, said that "Attorney General Barr appears to have shown an unsettling willingness to undermine his own [Justice] Department in order to protect President Trump" and that Barr had been "disingenuous and misleading." Barr's behavior continued until the last moment before the report was made public. At a wholly unnecessary news conference that ended roughly an hour before the document was released, Barr spoke as though Mueller had resolved the entire matter in Trump's favor and repeated the president's battle cry, "no collusion," four times.

But Mueller -- perhaps anticipating the importance of the word "collusion" in Trump's propaganda -- was explicit in saying that "collusion is not a specific offense or theory of liability found in the United States Code, nor is it a term of art in federal criminal law."

In fact, Mueller detailed many conversations and ties between the Trump circle and Russia. "In sum," he wrote, "the investigation established multiple links between Trump Campaign officials and individuals tied to the Russian government. Those links included Russian offers of assistance to the Campaign. In some instances, the Campaign was receptive to the offer, while in other instances the Campaign officials shied away."

Then came the one line in the report that Trump unambiguously liked and on which he wants to hang his entire argument: "Ultimately, the investigation did not establish that the Campaign coordinated or conspired with the Russian government in its election-interference activities." But given the sentences that came before, it's clear that not "establishing" conspiracy is not the same as having found no evidence of cooperation.

Here again, Mueller's caution about leveling charges against the president still leaves Congress -- particularly the House Intelligence Committee -- with ample room to probe the "multiple links" with Russia that Mueller documented.

Oddly, Trump may have been protected from even more damaging conclusions about obstruction by staff members who refused to do what he asked. "The President's efforts to influence the investigation were mostly unsuccessful," the report found, "but that is largely because the persons who surrounded the President declined to carry out orders or accede to his requests." Whatever this is, it is not exoneration of Trump.

The Mueller report paints a broad picture of an administration that systematically lied to just about everybody, including the public and the media. It describes a president prepared to do whatever was necessary to close down inquiries into his behavior and Russian ties. And it noted that "some of the individuals we interviewed or whose conduct we investigated -- including some associated with the Trump Campaign -- deleted relevant communications or communicated during the relevant period using applications that feature encryption."

Mueller's findings do not end Trump's troubles. On the contrary, he is now in greater jeopardy because we know even more about what he did. Congress must take all the further steps required to ensure accountability.

(c) 2019, Washington Post Writers Group

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New Allegations Surface About Stormy Daniels: News By TTN

New Allegations Surface About Stormy Daniels 05/14/2018 Original Source: TTN Photo by Glenn Francis of www.PacificProDigital.com, via Wikimedia Commons On Monday new reports have surfaced painting a different picture of Stormy Daniels than the one her and her lawyer, Michael Avenatti, want the public to know. According to the Daily Wire: On Monday, a newly released report from The […]

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Woman says man told her to kill fiancee before fatal beating

Investigators say a Colorado man beat his fiancee to death with a baseball bat after failing to convince a woman he was having an affair with to commit the killing.

The grim details revealed in a Colorado courtroom Tuesday provided the first public account of what led prosecutors to charge Patrick Frazee with murder and other charges in the death of Kelsey Berreth.

Berreth was a 29-year-old flight instructor who had a 1-year-old daughter with Frazee.

She was last seen on Nov. 22 near her home in a mountain town near Colorado Springs, south of Denver. Her body has not been found.

Frazee has not entered a plea to any of the allegations. A judge ruled Tuesday that the 32-year-old will remain in jail without bond before his trial.

Source: Fox News National

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The Latest: Church fire suspect’s father is sheriff’s deputy

The Latest on fires at black churches in Louisiana. (all times local):

10:30 a.m.

St. Landry Parish Sheriff Bobby Guidroz says the father of the suspect arrested in the fires at three black Louisiana churches is a sheriff's deputy in his department.

Matthew Holden, a 21-year-old white man, has been arrested in the fires and faces three counts of simple arson of a religious building.

At a news conference, Sheriff Guidroz disputed reports that Matthews' father turned his son in. Guidroz also said the suspect's father knew nothing of his son's involvement in the fires.

The first fire torched the St. Mary Baptist Church in Port Barre last month. Days later, the Greater Union Baptist Church and Mount Pleasant Baptist Church in Opelousas were burned. Each was more than 100 years old, with mostly black congregations.

The churches were empty at the time of the fires, and no one was injured.

___

10:15 a.m.

Authorities say they're investigating hate as a motive in the fires at three black churches in southern Louisiana.

The suspect has been identified as Holden Matthews, a 21-year-old white man.

At a Thursday news conference, State Fire Marshal Butch Browning said the threat to the community "is gone now." He also called the fires "an attack on our God and our religion."

The first fire torched the St. Mary Baptist Church in Port Barre last month. Days later, the Greater Union Baptist Church and Mount Pleasant Baptist Church in Opelousas were burned. Each was more than 100 years old, with mostly black congregations.

The churches were empty at the time of the fires, and no one was injured.

___

10:05 a.m.

The suspect arrested in a string of fires at historically black churches in southern Louisiana has been identified as a 21-year-old white man.

According to a news release, Holden Matthews faces three counts of simple arson of a religious building.

At a news conference, Louisiana Gov. John Bel Edwards said "these were evil acts."

The first fire torched the St. Mary Baptist Church in Port Barre last month. Days later, the Greater Union Baptist Church and Mount Pleasant Baptist Church in Opelousas were burned. Each was more than 100 years old, with mostly black congregations.

The churches were empty at the time of the fires, and no one was injured.

___

5:25 a.m.

U.S. Attorney David C. Joseph says authorities have arrested a person in connection with suspicious fires at three historic black churches in Louisiana.

Joseph announced late Wednesday that the suspect is in state custody, and said federal agents stand shoulder to shoulder with the victims of "these despicable acts." A Thursday press conference at the St. Landry Parish Sheriff's Office is planned.

The first fire torched the St. Mary Baptist Church in Port Barre last month. Days later, the Greater Union Baptist Church and Mount Pleasant Baptist Church in Opelousas were burned. Each was more than 100 years old, with mostly black congregations.

The churches were empty at the time of the fires, and no one was injured. Fire Marshal H. "Butch" Browning said all three were suspicious.

Source: Fox News National

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Turkey slams EU for attending summit hosted by Egypt

Turkish President Recep Tayyip Erdogan has condemned European Union leaders for attending a meeting hosted by Egyptian President Abdel-Fattah el-Sissi, days after the country executed nine suspected Muslim Brotherhood members.

Erdogan questioned "Can you speak of human rights" in the EU when the bloc's leaders agreed to be hosted by el-Sisi.

He was referring to a summit between EU and Arab League leaders held in Sharm el-Sheikh this week.

The nine were convicted of involvement in the 2015 assassination of the country's top prosecutor.

Ties between Egypt and Turkey have been tense since the 2013 ouster of Islamist president Mohamed Morsi. Egypt accuses Turkey of becoming a refuge for Muslim Brotherhood members who fled Egypt.

Source: Fox News World

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5 inmates escape N. Carolina jail, 4 taken into custody

Four of the five inmates who escaped from the Nash County Detention center in North Carolina were in custody Tuesday morning.

Sheriff Keith Stone said the inmates forced through a whole in a fence in the exercise yard at 3:30 p.m. on Monday and escaped, according to WRAL-TV . The inmates were being monitored by a camera in the yard and Stone said it was possible that they knew they were in a camera's blind spot.

The inmates are identified as David Marshal Viverette, 28, David Ruffin Jr., 30, Keonte Daemoan Murphy, 23, Raheem D-Carlos Horne, 26, and Laquaris Rashad Battle, 23, who remained at large Tuesday morning.

Viverette and Horne made it to Hal Orr's Inn in Rocky Mount, 15 miles (24 kilometers) away from the Nashville jail. A tip led authorities to the motel, Stone said. Both men were taken into custody on Monday night. It was not immediately known how Ruffin and Murphy were apprehended.

The men's charges range from possession of a stolen vehicle to assault by strangulation and drug possession.

Stone said the FBI and other area law enforcement departments have assisted in the search. He urged residents to lock their homes and cars while the hunt continues.

Source: Fox News National

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Iran bans Boeing 737 Max planes from its airspace

Iran says it has banned from its airspace Boeing 737 Max 8 planes alongside other nations.

A statement released Friday by the transportation ministry announced the ban.

The decision comes following two fatal crashes involving the model in the past year.

A Boeing Max plane owned by the Ethiopian Airliner crashed last week and killed all 157 people aboard. A previous crash involving the model killed 189 people in Indonesia five months before.

Iran itself has no Boeing 737 Max 8 planes due to decades-long U.S. sanctions on the country.

Source: Fox News World

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Maria Butina, the Russian woman who was accused of being a secret agent for the Russian government, was sentenced to 18 months in prison Friday by a federal judge in Washington after pleading guilty last year to a conspiracy charge.

Butina, who has already served nine months behind bars, will get credit for time served and can possibly get credit for good behavior, the judge said. She will be removed from the U.S. promptly on completion of her time, the judge added, and returned to Russia.

MARIA BUTINA, ACCUSED RUSSIAN SPY, PLEADS GUILTY TO CONSPIRACY

An emotional and apologetic Butina said in court Friday she is “truly sorry” and regrets not registering as a foreign agent.

“I feel ashamed and embarrassed,” she said, adding that her “reputation is ruined.”

Butina has been jailed since her arrest in July 2018. She entered the court Friday wearing a dark green prison jumpsuit and spoke in clear English, with a slight Russian accent.

“Please accept my apologies,” Butina said.

Butina’s lawyer, Robert Driscoll, said after the sentencing they had hoped for a “better outcome,” but expressed a desire for Butina to be released to her family by the fall.

Prosecutors had claimed Butina used her contacts with the National Rifle Association and the National Prayer Breakfast to develop relationships with U.S. politicians and gather information for Russia.

Prosecutors also have said that Butina’s boyfriend, conservative political operative Paul Erickson, identified in court papers as “U.S. Person 1,” helped her establish ties with the NRA.

WHO IS MARIA BUTINA, THE RUSSIAN WOMAN ACCUSED OF SPYING ON US?

In their filings, prosecutors claim federal agents found Butina had contact information for people suspected of being employed by Russia’s Federal Security Services, or FSB, the successor intelligence agency to the KGB. Inside her home, they found notes referring to a potential job offer from the FSB, according to the documents.

Investigators recovered several emails and Twitter direct message conversations in which Butina referred to the need to keep her work secret and, in one instance, said it should be “incognito.” Prosecutors said Butina had contact with Russian intelligence officials and that the FBI photographed her dining with a diplomat suspected of being a Russian intelligence agent.

Fox News’ Jason Donner, Bill Mears, Greg Norman and the Associated Press contributed to this report.

Source: Fox News Politics

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FILE PHOTO: Sri Lankan Special Task Force soldiers stand guard in front of a mosque as a Muslim man walks past him during the Friday prayers at a mosque, days after a string of suicide bomb attacks on Easter Sunday, in Colombo
FILE PHOTO: Sri Lankan Special Task Force soldiers stand guard in front of a mosque as a Muslim man walks past him during the Friday prayers at a mosque, five days after a string of suicide bomb attacks on Catholic churches and luxury hotels across the island on Easter Sunday, in Colombo, Sri Lanka April 26, 2019. REUTERS/Dinuka Liyanawatte/File Photo

April 26, 2019

By Tom Lasseter and Shri Navaratnam

KATTANKUDY, Sri Lanka (Reuters) – Mohamed Hashim Mohamed Zahran was 12 years old when he began his studies at the Jamiathul Falah Arabic College. He was a nobody, with no claim to scholarship other than ambition.

Zahran and his four brothers and sisters squeezed into a two-room house with their parents in a small seaside town in eastern Sri Lanka; their father was a poor man who sold packets of food on the street and had a reputation for being a petty thief.

“His father didn’t do much,” recalled the school’s vice principal, S.M. Aliyar, laughing out loud.

The boy surprised the school with his sharp mind. For three years, Zahran practiced memorizing the Koran. Next came his studies in Islamic law. But the more he learned, the more Zahran argued that his teachers were too liberal in their reading of the holy book.

“He was against our teaching and the way we interpreted the Koran – he wanted his radical Islam,” said Aliyar. “So we kicked him out.”

Aliyar, now 73 with a long white beard, remembers the day Zahran left in 2005. “His father came and asked, ‘Where can he go?’.”

The school would hear again of Mohamed Zahran. And the world now knows his name. The Sri Lankan government has identified him as the ringleader of a group that carried out a series of Easter Sunday suicide bombings in the country on April 21.

The blasts killed more than 250 people in churches and luxury hotels, one of the deadliest-ever such attacks in South Asia. There were nine suicide bombers who blew apart men, women and children as they sat to pray or ate breakfast.

Most of the attackers were well-educated and from wealthy families, with some having been abroad to study, according to Sri Lankan officials.

That description does not, however, fit their alleged leader, a man said to be in his early 30s, who authorities say died in the slaughter. Zahran was different.

INTELLIGENCE FAILINGS

Sri Lanka’s national leadership has come under heavy criticism for failing to heed warnings from Indian intelligence services – at least three in April alone – that an attack was pending. But Zahran’s path from provincial troublemaker to alleged jihadist mastermind was marked by years of missed or ignored signals that the man with a thick beard and paunch was dangerous.

His increasingly militant brand of Islam was allowed to grow inside a marginalized minority community – barely 10 percent of the country’s roughly 20 million people are Muslim – against a backdrop of a dysfunctional developing nation.

The top official at the nation’s defense ministry resigned on Thursday, saying that some institutions under his charge had failed.

For much of his adult life, Zahran, 33, courted controversy inside the Muslim community itself.

In the internet age, that problem did not stay local. Zahran released online videos calling for jihad and threatening bloodshed.

After the blasts, Islamic State claimed credit and posted a video of Zahran, clutching an assault rifle, standing before the group’s black flag and pledging allegiance to its leader.

The precise relationship between Zahran and Islamic State is not yet known. An official with India’s security services, who spoke on condition of anonymity, said that during a raid on a suspected Islamic State cell by the National Investigation Agency earlier this year officers found copies of Zahran’s videos. The operation was in the state of Tamil Nadu, just across a thin strait of ocean from Sri Lanka.

“LIKE A SPOILED CHILD”

Back in 2005, Zahran was looking to make his way in the world. His hometown of Kattankudy is some seven hours’ drive from Colombo on the other side of the island nation, past the countless palm trees, roadside Buddha statues, cashew hawkers and an occasional lumbering elephant in the bush. It is a town of about 40,000 people, a dot on the eastern coast with no clear future for an impoverished young man who’d just been expelled.

Zahran joined a mosque in 2006, the Dharul Athar, and gained a place on its management committee. But within three years they’d had a falling out.

“He wanted to speak more independently, without taking advice from elders,” said the mosque’s imam, or spiritual leader, M.T.M. Fawaz.

Also, the young man was more conservative, Fawaz said, objecting, for instance, to women wearing bangles or earrings.

“The rest of us come together as community leaders but Zahran wanted to speak for himself,” said Fawaz, a man with broad shoulders lounging with a group of friends in a back office of the mosque after evening prayers. “He was a black sheep who broke free.”

Mohamed Yusuf Mohamed Thaufeek, a friend who met Zahran at school and later became an adherent of his, said the problems revolved around Zahran’s habit of misquoting Islamic scriptures.

The mosque’s committee banned him from preaching for three months in 2009. Zahran stormed off.

“We treated him like a spoiled child, a very narrow-minded person who was always causing some trouble,” said the head of the committee, Mohamed Ismail Mohamed Naushad, a timber supplier who shook his head at the memory.

Now on his own, Zahran began to collect a group of followers who met in what Fawaz described as “a hut”.

At about that time, Zahran, then 23, married a young girl from a small town outside the capital of Colombo and brought his bride back to Kattankudy, according to his sister, Mathaniya.

“I didn’t have much of a connection with her – she was 14,” she said.

Despite being “a bit rough-edged”, Zahran was a skilled speaker and others his age were drawn to his speeches and Koranic lessons, said Thaufeek. He traveled the countryside at times, giving his version of religious instruction as he went.

Also, Zahran had found a popular target: the town’s Sufi population, who practice a form of Islam often described a mystical, but which to conservatives is heresy.

Tensions in the area went back some years. In 2004, there was a grenade attack on a Sufi mosque and in 2006 several homes of Sufis were set afire. Announcements boomed from surrounding mosques at the time calling for a Sufi spiritual leader to be killed, said Sahlan Khalil Rahman, secretary of a trust that oversees a group of Sufi mosques.

He blamed followers of the fundamentalist Wahhabi strain of Islam that some locals say became more popular after funding from Saudi Arabia, the birthplace of Wahhabism, flowed to mosques in Kattankudy.

It was, Rahman said, an effort “to convert Sufis into Wahhabis through this terrorism”. Rahman handed over a photograph album showing charred homes, bullet holes sprayed across an office wall and a shrine’s casket upended.

ONLINE RADICAL

It was an ideal backdrop for Zahran’s bellicose delivery and apparent sense of religious destiny.

He began holding rallies, bellowing insults through loudspeakers that reverberated inside the Sufis’ house of worship as they tried to pray.

In 2012, Zahran started a mosque of his own. The Sufis were alarmed and, Rahman said, passed on complaints to both local law enforcement and eventually national government offices. No action was taken.

The then-officer in charge of Kattankudy police, Ariyabandhu Wedagedara, said in a telephone interview that he couldn’t arrest people simply because of theological differences.

     “The problem at the time was between followers of different Islamic sects – Zahran was not a major troublemaker, but he and followers of other sects, including the Sufis, were at loggerheads,” Wedagedara said.

Zahran found another megaphone: the internet. His Facebook page was taken down after the bombings, but Muslims in the area said his video clips had previously achieved notoriety.

His speeches went from denouncing Sufis to “kafirs”, or non-believers, in general. Zahran’s sister, Mathaniya, said in an interview that she thought “his ideas became more radical from listening to Islamic State views on the Internet”.

In one undated video, Zahran, in a white tunic and standing in front of an image of flames, boomed in a loud voice: “You will not have time to pick up the remains of blown-up bodies. We’ll keep sending those insulting Allah to hell.”

“HARD TO TAKE”

Zahran spoke in Tamil, making his words available to young Muslims clicking on their cellphones in Kattankudy and other towns like it during a period when, in both 2014 and 2018, reports and images spread of Sinhalese Buddhists rioting against Muslims in Sri Lanka.

In 2017, Zahran’s confrontations boiled over. At a rally near a Sufi community, his followers came wielding swords. At least one man was hacked and hospitalized. The police arrested several people connected to Zahran, including his father and one of his brothers. Zahran slipped away from public view.

That December, the mosque Zahran founded released a public notice disowning him. Thaufeek, his friend from school, is now the head. He counted the places that Zahran had been driven away from – his school, the Dharul Athar mosque and then, “we ourselves kicked him out, which would have been hard for him to take”.

The next year, a group of Buddha statues was vandalized in the town of Mawanella, about five hours drive from Kattankudy. There, in the lush mountains of Sri Lanka’s interior, Zahran had taken up temporary residence.

“He was preaching to kill people,” said A.G.M. Anees, who has served as an imam at a small mosque in the area for a decade. “This is not Islam, this is violence.”

Zahran went into hiding once more.

On the Thursday morning before the Easter Sunday bombings, Zahran’s sister-in-law knocked on the door of a neighbor who did seamstress work near Kattankudy. She handed over a parcel of fabric and asked for it to be sewn into a tunic by the end of the day.

“She said she was going on a family trip,” said the neighbor, M.H. Sithi Nazlya.

Zahran’s sister says that her parents turned off their cellphones on the Friday. On Sunday, when she visited their home, they were gone.

She does not know if Zahran arranged for them to be taken somewhere safe. Or why he would have carried out the bombing.

But now in Kattankudy, and in many other places, people are talking about Mohamed Hashim Mohamed Zahran.

(Reporting by Tom Lasseter and Shri Navaratnam; Additional reporting by Sanjeev Miglani, Shihar Aneez and Alasdair Pal; Editing by John Chalmers and Alex Richardson)

Source: OANN

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Joe Biden may have just stepped into the 2020 ring, but he’s wasted no time in throwing punches at President Trump.

Former Vice President Biden appeared on “The View” Friday in his first interview since officially announcing he is running for the White House on Thursday.

After batting away a softball opening question from host Joy Behar about why he took so long to enter the race, the ex-VP delivered what is likely to be his campaign’s major message.

Asked about the comment in his announcement that a battle is underway for “the soul of this nation,” Biden replied: “What I mean by that is we are not — this is not who we are the way we’re treating people. It’s not who we are as a nation when we’re talking about things like the reason for your problem is the other.

JOE BIDEN’S SENIOR ADVISER IN 2016: ‘WE DON’T NEED WHITE PEOPLE LEADING THE DEMOCRATIC PARTY RIGHT NOW’

“It really is what I said and I really mean it and I wrote an article at the time in “The Atlantic” magazine when Charlottesville happened. This is not who we are. It’s about decency, honor, including everyone. The idea to compare these racists and not condemn them. Neo-Nazis — I don’t ever remember that happening in an administration in well over 100 years.

“I found myself thinking — by the way I travel around the world a lot as vice president and since then I have as well. The rest of the world — I mean, they look at us like my god — what happened to America?”

Behar then asked Biden how he plans to win over “blue-collar voters, a group that Trump won.”

“By making the case that we have to restore dignity to work. Think about this. The way we treat ordinary hard-working Americans who are middle class and working class people fighting to get in the middle class is we treat them like they’re a means to an end as opposed to an ends to themselves,” Biden said.

TRUMP ASSESSES 2020 DEMS; TAKES SWIPES AT BIDEN, SANDERS; DISMISSES HARRIS, O’ROURKE; SAYS HE’S ROOTING FOR BUTTIGIEG

“Go out. When’s the last time we went out and thanked the guy who kept the sewer from overflowing into your basement. What about the woman up on a bucket reconnecting a connection?

“Think about what we don’t do guys. It’s all been about dividing. There’s a real opportunity, incredible opportunity if we just treat each other with more decency.

“My dad had an expression. He said, ‘Joey, a job is about more than a paycheck. It’s about your dignity, it’s about your place in the community, it’s about your place in society and your self-worth. It’s about being able to look your kid in the eye and say it’s going to be okay and mean it.’

“Think about how many people can’t do that today. This president has done nothing to help that group.”

BIDEN VOWS THAT ‘AMERICA IS COMING BACK,’ SPARKING ‘MAGA’ COMPARISONS

Biden’s appearance came after President Trump took a swipe at him in an interview with Fox News’ Sean Hannity on Thursday night.

“I think we are calling him ‘Sleepy Joe’ ’cause I’ve known him for a while. Is he a pretty sleepy guy? He won’t be able to deal with [Chinese] President Xi, I will tell you. That’s a different level of energy and, frankly, intelligence. So I sort refer to him as ‘Sleepy Joe.’ A lot of people wanted me to change the word ‘sleepy’ to something else that rhymes with it,” Trump told host Sean Hannity. “I thought it was too nasty.

“He’s not going to be able to do the job.”

CLICK HERE TO GET THE FOX NEWS APP

Biden officially announced his candidacy in a video Thursday morning, going directly after Trump.

“If we give Donald Trump eight years in the White House, he will forever and fundamentally alter the character of this nation, who we are, and I cannot stand by and watch that happen,” Biden said in the video.

Source: Fox News Politics

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A Wells Fargo logo is seen in New York City
FILE PHOTO: A Wells Fargo logo is seen in New York City, U.S. January 10, 2017. REUTERS/Stephanie Keith

April 26, 2019

By Jessica DiNapoli and Imani Moise

NEW YORK (Reuters) – Wells Fargo & Co’s board has retained executive search firm Spencer Stuart to hunt for a new chief executive, ideally a woman who can tackle its regulatory and public perception issues, two people familiar with the matter said.

Wells Fargo’s ambition to become the only major U.S. bank with a female CEO underscores the need to restore its image with a wide range of constituents, including customers, shareholders, regulators and politicians, after it became mired in a scandal in 2016 for opening potentially millions of unauthorized accounts.

Former CEO Tim Sloan left abruptly last month, becoming the second CEO to leave the bank in the scandal’s fallout.

The board plans to approach Citigroup Inc’s Latin America chief Jane Fraser, one of the sources said. During Fraser’s 15-year tenure at Citigroup, she has gained experience running consumer and commercial businesses as well as its private bank.

Fraser could not be immediately reached for comment.

The board also discussed approaching JPMorgan Chase & Co’s Marianne Lake, but after the bank named her to run JPMorgan’s consumer lending business last week, that option became less viable, the source added. The board wants someone who can convince regulators, employees, investors and customers that the bank has fixed problems underpinning the sales scandal, the sources said.

The bank’s board feels that choosing a woman might please lawmakers in Washington who have been critical not only of Wells Fargo’s misbehavior, but of the broader banking industry for a lack of diversity and gender equality, said the sources, who spoke on the condition of anonymity.

It also believes that such a move could bolster Wells Fargo’s image with the households of customers where women play a leading role in managing finances, one of the sources added.

The new CEO will also have to resolve litigation and regulatory matters. There are 14 outstanding consent orders with government entities, as well as probes by the U.S. Securities and Exchange Commission, the Department of Labor and the Department of Justice.

To be sure, Spencer Stuart will approach and consider several male candidates for the CEO job as well, one of the sources said. The top priority is to find an external candidate who can navigate the bank’s regulatory issues, the source added.

Finding an outsider who meets all those qualifications and wants the job will be difficult, the sources said. There are few people with the necessary experience, even fewer of those who are women, and it is not clear if any of the obvious candidates would be open to taking the role.

The sources asked not to be identified because Wells Fargo’s board deliberations are confidential.

Spokespeople for Wells Fargo and Spencer Stuart declined to comment.

Wells Fargo’s board has not made any public statements about its requirements for a new CEO, beyond Chair Betsy Duke saying the job should attract the “top talent in banking.”

The board wants to complete the search within the next three to six months, one of the sources said.

STALLED SHARES

After Sloan’s ouster, Wells Fargo’s board appointed Allen Parker, who had been general counsel, as interim CEO. The board has said it is looking for an external candidate as a permanent replacement. It is not clear whether Parker will stay at the bank.

Others whose names have been mentioned by analysts, recruiters and industry sources as perspective CEO candidates include Alphabet Inc finance chief Ruth Porat and Bank of America Corp’s chief technology officer Cathy Bessant.

Wells Fargo shares have stalled since Sloan’s departure on March 29th, while the KBW Bank index has rallied more than 7 percent.

Wells Fargo would be “the best stock on earth to buy” if it had the right CEO, said Greg Donaldson, chairman of Donaldson Capital Management in Indiana.

Donaldson held about 50,000 Wells Fargo shares, but sold the stake last year as problems mounted. The CEO change could convince him to re-invest, depending on who it is, he told Reuters.

“It would be very smart for them to get a woman,” he said.

(Reporting by Jessica DiNapoli and Imani Moise in New York; Editing by Lauren Tara LaCapra, Greg Roumeliotis and Susan Thomas)

Source: OANN

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A worker walks on the roof of a new home under construction in Carlsbad
FILE PHOTO: A worker walks on the roof of a new home under construction in Carlsbad, California September 22, 2014. REUTERS/Mike Blake

April 26, 2019

NEW YORK (Reuters) – The U.S. economy is growing at a 2.08% annualized pace in the second quarter based on upbeat data on durable goods orders and new home sales in March, the New York Federal Reserve’s Nowcast model showed on Friday.

This was faster than the 1.92% growth rate calculated by the N.Y. Fed model the week before.

(Reporting by Richard Leong; Editing by Chizu Nomiyama)

Source: OANN

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