FTX founder Sam Bankman-Fried is faced with demands from Congress for a criminal investigation. We’ll also look at rising unemployment claims, higher new home sales, and the recent attempt by the UN to enact international tax rules.
First, look at former President Trump’s reaction to the Supreme Court ruling on the tax return.
Welcome to On The Money, your nightly guide to everything that affects your bills, bank account, and bottom line. For CNNBreakingNews, we’re Sylvan Lane, Aris Folley, and Karl Evers-Hillstrom. Are you forwarding this newsletter?
Note about programming: We’re going on vacation tomorrow. We’ll be back on Monday. Happy Thanksgiving!
Senate rallies call for FTX’s Bankman-Fried to be investigated
Senators Elizabeth Warren (D-Mass.) and Sheldon Whitehouse (D-R.I.) sent a letter to the Department of Justice (DOJ) on Wednesday demanding a criminal investigation into the so-called “fraudulent tactics” of Sam Bankman-Fried, founder and CEO of FTX Trading Ltd., who filed for bankruptcy this month.
- result of the collapse of FTX, one of the world’s largest cryptocurrency exchanges, which was once worth 32 billion US dollars, investors can expect losses of up to 8 billion US dollars.
- The senators pointed out that in the days before FTX collapsed, Bankman-Fried tweeted that the exchange “has enough to cover all customer holdings,” and claimed that “we don’t invest client assets (including in government bonds).”
“The FTX case was not simply the result of sloppy business and management practices, but rather appears to have been caused by intentional and fraudulent tactics used by Mr. Bankman-Fried and other FTX executives to enrich themselves,” the senators wrote.
Alexander Bolton from CNNBreakingNews has more here.
📈 COMPLAINTS RESUMED
Highest unemployment claims since August
Unemployment claims rose to their highest level since August last week but still remained relatively low as economists worry that a recession could be imminent in the near future.
- The Department of Labor reported on Wednesday that 240,000 people filed for unemployment benefits in the past week, an increase of 17,000 compared to the previous week.
- The four-week moving average also rose by 5,500 to 226,750, but the unemployment rate is 3.7 percent, just over half a century.
Despite rising interest rates and record inflation, the unemployment rate has remained consistently low. While unemployment claims rose from their historic lows earlier this year, the US created 261,000 jobs last month.
Jared Gans has more here.
🏠 RISE IN HOME SALES
New home sales surge in October
New home sales rose last month despite consistently high mortgage interest rates, which experts say have affected affordability and pushed potential buyers out of the market.
According to Census Bureau data released Wednesday, sales of new single-family homes rose 7.5 percent in October to a seasonally adjusted annual rate of 632,000.
- The increase is due to mortgage interest rates falling from their highs. According to data released by Freddie Mac on Wednesday, rates fell again to 5.58 percent this week.
- However, new sales fell 5.8 percent below the October 2021 estimate.
Adam Barnes has more here.
🇺🇳 DO YOU ACCEPT THE TAX REGULATIONS?
UN votes to take charge of global tax standards
The United Nations (UN) General Assembly Finance Committee voted unanimously on Wednesday to start discussions on international tax standards.
The move effectively calls into question a similar long-standing initiative led by industrialized countries in the Paris-based Organization for Economic Cooperation and Development (OECD).
Wednesday’s resolution calls for “the development of a framework or instrument for international tax cooperation, developed and agreed upon as part of an intergovernmental process at the United Nations.”
The agreement concerns new rules about whether multinational companies can store their profits in tax havens abroad and in which countries companies can be taxed for using their products.
Tobias Burns explains it here.
Good to know
Your refund for the 2022 tax year could be less than in previous years, the Internal Revenue Service said on Wednesday. This is due to several recently adopted amendments to the Tax Code.
According to the IRS, taxpayers who make the standard deduction instead of listing their taxes can no longer deduct their contributions to charity. In addition, the American Rescue Plan Act of 2021 lowered the reporting threshold for third-party networks that process payments for business customers.
Other things we’re keeping an eye on:
- Senator Chuck Grassley (Iowa), the highest-ranking Republican on the Senate Judiciary Committee, pushed new Twitter CEO Elon Musk about data security concerns raised by a Twitter whistleblower who came forward before Musk completed his acquisition of the company.
- An accountant for former President Trump has testified that the former president reported large losses on his tax returns every year for a decade, including a loss of $700 million in 2009.
That’s it for today. Thanks for reading, and check out the CNNBreakingNews financial page for the latest news and coverage. I’ll see you next week.