Individual Economists

MiB: Hilary Allen on Fintech Dystopia

The Big Picture -



 

 

This week, I speak with Hilary Allen, a Professor of Law at the American University Washington College of Law. She teaches courses in Banking Law, Securities Regulation, and Business Associations. She also was a staffer on the Financial Crisis Inquiry Commission. We discuss financial stability regulation and new financial technologies including crypto and AI, and the role of venture capital in Silicon Valley. She has analyzed why some companies from the dot com era took hold, while others failed.

Her book on the problems deregulated tech monopolies are causing, “Fintech Dystopia,” is published free online.

A list of her current reading/favorite books is here; A transcript of our conversation is available here Tuesday.

You can stream and download our full conversation, including any podcast extras, on Apple Podcasts, Spotify, YouTube (video), YouTube (audio), and Bloomberg. All of our earlier podcasts on your favorite pod hosts can be found here.

Be sure to check out our Masters in Business next week with Jeff Chang, cofounder and President of VEST. The firm manages over $55 billion in client assets in various “Buffered” and “Target Outcome” strategies. The Y-Combinator backed firm launched in 2012, pioneered the approach to portfolio construction built on defined outcomes and engineered certainty.

 

 

 

Published Book Fintech Dystopia Current Reading/Favorite Books

 

 

 

Books Barry mentioned

 

 

 

 

The post MiB: Hilary Allen on Fintech Dystopia appeared first on The Big Picture.

10 Weekend Reads

The Big Picture -

The weekend is here! Pour yourself a mug of Danish Blend coffee, grab a seat outside, and get ready for our longer-form weekend reads:

• This Entertainment Lawyer to the Stars Shares His Best Negotiating Secret: Allen Grubman on why you should always overtip and why the media business is always seeking fresh blood (Wall Street Journal)

• AI and the Economics of the Human Touch: A reason for optimism: Either AI is so useless that we are in the middle of a bubble that’s about to burst and take the economy down with it, or AI is so powerful it’s going to replace us all and devastate the labor market. (Agglomerations) see also What AI says about AI eating itself and the world… AI says it is targeting IT and software, finance, customer services, manufacturing and logistics, and media and entertainment The market gyrations of the past two weeks, as fears about AI disruption hit first software and then technology and financial stocks, have left anxious investors wondering: which sector will be next to drop? Deutsche Bank identifies an $800 billion AI funding gap and questions whether the industry’s unsustainable spending can continue. (Deutsche Bank Research)

• The economics of the Kalshi prediction market: Kalshi has operated as a federally licensed prediction market in the US since 2021, free from the strict stake limits placed on previous legal prediction markets. Over 300,000 analyzed contracts and their outcomes demonstrate that Kalshi’s contract prices are informative and improve in accuracy as markets approach closing, but they display a clear favourite-longshot bias. Low-price contracts win far less often than required to break even, while high-price contracts win more often and yield small positive returns. (VoxEU/CEPR)

• The Hidden Plumbing of Stablecoins: Financial and Technological Risks in the GENIUS Act Era US dollar stablecoins are increasingly used as payment and settlement instruments beyond cryptocurrency markets. With the enactment of the GENIUS Act in 2025, the United States established the first comprehensive federal framework governing their issuance, backing, and supervision. This paper evaluates the financial, technological, and regulatory risks that may arise as GENIUS-compliant stablecoins scale into mainstream use. MIT researchers identify systemic risks lurking in the GENIUS Act’s stablecoin infrastructure, from redemption surges to technological failures. (MIT Media Lab)

• In World War II’s dog-eat-dog struggle for resources, a Greenland mine launched a new world order: Greenland’s cryolite mine was strategically vital during WWII, shaping the postwar global order in ways still reverberating today. (The Conversation) see also  Hitler’s Greenland Obsession: The historical precedent for great-power interest in Greenland is darker than you think. The Atlantic on how the Third Reich saw the island as strategically vital — a useful reminder as present-day territorial ambitions echo uncomfortably. (The Atlantic)

• The New Rules of Retirement: Popular guidelines about how to save, invest, and spend need to be updated and personalized to ensure you’ll never run out of money. (Kiplinger)

• The Sweet Lesson of Neuroscience: Scientists once hoped that studying the brain would teach us how to build AI. Now, one AI researcher may have something to teach us about the brain. Brains teach themselves through internal steering systems, suggesting that the future of AI alignment might hinge less on learning rules and more on training signals—a frontier neuroscience still understands better than silicon. (Asterisk)

• The Cult Deprogrammer Who Needed Deprogramming: The long decline of religion has left a vacuum of purpose and belonging, then technology fragmented us further, and cults have flourished in this habitat, preying on a disillusioned public with promises of special knowledge, chosen membership, and a new dawn. When the mainstream feels broken, the fringe swoops in. As Antonio Gramsci said, “now is the time for monsters.” Rick Ross, America’s foremost cult deprogrammer, reflects on 40 years battling brainwashing in an era when conspiracy movements are doing the work that fringe groups used to do. (Minority Report)

• How one country stopped a Trump-style authoritarian in his tracks: What Brazil got right that America got wrong. Brazil’s Congress, Supreme Court, and military actively constrained Bolsonaro’s authoritarian impulses when he tried the moves Trump is now executing—showing that institutional resistance is possible. (Vox)

• The Rise and Fall of the American Monoculture: For most of the 20th century, pop culture was the glue that held the U.S. together. But what will it mean now that everything has splintered? Streaming and algorithms have shattered the shared cultural experiences that defined 20th-century America. (Wall Street Journal)

Be sure to check out our Masters in Business interview this weekend with Hilary Allen, Professor of Law at the American University Washington College of Law. She specializes in financial regulation, banking law, securities regulation, and technology law, with a particular focus on how new financial technologies like fintech, crypto, and AI intersect with financial stability and public policy.

 

Online spending is surging, at the expense of physical retail, driven by K-shaped consumer spending, rising BNPL usage and adoption of Agentic AI.

Source: Shruti Mishra, BofA Global Research

 

Sign up for our reads-only mailing list here.

 

The post 10 Weekend Reads appeared first on The Big Picture.

From Germany To Brazil: The "Social Media Ban"-Craze Continues

Zero Hedge -

From Germany To Brazil: The "Social Media Ban"-Craze Continues

Authored by Kit Knightly via Off-Guardian.org,

The list of countries that want to “ban social media for children” (read: identity-gate internet access) just continues to grow and grow.

There’s Germany…

At least Merz is being somewhat honest about the intention – ending anonymity.

Meanwhile, Greece is doing it to “protect democracy”…

And Canada is still clinging to the “protect kids” line:

So is Brazil:

Not to mention France, Spain, Austria, the Czech Republic, Denmark, Finland, Greece, Italy, and Slovenia [link].

Social media bans are the newest trend. Heads of state, like Mad Men-style 60s housewives, are seeing what their neighbors have and jealously demanding their own.

Not since the early days of Covid have our world leaders demonstrated such school-of-fish-like hivemind synchronization.

It’s all just a coincidence, I’m sure.

Even the US, a supposed bastion of freedom under The Don, is inevitably heading in the same direction.

That’s the reason for the big “social media trial”, contrived performance theatre to air the anti-algorithm grievances of bereaved parents who or may not be real, and engage the increasingly hysterical sentiments of the digital mob.

America may be the last domino to fall, it may even be relegated to a state-level matter, but fall it will.

And that will be that.

It’s another reason why the proposed VPN ban may come to nothing, because there’s no point in spoofing your IP to another country if every country on earth requires digital ID anyway.

This is the wall of a digital prison closing in, and it’s far more important than the alleged arrest of Prince Andrew.

Which is why THAT is on every front page in the country, and THIS is not.

Tyler Durden Fri, 02/20/2026 - 17:00

From Germany To Brazil: The "Social Media Ban"-Craze Continues

Zero Hedge -

From Germany To Brazil: The "Social Media Ban"-Craze Continues

Authored by Kit Knightly via Off-Guardian.org,

The list of countries that want to “ban social media for children” (read: identity-gate internet access) just continues to grow and grow.

There’s Germany…

At least Merz is being somewhat honest about the intention – ending anonymity.

Meanwhile, Greece is doing it to “protect democracy”…

And Canada is still clinging to the “protect kids” line:

So is Brazil:

Not to mention France, Spain, Austria, the Czech Republic, Denmark, Finland, Greece, Italy, and Slovenia [link].

Social media bans are the newest trend. Heads of state, like Mad Men-style 60s housewives, are seeing what their neighbors have and jealously demanding their own.

Not since the early days of Covid have our world leaders demonstrated such school-of-fish-like hivemind synchronization.

It’s all just a coincidence, I’m sure.

Even the US, a supposed bastion of freedom under The Don, is inevitably heading in the same direction.

That’s the reason for the big “social media trial”, contrived performance theatre to air the anti-algorithm grievances of bereaved parents who or may not be real, and engage the increasingly hysterical sentiments of the digital mob.

America may be the last domino to fall, it may even be relegated to a state-level matter, but fall it will.

And that will be that.

It’s another reason why the proposed VPN ban may come to nothing, because there’s no point in spoofing your IP to another country if every country on earth requires digital ID anyway.

This is the wall of a digital prison closing in, and it’s far more important than the alleged arrest of Prince Andrew.

Which is why THAT is on every front page in the country, and THIS is not.

Tyler Durden Fri, 02/20/2026 - 17:00

Steven Spielberg Flees California Amid Raging Wealth Tax Battle

Zero Hedge -

Steven Spielberg Flees California Amid Raging Wealth Tax Battle

Another day, another rich liberal leaving a state over policies they promoted. 

In today's episode of modern hypocrisy, Steven Spielberg, director of blockbuster hits like Jaws, E.T., Poltergeist and Saving Private Ryan, has moved to Manhattan, according to the Los Angeles Times. A spokesperson for one of Hollywood’s most reliable Democrat Party donors was quick to insist the relocation has nothing to do with California’s highly controversial wealth tax proposal.

“Steven’s move to the East Coast is both long-planned and driven purely by his and Kate Capshaw’s desire to be closer to their New York-based children and grandchildren,” spokeswoman Terry Press told the newspaper. Unsurprisingly, Press declined to say where Spielberg stands on the wealth tax when asked.

California is now seriously considering a new wealth tax targeting billionaires, including a levy on unrealized gains. The idea has already spooked investors and contributed to several high-profile tech figures running for the exits. It’s a familiar pattern when progressive policies finally start to bite, a surprising number of billionaires discover a sudden deep affection for Florida, Texas, or even New York.

Google founders Larry Page and Sergey Brin quietly began unwinding portions of their financial empires in California in the days leading up to Christmas, while Meta founder and CEO Mark Zuckerberg dropped $150 million on a Miami mansion. Zuckerberg and his wife, Priscilla Chan had been looking for a home on Indian Creek Island, the ultra-exclusive, heavily guarded enclave nicknamed “Billionaire Bunker” that is already home to Amazon founder Jeff Bezos, former NFL star quarterback Tom Brady, and Jared Kushner and Ivanka Trump.

Even Jeffrey Epstein pal Reid Hoffman, LinkedIn co-founder and major Democratic donor, has taken aim at the billionaire tax proposal, slamming it as a "horrendous idea" that could drive tech founders and executives out of the state.

"The proposed CA wealth tax is badly designed in so many ways that a simple social post cannot cover all of the massive flaws. One well-documented example is the horrendous idea to tax illiquid stock in the proposal. Poorly designed taxes incentivize avoidance, capital flight, and distortions that ultimately raise less revenue," Hoffman said of the plan.

Hedge fund billionaire Bill Ackman, a longtime Democrat who voted for Trump in the 2024 election, warned that California is on a "path to self-destruction."

"Hollywood is already toast, and now the most productive entrepreneurs will leave, taking their tax revenues and job creation elsewhere,” Ackman said.

Our readers will recall that Tesla and SpaceX Ceo Elon Musk was one of the first big names to leave California years ago, citing the state’s punishing taxes and its embrace of radical left-wing governance. The list keeps growing.

Buckle up, Newsom. Musk was the first and Spielberg won’t be the last.

Tyler Durden Fri, 02/20/2026 - 16:40

Steven Spielberg Flees California Amid Raging Wealth Tax Battle

Zero Hedge -

Steven Spielberg Flees California Amid Raging Wealth Tax Battle

Another day, another rich liberal leaving a state over policies they promoted. 

In today's episode of modern hypocrisy, Steven Spielberg, director of blockbuster hits like Jaws, E.T., Poltergeist and Saving Private Ryan, has moved to Manhattan, according to the Los Angeles Times. A spokesperson for one of Hollywood’s most reliable Democrat Party donors was quick to insist the relocation has nothing to do with California’s highly controversial wealth tax proposal.

“Steven’s move to the East Coast is both long-planned and driven purely by his and Kate Capshaw’s desire to be closer to their New York-based children and grandchildren,” spokeswoman Terry Press told the newspaper. Unsurprisingly, Press declined to say where Spielberg stands on the wealth tax when asked.

California is now seriously considering a new wealth tax targeting billionaires, including a levy on unrealized gains. The idea has already spooked investors and contributed to several high-profile tech figures running for the exits. It’s a familiar pattern when progressive policies finally start to bite, a surprising number of billionaires discover a sudden deep affection for Florida, Texas, or even New York.

Google founders Larry Page and Sergey Brin quietly began unwinding portions of their financial empires in California in the days leading up to Christmas, while Meta founder and CEO Mark Zuckerberg dropped $150 million on a Miami mansion. Zuckerberg and his wife, Priscilla Chan had been looking for a home on Indian Creek Island, the ultra-exclusive, heavily guarded enclave nicknamed “Billionaire Bunker” that is already home to Amazon founder Jeff Bezos, former NFL star quarterback Tom Brady, and Jared Kushner and Ivanka Trump.

Even Jeffrey Epstein pal Reid Hoffman, LinkedIn co-founder and major Democratic donor, has taken aim at the billionaire tax proposal, slamming it as a "horrendous idea" that could drive tech founders and executives out of the state.

"The proposed CA wealth tax is badly designed in so many ways that a simple social post cannot cover all of the massive flaws. One well-documented example is the horrendous idea to tax illiquid stock in the proposal. Poorly designed taxes incentivize avoidance, capital flight, and distortions that ultimately raise less revenue," Hoffman said of the plan.

Hedge fund billionaire Bill Ackman, a longtime Democrat who voted for Trump in the 2024 election, warned that California is on a "path to self-destruction."

"Hollywood is already toast, and now the most productive entrepreneurs will leave, taking their tax revenues and job creation elsewhere,” Ackman said.

Our readers will recall that Tesla and SpaceX Ceo Elon Musk was one of the first big names to leave California years ago, citing the state’s punishing taxes and its embrace of radical left-wing governance. The list keeps growing.

Buckle up, Newsom. Musk was the first and Spielberg won’t be the last.

Tyler Durden Fri, 02/20/2026 - 16:40

"Hubris Generally Precedes Clusterf**k": Does It Smell Like Victory?

Zero Hedge -

"Hubris Generally Precedes Clusterf**k": Does It Smell Like Victory?

Authored by James Howard Kunstler,

The message seems to be something like the USA isn’t messing around with all those strike forces in the waters around Iran.

The Islamic Republic suddenly looks like Rock-and-Hard-Place-Land.

Everybody and his uncle are trying to figure out the calculus in play, World War Three or a happy ending?

You’re seeing the most significant US military build-up over there in memory.

Smells a little bit like first Gulf War, 1991 — minus all those allies we roped in then.

Mr. Trump (via Marco Rubio) has read Euroland out on this one.

We are in a cold war with those birds, in case you haven’t noticed. The UK, France, Germany & Co.? They are as crazy as the ladies of The View and their millions of Cluster-B followers.

Euroland is yet in thrall to the climate nutters, the farm-and-industry-destroyers, the one-worlders, the Jihad-migrationists, the floundering banksters, and the Klaus Schwab wannabes.

Euroland seeks to throttle free speech throughout Western Civ and meddle in everyone’s elections. Euroland keeps mouthing off about a war with Russia despite having no military mojo and going broke-ass broke faster than you can say Götterdämmerung. Bottom line: the US is going solo on this one.

What is the objective? Ostensibly “a deal” over Iran’s nuclear weapons program. Like, just cut it out, will you, please? By the way, did you know that Supreme Leader Ayatollah Khamenei issued a fatwa in 2005 saying production, stockpiling, and use of nuclear weapons was forbidden under Islam. But then deception is allowed in Islam under the doctrine of taqiyya, against the threat of attack from hostile forces,

I’m sure you remember Operation Midnight Hammer in June last year when we attacked and supposedly “obliterated” Iran’s nuclear research and development bunkers at Fordow, Natanz, and Isfahan? They got pretty banged-up, you may be sure, and nobody in Iran denied there was something nukey going on in those installations. Is there a will there to rebuild the whole darn infrastructure of uranium enrichment and so forth?

The mullahs are not saying, which means: of course, they intend to continue developing nuclear weapons — and even if that’s a stupid and futile gambit, given recent history, they still have factories churning out plain old long-range ballistic missiles and new drones by the thousands. Let’s face it: the mullahs are hardcore for Jihad and martyrdom. Since being elevated to Supreme Leader in 1989, Ayatollah Khamenei has sought relentlessly to transform the traditional Islamic concept of Jihad and establish it as the central pillar of the regime’s ideology.

Are we doing Israel’s bidding there? (Cue: roar of affirmation.) But then, Israel has a point. Iran has been cuckoo for going on forty years. If Israel wasn’t a target of the mullahs’ eternal Shia wrath, there are their other enemies, the Sunni, on the west side of the Persian Gulf (and next door in Iraq). And consider, too, Iran’s obdurate sponsorship of Jihad, wherever possible, both within and outside the Ummah — including especially Western Civ, where low-grade Jihad has been going on for over a decade. . . mass murders, rape gangs, beheadings, trucks through the Christmas markets. . . . [ZH note: This is actually much more a trend of Sunni Islam].

Okay, if Euroland is out, what about the other big dogs, Russia and China.

Will they just stand by and let the US have its wicked way with Iran? Russia sent a corvette-class naval vessel down to the Straits of Hormuz for a joint operation with Iran’s navy, but what does that mean? Probably not much more than occupational therapy. Besides, Mr. Trump is just now promising to bring Russia “out from the cold” of all those onerous economic sanctions. . . to begin the process of normalizing relations. You might doubt that Russia wants to blow that for Iran’s sake.

And, while it is somewhat out of the news due to the Epstein stink-bomb, and the deepness of mid-winter, there is still a war going on over in Ukraine. Which is to say, the Russians have their hands full in their own back-yard and might, perhaps, be hesitant about piling-on in Iran. And, let’s just suppose that the US objective is actually regime change in Iran. Would Russia be indisposed if the mullahs got kicked out of power? I doubt it. Russia has longstanding annoying issues with Islamic factions distributed throughout their adjoining former Soviet republics. Russia does not need Jihad. Russia might actually live more comfortably with Iran under a secular government, tilting a bit more western in temperament.

Just sayin’. . . .

China has more urgent concerns with Iran. China gets around 13-percent of its oil imports from Iran, and it enjoys a three to four percent discount on it. Regime change or war that could damage Iran’s oil terminals would be bad news for China. But then, China is at a long geographic remove from Iran, and China is not used to conducting military adventures so far from home, so don’t expect much assistance there. China’s other option would be to start a kerfuffle over Taiwan to distract and divert the US. We’ll just have to see about that. Uncle Xi Jinping has been busy lately sacking the upper echelons of his own military leadership. Are they even ready for action? Plus, China’s economy is wobbly. Consider also: has the US given China assurances of continued oil imports from Iran if it steers clear of the situation there?

What are we operationally capable of over in Iran with all our warships, fighter jets, and other stuff? I don’t know. . . and neither do you. Looks impressive, but a couple of Sunburn-type missiles landing on the USS Abraham Lincoln could produce a profound instant attitude adjustment. Perhaps President Trump, WarSec Hegseth, and StateSec Rubio have more refined plans for disarming Iran and surgically removing the cuckoo-birds in charge.

Our guys are certainly acting confident.

But then in geopolitics confidence is best friends with hubris.

And hubris generally precedes clusterfuck. The art of the deal is not for sissies.

Tyler Durden Fri, 02/20/2026 - 16:20

"Hubris Generally Precedes Clusterf**k": Does It Smell Like Victory?

Zero Hedge -

"Hubris Generally Precedes Clusterf**k": Does It Smell Like Victory?

Authored by James Howard Kunstler,

The message seems to be something like the USA isn’t messing around with all those strike forces in the waters around Iran.

The Islamic Republic suddenly looks like Rock-and-Hard-Place-Land.

Everybody and his uncle are trying to figure out the calculus in play, World War Three or a happy ending?

You’re seeing the most significant US military build-up over there in memory.

Smells a little bit like first Gulf War, 1991 — minus all those allies we roped in then.

Mr. Trump (via Marco Rubio) has read Euroland out on this one.

We are in a cold war with those birds, in case you haven’t noticed. The UK, France, Germany & Co.? They are as crazy as the ladies of The View and their millions of Cluster-B followers.

Euroland is yet in thrall to the climate nutters, the farm-and-industry-destroyers, the one-worlders, the Jihad-migrationists, the floundering banksters, and the Klaus Schwab wannabes.

Euroland seeks to throttle free speech throughout Western Civ and meddle in everyone’s elections. Euroland keeps mouthing off about a war with Russia despite having no military mojo and going broke-ass broke faster than you can say Götterdämmerung. Bottom line: the US is going solo on this one.

What is the objective? Ostensibly “a deal” over Iran’s nuclear weapons program. Like, just cut it out, will you, please? By the way, did you know that Supreme Leader Ayatollah Khamenei issued a fatwa in 2005 saying production, stockpiling, and use of nuclear weapons was forbidden under Islam. But then deception is allowed in Islam under the doctrine of taqiyya, against the threat of attack from hostile forces,

I’m sure you remember Operation Midnight Hammer in June last year when we attacked and supposedly “obliterated” Iran’s nuclear research and development bunkers at Fordow, Natanz, and Isfahan? They got pretty banged-up, you may be sure, and nobody in Iran denied there was something nukey going on in those installations. Is there a will there to rebuild the whole darn infrastructure of uranium enrichment and so forth?

The mullahs are not saying, which means: of course, they intend to continue developing nuclear weapons — and even if that’s a stupid and futile gambit, given recent history, they still have factories churning out plain old long-range ballistic missiles and new drones by the thousands. Let’s face it: the mullahs are hardcore for Jihad and martyrdom. Since being elevated to Supreme Leader in 1989, Ayatollah Khamenei has sought relentlessly to transform the traditional Islamic concept of Jihad and establish it as the central pillar of the regime’s ideology.

Are we doing Israel’s bidding there? (Cue: roar of affirmation.) But then, Israel has a point. Iran has been cuckoo for going on forty years. If Israel wasn’t a target of the mullahs’ eternal Shia wrath, there are their other enemies, the Sunni, on the west side of the Persian Gulf (and next door in Iraq). And consider, too, Iran’s obdurate sponsorship of Jihad, wherever possible, both within and outside the Ummah — including especially Western Civ, where low-grade Jihad has been going on for over a decade. . . mass murders, rape gangs, beheadings, trucks through the Christmas markets. . . . [ZH note: This is actually much more a trend of Sunni Islam].

Okay, if Euroland is out, what about the other big dogs, Russia and China.

Will they just stand by and let the US have its wicked way with Iran? Russia sent a corvette-class naval vessel down to the Straits of Hormuz for a joint operation with Iran’s navy, but what does that mean? Probably not much more than occupational therapy. Besides, Mr. Trump is just now promising to bring Russia “out from the cold” of all those onerous economic sanctions. . . to begin the process of normalizing relations. You might doubt that Russia wants to blow that for Iran’s sake.

And, while it is somewhat out of the news due to the Epstein stink-bomb, and the deepness of mid-winter, there is still a war going on over in Ukraine. Which is to say, the Russians have their hands full in their own back-yard and might, perhaps, be hesitant about piling-on in Iran. And, let’s just suppose that the US objective is actually regime change in Iran. Would Russia be indisposed if the mullahs got kicked out of power? I doubt it. Russia has longstanding annoying issues with Islamic factions distributed throughout their adjoining former Soviet republics. Russia does not need Jihad. Russia might actually live more comfortably with Iran under a secular government, tilting a bit more western in temperament.

Just sayin’. . . .

China has more urgent concerns with Iran. China gets around 13-percent of its oil imports from Iran, and it enjoys a three to four percent discount on it. Regime change or war that could damage Iran’s oil terminals would be bad news for China. But then, China is at a long geographic remove from Iran, and China is not used to conducting military adventures so far from home, so don’t expect much assistance there. China’s other option would be to start a kerfuffle over Taiwan to distract and divert the US. We’ll just have to see about that. Uncle Xi Jinping has been busy lately sacking the upper echelons of his own military leadership. Are they even ready for action? Plus, China’s economy is wobbly. Consider also: has the US given China assurances of continued oil imports from Iran if it steers clear of the situation there?

What are we operationally capable of over in Iran with all our warships, fighter jets, and other stuff? I don’t know. . . and neither do you. Looks impressive, but a couple of Sunburn-type missiles landing on the USS Abraham Lincoln could produce a profound instant attitude adjustment. Perhaps President Trump, WarSec Hegseth, and StateSec Rubio have more refined plans for disarming Iran and surgically removing the cuckoo-birds in charge.

Our guys are certainly acting confident.

But then in geopolitics confidence is best friends with hubris.

And hubris generally precedes clusterfuck. The art of the deal is not for sissies.

Tyler Durden Fri, 02/20/2026 - 16:20

Goldman Sachs The Latest Firm To Ditch DEI Hiring Criteria

Zero Hedge -

Goldman Sachs The Latest Firm To Ditch DEI Hiring Criteria

Goldman Sachs is the latest firm to scrap the DEI scam from its board policies.

In fact, the bank is preparing to strip race, gender identity, sexual orientation and other demographic factors from the guidelines used to evaluate potential directors, according to people familiar with the plans who spoke to the Wall Street Journal.

Which begs the question to begin with: why were we ever picking directors based on race and gender identity? Isn't that...racist?

The Journal wrote that Goldman's governance committee currently considers experience, background and perspective, along with a diversity category that includes various DEI-related demographics. That demographic component is expected to be removed.

The change comes after a proposal from the National Legal and Policy Center, a small shareholder, which urged the firm to eliminate diversity-based criteria.

Goldman told the group it would revise the language, and the proposal was withdrawn. Formal approval from the board is anticipated soon.

The nonprofit has argued that using diversity characteristics in board selection could expose companies to discrimination claims.

The move is part of a broader pullback. Over the past year, Goldman has scaled down several diversity initiatives, adjusted its One Million Black Women program by removing explicit references to race, and ended its policy requiring certain companies to have diverse boards before going public with the bank.

The shift follows a wider change in the political and regulatory climate surrounding corporate DEI efforts since President Trump won the 2024 election and made it clear that DEI, ESG and the "green new scam" would be frowned upon by his administration. 

Tyler Durden Fri, 02/20/2026 - 15:40

Goldman Sachs The Latest Firm To Ditch DEI Hiring Criteria

Zero Hedge -

Goldman Sachs The Latest Firm To Ditch DEI Hiring Criteria

Goldman Sachs is the latest firm to scrap the DEI scam from its board policies.

In fact, the bank is preparing to strip race, gender identity, sexual orientation and other demographic factors from the guidelines used to evaluate potential directors, according to people familiar with the plans who spoke to the Wall Street Journal.

Which begs the question to begin with: why were we ever picking directors based on race and gender identity? Isn't that...racist?

The Journal wrote that Goldman's governance committee currently considers experience, background and perspective, along with a diversity category that includes various DEI-related demographics. That demographic component is expected to be removed.

The change comes after a proposal from the National Legal and Policy Center, a small shareholder, which urged the firm to eliminate diversity-based criteria.

Goldman told the group it would revise the language, and the proposal was withdrawn. Formal approval from the board is anticipated soon.

The nonprofit has argued that using diversity characteristics in board selection could expose companies to discrimination claims.

The move is part of a broader pullback. Over the past year, Goldman has scaled down several diversity initiatives, adjusted its One Million Black Women program by removing explicit references to race, and ended its policy requiring certain companies to have diverse boards before going public with the bank.

The shift follows a wider change in the political and regulatory climate surrounding corporate DEI efforts since President Trump won the 2024 election and made it clear that DEI, ESG and the "green new scam" would be frowned upon by his administration. 

Tyler Durden Fri, 02/20/2026 - 15:40

Florida Lawmakers Approve Renaming Palm Beach Airport After Trump

Zero Hedge -

Florida Lawmakers Approve Renaming Palm Beach Airport After Trump

Authored by Kimberly Hayek via The Epoch Times,

Florida lawmakers on Thursday completed the approval of a bill to rename Palm Beach International Airport in honor of President Donald Trump.

The measure, now awaiting Gov. Ron DeSantis’s signature, comes at the same time as the Trump family’s recent federal trademark filings for airport names incorporating the president’s identity. The Trump Organization says it will see no financial gain from the Palm Beach site.

The Florida Senate passed SB 706 in a 25–11 vote.

The legislation is sponsored by state Sen. Debbie Mayfield, a Republican from Melbourne. The vote came days after the House approved a companion bill, HB 919, 81–30.

“President Trump is the first president that Florida has had in our history, and I think it’s very appropriate for us to be naming one of the other icons in Palm Beach after him,” Mayfield told Politico in January.

The legislation renames the airport as “President Donald J. Trump International Airport.”

The bill is effective July 1, provided the Federal Aviation Administration approves the change. The bill also includes a $5.5 million budget request for signage, marketing, and other rebranding efforts.

Some lawmakers, including Rep. Lois Frankel (D-Fla.), criticized the effort, saying it went around Palm Beach County residents.

“It’s misguided and unfair that the Republican-controlled Florida Legislature ignored the voices of Palm Beach County by pushing forward a bill to rename Palm Beach International Airport without giving County residents a real opportunity for input,” Frankel said.

“Decisions about naming major infrastructure should wait until after an honoree’s service has concluded—and should include meaningful input from the local residents and communities most directly affected.”

Trump relocated to Florida in 2019. His primary residence is Mar-a-Lago in West Palm Beach, which is near the airport.

At the same time, the Trump Organization filed for trademark protections through DTTM Operations LLC.

The company filed applications with the U.S. Patent and Trademark Office on Feb. 13 and 14 this year.

The submissions cover “President Donald J. Trump International Airport,” “Donald J. Trump International Airport,” and the abbreviation “DJT,” extending to airport-related goods and services such as passenger shuttles, umbrellas, travel bags, and flight attire.

“To be clear, the President and his family will not receive any royalty, licensing fee, or financial consideration whatsoever from the proposed airport renaming,” the company said in a statement.

The filings coincide with other proposals, such as renaming Dulles International Airport.

Florida recently set aside land in Miami for Trump’s presidential library in 2025, and in January 2026, renamed a segment of road “President Donald J. Trump Boulevard.”

Tyler Durden Fri, 02/20/2026 - 15:20

Florida Lawmakers Approve Renaming Palm Beach Airport After Trump

Zero Hedge -

Florida Lawmakers Approve Renaming Palm Beach Airport After Trump

Authored by Kimberly Hayek via The Epoch Times,

Florida lawmakers on Thursday completed the approval of a bill to rename Palm Beach International Airport in honor of President Donald Trump.

The measure, now awaiting Gov. Ron DeSantis’s signature, comes at the same time as the Trump family’s recent federal trademark filings for airport names incorporating the president’s identity. The Trump Organization says it will see no financial gain from the Palm Beach site.

The Florida Senate passed SB 706 in a 25–11 vote.

The legislation is sponsored by state Sen. Debbie Mayfield, a Republican from Melbourne. The vote came days after the House approved a companion bill, HB 919, 81–30.

“President Trump is the first president that Florida has had in our history, and I think it’s very appropriate for us to be naming one of the other icons in Palm Beach after him,” Mayfield told Politico in January.

The legislation renames the airport as “President Donald J. Trump International Airport.”

The bill is effective July 1, provided the Federal Aviation Administration approves the change. The bill also includes a $5.5 million budget request for signage, marketing, and other rebranding efforts.

Some lawmakers, including Rep. Lois Frankel (D-Fla.), criticized the effort, saying it went around Palm Beach County residents.

“It’s misguided and unfair that the Republican-controlled Florida Legislature ignored the voices of Palm Beach County by pushing forward a bill to rename Palm Beach International Airport without giving County residents a real opportunity for input,” Frankel said.

“Decisions about naming major infrastructure should wait until after an honoree’s service has concluded—and should include meaningful input from the local residents and communities most directly affected.”

Trump relocated to Florida in 2019. His primary residence is Mar-a-Lago in West Palm Beach, which is near the airport.

At the same time, the Trump Organization filed for trademark protections through DTTM Operations LLC.

The company filed applications with the U.S. Patent and Trademark Office on Feb. 13 and 14 this year.

The submissions cover “President Donald J. Trump International Airport,” “Donald J. Trump International Airport,” and the abbreviation “DJT,” extending to airport-related goods and services such as passenger shuttles, umbrellas, travel bags, and flight attire.

“To be clear, the President and his family will not receive any royalty, licensing fee, or financial consideration whatsoever from the proposed airport renaming,” the company said in a statement.

The filings coincide with other proposals, such as renaming Dulles International Airport.

Florida recently set aside land in Miami for Trump’s presidential library in 2025, and in January 2026, renamed a segment of road “President Donald J. Trump Boulevard.”

Tyler Durden Fri, 02/20/2026 - 15:20

SpaceX IPO Hype Ignites Blast Off For This Korean Broker Stock

Zero Hedge -

SpaceX IPO Hype Ignites Blast Off For This Korean Broker Stock

The SpaceX IPO, potentially launching as early as mid-June, is set to accelerate the "space investment" theme we previously outlined, with Elon Musk's rocket company rumored to target about $50 billion in proceeds at a $1.5 trillion valuation.

Early bullish sentiment is already appearing in one public-market proxy: Seoul-based Mirae Asset Securities Co., which has about $400 million of exposure to SpaceX and xAI, and has surged to the top spot on MSCI's broadest global stock index performance so far this year.

Ha SeokKeun, CEO at Eugene Asset Management Co., was quoted by Bloomberg as saying that Mirae Asset's fundamentals are improving due to the strong Korean stock market, while its SpaceX position provides an additional catalyst, allowing investors to capture two sources of value simultaneously.

Mirae Asset's brokerage revenue jumped to a record in 2025, up 43% over the previous year, according to its earnings report last week. The stock is trading at 21 times forward earnings estimates, or triple its five-year average.

KB Securities Co. analyst Kang Seunggun warned that the stock's valuation is elevated and that the benefits of its high portfolio valuations remain unclear.

There was roughly a one-month lag between the corporate media headlines about the SpaceX IPO in December and the market pricing in Mirae Asset's SpaceX exposure.

"Most of the earnings increase comes from unrealized gains in consolidated funds, limiting the direct impact on standalone capital," Kang wrote in a note earlier this month. "As a result, we see greater uncertainty in translating valuation gains into shareholder returns."

We have told readers the space theme is well underway, as well as ways to profit:

A year ago, we mapped out Starlink's satellite supply chain as the space theme started to emerge:

Could the AI bubble morph into the space bubble?

Tyler Durden Fri, 02/20/2026 - 15:00

SpaceX IPO Hype Ignites Blast Off For This Korean Broker Stock

Zero Hedge -

SpaceX IPO Hype Ignites Blast Off For This Korean Broker Stock

The SpaceX IPO, potentially launching as early as mid-June, is set to accelerate the "space investment" theme we previously outlined, with Elon Musk's rocket company rumored to target about $50 billion in proceeds at a $1.5 trillion valuation.

Early bullish sentiment is already appearing in one public-market proxy: Seoul-based Mirae Asset Securities Co., which has about $400 million of exposure to SpaceX and xAI, and has surged to the top spot on MSCI's broadest global stock index performance so far this year.

Ha SeokKeun, CEO at Eugene Asset Management Co., was quoted by Bloomberg as saying that Mirae Asset's fundamentals are improving due to the strong Korean stock market, while its SpaceX position provides an additional catalyst, allowing investors to capture two sources of value simultaneously.

Mirae Asset's brokerage revenue jumped to a record in 2025, up 43% over the previous year, according to its earnings report last week. The stock is trading at 21 times forward earnings estimates, or triple its five-year average.

KB Securities Co. analyst Kang Seunggun warned that the stock's valuation is elevated and that the benefits of its high portfolio valuations remain unclear.

There was roughly a one-month lag between the corporate media headlines about the SpaceX IPO in December and the market pricing in Mirae Asset's SpaceX exposure.

"Most of the earnings increase comes from unrealized gains in consolidated funds, limiting the direct impact on standalone capital," Kang wrote in a note earlier this month. "As a result, we see greater uncertainty in translating valuation gains into shareholder returns."

We have told readers the space theme is well underway, as well as ways to profit:

A year ago, we mapped out Starlink's satellite supply chain as the space theme started to emerge:

Could the AI bubble morph into the space bubble?

Tyler Durden Fri, 02/20/2026 - 15:00

Steve Cohen Tops Hedge Fund Rich List With $3.4 Billion Haul

Zero Hedge -

Steve Cohen Tops Hedge Fund Rich List With $3.4 Billion Haul

Steve Cohen spent last fall doing something few billionaire owners enjoy: apologizing. As the New York Mets staggered through a bruising 2025 campaign, he took to social media to tell fans he was sorry for the disappointment at Citi Field. Yet even as the baseball season fizzled, Cohen was clinching a very different kind of pennant, according to Bloomberg.

The founder of Point72 Asset Management finished the year as the highest-paid hedge fund manager on Bloomberg’s annual ranking, pocketing an estimated $3.4 billion. That works out to more than $9 million every day — a staggering haul even by Wall Street standards. For the first time since the list began, Cohen sat alone at the top.

The contrast is striking. Cohen, 69, bought the Mets in 2020 for a record $2.4 billion and pledged to deliver a championship within three to five years. He backed up that promise with one of the sport’s largest payrolls. But while October glory in Queens remains elusive, his investment firm in Stamford, Connecticut, has flourished.

Point72’s ascent is particularly notable given its history. Cohen’s former firm, SAC Capital, pleaded guilty in 2013 to insider-trading charges and returned outside investors’ money; Cohen himself denied wrongdoing. When Point72 reopened to clients in 2018, skeptics wondered whether investors would return. They did — quickly and in size. More than $4 billion poured in at launch, followed by steady inflows that have helped lift assets under management to $45.7 billion. That scale places it among the industry’s largest multistrategy operations, competing with firms such as Citadel and Millennium Management.

Bloomberg writes that Cohen’s 2025 payday outpaced several longtime rivals. David Tepper of Appaloosa Management claimed second place with $3.2 billion, while Izzy Englander of Millennium followed closely at $3.1 billion. Ken Griffin, who has frequently dominated the rankings in past years, earned $2.4 billion and placed fifth.

The industry’s biggest names enjoyed a banner year overall. The 10 top earners collected about $22 billion between them, and the expanded top-20 list generated $28.3 billion in total compensation. On average, each of the 20 managers made $1.4 billion — the strongest showing in five years and the largest number of billion-dollar payouts yet recorded. Buoyant, volatile equity markets helped drive hedge fund returns to their best levels since 2009.

Point72 itself delivered a 17.5% gain in its flagship strategies, a solid result that outpaced several multistrategy competitors. Citadel, which has produced returns as high as the mid-30% range in recent years, advanced just over 10% in 2025, its softest performance since 2018.

Flush with capital, Point72 has been expanding aggressively. Over the past decade it has opened a dozen new offices, grown its workforce to roughly 3,000 employees, and built out more than 190 trading teams. The firm has broadened beyond traditional stock picking into macro investing, scaled up its quantitative arm Cubist, and started laying the groundwork for private credit and venture strategies. In one unusual move, it allowed a star portfolio manager to run an internal fund vehicle, which now oversees about $3 billion after posting strong returns last year.

For Cohen, the year underscored a peculiar dual reality. On the diamond, the Mets are still chasing the success their owner promised. In the financial arena, however, he just delivered the most lucrative season of his career.

Tyler Durden Fri, 02/20/2026 - 14:20

Steve Cohen Tops Hedge Fund Rich List With $3.4 Billion Haul

Zero Hedge -

Steve Cohen Tops Hedge Fund Rich List With $3.4 Billion Haul

Steve Cohen spent last fall doing something few billionaire owners enjoy: apologizing. As the New York Mets staggered through a bruising 2025 campaign, he took to social media to tell fans he was sorry for the disappointment at Citi Field. Yet even as the baseball season fizzled, Cohen was clinching a very different kind of pennant, according to Bloomberg.

The founder of Point72 Asset Management finished the year as the highest-paid hedge fund manager on Bloomberg’s annual ranking, pocketing an estimated $3.4 billion. That works out to more than $9 million every day — a staggering haul even by Wall Street standards. For the first time since the list began, Cohen sat alone at the top.

The contrast is striking. Cohen, 69, bought the Mets in 2020 for a record $2.4 billion and pledged to deliver a championship within three to five years. He backed up that promise with one of the sport’s largest payrolls. But while October glory in Queens remains elusive, his investment firm in Stamford, Connecticut, has flourished.

Point72’s ascent is particularly notable given its history. Cohen’s former firm, SAC Capital, pleaded guilty in 2013 to insider-trading charges and returned outside investors’ money; Cohen himself denied wrongdoing. When Point72 reopened to clients in 2018, skeptics wondered whether investors would return. They did — quickly and in size. More than $4 billion poured in at launch, followed by steady inflows that have helped lift assets under management to $45.7 billion. That scale places it among the industry’s largest multistrategy operations, competing with firms such as Citadel and Millennium Management.

Bloomberg writes that Cohen’s 2025 payday outpaced several longtime rivals. David Tepper of Appaloosa Management claimed second place with $3.2 billion, while Izzy Englander of Millennium followed closely at $3.1 billion. Ken Griffin, who has frequently dominated the rankings in past years, earned $2.4 billion and placed fifth.

The industry’s biggest names enjoyed a banner year overall. The 10 top earners collected about $22 billion between them, and the expanded top-20 list generated $28.3 billion in total compensation. On average, each of the 20 managers made $1.4 billion — the strongest showing in five years and the largest number of billion-dollar payouts yet recorded. Buoyant, volatile equity markets helped drive hedge fund returns to their best levels since 2009.

Point72 itself delivered a 17.5% gain in its flagship strategies, a solid result that outpaced several multistrategy competitors. Citadel, which has produced returns as high as the mid-30% range in recent years, advanced just over 10% in 2025, its softest performance since 2018.

Flush with capital, Point72 has been expanding aggressively. Over the past decade it has opened a dozen new offices, grown its workforce to roughly 3,000 employees, and built out more than 190 trading teams. The firm has broadened beyond traditional stock picking into macro investing, scaled up its quantitative arm Cubist, and started laying the groundwork for private credit and venture strategies. In one unusual move, it allowed a star portfolio manager to run an internal fund vehicle, which now oversees about $3 billion after posting strong returns last year.

For Cohen, the year underscored a peculiar dual reality. On the diamond, the Mets are still chasing the success their owner promised. In the financial arena, however, he just delivered the most lucrative season of his career.

Tyler Durden Fri, 02/20/2026 - 14:20

Ford Carrier Group Enters Mediterranean To Join Biggest US Build-Up Since 2003 Iraq War

Zero Hedge -

Ford Carrier Group Enters Mediterranean To Join Biggest US Build-Up Since 2003 Iraq War

Open source monitors as well as US and Middle East media have confirmed that the USS Gerald R. Ford, the world’s largest aircraft carrier, has entered the Mediterranean Sea, having sailed passed the Strait of Gibraltar on Friday.

This is the second carrier strike group expected to soon operate directly in the CENTCOM area of responsibility, amid the massive military build-up and pressure campaign against Iran. It was sent from the Caribbean earlier this month, extending its planned deployment.

USS Ford entering the Mediterranean. Via @dparody

The USS Mahan Arleigh Burke-class destroyer, which is accompanying the USS Gerald R. Ford, is also now crossing the Strait of Gibraltar, maritime tracking analysis shows.

The aircraft carrier will likely take several more days to reach the Middle East and be poised to operate against Iran - so it looks to be in place by start of next week.

According to Bloomberg and other outlets, the US has now amassed the biggest force in the Middle East since the 2003 invasion of Iraq. There is administration talk of "limited strikes" - but clearly Washington is getting ready for all escalation scenarios.

The Ford's entry into Mediterranean waters took longer than expected because it was reportedly conducting replenishment-at-sea, again suggesting the nuclear-powered vessel is readying for a long, or sustained campaign.

Diplomacy seems to be continuing, but also with Trump himself on Friday confirming that he's considering 'limited' strikes on Iran in order to force an Iran deal on Washington's terms:

The reports come after Trump publicly told Iran that it has “10 to 15 days” to cut a deal over its nuclear program, as the US continues its vast military build up in the region.

“We’re either going to get a deal, or it’s going to be unfortunate for them,” Trump told reporters on board Air Force One yesterday. He added that negotiations could be allowed to continue for another 10 to 15 days, a deadline the president described as “pretty much” the “maximum”.

“I would think that would be enough time,” Trump said.

So there is perhaps time to breathe, while Iranian officials continue to scramble, hoping to stave off attack. According to fresh Reuters reporting:

Iran to present its draft in 2–3 days, with further talks expected within a week, its foreign minister says -adding a diplomatic deal with the U.S. is “within reach” and could be achieved in a very short time.

But once a potential attack starts, Iran's response is entirely unpredictable, especially after this firm warning communicated formally to the United Nations:

Iranian leaders may consider that they have no choice but to inflict as much pain as possible on American bases and forces in the region, seeing this as a matter of existential survival.

“It will be very hard for the Trump administration to do a one-and-done kind of attack in Iran this time around,” said Ali Vaez, an Iran expert at the International Crisis Group. “Because the Iranians would respond in a way that would make all-out conflict inevitable.”

But the Pentagon seems to be readying for just such a scenario, also while Congress is still days away from belatedly debating a resurrected War Powers push - driven by Reps Khanna and Massie.

Tyler Durden Fri, 02/20/2026 - 14:15

Ford Carrier Group Enters Mediterranean To Join Biggest US Build-Up Since 2003 Iraq War

Zero Hedge -

Ford Carrier Group Enters Mediterranean To Join Biggest US Build-Up Since 2003 Iraq War

Open source monitors as well as US and Middle East media have confirmed that the USS Gerald R. Ford, the world’s largest aircraft carrier, has entered the Mediterranean Sea, having sailed passed the Strait of Gibraltar on Friday.

This is the second carrier strike group expected to soon operate directly in the CENTCOM area of responsibility, amid the massive military build-up and pressure campaign against Iran. It was sent from the Caribbean earlier this month, extending its planned deployment.

USS Ford entering the Mediterranean. Via @dparody

The USS Mahan Arleigh Burke-class destroyer, which is accompanying the USS Gerald R. Ford, is also now crossing the Strait of Gibraltar, maritime tracking analysis shows.

The aircraft carrier will likely take several more days to reach the Middle East and be poised to operate against Iran - so it looks to be in place by start of next week.

According to Bloomberg and other outlets, the US has now amassed the biggest force in the Middle East since the 2003 invasion of Iraq. There is administration talk of "limited strikes" - but clearly Washington is getting ready for all escalation scenarios.

The Ford's entry into Mediterranean waters took longer than expected because it was reportedly conducting replenishment-at-sea, again suggesting the nuclear-powered vessel is readying for a long, or sustained campaign.

Diplomacy seems to be continuing, but also with Trump himself on Friday confirming that he's considering 'limited' strikes on Iran in order to force an Iran deal on Washington's terms:

The reports come after Trump publicly told Iran that it has “10 to 15 days” to cut a deal over its nuclear program, as the US continues its vast military build up in the region.

“We’re either going to get a deal, or it’s going to be unfortunate for them,” Trump told reporters on board Air Force One yesterday. He added that negotiations could be allowed to continue for another 10 to 15 days, a deadline the president described as “pretty much” the “maximum”.

“I would think that would be enough time,” Trump said.

So there is perhaps time to breathe, while Iranian officials continue to scramble, hoping to stave off attack. According to fresh Reuters reporting:

Iran to present its draft in 2–3 days, with further talks expected within a week, its foreign minister says -adding a diplomatic deal with the U.S. is “within reach” and could be achieved in a very short time.

But once a potential attack starts, Iran's response is entirely unpredictable, especially after this firm warning communicated formally to the United Nations:

Iranian leaders may consider that they have no choice but to inflict as much pain as possible on American bases and forces in the region, seeing this as a matter of existential survival.

“It will be very hard for the Trump administration to do a one-and-done kind of attack in Iran this time around,” said Ali Vaez, an Iran expert at the International Crisis Group. “Because the Iranians would respond in a way that would make all-out conflict inevitable.”

But the Pentagon seems to be readying for just such a scenario, also while Congress is still days away from belatedly debating a resurrected War Powers push - driven by Reps Khanna and Massie.

Tyler Durden Fri, 02/20/2026 - 14:15

Judge Temporarily Blocks Democrat-Backed Referendum To Redraw Virginia's Congressional Map

Zero Hedge -

Judge Temporarily Blocks Democrat-Backed Referendum To Redraw Virginia's Congressional Map

Authored by Aldgra Fredly via The Epoch Times,

A county judge in Virginia issued an emergency restraining order on Feb. 19, pausing a referendum backed by Democrats that aims to redraw the state’s congressional maps.

Tazewell County Circuit Judge Jack Hurley issued the order following a Feb. 18 motion by the National Republican Congressional Committee (NRCC) that sought to challenge House Bill 1384.

HB1384 schedules a referendum for April 21 on a proposed constitutional amendment to allow the General Assembly to redraw the state’s congressional districts.

Virginia’s redistricting plan was projected to give Democrats four more U.S. House seats.

The Republican request for a restraining order argued that Democrats were ramming redistricting-related bills through the Legislature despite legal hurdles that prevent such a rushed process.

In its Feb. 18 filing, NRCC argued that HB1384 violates the Constitution by calling a referendum less than 90 days after it cleared the Legislature for the second time.

The Constitution requires at least 90 days between the final passage and submission to the voters, according to the filing.

In his ruling, Hurley found that temporary relief was warranted in this case to preserve “the status quo between the parties pending a hearing on a motion for a preliminary injunction.”

He also found the plaintiffs were likely to succeed in their claim that ballot language, as set by HB1384, violates the state’s Constitution because it is misleading, in particular, the “restore fairness” language, because it “would lead a voter to believe he or she were doing something unfair by voting against the proposed amendment.”

Hurley’s order temporarily restrains local officials from “administering, preparing for, taking any action to further the procedure of the referendum, or otherwise moving forward with causing an election to be held on the proposed constitutional amendment contained within House Joint Resolution 6007.”

The restraining order will remain in effect through March 18, according to the ruling. Early voting on the amendment was scheduled to begin on March 6 and conclude on April 21.

In a statement, NRCC spokesperson Mike Marinella hailed Hurley’s order as a “massive win in defending honest representation” for all residents in Virginia.

“For a second time, the Virginia courts have ruled against Virginia Democrats’ partisan attempt to ignore their own Constitution and rig the system in their favor,” Marinella said.

Hurley had initially blocked the effort in a January ruling, but the Virginia Supreme Court later allowed the plan to proceed to an April voter referendum after an appeal.

Hurley’s latest order has now halted the ballot initiative.

Virginia House Speaker Don Scott, a Democrat, has indicated the Democratic Party will appeal the judge’s decision.

He said he is confident Hurley’s latest order will not stand, given the state Supreme Court’s earlier reversal of his previous order.

“The Supreme Court of Virginia has already made clear that this matter will go to the voters, but Republicans unhappy with that ruling went back to their friendly judge,” Scott said.

House Minority Leader Hakeem Jeffries (D-N.Y.) told CNN on Feb. 15 that Democrats will do “whatever it takes” to make Virginia’s redistricting plan successful, adding the party is ready to spend “tens of millions of dollars” on the Virginia ballot initiative.

“Republicans started this redistricting war, and Democrats have made it clear we’re going to finish it. We’re going to make sure that there is a fair national map,” he said.

Republicans, who hold a narrow House majority, have already passed redistricting plans in Texas, Missouri, Ohio, and North Carolina.

Earlier this year, Florida Gov. Ron DeSantis said he would call a special session for April for the Sunshine State’s GOP-controlled Legislature to draw new U.S. House districts.

Tyler Durden Fri, 02/20/2026 - 14:00

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