ALTADENA, Calif., Jan. 18, 2025 /PRNewswire/ — Summerkids Camp, a family-run business in the hills of Altadena, announced that its camp property that hosted generations of children over five decades was destroyed by the Eaton Fire.
While the camp is closed, the camp community is rallying around each other, said Summerkids Camp Director Cara DiMassa, a member of the family that has run the camp since its founding. “We are grieving all that we have lost in Altadena, including many of our camp families’ homes,” DiMassa said. “But I am heartened by the way members of the Summerkids community are supporting one another.”
DiMassa has spent the last week compiling a database of Summerkids Camp families who lost their home to the Eaton Fire, including the camp’s caretaker, who lived on site. At last count, DiMassa said, more than 50 Summerkids Camp families had lost homes in the Eaton Fire, including several families in which both parents and children attended the camp.
“In some cases, families who lost their own homes have been donating to other Summerkids Camp families in similar situations,” DiMassa said. “It shows how much we value each other as a camp community and come together in crises like this.”
Summerkids, which began in 1978 and was located at the Altadena site since 1980, is owned and operated by the DiMassa family. Tens of thousands of campers from Altadena and surrounding communities have attended the camp, which served campers in grades K-9.
The summer camp operated on a 55-acre site originally built for the Camp Fire Girls in the late 1940s. The site included a historic and architecturally significant lodge designed by famed local architect Boyd Georgi. In addition, all structures – including four cabins, a caretaker’s house, playgrounds, an amphitheater, archery ranges and more – were lost in the fire.
President-elect Donald Trump said Saturday that he may provide a 90-day extension to ByteDance-owned TikTok to delay or prevent a ban in the U.S.
What Happened: During an interview with NBC on Saturday, Trump suggested that he is “most likely” to grant TikTok a 90-day extension from a potential U.S. ban.
“I think that would be, certainly, an option that we look at. The 90-day extension is something that will be most likely done, because it’s appropriate. You know, it’s appropriate. We have to look at it carefully. It’s a very big situation,” Trump said.
This extension would provide ByteDance additional time to sell to a non-Chinese buyer, in compliance with the law enacted by President Joe Biden last year. However, Trump’s final decision on this matter is still pending.
As reported by NBC News, the existing deadline for TikTok’s compliance is midnight Sunday. An extension announced on Monday might not be able to prevent the app from going offline for at least a day. The future of TikTok has been a major concern during the last days of the Biden administration.
The Biden administration has consistently stated that it does not intend to enforce the law, thereby shifting the responsibility to the incoming Trump administration. However, TikTok expressed apprehensions on Friday that the assurances from the White House might not be enough to prevent the app from being shut down.
Trump’s potential support for TikTok marks a significant departure from his previous stance during his first term, when he attempted to ban the app along with the Chinese messaging app WeChat.
Meanwhile, on Saturday, the Biden administration called TikTok’s statement on going dark on Sunday a “stunt.”
“It is a stunt, and we see no reason for TikTok or other companies to take actions in the next few days before the Trump Administration takes office on Monday,” White House Press Secretary Karine Jean-Pierre told Reuters.
“We have laid out our position clearly and straightforwardly: actions to implement this law will fall to the next administration. So TikTok and other companies should take up concerns with them.”
“President Biden’s position on TikTok has been clear for months, including since Congress sent a bill in overwhelming, bipartisan fashion to the President’s desk: TikTok should remain available to Americans, but simply under American ownership or other ownership that addresses the national security concerns identified by Congress in developing this law,” Jean-Pierre added in the statement.
Why It Matters: TikTok’s potential ban in the US has been a contentious issue, with the app’s fate hanging in the balance during the transition between the Biden and Trump administrations.
The proposed 90-day extension could provide much-needed respite for TikTok and its parent company, ByteDance, allowing them additional time to comply with US regulations.
However, the future of the app in the US market remains uncertain until a final decision is made by the incoming Trump administration.
What Happened: The crypto market sprung to life on the final trading day before the Trump administration takes over. Bitcoin spearheaded the rally, surging 2.81% and almost touching $104,987 per token. Ethereum (ETH -0.22%) and Dogecoin (DOGE -0.16%) also saw gains.
There is widespread speculation that President-elect Trump will prioritize cryptocurrency, with rumors of an executive order on his first day in office. This might include the appointment of a more crypto-friendly chairman for the Securities and Exchange Commission.
However, traders are advised to be cautious of the speed of policy changes in Washington. While changes to the industry’s rules may require congressional action, this doesn’t necessarily translate to a direct value gain for meme coins and blockchain tokens.
Instead, it could lead to assets like stocks and bonds trading on the blockchain and more business formation taking place on the blockchain.
Despite the current speculation-driven surge, the market may face disappointment if the news doesn’t meet high expectations.
The Federal Reserve cannot make Bitcoin or any other cryptocurrency a reserve currency without Congressional action, which seems unlikely in the current political climate.
The market movement today is largely driven by speculation that Trump will be beneficial for the crypto market. However, similar speculation in 2021 led to a market crash in 2022, cautioning investors against buying tokens based solely on speculation.
Why It Matters: The potential for a ‘Trump bump’ in the cryptocurrency market is significant, given the President-elect’s rumored focus on this sector.
However, the history of speculation-driven surges and crashes in the crypto market serves as a warning to investors. The potential for policy changes under the new administration could have far-reaching implications for the industry, but these changes are uncertain and could take time to implement.
The meeting, which lasted around an hour, focused on a range of issues concerning New York City, including border security, the deportation of violent offenders, and ways the federal government could assist with the city’s needs, reports CBS News.
Adams also highlighted discussions on improving public safety through the ceasefire agreement between Israel and Hamas and the potential for bringing manufacturing jobs back to New York, especially in the Bronx.
In a statement, Adams described the conversation as productive, emphasizing the importance of federal investments in New York, particularly regarding infrastructure and public safety, CBS News adds. He noted that working with the federal government is crucial to the success of New York City.
While the meeting itself was not surprising, as Adams has consistently shown a willingness to engage with all levels of government, some of his political opponents raised concerns about an ulterior motive.
There were speculations that Adams might be seeking a pardon from Trump in light of his ongoing corruption charges.
Adams, however, dismissed these claims, stating that his primary focus was on securing federal assistance for New York.
He reaffirmed his intention to collaborate with the incoming administration for the benefit of the city’s residents, CBS News adds.
This meeting came as preparations were underway for Trump’s inauguration, including heightened security measures in Washington, D.C. With the inauguration now moved indoors due to freezing temperatures, security concerns remain a priority as 250,000 guests, including prominent figures, prepare to attend.
Major players in the cryptocurrency industry have made substantial donations to President-elect Donald Trump‘s inaugural fund.
What Happened: Companies such as Ripple, Coinbase, Kraken, Robinhood, and Circle have collectively donated a minimum of $10 million to the inauguration fund since Election Day.
According to a report by Politico, these contributions will be used to finance official events related to the inauguration, symbolizing the industry’s support for Trump, who is anticipated to be the first U.S. president with a clear pro-crypto stance.
The cryptocurrency industry also hosted a sold-out unofficial inaugural ball on Friday night at the Andrew W. Mellon Auditorium in Washington. The event, which included Snoop Dogg as a musical guest, was partly organized by David Bailey, who manages a Bitcoin conference where Trump was a speaker last summer.
Ripple, currently facing enforcement action from the SEC, has donated $5 million in digital tokens to the inaugural committee. U.S. crypto exchanges Coinbase and Kraken, as well as stablecoin company Circle, each donated $1 million. Online brokerage Robinhood made a contribution of $2 million.
Why It Matters: These donations have sparked controversy, with Democrats and watchdog groups accusing the president of trading influence. However, the crypto industry perceives this as a celebratory moment and a chance to interact with the incoming administration.
Amid ongoing regulatory uncertainties, these firms are likely seeking to build a strong relationship with the new administration, hoping for a more favorable regulatory climate for cryptocurrencies.
As Bitcoin BTC/USD nears the $106,000 mark, the probability of the U.S. establishing a strategic Bitcoin reserve has surged to an all-time high of 70%.
What Happened: Well-known venture capitalist and Bitcoin enthusiast Anthony Pompliano shared data indicating a significant increase in the likelihood of incoming president Donald Trump creating a strategic Bitcoin reserve in 2025.
This information was shared as Bitcoin briefly hit the $106,000 mark before experiencing a minor pullback. The cryptocurrency is currently trading at $103,120 per coin, marking a 2.71% decline within several hours.
The speculation surrounding the new presidential administration’s plans to approve the creation of a strategic Bitcoin reserve has been a key factor in the cryptocurrency’s recent price surge.
Another significant factor driving Bitcoin’s price is the upcoming inauguration of President Donald Trump on January 20.
The Department of Justice (DOJ) has also recently received court permission to sell 69,370 BTC seized from a Silk Road hacker in 2020.
The sale could net the US government over $7 billion, but many in the crypto community hope President Trump will prevent the sale and retain the Bitcoin for the proposed strategic reserve.
Why It Matters: The establishment of a strategic Bitcoin reserve by the US government would be a significant endorsement for the cryptocurrency, potentially driving its value even higher.
The move would also mark a shift in the government’s stance towards cryptocurrencies, which have been viewed with skepticism by some regulators.
The potential sale of the seized Bitcoin by the DOJ could also have a significant impact on the market. If the sale goes ahead, it could flood the market with Bitcoin, potentially driving down the price.
In the wake of the launch of a meme coin themed to President-elect Donald Trump, the cryptocurrency Solana SOL/USD has surged 15% on Saturday.
What Happened: According to Coinmarketcap, the SOL token of Solana experienced a significant value increase following the launch of a Trump-themed meme coin on the Solana blockchain.
On Saturday, SOL’s price soared more than 15% to $254.71. The newly introduced meme coin, named “Official Trump” TRUMP/USD, was unveiled on Trump’s social media accounts late Friday and has since garnered more than $5 billion, making it the largest meme coin on the Solana network, according to CoinGecko.
Trump himself, and entities directly connected to him, have earned as much as $25 billion from the offering, according to Axios.
This development is timed ahead of Trump’s inauguration on Monday, which is anticipated to usher in a new era of innovation and productivity in the crypto industry. It also coincides with the conclusion of Gary Gensler‘s term as chairman of the Securities and Exchange Commission.
Solana, the fourth-largest cryptocurrency by market cap, was established in 2020 as a quicker and more affordable alternative to EthereumETH/USD. It hosts popular meme coins like dogwifhat and Pudgy Penguins, in addition to decentralized finance (DeFi) and gaming projects.
The decision deadline for potential ETFs from Bitwise, VanEck, 21Shares, and Canary is January 25. ProShares also filed for four different ETFs based on SOL on Friday.
Why It Matters: The introduction of the Trump-themed memecoin and its subsequent success highlights the growing influence of political figures on the cryptocurrency market.
The surge in Solana’s value following the meme coin’s launch underscores the potential of such themed coins to drive market trends. With the end of Gensler’s term, the crypto industry is poised for potential regulatory changes that could further impact the market dynamics.
A woman going through a divorce thinking about dividing tax debt.
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Dividing tax debt during a divorce depends on when the debt was incurred, state laws and other factors. Responsibility for back taxes may be shared or assigned to one spouse, often based on whether the debt arose before or during the marriage. However, IRS rules may not align with a divorce court’s decision. A financial advisor can help clarify tax obligations and prepare you for potential financial impacts.
When dividing debt in a divorce, courts look at the type of debt and when it was incurred. Debts taken on during the marriage are typically considered shared, making both spouses liable.
Debts from before the marriage are usually treated as separate, with each spouse responsible for their own obligations.
Tax debt is often treated the same way. Whether the debt was accrued jointly or individually, and whether it occurred during the marriage, are important factors in determining responsibility.
In community property states, courts may decide that both spouses share the responsibility for any tax debt incurred during the marriage. This means the debt is typically divided equally, regardless of income differences or contributions.
In equitable distribution states, tax debt is divided based on what the court considers fair, not necessarily equal. Factors like each spouse’s financial situation, earning potential and contributions to the household are considered. As a result, one spouse may be assigned a larger share of the tax debt. This approach applies in all states except the nine that follow community property laws.
A divorce settlement may assign tax debt to one spouse, but the IRS can still hold both spouses jointly liable for tax debt if they filed jointly during the marriage. Even if a divorce decree states otherwise, the IRS can pursue payment from either party.
To reduce this risk, individuals can seek innocent spouse relief from the IRS. This provision relieves a spouse of responsibility for tax debt if their ex-spouse improperly reported or omitted income on a joint tax return without their knowledge.
To qualify, the requesting spouse must show they were unaware of the errors and that it would be unfair to hold them liable. The IRS considers factors like financial involvement, personal benefit and financial circumstances.
To apply, individuals must file IRS Form 8857, explaining their situation and including supporting documents. The IRS will review the application, considering the couple’s financial details and communication during the marriage.
A woman researching tax laws for divorce settlements.
Separation of liability relief allows joint filers to divide responsibility for understated tax liabilities between themselves and their ex-spouse.
The IRS assigns each spouse a portion of the tax debt based on their individual contributions and circumstances, offering a way to separate financial responsibility after a divorce or separation.
Unlike innocent spouse relief, this option is only available to those who are divorced, legally separated, or have lived apart from their spouse for at least 12 months.
To apply for separation of liability relief, individuals must submit IRS Form 8857. The IRS will review the application, considering factors such as each spouse’s financial contributions and their involvement in the tax reporting process.
Equitable relief is available for individuals facing unfair tax liability due to their spouse’s or ex-spouse’s actions, even if they were aware of the errors. This type of relief covers both understated tax liabilities and unpaid taxes, offering broader protection compared to other forms of relief.
This is different from separation of liability relief, which splits tax debt between spouses. Equitable relief applies when holding one spouse responsible would be unfair.
To qualify, the requesting spouse must demonstrate that holding them responsible for the tax debt would be unfair under the circumstances. The IRS considers factors such as financial hardship, the current financial situation of the requesting spouse and any evidence of abuse or deceit by the other spouse.
To apply for equitable relief, you must file IRS Form 8857. This form will allow you to explain your situation and provide evidence supporting your case.
A man comparing community property vs. equitable distribution states.
Dividing tax debt in a divorce can be difficult, especially with joint tax returns and IRS rules. Options like innocent spouse relief, separation of liability relief and equitable relief can help avoid unfair responsibility for a former spouse’s tax debt. A tax professional can guide you through these options.
A financial advisor can help optimize your investments for taxes. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
SmartAsset’s tax return calculator with updated brackets and rates to see how your income, withholdings, deductions and credits will affect your next refund or balance due.
President-elect Donald Trump has confirmed that his inaugural address on Monday will take place indoors in the Capitol Rotunda due to dangerously cold weather in Washington, D.C.
The move comes as temperatures are expected to plunge into the teens, with the wind chill making it feel even colder, BBC reports.
Trump announced the move indoors on his Truth Social platform, saying he didn’t want anyone to be harmed by the extreme conditions, particularly the tens of thousands of law enforcement, first responders, and supporters expected to attend.
The inaugural parade, as well as the three official inaugural balls, will also be moved indoors to the Capital One Arena in downtown Washington, about a mile from the Capitol.
While the change in venue is a historic first for a U.S. presidential inauguration, it is not unprecedented.
The last time an inauguration was held indoors was in 1985 at the start of President Ronald Reagan’s second term, when similarly harsh weather forced the ceremony indoors, BBC adds.
Temperatures in Washington on Inauguration Day are expected to be unusually cold, with lows dipping to 12°F (-11°C) and highs reaching only 23°F (-5°C).
The cold is part of a larger polar vortex affecting much of the country.
For those planning to attend, Trump advised on social media to “dress warmly” if they decide to brave the elements, though he emphasized that everyone’s safety would come first, BBC reports.
In addition to the indoor address, a live viewing of the inaugural speech will be available at the Capital One Arena.
Trump, who plans to visit the arena after his swearing-in ceremony, expressed confidence that the event would still be memorable and safe for all involved.
Despite the changes, Trump reassured his supporters that the inauguration would still be a historic occasion, calling for a united effort to “Make America Great Again.”
Although attendance will be limited due to the indoor setting, the event will be broadcast widely, allowing many to witness the occasion from afar.
(Bloomberg) — US Treasury yields have trended up since late last year, and commercial real estate distress risk is straining regional banks’ balance sheets again.
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Stocks are already reacting to the higher borrowing costs. Smaller bank shares have fallen about 8.2% since late November after the 10-year Treasury yield began trending up. The risk of default by borrowers who bought office buildings before the pandemic sent values plummeting also increases when the cost of credit rises.
“Rising long-term yields certainly leave the banking system more fragile in the short run, if more profitable in a base case economic scenario,” said Steven Kelly, associate director of research at the Yale Program on Financial Stability.
A surge in 10-year yields last year likely reversed most of the decline in unrealized losses on banks’ available-for-sale and held-to-maturity securities in the third quarter, Federal Deposit Insurance Corp. Chairman Martin Gruenberg said in a Dec. 12 speech. Even after this past week’s rally after better-than-expected inflation data, the benchmark has since risen about 0.3 percentage points to around 4.58%, adding to the pain for lenders.
If borrowing benchmarks remain high, regional banks risk higher losses on commercial real estate because borrowers will struggle to refinance, said Tomasz Piskorski, a finance and real estate professor at Columbia Business School. He and fellow researchers estimate about 14% of the $3 trillion of US CRE loans are underwater, rising to 44% for offices.
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Smaller lenders are more vulnerable to CRE defaults after demanding lower down payments from borrowers than their larger counterparts in the run up to the interest-rate hikes that began in 2022. Now that office and multifamily values have crashed, the lenders have less of a buffer before taking losses.
The office market has yet to stabilize “which is why we remain concerned and remain well-reserved,” PNC Financial Service Group Chief Executive Officer Bill Demchak said on an earnings call this week. The bank increased the reserves it set aside to cover soured office loans to 13.3%, up from 8.7% at the end of 2023, although it’s a small proportion of their overall book.
On the plus side, the declining cost of deposits, thanks to lower Federal Funds rates, helps stability. Steady deposit flows in the fourth quarter suggest that the odds are low that they could quickly be moved to other banks, reducing the risk that lenders have to sell underwater bonds. Duration risk is also reducing as the securities move closer to maturity.
For now, “investors are a little less concerned about the unrealized losses, because it doesn’t look like there’s going to be forced sales like there was with Silicon Valley Bank,” said Scott Hildenbrand, head of depository fixed income at Piper Sandler.
Terry McEvoy, a bank analyst at Stephens Inc., concurs. The firm has met at least 30 bank investors in recent days and it was not a major area of discussion or concern, he said. The incoming Trump administration may also boost bank margins through deregulation, said Piskorski at Columbia Business School.
Still, with borrowing benchmarks trending up even as the Fed cuts interest rates, “we are entering into a very precarious position” and “instead of escaping this area of bank fragility, we are moving toward an increasing area of bank fragility,” Piskorski said.
Week In Review
The six biggest US banks issued corporate bonds or preferreds this week, after posting results. Issuance could pick up in the coming sessions thanks after yields have fallen, following an inflation report that implied that price increases may be coming under control.
It’s never been this cheap to trade corporate bonds, thanks to a boom in electronic trading that’s enabling a wider swathe of investors to buy and sell large volumes of securities faster and more efficiently.
The first loan this year to fund a leveraged buyout arrived on Thursday, with JPMorgan Chase & Co. supporting Silver Lake Management’s purchase of Endeavor Group Holdings Inc., the talent agency and controlling investor in WWE and the Ultimate Fighting Championship.
China Vanke Co. rebounded from record lows in credit markets, as people familiar with the matter said the distressed developer had previously told some creditors it had enough cash prepared to repay a local note.
Repeat corporate bankruptcies in the US are running at the fastest pace since 2020, as some companies still can’t recover even after slashing debts.
Software maker Databricks Inc. clinched more than $5 billion of financing from lenders including Blackstone Inc., Apollo Global Management Inc. and Blue Owl Capital Inc. in its largest debt raise to date.
At least eight major distressed Chinese firms, including a China Evergrande Group unit, are set to defend themselves in court cases relating to their debt problems over the next two weeks, in one of the busiest stretches ever for such hearings.
Blackstone’s flagship private credit fund withdrew a planned $500 million investment-grade bond sale expected to price Tuesday due to administrative delays.
Goldman Sachs Group Inc. pulled out of a $1 billion deal to help Ecuador refinance debt, due to internal risk-management controls.
Altice France’s creditors are demanding the return of shuffled assets and a say in future board appointments as part of negotiations with the company over its €23.7 billion ($24.4 billion) debt pile.
Prospect Medical Holdings Inc., once an active buyer of cash-strapped hospitals, filed for bankruptcy after struggling with debt piles and soaring costs.
On the Move
Paul Goldschmid, who was one of the longest-tenured partners at King Street Capital Management before leaving the $26 billion hedge fund firm last year, announced on LinkedIn the launch of his own long/short credit firm, Harvey Capital Partners.
Goldman Sachs Group Inc. promoted several key executives and combined teams to form a capital solutions group, a move recognizing the growing importance of private markets. Pete Lyon, global head of the financial institutions group and the financial and strategic investors group, and Mahesh Saireddy, global head of mortgages and structured products, will lead the new group.
Lloyds Bank has appointed James Brown as managing director, head of leveraged finance & project finance syndication. Brown joins from Mizuho in London where he led the leveraged debt capital markets business for five years.
Ares Management Corp. promoted finance industry veteran Kevin Alexander as co-head of alternative credit. He’ll work alongside current co-heads Keith Ashton and Joel Holsinger.
Banco Bilbao Vizcaya Argentaria SA has hired UBS Group AG’s Americas head of structured credit and sustainable credit products, Estanislao Fidelholtz, as a managing director and head of its structuring team for credit solutions in the US.
Man Group has consolidated its European and US CLO groups into a global syndicated loan business. Portfolio managers Joshua Cringle and Jonathan Newman will lead the new platform from the US with capacity to issue CLOs.
Credit investor SC Lowy Financial HK Ltd. has laid off several staff members, according to the company’s chief executive officer, as the firm pivots away from trading public securities and toward private credit.
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