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Ex-Mars executive pleads guilty to $28M fraud scheme

BRIDGEPORT, Conn. (AP) — A former executive for a subsidiary of candymaker pleaded guilty Thursday to fraud and tax charges in connection with his theft of $28 million from the company, federal prosecutors said.

, 58, appeared in in Bridgeport, . He also agreed to pay $28.4 million in restitution to and owes another $10 million in back taxes to the Internal Revenue Service, U.S. Attorney for Connecticut David Sullivan said in a statement.

Steed, of Stamford, Connecticut, who is free on $5 million bail, did not immediately return messages left at phone numbers and emails listed for him in public records. His lawyer, former U.S. Attorney for Connecticut Deirdre Daly, did not immediately return phone and email messages Thursday.

A dual U.S. and Argentine citizen, Steed was once a respected sugar market expert for , where his last position was global price risk manager. The company is a subsidiary of , Virginia-based Mars Inc., the maker of M&M’s, Snickers, Skittles, Altoids mints and Doublemint gum, as well as other food products and pet food.

A federal indictment accused him of stealing from Mars beginning in about 2013 through various schemes, including diverting funds to companies he set up. Steed sent the lion’s share of the stolen funds, more than $26 million, to one of his companies, MCNA LLC, which was created to mimic an actual Mars company, Mars Chocolate North America, prosecutors said.

Authorities say they have seized more than $18 million from Steed’s bank accounts, and Steed has agreed to forfeit the money. The government is also seeking to liquidate a home in Greenwich, Connecticut, that Steed allegedly purchased using $2.3 million of the stolen cash. Prosecutors say Steed sent another $2 million to Argentina, where he has relatives and owns a ranch.

Steed pleaded guilty to two counts of and one count of . Sentencing is set for Dec. 9.

Average rate on a 30-year mortgage falls to lowest level in nearly a year

Summary

  • 30-year mortgage rate drops to 6.35%, lowest since Oct. 2024
  • 15-year mortgage rate also fell, now averaging 5.5%
  • Decline driven by lower Treasury yields and Fed expectations
  • Fed expected to cut benchmark rate to 4.1% next week
  • Mortgage applications hit three-year high as surges

The average rate on a 30-year U.S. mortgage fell this week to its lowest level in nearly a year, reflecting a pullback in Treasury yields ahead of an expected interest rate cut from the next week.

The long-term rate eased to 6.35% from 6.5% last week, mortgage buyer said Thursday. A year ago, the rate averaged 6.2%.

Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their , also fell. The average rate slipped to 5.5% from 5.6% last week. A year ago, it was 5.27%, Freddie Mac said.

Mortgage rates are influenced by several factors, from the Federal Reserve’s interest rate policy decisions to bond market investors’ expectations for the economy and inflation.

Rates have been mostly declining since late July amid growing expectations that the Fed will cut its benchmark short-term interest rate for the first time this year at the central bank’s meeting of policymakers next week.

While the Fed doesn’t set mortgage rates, its actions can influence bond investors’ appetite for long-term U.S. government bonds, like 10-year Treasury notes. Lenders use the yield on 10-year Treasurys as a guide to pricing home loans. The yield was at 4% Thursday afternoon.

The Fed has kept its main interest rate on hold this year because it’s been more worried about inflation potentially worsening because of President ‘s tariffs than about the job market.

But in a high-profile speech last month, Federal Reserve Chair signaled the central bank may cut rates in coming months amid concerns about weaker job gains following a grim July report, which included massive downward revisions for June and May.

More recent job market data have fueled speculation that the central bank could be preparing to lower rates. The Labor Department said last week that the economy added just 22,000 jobs in August. And on Tuesday, revised jobs data from the government showed the U.S. job market had been much weaker last year and this year than earlier data suggested.

Meanwhile, the latest weekly snapshot of benefit claims shows more U.S. workers applied for unemployment benefits last week, an indication that the number of could be rising.

The has been in a slump since 2022, when mortgage rates began climbing from historic lows. Sales have remained sluggish so far this year as the average rate on a 30-year mortgage has mostly hovered above 6.5%.

The average rate is now at its lowest level since Oct. 10, when it was 6.32%.

A similar pullback in rates happened last year in the weeks leading up to the Fed’s interest rate policy meeting in September. That’s when the Fed cut its key interest rate for the first time since March 2020, in the early days of the pandemic. Back then, the average rate on a 30-year mortgage got down to a 2-year low of 6.08%, but soon after climbed again, reaching above 7% by mid-January.

Mortgage rates could follow a similar trajectory this time, given that expectations of a Fed rate cut have already brought mortgage rates lower.

“We should not expect rates to drop much further, and in fact, there is a possibility that mortgage rates could actually increase after the Fed cut,” said Lisa Sturtevant, chief economist at Bright MLS.

For now, the recent pullback in mortgage rates has been encouraging to many prospective homebuyers and homeowners eager to refinance.

Mortgage applications, which include loans to buy a home or refinance an existing mortgage, jumped to a three-year high last week, according to the Mortgage Bankers Association.

Applications for mortgage refinancing loans made up nearly 50% of all applications last week, as homeowners who bought in recent years when mortgage rates surged seized the opportunity to lower their monthly home loan payment.

If mortgage rates continue to ease, home shoppers will benefit from more affordable financing. But lower mortgage rates could also bring in more buyers, making the market more competitive, at a time when sellers across the country are having a tougher time driving a hard bargain.

Butler Human Services Furniture to close Mecklenburg operations

SUMMARY:

  • Butler Human Services plans to close two facilities in Chase City
  • 51 employees to lose
  • Company also consolidating operations in Ohio

 

Butler Human Services Furniture, which makes furniture for social service organizations such as group homes, plans to close its operations, with 51 employees losing their jobs, according to a notice sent to the state in compliance with the Worker Adjustment and Retraining Notification Act.

A subsidiary of Ohio-based Sauder , Butler Human Services has two manufacturing and distribution facilities scheduled to close in Chase City: one at 239 B St. and another at 168 Duckworth Drive.

Those operations will be consolidated into operations in Stryker, Ohio, according to a press release from Sauder Manufacturing, which owns Butler. The consolidation will allow Sauder Manufacturing to “strengthen efficiency, ensure long-term stability and continue delivering the highest quality products and services to customers,” according to a news release.

The will occur in phases, with the first beginning Oct. 24. The facilities are expected to close by April 2026. The impacted employees do not have bumping rights and are not represented by a union.

“While this was not an easy decision, it is a necessary step to continue serving our customers at the high level of quality and reliability they expect from us,” Mark Graber, president of Sauder Manufacturing, said in a statement. “We are deeply grateful to our employees in Virginia for their dedication and contributions. Supporting them through this transition is our top priority.”

Butler Human Services Furniture also has a sales office near staffed by 8 employees, according to a Sauder Manufacturing spokesperson. Of those, three workers will be laid off “due to the realignment of leadership functions,” the spokesperson stated. 

The company, previously known as Butler Woodcrafters, was founded in 1980 in Chesterfield County. In 2014, Sauder Manufacturing acquired the business, which at that time had about 70 employees, with 10 at its main office in Midlothian and others working at a production plant in Chase City, according to news reports.

Sauder Manufacturing has five subsidiaries that make furniture for churches, courtrooms, higher education and other businesses. It is a subsidiary of Ohio-based Sauder Woodworking, which owns other businesses, including Sauder Building Products, a producer of professional grade laminate products for contractors.

Another Sauder Woodworking company, Progressive Furniture, which also is based in Ohio, is closing at the end of the year and laying off about 30 workers, according to a March article in Furniture Today. In the article, an executive of the company, which designs and imports wood bedroom, dining and accent furniture, attributed the closure to business conditions and the shuttering of a supplier in Mexico.

Editor’s note: This story has been updated. 

Government contractor to add 1,200 jobs in Alexandria and Fairfax

SUMMARY:

  • is expanding its headquarters and adding 500
  • The company purchased its 239,000-square-foot office building for $29.3 million, plans $15.4 million in renovations
  • ‘s workforce in Alexandria will nearly double in five years

Alexandria-based government contractor Systems Planning & Analysis (SPA) announced Thursday it plans to invest $46.9 million to expand its headquarters, increase its presence in and create more than 1,200 jobs in the two localities.

Founded in 1972, the company provides data and analytics services designed to address national security challenges facing the United States and its allies. Its will nearly double the company’s Alexandria-based workforce of 600 over the next five years, creating nearly 500 jobs in the city.

Alexandria Mayor Alyia Gaskins, members, SPA leadership, Fairfax County officials and gathered at the company’s global headquarters at 2001 N. Beauregard St. on Thursday to announce the expansion.

“In Northern Virginia, SPA is expanding their operations at the speed of Virginia,” Youngkin said in a statement. “The commonwealth’s strategic location, pro-business policies, and access to world-class talent made the decision to grow here easy for the SPA team. Together, we are working to push creative boundaries in the world of data, security and national defense.”

As part of the headquarters expansion, a limited liability company associated with SPA purchased the 239,000-square-foot office building for $29.3 million in June, according to city property records, and the company will undertake extensive renovations, expected to cost $15.4 million, to modernize the 35-year-old building, city officials said.

The governor’s office said SPA company anticipates growth at its existing facility in Chantilly and is actively exploring new locations to accommodate its expanding workforce. SPA anticipates creating 714 jobs in Fairfax.

Business officials did not specify the company’s timeline for renovations. The project will go before the Alexandria City Council for approval Sept. 30.

“We congratulate Systems Planning & Analysis on this exciting next chapter of growth at their headquarters and across the region,” Gaskins said in a statement. “The purchase of their office headquarters is a signal of their commitment to and investment in Alexandria, where they will grow their workforce and their community partnerships. This planned regional growth cements their place as a pillar of the defense and national security industry, and we are proud to add them to the growing list of Alexandria business success stories.”

“We are thrilled to deepen our roots in Alexandria and Fairfax County, two vibrant communities that have supported our growth for more than 50 years,” CEO Rich Sawchak said in a statement. “This expansion reflects our commitment to providing exceptional data-driven analytical insights to our clients while fostering innovation within our own organization. We are excited to welcome new talent and invest in the local economy.”

SPA will receive a grant from the , matched by the Alexandria government through the Alexandria Investment Fund, for , along with city investments in infrastructure such as bus stops, walkways and curb extensions near the headquarters to benefit the community and improve neighborhood access. Youngkin’s office said the grants are valued at $9.2 million.

The company will also partner with the Alexandria Workforce Development Center to give interview priority to qualified job applicants who come from the center. SPA will also prioritize Alexandria-based vendors for any procurement needs and will work with Alexandria City Public Schools and other local nonprofits to help provide programming and practical STEM skill-building for local youth.

SPA has 21 office locations and more than 2,500 employees worldwide.

The number of Americans filing for jobless benefits last week hits 263,000, most in nearly 4 years

Summary

  • Jobless claims rose 27,000 to 263,000 in early September
  • Highest filings since October 2021
  • Economists expected 231,000 claims, below actual numbers
  • Claims had held mostly between 200,000–250,000 since pandemic
  • Data signals labor market is showing signs of softening

WASHINGTON (AP) — U.S. jobless claim applications jumped to their highest level in almost four years last week, the latest sign that the labor market is softening.

The number of Americans filing for unemployment benefits for the week ending Sept. 6 rose 27,000 to 263,000, the Labor Department reported Thursday. That’s the most filings since the week of Oct. 23, 2021 and well above the 231,000 new applications economists forecast.

Weekly applications for jobless benefits are considered a proxy for and have mostly settled in a historically low range between 200,000 and 250,000 since the U.S. began to emerge from the COVID-19 pandemic nearly four years ago.

Despite last week’s increase, layoffs remain relatively low by historical measures and hiring has weakened, a trend that economists describe as “no hire, no fire.”

Earlier this week, the Bureau of Labor Statistics issued a massive preliminary revision of U.S. job gains for the 12 months ending in March, further evidence that the labor market has not been as strong as previously thought.

The BLS’s revised figures showed that U.S. employers added 911,000 fewer than originally reported in the year ending in March 2025, with the biggest weakness coming from the leisure and hospitality sector, professional and business services and retail. The report showed that job gains were tapering long before President  rolled out his far-reaching tariffs on U.S. trading partners in April.

The department issues the revisions every year, intending to better account for new businesses and ones that had gone out of business. Final revisions will come out in February 2026.

The updated figures came after the agency reported Friday that the economy generated just 22,000 jobs in August, well below the 80,000 economists were expecting.

Also last week, the government said that U.S. employers advertised 7.2 million job openings at the end of July, fewer than economists had forecast and the first time since April of 2021 that there were more unemployed Americans than job postings.

Last month’s grim July employment report, which showed job gains of just 73,000 and included huge downward revisions for June and May, sent financial markets spiraling and prompted Trump to fire the head of the agency that compiles the monthly data.

The various labor market reports have bolstered fears that Trump’s erratic economic policies, including the unpredictable taxes on imports, have created so much uncertainty that businesses are reluctant to hire.

Broader U.S. economic growth has weakened so far this year as many companies have pulled back on projects amid the uncertainty surrounding the impacts of the tariffs. Growth slowed to about a 1.3% annual rate in the first half of the year, down from 2.5% in 2024.

The sluggishness in the job market is a key reason that Chair  recently signaled that the central bank may cut its key interest rate at its meeting next week. A cut could reduce other borrowing costs in the economy, including mortgages, auto loans, and business borrowing.

While a rate cut could spur economic growth, economists fear it could push inflation even farther above the Fed’s target of 2%.

Thursday’s report showed that the four-week average of claims, which evens out some of the week-to-week volatility, rose by 9,750 to 240,500.

The total number of Americans collecting unemployment benefits for the previous week of Aug. 30 was unchanged at 1.94 million.

Korean workers detained in immigration raid bound for Atlanta and flight back home

Summary

  • 330 workers released after Georgia plant raid
  • 316 South Koreans among detainees, plus Chinese, Japanese, Indonesian nationals
  • Korean Air sent plane to bring workers back home
  • Seoul presses U.S. for new visa category for skilled workers
  • President Lee warns could affect Korean investments

ATLANTA (AP) — More than 300 South Korean workers detained in an at a Georgia battery plant last week headed to Atlanta on Thursday and a flight home.

‘s Foreign Ministry confirmed they were due arrive in South Korea late Friday afternoon. The developments came the same day South Korean President Lee Jae Myung called for improvements in the U.S. visa system as he spoke about the Sept. 4 immigration raid that resulted in the arrest of more than 300 South Korean workers at at Hyundai’s sprawling auto plant west of Savannah.

The Foreign Ministry said U.S. authorities have released the 330 detainees — 316 of them Koreans — and that they were being transported by buses to Atlanta’s Hartsfield-Jackson airport. The group includes 10 Chinese nationals, three Japanese nationals and one Indonesian.

The flight is back on track after an earlier departure had been canceled for an unspecified reason.

Here are some things to know about the raid and its aftermath:

What efforts have been made to get the South Koreans home?

The Korean Air Boeing 747-8i departed from Seoul for the U.S. to bring back the detained Korean workers and landed in Atlanta.

The workers were being held at an immigration detention center in Folkston, in southeast Georgia, near the state line with Florida. It’s a 285-mile (460-kilometer) drive from there to Atlanta.

South Korean officials said they were negotiating with the U.S. to win “voluntary” departures for the workers, rather than deportations, which could make them ineligible to return to the U.S. for up to 10 years.

During a visit to Washington, South Korean Foreign Minister Cho Hyun met with U.S. Secretary of State Marco Rubio and told him that his people were left with “big pains and shocks” because the video of the workers’ arrests was publicly disclosed, the ministry said in a statement.

Cho called for the U.S. administration to help the workers leave as soon as possible — without being handcuffed — and to ensure they do not face problems in future reentry to the U.S., the statement said.

During his meeting with Rubio, Cho also proposed the creation of a joint South Korea-U.S. working group to introduce a new visa category for workers from the Asian nation, according to Cho’s ministry.

South Korean TV showed Cho Ki-joong, consul general at the embassy in Washington, speaking outside the detention center. He said some administrative steps remained but things were going smoothly. The Foreign Ministry declined to comment on media reports that he and other diplomats met with the detained workers.

Korean pause in investments?

South Korea’s president said in a speech marking 100 days in office Thursday that Korean companies would likely hesitate to further invest in the U.S. unless Washington improves its visa system for their workers.

Lee said that whether the U.S. establishes a visa system allowing South Korean companies to send skilled workers to industrial sites will have a “major impact” on future investments.

“It’s not like these are long-term workers. When you build a factory or install equipment at a factory, you need technicians, but the United States doesn’t have that workforce and yet they won’t issue visas to let our people stay and do the work,” he said.

“If that’s not possible, then establishing a local factory in the United States will either come with severe disadvantages or become very difficult for our companies. They will wonder whether they should even do it,” Lee added.

What are the immigration consequences for the workers?

U.S. authorities have said that those detained during the raid were “unlawfully working” at the plant. But Charles Kuck, a lawyer representing several of the detained South Koreans, said the “vast majority” of the workers from South Korea were doing work that is authorized under the B-1 business visitor visa program.

A B-1 visitor for business visa allows to stay for up to six months, getting reimbursed for expenses while collecting a paycheck back home. There are limits — for example, they can supervise construction projects but can’t build anything themselves — but if it’s spelled out in a contract, they can install equipment, Los Angeles immigration lawyer Angelo Paparelli said.

Also, South Korea is one of 41 countries whose citizens can use the U.S. Electronic System for Travel Authorization (ESTA), which provides visa waivers to those who can provide “a legitimate reason” for their visit. This basically gives them B-1 visa status for up to 90 days, according to Los Angeles immigration attorney Rita Sostrin.

Georgia officials reaffirm relationship with South Korea

The raid targeted one of the Georgia’s largest and most high-profile sites, touted by the governor and other officials as the largest project in state history. Hyundai Motor Group began manufacturing EVs a year ago at the $7.6 billion plant, which employs about 1,200 people.

In a statement Wednesday, the governor’s office stressed its “strong relationship with the Republic of Korea and Korean partners like Hyundai, stretching back 40 years to the establishment of Georgia’s trad office in Seoul.”

US inflation worsened last month as the cost of gas, food and airfares jumped

Summary

  • Consumer prices up 2.9% in August, largest rise since January
  • Core inflation steady at 3.1%, above Fed’s 2% target
  • Gas, groceries, airfare and hotel prices see sharp increases
  • Fed expected to cut key rate to 4.1% at next week’s meeting
  • Trump presses Fed as court blocks firing of

WASHINGTON (AP) — Inflation rose last month as the price of gas, groceries, hotel rooms and airfares rose, along with the cost of clothes and used cars.

Consumer prices increased 2.9% in August from a year earlier, the Labor Department said Tuesday, up from 2.7% the previous month and the biggest increase since January. Excluding the volatile food and energy categories, core prices rose 3.1%, the same as in July. Both figures are above the ‘s 2% target.

The reading is the last the Fed will receive before its key meeting next week, when policymakers are widely expected to cut their short-term rate to about 4.1% from 4.3%. Still, the new inflation data underscores the challenges the Fed is facing as it experiences relentless pressure from President to cut rates. Inflation remains stubborn while the job market is weakening, diverging trends that would require polar reactions from Federal Reserve policymakers to address.

Hiring has slowed sharply in recent months and was lower than previously estimated last year. The rate ticked up in August to a still-low 4.3%. And weekly unemployment claims rose sharply last week, the government also reported Thursday, a sign may be picking up.

Typically the Fed would cut its key rate when unemployment rose to spur more spending and growth. Yet it would do the opposite and raise rates — or at least keep them unchanged — in the face of rising inflation. Last month, Chair signaled that Fed officials are increasingly concerned about . Yet stubbornly high inflation could keep the Fed from cutting very quickly.

On a monthly basis, overall inflation accelerated, as prices rose 0.4% from July to August, faster than the 0.2% pace the previous month. Core prices rose 0.3% for the second straight month.

jumped 1.9% just from July to August, the biggest monthly increase since a 4% rise in December. Grocery prices climbed 0.6%, pushed higher by more expensive tomatoes, apples, and beef. The cost of travel soared, with air fares rising 5.9% just from July to August and hotel room prices rising 2.3%. Rental costs also increased, rising 0.4%, faster than the previous month.

The impact of tariffs appeared to be mixed, with many imported goods rising in price but modestly. Clothing costs rose 0.5% just last month, though they are still just slightly more expensive than a year ago. costs rose 0.3% and are 4.7% higher than a year earlier. Appliance costs also rose from July to August, after falling the previous month.

The inflation data arrives at the same time that Trump has sought to fire Fed governor Lisa Cook as part of an effort to assert more control over the Fed. Yet late Tuesday, a court said the firing was illegal and ruled that Cook could keep her job while the dispute played out in the courts.

Klarna IPO surges 30% in NYSE debut, raises $1.37 billion

Summary

  • shares open at $52, 30% above price
  • $1.37B raised, largest IPO of the year
  • Co-founders become billionaires after debut
  • and investors reap big returns
  • Klarna trades under ticker symbol “KLAR”

NEW YORK (AP) — Shares of Swedish buy now, pay later company Klarna jumped sharply in its highly anticipated public debut on the New York Stock Exchange on Wednesday, the latest in a run of high-profile initial public offerings this year.

Klarna stock opened at $52 a share, a 30% premium to the company’s $40 pricing late Tuesday. It took roughly three-and-a-half hours for the specialists on the floor of the to manually price the first batch of trades of the company.

More than 34 million shares worth approximately $1.37 billion were sold to investors, making it the largest IPO this year, according to Renaissance Capital. That’s notable because 2025 has been one of the busier years for companies going public.

Other notable IPOs this year include the design software company and , which issues the USDC stablecoin. Investors are also looking forward to the expected market debuts of the ticket exchange StubHub and the cryptocurrency exchange Gemini, which is majority owned by the Winklevoss twins.

Founded in 2005 as a payments company, Klarna entered the U.S. buy-now-pay-later market in 2015 in partnership with department store operator Macy’s. Since then, Klarna has expanded to hundreds of thousands of merchants and embedded itself in internet browsers and digital wallets as an alternative to credit cards. The company recently announced a partnership with Walmart.

The company will trade under the symbol “KLAR.” While Klarna was founded in Sweden and is a popular payment service in Europe, company executives said they made the decision to go public in the U.S. as a signal that Klarna’s future growth opportunities lay with the American shopper.

“It’s the largest consumer market in the world, and it’s the biggest credit card market in the world. It’s a tremendous opportunity, from our perspective,” said CEO and co-founder Sebastian Siemiatkowski in an interview with The Associated Press ahead of the IPO.

Over the years and in multiple interviews, Siemiatkowski has made it clear that Klarna wants to steal away customers from the big credit card companies and sees credit cards as a high-interest, exploitative product that consumers rarely use correctly.

Klarna’s most popular product is what’s known as a “pay-in-4” plan, where a customer can split a purchase into four payments spread over six weeks. The company also offers a longer-term payment plan where it charges interest. The business model has caught on globally, particularly among consumers who are reluctant to use credit cards. The company said 111 million consumers worldwide have used Klarna.

Klarna and other buy-now-pay-later companies have attracted increased public interest in recent years as the business model has caught on. State and federal regulators, as well as consumer groups, have expressed some degree of worry that consumers may overextend themselves financially on buy-now-pay-later loans just as much as they do with credit cards.

Siemiatkowski says the company is actively monitoring how consumers use their products, and the average balance of Klarna user is less than $100. Because the company issues loans that are six weeks or less, Klarna argues it can more easily adjust its underwriting standard depending on economic conditions.

With Klarna going public, its co-founders are now billionaires. At Klarna’s IPO price of $40, Siemiatkowski’s 7% stake in the company is worth around $1 billion, while Victor Jacobsson, who left the company in 2012, owns an 8.4% stake in the company now worth $1.3 billion. Siemiatkowski said he is not selling shares as part of the IPO.

But with Klarna’s 20-year-long incubation period before going public, and several fundraising rounds, major parts of Silicon Valley are walking with a handsome return for their patience. Sequoia Capital, the storied venture capital firm that was an early backer in the company, has accumulated a 21% ownership in Klarna worth roughly $3.15 billion. Silver Lake, another major VC firm, owns roughly 4.5% of the company.

Klarna reported second-quarter revenue of $823 million in August before going public and had an adjusted profit of $29 million. The delinquency rate on Klarna’s “pay-in-4” loans is 0.89% and on its longer-term loans for bigger purchases, the delinquency rate is 2.23%. Those figures are below the average 30-day delinquency rates on a credit card.

Klarna will now be the second-largest buy-now-pay-later company by market capitalization behind Affirm. Shares of Affirm have surged more than 40% so far this year, putting the value of the company around $28 billion, helped by a belief among investors that buy-now-pay-later companies may take away market share from traditional banks and credit cards. Affirm fell slightly Wednesday.

Klarna’s primary underwriters for the IPO were JPMorgan Chase and Goldman Sachs.

Trump administration appeals ruling blocking him from firing Federal Reserve Gov. Cook

Summary

  • Trump seeks to fire Fed Gov. over fraud claims
  • Judge Jia Cobb blocked immediate removal on Wednesday
  • argues president can dismiss Fed governors
  • Cook denies allegations, calls firing attempt unlawful
  • Case could head to the for final decision

WASHINGTON (AP) — President ‘s administration on Wednesday appealed a ruling blocking him from firing Gov. Lisa Cook as he seeks more control over the traditionally independent board.

The notice of appeal came hours after U.S. District Judge Jia Cobb handed down the ruling. The White House has insisted Trump, a Republican, has the right to fire Cook over over allegations raised by one of his appointees that she committed related to two properties she bought before she joined the Fed.

The case could soon reach the Supreme Court, where the conservative majority has allowed Trump to fire several board members of other independent agencies but has suggested that power has limitations at the Federal Reserve.

Cook’s lawyers have argued that firing her was unlawful because presidents can only fire Fed governors for cause, which has typically meant poor job performance or misconduct. The judge found the president’s removal power is limited to actions taken during a governor’s time in office.

Cook is accused of saying that both her properties, in Michigan and Georgia, were primary residences, which could have resulted in lower down payments and mortgage rates. Her lawsuit denied the allegations without providing details. Her attorneys said she should have gotten a chance to respond to them before getting fired.

Trump has repeatedly attacked Fed Chair for not cutting the short-term interest rate the Fed controls more quickly. If Trump can replace Cook, he may be able to gain a 4-3 majority on the Fed’s governing board.

No president has sought to fire a Fed governor before. Economists prefer independent central banks because they can do unpopular things like lifting to combat inflation more easily than elected officials can.

Cook is set to participate in a Fed meeting next week. The meeting is expected to reduce its key short-term rate by a quarter-point to between 4% and 4.25%.

Nightingale Ice Cream cancels expansion plans

Nightingale Ice Cream Sandwiches has canceled its plans for a $5.8 million into a larger location, only a few months after initially making the announcement.

The Richmond-based small batch ice cream company in May announced it was going to move into a new 29,000-square-foot location, 5.01-acre site at 2807 Transport St. that would serve as both a production facility and ‘s corporate headquarters, with about 24,000 square feet dedicated to production.

At the time, Nightingale said the planned move was because the company had doubled in size year-over-year and had outgrown its current production facility. The company also announced in May that it planned to add 166 .

However, a spokesperson confirmed that Nightingale is not relocating to the new facility and has instead decided to remain in place at the Hatch food-and-beverage incubator.

The company has listed 2807 Transport St. for sale at $3.6 million. According to city tax records, Nightingale acquired the site for $2.77 million on Jan. 2 this year.

The spokesperson declined to provide details on why the company is canceling the move, how much had already been invested in improvements at the proposed site and whether it still plans to add workers.

Nightingale was founded in 2016 by husband-and-wife duo Hannah Pollack and Xavier Meers. The company manufactures specialty ice cream sandwiches that include 14% butterfat ice cream but have no artificial ingredients and dyes and are non-GMO. Its ice cream sandwiches are sold in more than 5,000 chain and independent grocery stores, including Whole Foods Market, Kroger, The Fresh Market and Harris Teeter.