TIME Crime

Feds Investigating Cyberattack on JPMorgan Chase and Other Banks

U.S. Banks Post Near-Record Profits In Second Quarter Of 2014
A man walks past JP Morgan Chase's corporate headquarters on August 12, 2014 in New York City. Andrew Burton—Getty Images

The motivation is still unclear

Federal authorities are helping to investigate reported cyberattacks against JPMorgan Chase and other banks, the Federal Bureau of Investigation said.

FBI Supervisory Special Agent Joshua Campbell told the Washington Post in a statement late Wednesday that the agency was working with the Secret Service “to determine the scope of recently reported cyber attacks against several American financial institutions.”

Multiple news outlets, including Bloomberg News and The New York Times, are reporting that the banks were infiltrated by hackers who stole gigabytes of data, including information that would enable them to siphon money from accounts. Both organizations cite unnamed sources.

The motivation behind the attacks and the identity of the attackers is still unclear, though Bloomberg, which first reported the intrusions, reports that at least one of the banks was linked to Russian hackers.

Earlier this month, a U.S. cybersecurity firm said that a Russian crime ring was suspected of obtaining access to a record 1.2 billion username and password combinations.

[Washington Post]

TIME Congress

Dennis Kucinich Is Going to Burning Man

85th Annual Academy Awards - Arrivals
Dennis Kucinich Kevork Djansezian—Getty Images

Things in the Black Rock Desert are really gonna heat up this week

Former presidential candidate Dennis Kucinich is headed to Burning Man.

The former Democratic Representative from Ohio and two-time presidential candidate announced Thursday on Twitter that he plans to speak at the famed celebration of self-expression, community and the arts. He’ll be joined by a wide range of speakers, including conservative political advocate Grover Norquist.

Burning Man takes place in the Black Rock Desert of Nevada every year for one week and always ends with the dispersal of camp and destruction of any evidence of it existed. So, might not be that odd a place for a politician after all.

TIME Tech

Reports Say Snapchat Is Valued at Roughly $10 Billion

FRANCE-US-IT-INTERNET-SECURITY-SNAPCHAT
Lionel Bonaventure—AFP/Getty Images

If reports are true, this represents an enormous valuation for a company that has effectively no revenue source

Multiple news outlets are reporting that Snapchat is raising funds from investors based on a $10 billion valuation for the disappearing-messaging service.

The Wall Street Journal, citing unnamed sources, reports that the venture-capital firm Kleiner Perkins Caufield & Byers agreed to invest in the app maker at a valuation of nearly $10 billion. Bloomberg News, also citing unnamed sources, reports that the startup is in talks for a round of financing at a $10 billion value. TechCrunch is reporting a similar figure.

The valuation could not be confirmed by TIME and does not suggest that any single buyer intends to pay that amount. The company uses the valuation to determine the share of ownership it gives investors.

But if true, $10 billion would represent an enormous valuation for a company that has effectively no revenue source. The Snapchat app, which does not have ads, is the third most popular app among millennials after Facebook and Instagram, according to Bloomberg, and marketers see potential in using the app to reach out to millions of the coveted young-people demographic.

The Los Angeles–based tech firm was valued at $2 billion just one year ago, according to the Journal, and its owners reportedly turned down a $3 billion offer from Facebook last November.

“The valuation of our business and our capital requirements are the least exciting aspects of supporting the Snapchat community. We have no further comment at this time,” an unnamed spokesperson for Snapchat told the Journal. A spokesperson for Kleiner declined to comment to the Journal.

TIME technology

SpaceX Delays Launch Days After Test Mishap

SpaceX
A SpaceX Falcon 9 rocket sits on a lauch pad on Oct. 7, 2012 in Cape Canaveral, Florida. SpaceX is delaying this week's Falcon 9 rocket launch by a day following an explosion of a test flight of its experimental Falcon 9R rocket. Joe Raedle—Getty Images

The company says it will review flight record details before the next test flight

SpaceX delayed the launch of a commercial communications satellite on Tuesday, days after an experimental rocket failed mid-flight.

The private space firm founded by Elon Musk was set to launch the AsiaSat 6 satellite on its Falcon 9 rocket early Tuesday from Cape Canaveral Air Force Station in Florida, but the launch was delayed 24 hours, the Los Angeles Times reports.

On Friday, a test flight of the Falcon 9R, an experimental reusable rocket, experienced an anomaly, SpaceX said in a statement. As a result, the flight was terminated–the rocket blew itself up.

No one was injured in the incident, and the company said that the experimental flight was “particularly complex.”

But SpaceX said at the time that it would review flight record details before the next test flight, and the LA Times reports that the space exploration company is taking extra time to review the case ahead of the AsiaSat 6 satellite launch.

[LA Times]

TIME Guns

9-Year-Old Girl Accidentally Shoots, Kills Instructor at Gun Range

The operator says it allows supervised children age eight and up to handle weapons

A nine-year-old girl accidentally shot and killed a shooting range instructor in Arizona, police say.

Charles Vacca, 39, was instructing the girl on how to use an automatic Uzi on Monday when the girl, who was accompanied by her parents, pulled the trigger and then lost control of the weapon, the Mohave County Sheriff’s Office said in a statement Tuesday. Vacca was shot in the head and died of his injuries.

Sam Scarmardo, the operator of the shooting range Last Stop where the accident occurred, said the range allows accompanied children age eight and older to handle weapons.

He said Vacca, a longtime military veteran, had been working at the range for roughly two years. Scarmardo also said the range had not had an accident since it was opened more than a decade ago.

The girl’s parents were recording the tutorial on their cell phones when the incident occurred and handed the footage over to authorities, according to Scarmardo.

TIME Crime

Former Government Cybersecurity Head Convicted on Child Pornography Charges

The US Department of Health and Human Se
The U.S. Department of Health and Human Services building is shown in Washington, D.C., 21 July 2007. Saul Loeb—AFP/Getty Images

He is the sixth person convicted in an ongoing DOJ investigation of three child pornography sites

The former acting head of cybersecurity at the U.S. Department of Health and Human Services was convicted on child pornography charges in a Nebraska federal court, the Department of Justice said Tuesday.

The former official, Timothy DeFoggi, allegedly expressed interest in the violent rape and murder of children in online exchanges and at one point suggested meeting up with another web user to fulfill such fantasies, the Justice Department said in a statement.

DeFoggi, 56, was convicted of engaging in a child exploitation enterprise, conspiracy to advertise and distribute child pornography, and accessing a computer with intent to view child pornography, according to the DOJ.

He was the sixth person convicted in an ongoing investigation into three child pornography websites, the DOJ said. The administrator of the sites has previously been convicted of engaging in a child exploitation enterprise. According to the Justice Department, DeFoggi registered on the site in March 2012 and was active until it was taken down in December of that year.

It’s unclear if his illegal activity overlapped with his work for the government. In an HHS budget report for Fiscal Year 2014 that was found by the Washington Post, a Tim DeFoggi is identified as head of OS IT Security Operations for the department.

 

TIME Syria

U.N. Slams World Leaders Over Inaction in Syria as Death Toll Surpasses 191,000

"It is scandalous that the predicament of the injured, displaced, the detained... is no longer attracting much attention"

The United Nations said Friday that more than 191,000 people have been killed in Syria since the country’s civil war began in March 2011, as a top U.N. official lambasted the international community for its “paralysis.”

The U.N. reported that 191,369 people were killed between March 2011 and April 2014, more than double the figure the U.N. reported a year ago, when it said 92,901 people had died. U.N. High Commissioner for Human Rights Navi Pillay said the true death toll is likely even higher because it reported only deaths that it was able to confirm.

“I deeply regret that, given the onset of so many other armed conflicts in this period of global destabilization, the fighting in Syria and its dreadful impact on millions of civilians has dropped off the international radar,” Pillay said in a statement. “The killers, destroyers and torturers in Syria have been empowered and emboldened by the international paralysis.”

More than 17,000 women and 2,000 children have been killed in the conflict, which has forced more than 2.9 million people to flee the country.

“It is scandalous that the predicament of the injured, displaced, the detained, and the relatives of all those who have been killed or are missing is no longer attracting much attention, despite the enormity of their suffering,” Pillay said.

TIME Companies

Here’s How Much Banks Have Paid Out Since the Financial Crisis

Bank of America's new settlement with the Justice Department is among the largest

The Bank of America deal announced Thursday, the government’s largest-ever settlement with a single company, means the nation’s second-biggest bank will shell out $16.65 billion over allegations that it knowingly sold toxic mortgages to investors.

The landmark agreement is a win for the government—particularly the Department of Justice, which spearheaded the probe—after drawing criticism for its sometimes weak response to the financial crisis in 2008. The sum surpasses Bank of America’s entire profits last year and is significantly higher than the $13 billion it offered during negotiations in July.

But the deal also caps a string of settlements that the Justice Department and other regulators have imposed on banks in the wake of the recession. Since the crisis, the six largest banks by assets have paid more than $123.5 billion in settlements over faulty mortgages, according to previous data from SNL Financial and incorporating the latest settlement. Authorities have forced the banks to pay the majority of that amount, and more deals are likely: Goldman Sachs and Wells Fargo are both reportedly on deck.

Here are seven of the largest government settlements:

$25 Billion
Wells Fargo, J.P. Morgan Chase, Citigroup, Bank of America, Ally Financial
February 2012

In what President Barack Obama called a “landmark” settlement, five of the nation’s largest banks agreed to a $25 billion settlement with 49 states and the feds to end an investigation into faulty foreclosure practices (Oklahoma reached a separate deal). Most funds were directed toward mortgage relief.

$16.65 Billion
Bank of America
August 2014

The settlement announced on Aug. 21 includes $7 billion for consumer relief, such as mortgage modification and forgiveness, and $9.65 billion in cash. But the deal doesn’t absolve the Charlotte-based bank of future criminal claims or claims by individuals.Bank of America has paid more than $60 billion in losses and legal settlements spawning from troubled mortgages—the most of any bank.

$13 Billion
J.P. Morgan Chase
November 2013

The largest U.S. lender agreed to what was then a record-setting settlement with the Justice Department over its role in the sale of the mortgages. “JPMorgan was not the only financial institution during this period to knowingly bundle toxic loans and sell them to unsuspecting investors, but that is no excuse for the firm’s behavior,” Holder said at the time.

$11.6 billion
Bank of America
January 2013

The bank, which acquired the mortgage lender Countrywide Financial in 2008, agreed to a $11.6 billion settlement over claims that it and Countrywide improperly sold mortgages to Fannie Mae.

$9.5 billion
Bank of America
March 2014

Ahead of the Justice Department settlement, Bank of America agreed to pay $9.3 billion to settle additional allegations that it sold faulty mortgages to Fannie Mae and Freddie Mac.

$9.3 Billion
Thirteen Banks
February 2013

Federal regulators finalized a deal with thirteen lenders — including the three largest — for faulty processing of foreclosures. The sum allowed for borrowers who went through foreclosure to access up to $125,000.

$7 Billion
Citigroup
July 2014

Citigroup, the third-largest bank, and the Justice Department announced the deal in July amid allegations that the company misled investors about the mortgage-backed securities. The settlement, which included about $2.5 billion for consumer relief, surprised some analysts by its size, but was a harbinger of what was in store for Bank of America in the coming weeks.

TIME Crime

National Guard Pulled From Ferguson After Night of Relative Calm

Soldiers from the Missouri National Guard stand in front of their Humvee vehicle outside a Burger King restaurant, operated by Burger King Worldwide Inc., as they man an entrance to a temporary police command center in Ferguson, Missouri, U.S., on Aug. 20, 2014.
Soldiers from the Missouri National Guard stand in front of their Humvee vehicle outside a Burger King restaurant as they man an entrance to a temporary police command center in Ferguson, Missouri on Aug. 20, 2014. Luke Sharrett—Bloomberg/Getty Images

“As we continue to see improvement, I have ordered the Missouri National Guard to begin a systematic process of withdrawing from the City of Ferguson.”

Missouri Gov. Jay Nixon ordered the National Guard to withdraw from Ferguson, Mo., on Thursday, as tension in the area appeared to cool off Wednesday evening for the first time in nearly a week.

“As we continue to see improvement, I have ordered the Missouri National Guard to begin a systematic process of withdrawing from the City of Ferguson,” Nixon said in a statement.

Nixon dispatched the National Guard to the St. Louis suburb Monday to help respond to protests that have rocked the area since a white police officer shot and killed an unarmed black teenager, Michael Brown, on Aug. 9. Nixon said the National Guard’s mission would be limited to protecting a police Unified Command Center near the site of nightly protests, which he said had been attacked during previous violence.

Ferguson’s protests have been mostly peaceful during the day, but have generally erupted into violence at night. However, people demonstrated in relative calm Wednesday, with rainy weather likely contributing to a smaller turnout among demonstrators. Earlier in the day, U.S. Attorney General Eric Holder arrived in Ferguson and met with Brown’s family.

The National Guard had been operating under the authority of Missouri State Highway Patrol, which was charged with leading security in the city after the heavily-equipped local police force on the scene came under increasing scrutiny for its tactics.

“I greatly appreciate the men and women of the Missouri National Guard for successfully carrying out the specific, limited mission of protecting the Unified Command Center so that law enforcement officers could focus on the important work of increasing communication within the community, restoring trust, and protecting the people and property of Ferguson,” Nixon said.

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