The Justice Department has launched a criminal probe intoFederal Reserve Governor Lisa Cook— issuing subpoenas in both Georgia and Michigan as part of an investigation into alleged mortgage fraud, The Post has learned.
A grand jury in Atlanta is looking into allegations of mortgage fraud against CookJeff Kowalsky/Zuma / SplashNews.com
The investigation, first reported on by the Wall Street Journal, centers on whether Cook allegedly committed fraud by listing more than one property as a primary residence when she applied for mortgages.
A grand jury in Atlanta is looking into Cook and “it’s likely an indictment could come,” a source familiar with the matter told The Post.
Cook owns properties in Michigan and Georgia, as well as Massachusetts.
President Donald Trump's administration said on Thursday it will drop a plan by his predecessor to require airlines to pay passengers cash compensation when U.S. flight disruptions are caused by carriers.
In December, the U.S. Transportation Department under then President Joe Biden sought public comment on the rulemaking process about whether airlines should be required to pay $200-$300 for domestic delays of at least three hours and up to $775 for longer delays. U.S. airlines sharply criticized the proposal.
The White House said in a document posted on Thursday that USDOT plans to withdraw the notice "consistent with department and administration priorities."
In May 2023, Biden said his administration would write rules requiring airlines to compensate passengers for disrupted flights.
Airlines for America, a trade group representing American Airlines, Delta Air Lines, United Airlines others, did not immediately comment but said last year that Biden's plan would raise ticket prices.
Airlines in the U.S. must refund passengers for canceled flights, but are not required to compensate customers for delays. Major carriers in 2022 committed to paying for meals, hotel stays and other expenses when they cause significant flight disruptions.
Canada, Brazil, the European Union and the United Kingdom all have airline delay compensation rules.
In December, USDOT said it was considering if airlines must cover meals, hotel stays and other costs after carrier disruptions and whether to require airlines to rebook passengers on their next available flights, or if flights are unavailable for 24 hours, potentially requiring them to use competitors.
The Trump administration has taken other steps to reverse Biden airline consumer efforts.
In May, the Justice Department dropped a lawsuit against Southwest Airlines filed by the Biden administration in its final days that accused the carrier of illegally operating chronically delayed flights.
Eli Lilly has won a key U.S. Food and Drug Administration designation for its investigational drug olomorasib in certain lung cancer patients.
Eli Lilly on Thursday said the FDA granted breakthrough-therapy designation to olomorasib, in combination with Merck's blockbuster cancer drug Keytruda, for the first-line treatment of patients with unresectable advanced or metastatic non-small cell lung cancer with a KRAS G12C mutation.
The FDA's breakthrough-therapy designation aims to expedite the development and review of a drug for serious conditions when preliminary clinical evidence shows the drug might offer substantial improvement over available therapies.
Eli Lilly said the FDA's designation for olomorasib is based on encouraging results from a Phase 1/2 study and the dose-optimization portion of a Phase 3 trial.
The Indianapolis drugmaker said the designation recognizes the potential for olomorasib to be a meaningful treatment advance and highlights the continued unmet need for improved options for patients with KRAS G12C-mutant NSCLC non-small cell lung cancer.
Citi selected BlackRock to create a new portfolio offering and manage $80 billion in assets for thousands of Citi Wealth clients, whose accounts are currently managed by Citi's investment management team.
Citi Wealth clients with assets that will be managed by BlackRock live in almost 100 different countries. Citi will still advise these clients on their overall wealth approach, while BlackRock will be responsible for managing and implementing specific investment strategies to meet the clients' objectives.
Some members of Citi's investment management team will join BlackRock as portfolio managers.
The agreement is expected to begin in the fourth quarter.
China’s equity rally lost steam in the past few sessions, with the Shanghai Composite sliding -1.3% and losing the 3800 level just 9 days after breaking above it and breaking out above thehistoric trendline we pointed out two weeks ago. The index is now down 3 days in a row, the longest such streak since May.
The sell off today was triggered by a Bloomberg report of China’s financial regulators mulling cooling measures for the market after a US$1.2t rally stoked worries of a speculative frenzy a la 2025 style. Policymakers are reportedly considering moves such as the removal of short-selling restrictions and the introduction of other measures to curb speculative trading.
To be sure, none of this is not new: as Goldman HK trader Fred Yin writes this morning, since late last week there were already signs that regulators are trying to cool the temperature on the rally. This however, did not come from the government - as a reminder, in China's centrally planned markets everything is officially sourced - but from "people familiar" so this is almost certainly a plant by someone who missed the China rally and hoped to spark a selloff to get in cheaper. It also expains why the National Team stepped in at the close today to lift stocks - why would they do that if they wanted to hammer the bubble risk?
In any case, some brokers last week raised its margin requirement although it was not an industry-wide action, while over 400 mutual fund products have either announced a halt or cap in subscriptions in August. CSRC Chair Wu Qing signaled determination to ensure stock market stability at a symposium this past weekend, pledging to consolidate the “positive momentum” of the market, while promoting “long-term, value, and rational investing”.
Sure enough, Goldman points out that a list of ETFs favored by state-backed funds (“National Team”) saw elevated volume vs 20d average (translation: China was actively stepping in to prop up markets). However it was nothing extreme, suggesting the correction is still within comfort level for regulators
Tech/innovation names were most hard hit: STAR50 had its 4th largest single day loss since inception in Jul 2020
AI infrastructure / data centers / semis / humanoid robots all suffered losses, result of perhaps extreme crowdedness
Cambricon (which we profiled two weeks ago as China's Nvidia) sank 14.5% on the day, bringing its YTD gains to just +82.7%
Adding to the risk-off sentiment, Chinese auto giant BYD (002594) cut its annual sales target by 16% due to intense competition and cooling demand, resulting in -3% slide and extending the recent selloff.
There are some bright spots however: China Solar basket +2.3% was top performing theme after an executive from a leading polysilicon producer said the sector has likely bottomed out
Over on the Goldman high touch execution desk, Yin writes that China A was by far the largest net sold market in the region. Notional traded was over 2x the 4w daily average for a very busy day. The outflow was driven almost entirely by Long Onlies, selling concentrated within Consumer space, ongoing selling namely in EV space stood ou . In addition LOs also sold Industrials / Info Tech and only net bought Utils / Healthcare. Hedge Funds skewed seller too but in smaller size, focusing selling in Healthcare / Info Tech instead.
On the derivs desk, as broader market has corrected for 3 consecutive sessions and falling through 20dma, we are seeing two way traffic in spot (profit taking vs fresh dip buying). Also worth noting is the rotation in size factor since mid-August, which is to some extent correlated to quants performance. Futures basis reverts higher. Even though such inverse spot/basis dynamics observed recently dampens realize volatility, fixed strike vols are in strong bid over the day especially around the afternoon dip. Goldman thinks spot can continue to trade choppy due to thin spot/futures liquidity so convexity remains favorable to own, even though they seem hard to carry on a close-to-close basis.
Below are illustrative buy/sell flows in major markets on the bank's high touch desk:
Source: GS GBM as of 4Sep25, past performance not indicative of future results
It is worth noting that with the notable exception of 2014-2015 “crazy bull” market rally, Chinese equity market has mostly kept pace with underlying economic conditions. Yet this time around things are showing early signs of stress, or as the Goldman trader puts it, "perhaps the market is getting slightly ahead of the fundamentals." We were less politically correct:
Upcoming data releases will be key to watch on whether the economic recovery is on track, including trade data (Sep 8), inflation (Sep 9), and new loan trends (Sep 12)
Taking a step back though, risk appetite remains positive, with activity level remaining extremely high. For a 17th day in a row, turnover in A shares exceeded 2t yuan, the longest stretch on record
Outstanding margin balance earlier this week climbed to 2.28t yuan, surpassing the previous record of 2.27t yuan record set in 2015.
Source: BBG as of 4Sep25, past performance not indicative of future results
GS PB data shows Chinese equities last month with long buys dominating the flows.
A-shares led both net and gross activity. H-shares and ADRs saw net inflows led by short covers.
Flows into China equity funds picked up, with US$4.1b of net buying last week being the largest since Apr
That’s still unlikely to meaningfully address the fact China is still the most U/W market for EM funds (active only)
This chronic U/W to China could trigger a flurry of inflows from global allocators, especially with other major markets trading close to ATHs
Aethlon Medical (NASDAQ:AEMD) has priced a public offering of 5M shares (or pre-funded warrants) and 5M accompanying warrants at a combined price of $0.90/unit.
Warrants are exercisable immediately, have an exercise price of $0.90, and will expire in 5 years.
Gross proceeds are expected to total $4.5M, before fees and expenses.
Closing is expected on or around September 5, 2025.
Use of proceeds includes clinical trials, R&D, capital expenditures, and working capital.
Artelo Biosciences (Nasdaq: ARTL), a clinical-stage pharmaceutical company, has announced the pricing of a $3.0 million public offering. The offering consists of 640,924 shares of common stock priced at $4.40 per share and pre-funded warrants to purchase up to 40,894 shares at $4.399 per warrant.
The company has granted underwriters a 45-day option to purchase up to an additional 102,272 shares. R.F. Lafferty & Co. is serving as the sole book-running manager. The offering, expected to close on September 5, 2025, is being made through a shelf registration statement previously filed with the SEC.
