Category: Business Wires

NEW YORK — Bank accounts held by President Donald Trump were closed by Capital One in 2021 after it flagged financial activity that had characteristics of money laundering, the bank disclosed in a court filing over the weekend.

The court filing is tied to a lawsuit filed against Capital One by one of Trump’s financial holding companies shortly after he was sworn into office a second time. Trump alleges that Capital One illegally closed his accounts for political reasons, following the Jan. 6 attacks on the U.S. Capitol.

Capital One wants the lawsuit dismissed.

“The closures were the result of months of analysis and a careful review by Capital One’s AML team in accordance with bank policies and regulatory guidance,” the bank said in the court filing. The term “AML” is an abbreviation for anti-money laundering.

Trump has sued Capital One, as well as JPMorgan Chase, for allegedly debanking him after he left office in 2021. Debanking occurs when banks shut down customer accounts because they believe they pose financial, legal, or reputational risks to the banks.

Both banks have denied they severed their relationships with the president, his sons, and other related businesses for political reasons. The lawsuit against JPMorgan Chase is seeking damages of $5 billion. JPMorgan has said it does not close accounts for political reasons, but closes accounts “with or without cause” and also accounts that create “legal or regulatory risk.”

In July, after the original lawsuit had lain dormant for months, lawyers for the president filed an amended lawsuit that alleged the bank debanked him for political reasons. The bank says the new allegations are without merit, saying the complaint’s “new theories are based on cherry-picked quotations.”

President Trump’s legal team dismissed that claim Monday, but did not address the internal findings by the bank.

“Capital One, along with other major banks, de-banked President Trump, his family, and his businesses for blatantly political reasons,” a spokesperson for Trump’s legal team said. ”President Trump’s powerful lawsuit holds Capital One accountable for its disgraceful conduct, and we look forward to seeing this matter through to a just and proper conclusion.”

Conservatives have long alleged that banks debank them and their political allies. The allegations became louder after Operation Choke Point, an initiative during the Obama administration when regulators pressed banks to cut off financial services to the firearm industry, tobacco, and payday lenders, among others. The cryptocurrency industry alleged it was also a victim of debanking during the Biden administration.

Trump signed an executive order in August 2025 titled “Guaranteeing Fair Banking for All Americans” directing federal bank regulators to terminate examinations of banks over who they were doing business with. The Trump administration has also subpoenaed records of the biggest banks as part of an investigation into alleged debanking.

Trump had more than 300 bank accounts with Capital One before they were closed. The bank accounts were for a variety of Trump-branded businesses, ranging from a golf course to a winery. Trump had banked with Capital One for more than a decade before the accounts were closed.

In the court filing, Capital One said it had no reason to make a political statement with the closure of Trump’s accounts in 2021 and the move had everything to do with activity in the accounts being flagged by anti-money laundering experts with the bank.

“Capital One never publicized the termination decision nor its confidential internal process giving rise to the closure, and it permitted Plaintiffs several months (and granted several extensions) to find new banking services, which they did,” the bank said.

WASHINGTON — President Donald Trump’s administration is planning a dramatic overhaul of Head Start that would gut its quality standards, upending the hallmarks of the early education program for impoverished children, two people familiar with the deliberations said.

Head Start, established in the 1960s to help fight poverty, has long been considered by experts to be a gold standard early learning program. Its regulations, which stretch more than 100 pages, outline requirements on everything from child-to-teacher ratios and child health screenings to family engagement.

Trump’s Republican administration would replace those regulations with around a dozen pages of rules, leaving most of the specifics up to state and local law, said the people familiar with the deliberations, who spoke on the condition of anonymity to discuss information that was not yet public and because they feared reprisal.

In a post on X on Saturday night, the Department of Health and Human Services, which oversees Head Start, said to expect a rule to be published this week. The administration “remains committed to strengthening Head Start by preserving federal investment in the program while advancing reforms that expand access, increase local flexibility, reduce unnecessary administrative burden, and ensure services are delivered effectively to children and families in need,” department spokesperson Emily Hilliard said Monday in an email.

The draft rules would require more documentation from parents who are homeless or unemployed, the people familiar with the deliberations told the Associated Press. An early version of the proposal also would have barred parents who are in the United States illegally from enrolling their children, even if the children are U.S. citizens. It’s unclear whether those provisions will make the final draft.

Head Start, which operates in all 50 states, has long enjoyed robust bipartisan support. But some prominent conservatives in recent years have called for its elimination, saying the federal government should get out of the education business at every level. Deregulating the program would deliver a win for them and aligns with the Trump administration’s goals of scrapping rules it views as onerous or unnecessary.

Head Start is designed to target poverty, experts say

Head Start serves more than half a million low-income babies, toddlers, and preschoolers nationwide. For families that qualify, it offers free preschool and screenings to identify developmental delays. It also offers supports for families.

If the changes take effect, they could make Head Start unrecognizable, said Khari Garvin, who ran the Office of Head Start under Democratic President Joe Biden.

“We’d have the carcass of Head Start,” Garvin said. “You might have a program that’s called Head Start, but in substance it will not be.”

The proposed rules were originally reported in the Bulwark.

Tommy Sheridan, deputy director of the National Head Start Association, said the organization has yet to see the proposed rules. But he said the potential for a massive overhaul has left the organization on edge.

“We’re very anxious,” Sheridan said. “When it does come out … we’ll be ready to fight back where we need to fight back.”

Still, he emphasized that Head Start centers might not be impacted for months, if the rules get on the books at all. Once the proposal is made public, federal law requires the administration to give at least a month for the public to weigh in on it. Then, once finalized, it may take more time for the rules to take effect. There’s also the potential for a lawsuit to halt implementation.

Current rules cover dental screenings, staff-to-student ratios

Head Start was created as part of President Lyndon B. Johnson’s War on Poverty and targets the myriad challenges that low-income households face. It serves children and adults alike, coaching parents on reaching their goals, connecting them with services, and even employing them.

Head Start operators, which include school districts and nonprofit organizations, are required to provide medical, dental, and vision screenings for children and to monitor them for developmental delays. There’s also a curriculum framework and prohibitions on physical and emotional abuse of children.

Many of the features that make Head Start distinct from mainstream preschools are spelled out in 122 pages of performance standards. The Trump administration’s proposal would toss most of that rule book and replace it with a much shorter version that eliminates or loosens many requirements, the people familiar with the proposal said. But the proposal also calls for some new regulations, such as requiring all instruction in English.

Requirements around staff-to-student ratios and safety standards would be erased. Operators instead would be instructed to follow local and state laws, which are often far more permissive. And the new proposal also says nothing about suspensions and expulsions, the people said, making it easier for programs to kick out kids with disabilities who are difficult to educate.

Jody Smith, a lead teacher for a Head Start program south of Seattle, said she’s seen firsthand how critical many of the requirements are, especially the ones for engaging with families and screening kids for disabilities. Smith was a high school dropout and a young mother when she enrolled her first child in Head Start, where she was encouraged to go back to school and inspired to become a teacher. Later, Head Start helped diagnose her youngest child with autism.

Without Head Start, “I would have probably stayed as a poverty line,” Smith said. “And I don’t know that we would have gotten as far in life as we have.”

Head Start has faced several threats

The numerous standards are key to preparing Head Start kids for kindergarten, said Ruth Friedman, who helped President Barack Obama’s administration draft the regulations now in jeopardy.

“If the administration strikes down those standards, it would set back our nation’s educational goals and our efforts to reduce poverty, and it is explicitly prohibited by the Head Start law itself,” Friedman said.

Head Start, which has enjoyed robust bipartisan support for decades, has faced several threats since Trump took office last year. Project 2025, a conservative policy blueprint authored by the official who is now Trump’s budget chief, called for the federal government to get rid of the program altogether. Last year, in a draft budget, the administration proposed exactly that, saying: “The federal government should not be in the business of mandating curriculum, locations, and performance standards for any form of education.” After public outcry, Health Secretary Robert F. Kennedy Jr., whose department oversees Head Start, told Congress the program’s funding was safe.

Funding for the program was disrupted not long after Trump took office, leading some programs to have to shutter temporarily. It was once again halted after a government shutdown in October that led some centers briefly to close their doors.

Earlier this year, Trump officials also erased a Biden-era rule that mandated raises and greater benefits for Head Start employees. When the rule went in to effect in 2024, Head Start teachers, the majority of whom have bachelor’s degrees, earned less than $40,000 a year on average.

NEW YORK — President Donald Trump knows the world hangs on his every word. Now he wants you to pay for it.

The social media posts of the world’s most powerful man are going on sale Saturday when his Truth Social business begins offering sneak peeks of them to Wall Street traders willing to pay up. The move raises the prospect of big profits for Trump’s company and big questions about insider trading and using public office for private gain.

Similar fast speed feeds are sold by other social media firms and media providers, but Truth Social doesn’t just distribute the news, it makes it, regularly rattling markets as Trump posts policy changes on everything from war to central bank leadership to tariffs.

“If this was the CEO a public company, this would be jail time,” said Irene Aldridge, head of Able Alpha Trading, which doesn’t plan to buy the service. “We have a President of the United States who has the front seat to all the action, who makes all the decisions, and he’s disclosing this ahead of time to a select group.”

Trump’s company says critics just aren’t capitalist enough

Asked about the propriety of the new service and whether White House lawyers had vetted it, Trump’s press office declined to comment, referring questions to Truth Social’s publicly traded parent. That company, Trump Media & Technology, issued a statement blasting Democratic critics for mischaracterizing the service “out of ideological opposition to free markets or a failure to grasp the distinction between public and nonpublic information — or, quite possibly, both.”

A prolific poster, Trump has sent stocks, bonds and currencies soaring and plunging with his online musings and threats. That presents opportunities for so-called high frequency traders that specialize in buying and selling within milliseconds, exploiting tiny, fleeting difference in prices.

Profits aplenty betting on oil, stocks, and currencies

Just this month, Trump has threatened on Truth Social to slap higher tariffs on Canada, kill a nuclear deal with Saudi Arabia, and widen the Iran war. With advanced knowledge, traders betting on a plunge in the Canadian dollar, a drop in nuclear energy stocks, and a jump in oil futures could have raked in big profits.

“For the big guys, it’s going to be something they need,” said Joe Saluzzi, co-founder of Themis Trading, who estimates about 100 of high frequency firms might be willing to pay for the service. “It’s market-moving information.”

Dubbed Truth API, the service comes as these firms are spending more on feeds and servers that bypass slower internet connections with direct lines to news and data sources. The chance for profits is greater than ever thanks to artificial intelligence’s ability to read posts and articles more accurately for market-making changes and Trump’s penchant for making news online.

When Trump makes surprise announcements, traders pounce

Traders profit when prices jump up and down, and with his taste for cliffhangers, threats, and policy reversals America’s first reality-TV president provides plenty of potentially market-moving content.

The reversals are especially profitable, allowing traders to win both ways — jumping ahead of stocks moving up or down to a post threatening something, then cashing out within thousands of a second, then betting the other way.

In addition to Trump, the service will include posts from other “high ranking” Truth Social contributors, including possibly his two oldest sons, Donald Jr. and Eric, who along with the father are heavily followed by users.

Truth Social has said that the information will be released to the traders and the general public at the same time so there really isn’t an issue of fairness. But Themis Trading’s Saluzzi, a critic of high speed trading, says that’s a red herring because when the posts are received, not when they are released, is what matters.

“Somebody who buys the info and has a system built to process it will be able to act quicker than you and me,” said Saluzzi, adding in reference to everyday, small stock buyers, “The loser is always the retail investor.”

Trump posts about a company he likes, and stocks jump

Aside from policy scoops, another reason to sign up has emerged in recent months: Trump is posting more about publicly traded companies, praising ones he likes in a way that sets off buying frenzies.

“The pimping of specific companies — obviously Wall Street would like to know that before other people,” said Dylan Hedler-Gaudette, a federal ethics rule expert at the watchdog Project on Government Oversight. “It’s a real mess.”

In April, moments after Trump praised Palantir Technologies in a post that included its stock symbol, the price briefly jumped the most it had in an entire year. Later that month, Trump posted, “Congratulations on Intel doing such a great job,” and the stock immediately jumped in after-hours trading.

Just which firms are signing up for the feed is unclear. Asked for comment, none of the half dozen most well known high-speed traders, such as Citadel Securities and XTX Markets, replied. If just three sign up for the $100,000 a month fee, that would double revenue at Trump Media, which reported taking in $3.7 million last year.

Trump Media needs big money customers

The company can use their business.

Stock in the Truth Social parent has plunged 75% since Trump took office last year as the company keeps reporting hundreds of millions in losses despite the president’s help driving traffic to its site by posting major decisions there.

In fact, the president breaks news on Truth Social so often that the White House press office will copy his posts into an email when responding to questions from the media seeking details on policies. If his posts aren’t available yet, journalists are sometimes told, “Wait for the Truth.”

Another problem for Truth Social is looming if the Democrats take control of Congress and launch investigations, as vowed by Massachusetts Senator Sen. Elizabeth Warren in a statement Friday specifically attacking the new service: “We will haul in those responsible for this open corruption to answer to the American people.”

If the losses keep mounting for the company, though, some predict the president will push things further, using the platform even more for policy announcements.

“That’s absolutely going to happen,” warns Craig Holman, a lobbyist for the good government group Public Citizen. “Trump knows how to sell products.”

CAPE CANAVERAL, Fla. — A drifting SpaceX rocket is on a collision course with the moon after launching a pair of lunar landers more than a year ago.

The rocket’s upper stage will unintentionally slam into the moon on Wednesday, carving out a crater and sending up a plume of dust and rubble that scientists — and skygazers — are eager to observe.

Space tracking expert Bill Gray predicts an impact of 5,400 mph — seven times the speed of sound — near Einstein Crater on the moon’s sunlit western limb. With the action unfolding in the wee hours, the eastern portions of the U.S. and Canada, and much of South America, should have the best views.

While scientists are not too concerned about this particular piece of space junk, it highlights the growing threat as more and more items cram into orbit.

“Things are getting crowded up there,” said Gray, who plans to view the aftermath from New Brunswick, Canada.

It was never SpaceX’s intent to hit the moon. But space experts said the crash could have been avoided if the upper stage had been nudged into orbit around the sun.

It will be the second dead rocket known to crash into the moon accidentally. A Chinese rocket segment dug out a pair of craters on the lunar far side in 2022.

Lucky for astronomers, the upcoming smashup will occur on the moon’s near side, packing the equivalent energy of three tons of TNT.

The impact flash, lasting less than a second, will probably be too dim to see, according to experts. But the stream of ejected material could stretch for several miles into space and remain visible to telescopes for tens of minutes.

“The gravity on the moon is low and there is no wind to blow the dust away,” said Los Alamos National Laboratory’s Benjamin Fernando, who’s encouraging observations by professionals and amateurs alike.

“Part of the reason for our interest in this event is to figure out how much of a hazard debris impacts pose to future astronauts,” he added in an email.

Fernando anticipates an impact crater nearly 90 feet across and 16 feet deep, too small to see from Earth but visible to spacecraft.

NASA’s Lunar Reconnaissance Orbiter and South Korea’s Danuri lunar orbiter will gather before-and-after shots of the crash scene. Danuri will stray within a mile or two of the SpaceX rocket just two minutes before impact, according to Fernando and his team.

The abandoned rocket segment — measuring some 40 feet and weighing around 10,000 pounds — hoisted two private lunar landers on Jan. 15, 2025.

One of them — Firefly Aerospace’s Blue Ghost — became the first private spacecraft to pull off a fully successful lunar touchdown. The other, Japan-based ispace’s lander, wrecked.

With meteoroids and other natural objects offering little if any warning before walloping the moon, scientists said there’s much to learn by observing well-tracked strikes by human-made objects like the one coming up. NASA hurled rocket sections and lunar modules into the moon during the Apollo era for seismic measurements. Decades later, in 2009, NASA intentionally crashed its LCROSS spacecraft and upper stage in search of ice near the lunar south pole.

With the moon as the new travel hot spot, scientists said it’s crucial to improve debris monitoring and traffic control before packs of robots and astronauts arrive.

The United States and China are racing to land astronauts on the moon in the next few years. Elon Musk’s SpaceX and Jeff Bezos’ Blue Origin are vying to provide the lander for NASA’s yet-to-be-named moonwalkers of Artemis IV, who will succeed the 12 Apollo astronauts who strolled the lunar surface.

“This impact will not be a problem,” retired astrophysicist Jonathan McDowell said in an email. “But in a future where there are long-term bases on the moon, similar impacts would be an issue and we need not to leave rocket stages in chaotic orbits of this kind.”