
Epstein accuser recounts Trump's late-night visit to Epstein's office
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US appeals court strikes down SEC rule on 'audit trail' funding
WASHINGTON (Reuters) -A federal appeals court on Friday struck down 2023 regulations adopted by the U.S. Securities and Exchange Commission on funding a comprehensive market surveillance system, finding that Wall Street's top regulator had not provided a sufficient basis for allowing stock exchanges to pass on its costs to their members, court papers showed. The unanimous decision represented another blow to SEC regulations adopted under the previous Biden administration, which faced concerted opposition from industry and Republican lawmakers. It was also a setback for the Consolidated Audit Trail, a repository of investor and transaction data meant to give regulators overarching visibility into U.S. market operations, but which has faced delays and obstacles for more than a decade. The American Securities Association and Citadel Securities, which brought the lawsuit, both hailed the outcome. The ruling "prevents a tax hike on every American investor who buys or sells a share of stock," ASA President Chris Iacovella said in a statement. The SEC did not immediately respond to requests for comment. Over the objections of its Republican members, the SEC in 2023 split the operating costs among buyers, sellers, and exchanges. Officials said at the time this would divide costs evenly but also allow exchanges several years to recoup hundreds of millions already spent. This drew stiff objections from the investment industry, which said it could be left paying an unfairly large share. The two Republicans are now part of the five-member commission's controlling majority. In an opinion for a three-judge panel of the U.S. Court of Appeals for 11th Circuit, Circuit Judge Andrew Brasher said that, because the SEC had not advanced a sufficient justification in deciding how the system's cost would fall on different actors in the marketplace, "we conclude that the 2023 Funding Order is arbitrary and capricious" and therefore in violation of federal laws governing the crafting of regulations. The appeals court sent the rule back to the SEC for further processing in line with the court's decision. The SEC mandated the CAT's creation in 2012 as a response to the "flash crash" of 2010 when major Wall Street indexes temporarily erased nearly $1 trillion in market value in a matter of minutes. Officials say it can allow regulators to spot market manipulation and have cited its data in enforcement actions.
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Economic concerns loom as Haitian temporary legal status expires soon
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Fake AI photos of Trump with Epstein flood internet
Fake AI-generated photos and videos purporting to show Donald Trump and convicted sex offender Jeffrey Epstein socializing with underage girls have flooded social media, racking up millions of views, researchers said Friday. The surge in deepfakes comes as the US president -- frequently photographed with Epstein during their 15-year friendship -- attempts to distance himself from the disgraced financier, who died in jail in 2019 while awaiting trial on sex trafficking charges. One widely circulated AI-generated video appears to show Trump and Epstein leering at a group of young girls dancing, with the song "Is it a Crime?" by the English band Sade added as background music. At least two other fake photos appear to show the pair on a couch alongside underaged girls. Another such photograph purports to shows Trump dancing with a teenage girl on Epstein's private island. Overlaying the image is the caption: "Trump was in his 50's when this was taken. What kind of man does that?" At least seven such AI-generated images and one video cumulatively garnered more than 7.2 million views across social media platforms, according to a conservative estimate by disinformation watchdog group NewsGuard. The watchdog said it used multiple detection tools, including Hive and IdentifAI, to establish that the content was fabricated using AI tools and the actual number of views was likely much higher than its manual tally of high-engagement posts. Trump's ties to Epstein are extensive, and the pair were frequently pictured partying together during their friendship before they fell out in 2004 over a property deal. But there appear to be no known authentic photographs of the pair with underage girls or of Trump visiting Epstein's private island in the Caribbean, NewsGuard said. AI slop -- low-quality visual content generated using cheap and widely available artificial intelligence tools –- increasingly appears to be flooding social media sites, blurring the lines between reality and fiction. Many content creators on YouTube and TikTok offer paid courses on how to monetize viral AI slop on tech platforms, many of which have reduced their reliance on human fact-checkers and scaled back content moderation. AI-generated images of Trump spread rapidly after the FBI and Justice Department said in a July 7 memo that there was no proof that Epstein kept a "client list" of elite co-conspirators as conspiracy theorists have contended. Trump's core Make America Great Again (MAGA) base erupted in anger over the memo, calling on the White House to release the so-called "Epstein files." Some even within the Republican president's own party have demanded the files be released, but his administration has declined to do so. Fake images appear to be gaining traction in that vacuum. The Wall Street Journal reported on Wednesday that the president's name was among hundreds found during an official review of the files, though there has not been evidence of wrongdoing. Trump filed a $10 billion defamation suit against the newspaper last week after it reported that he had penned a sexually suggestive letter to Epstein for his 50th birthday in 2003. ac/sla