WSJ What’s News: Fraudsters Stole Billions in Jobless Benefits. They Might Get Away With It
Release Date: January 16, 2025
Host: Alex Osola

Middle East Ceasefire Deal Between Israel and Hamas

Host Introduction:
Alex Osola opens the episode by highlighting the fragile ceasefire between Israel and Hamas, set to commence in Gaza on Sunday.

Key Developments:

• Delayed Israeli Cabinet Vote: The Israeli Cabinet has postponed its vote on the ceasefire deal. Prime Minister Benjamin Netanyahu accuses Hamas of violating the agreement reached in Qatar.
• Negotiation Continuity: The Cabinet meeting, initially scheduled for the day of the podcast, has been moved to the following day to allow negotiations to continue.
• Mediation Efforts: Arab mediators are actively working to resolve outstanding issues, including disagreements over the release of Palestinian prisoners.
• Hamas Commitment: A senior Hamas official affirmed the group's commitment to the deal despite ongoing challenges.

Notable Quote:
"Netanyahu's office also said that negotiations were continuing and a deal would be announced only once they were completed."
(00:32)

Massive Fraud in Pandemic Jobless Benefits

Introduction:
Alex Osola transitions to a pressing issue of fraudsters siphoning billions from taxpayer-funded unemployment benefits during the COVID-19 pandemic.

Discussion with Paul Kiernan:

• Scope of Fraud: Paul Kiernan reveals that up to $135 billion in jobless benefits were fraudulently obtained, significantly funding organized crime.
  "It's going to be really bad for rule of law and accountability if we just close the door on these investigations."
  (00:13)

• Statute of Limitations: With the statute of limitations set at five years, prosecutors are racing against time to bring cases against these criminals.
  "Starting in March or April, it's going to become harder and harder to bring some of these cases."
  (02:18)

• Recovery Efforts: To date, only $1.1 billion has been recovered, less than 1% of the total amount stolen.
  "The Department of Labor Inspector General and pandemic oversight groups have been urging Congress to extend the statute of limitations from 5 to 10 years."
  (03:38)

• Legislative Hurdles: Although bills to extend the statute have been introduced, none have been passed, leaving many fraud cases vulnerable to expiring statutes.

Notable Quotes:

• "It's been almost five years. Pandemic broke out and these benefits started getting paid."
  (02:18)

• "We're getting really close to the point where the criminals will basically just get off scot free."
  (Paul Kiernan, 02:18)

Conclusion:
The conversation underscores the urgency for legislative action to prevent widespread impunity among fraudsters who exploited pandemic unemployment benefits.

Business News Highlights

American Express Penalties:

• Deceptive Practices: American Express agrees to a $230 million penalty for misleading practices related to the sale of credit cards and wire services to small businesses.
• Regulatory Response: The company misrepresented card rewards, fees, and conducted unauthorized credit checks. Amex has committed to organizational changes and staff discipline.

Bank Earnings Reports:

• Morgan Stanley: Profits more than doubled in Q4 to $3.71 billion, surpassing analyst expectations, driven by investment banking and trading.
• Bank of America: Q4 profits surged to $6.67 billion, also more than doubling from the previous year. The increase was partly due to avoiding a $2.1 billion FDIC assessment charge taken by the bank earlier.

Market Performance:

• US Indexes Decline: Despite robust earnings from major banks, the S&P 500 and Dow fell by approximately 0.2%, while the Nasdaq dropped 0.9%, hindered by losses in tech stocks.

Mortgage Rates Surge:

• 7% Threshold: Mortgage rates climbed above 7% for the first time since mid-2024, marking a setback for the housing market.
• Freddie Mac Survey: Revealed that the average rate for a 30-year fixed mortgage reached 7.04% amidst declining home sales over two consecutive years.

Notable Quote:
"In business news, American Express has agreed to pay approximately $230 million in penalties to the Department of Justice and regulators at the Federal Reserve over deceptive practices tied to how it sold credit cards and wire services to small business customers."
(04:31)

Rising Cancer Rates Among Young Women in the US

Introduction:
Alex Osola delves into a concerning trend: increasing cancer rates among young women in the United States.

Insights from Brianna Abbott (Wall Street Journal Health Reporter):

• Primary Driver: The rise in cancer rates is predominantly due to an increase in breast cancer cases among women under 65.
  "The main driver for this increase in women is breast cancer, sort of among younger women, and we don't know what's happening for sure."
  (07:30)

• Potential Factors:

  • Later childbearing or opting not to have children.
  • Rising obesity rates and increased alcohol consumption.
  • Enhanced cancer screening leading to more diagnoses.

• Positive Trends:

  • Overall cancer death rates in the US have decreased by 34% since 1991.
  • Significant reductions in lung cancer cases and deaths due to declining smoking rates, especially among older men.

Notable Quotes:

• "Women having children later or not at all, because we know that having children at earlier ages and breastfeeding lowers your risk for some kinds of breast cancer."
  (07:30)

• "Lung cancer is far and away the biggest cancer killer, but the trends are actually really positive because we've seen these declines in smoking rates over the last several decades."
  (08:22)

Health Recommendations:

• Continuation of existing guidelines: timely mammograms, healthy diet, smoking cessation, reduced alcohol intake.
• Increased awareness among young women to monitor for early signs of cancer.

Notable Quote:
"Getting your mammograms on time, eating right, diet, quitting smoking, lower alcohol use, all of those things that sort of we're familiar with."
(09:03)

Additional Business and Technology News

Nicotine Pouches Regulation:

• Zyn's Future in the US: The FDA has determined that Zyn, a nicotine pouch by Philip Morris, remains on the market. The agency concluded that Zyn poses a lower cancer risk compared to cigarettes and traditional dipping tobacco, justifying its availability as a safer alternative for adult smokers despite concerns over youth usage.

TikTok's Survival Efforts:

• Inauguration Strategy: TikTok CEO Shou Zi Chew plans to attend former President Donald Trump's inauguration, positioning the app for potential legislative protection.
• Regulatory Pushback: Trump's advisors are exploring options to delay the impending TikTok ban, aligning with the president-elect's expressed desire to preserve the platform.

Treasury Secretary Nominee Scott Besant:

• Confirmation Hearing: Besant defended the imposition of tariffs and advocated for the extension of tax cuts.
• Senate Dynamics: Received support from Republican senators, while no Democratic Finance Committee members pledged support.

Rise of Ghost Jobs:

• Definition: Ghost jobs are advertised positions with no intention of being filled, causing frustration among job seekers.
• Analysis by Lynn Cook:
  • Corporate Strategy: Companies may post jobs to reserve the right to hire in the future or gauge the talent pool without immediate hiring intentions.
    "They're taking a look and saying, eh, we're not really committed to filling this role."
    (12:00)

Notable Quote:
"Some companies are doing this to save money or to fish for the perfect candidate they can't live without."
(11:22)

Conclusion

The episode of WSJ What’s News covered a broad spectrum of critical issues, from geopolitical tensions and massive fraud schemes to significant business developments and public health concerns. The discussions emphasized the fragility of peace deals, the urgent need for legislative action against financial fraud, evolving business regulations, and the shifting landscape of public health challenges.

For listeners seeking deeper insights into these topics, the Wall Street Journal provides comprehensive reporting and expert analysis to stay informed on the most impactful news shaping our world today.

Produced by Anthony Bansi and Pierre Bienname with supervising producer Michael Kosmides. Host: Alex Osola.