failure

Can Raman break L.A. mayors’ cycle of failure on homelessness?

From the time I met a guy playing a violin near Pershing Square in 2005, and followed him to the Skid Row slab of pavement where he spent his nights, I’ve listened closely to what mayors promised to do about homelessness in Los Angeles.

All of them were going to fix the problem.

Antonio Villaraigosa.

Eric Garcetti.

Karen Bass.

None of them came close.

Each of those mayors invested vast sums of money and manpower and each of them made inroads. To be fair, they collectively helped thousands of people turn their lives around. But the problem is not finite, the waves keep coming, and more than 40,000 people are currently homeless in the city.

That’s one of the primary reasons Mayor-elect Nithya Raman will get a chance to do what her predecessors could not. In the most recent year of accounting, homelessness increased slightly in the city but declined significantly in Raman’s council district.

So Bass is out, and Raman is in after a contentious campaign in which Raman attacked the Bass strategy (which she helped implement) as too costly and ineffective.

“Here’s my promise,” Raman said in a video on her campaign website. “When I’m mayor, we’ll cut tents and encampments in half by the Olympics, and bring everyone in tents and encampments indoors by the end of my first term.”

Really?

Bear with me, because I’m about to explain why I have some hope that Raman might do a better job on homelessness than her predecessors. But I cringe when I hear such grandiose proclamations.

Why?

In 2006, I attended a Skid Row news conference where a gaggle of politicians including Villaraigosa touted a 10-year plan to end homelessness in L.A. County.

In 2013, Garcetti vowed to end chronic homeless, and in 2018, he said: “We can cut this problem in half in five years. And in 10 years … we can end life on the street.”

In 2023, Bass told a CNN audience that by the end of her term as mayor: “My goal would be, really, to end street homelessness. … There’ll still be people in shelters and interim housing, but to at least not have people dying on our streets.”

Have you noticed how these kinds of amped-up promises have played out?

I don’t mean to discourage lofty goals, but we’ve been let down time after time, feeding cynicism. We’re just looking for significant progress, not a miracle.

The hard truth is that homelessness is the result of a raft of problems beyond any mayor’s full control. It begins with an economy built for stark disparity, with the crippling cost of housing, and with untreated mental illness and drug addiction. A mayor can’t magically clear the decks without help from federal, state and county allies, and from strong partnerships on the City Council.

But none of that excuses the paltry returns on big investments. Mayor Bass’ Inside Safe program moved about 6,000 people into motels and other forms of interim housing as of this past spring at a cost of $300 million, and 41% of them had returned to homelessness by the end of May.

Raman wants to mothball that program and use short-term rental vouchers she claims will be far less expensive and more effective. She wants to open doors for City Controller Kenneth Mejia to audit every dollar spent on homelessness. She says she’ll demand a full accounting of county services, use Medi-Cal funds for more street medicine teams, invest in shared housing and case management.

“City Hall has put together a patchwork of programs, agencies, and dollars that were never required to prove they work together, or work at all,” Raman says on her homelessness strategy page. “No agency or program has been required to demonstrate results. No department or office has been put in charge of monitoring the spending.”

Putting a plan on paper is one thing. Pushing it through the teeth of the City Hall grinder without the wholesale shredding of good intentions is a tougher trick. And it remains to be seen whether Raman can wrangle the support of council members who shunned her and unanimously endorsed Bass.

But Raman has a few things going for her, including a penchant for defying expectations. She blitzed two incumbents, first to win a council seat and then to bounce Bass. Then there’s her urban planning education and her work as one of the co-founders of the SELAH Neighborhood Homeless Coalition. That gave her a street-level study of the challenge as well as the disjointed government response, and she then led the City Council’s homelessness committee.

“I think that situational awareness” will serve her well, said Louis Abramson, a Hollywood resident and Rand researcher who serves as chair of the SELAH board. “She’ll be able to argue from a perspective of expertise.”

Abramson is also hoping Raman will be able to deliver more affordable housing.

“She’s … proven to be uniquely tolerant of the political risks of being a YIMBY, of making Los Angeles a place that can fit everybody who wants to live here,” Abramson said.

At SELAH, and in Raman’s council district, building meaningful relationships with clients has been a central mission. That’s not always fast or easy. Some people are ready to reach for a helping hand; others are severely damaged in multiple ways, and it takes time.

I learned long ago that recovery is not linear. Sometimes it’s one step forward and two steps back. And as one social worker suggested to me, we’re so preoccupied with getting people in the front door, we barely notice when they slip out the back door.

Reversing homelessness does not end with a temporary address. Long-term case management is critical, and so is a sense of purpose and belonging. The formerly homeless people I recently met at Chrysalis, all of them working now, and all of them housed, were a testament to this idea.

I’d love to see Raman find more ways to turn able-bodied homeless people into a workforce that can help address the city’s many needs. I’d love to see her encourage more people to contribute by volunteering for organizations like SELAH, or for faith-based groups and non-profits.

Nathaniel Ayers playing a keyboard while wearing headphones; nearby, pictures of Halle Berry on a wall

Nathaniel Ayers works on music in his nursing home quarters, inspired by fellow Cleveland native Halle Berry.

(Steve Lopez / Los Angeles Times)

In the case of my friend Nathaniel, the musician, it took me, his friends in the L.A. Phil and various outreach workers a year to convince him to move indoors 21 years ago. He is in a nursing home now, where he listens to music for hours every day and has kept a gallery of photos on his wall, including Beethoven, Bach, and another person with a “B” last name.

Actress Halle Berry.

“She’s beautiful,” Nathaniel said one day when we were going over a list of famous people from Cleveland, his hometown, and he decided that Berry deserved a prominent place on his wall of fame.

My relationship with Nathaniel, Abramson said, “is not an ancillary thing. It is THEE thing. I have come to believe that the human relationship is the necessary pre-condition to this working out.”

True enough, we are too predisposed to think of the ongoing human catastrophe in purely statistical terms. But there’s more truth in people’s stories than in their status, and more community buy-in when we recognize ourselves in each other.

For the 40,000 Nathaniels of Los Angeles, and nearly 4 million of their neighbors, here’s hoping the next mayor of Los Angeles can make a difference.

steve.lopez@latimes.com

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Iran blames US for deal failure, urges new try amid fear of new attacks | US-Israel war on Iran News

Tehran warns that even limited strikes would trigger a response ‘several times greater’.

Iranian President Masoud Pezeshkian has blamed Washington for the unravelling of an interim deal aimed at ending the war with the United States and Israel, amid growing fears that the fighting could resume imminently.

In comments broadcast by Iranian Press TV on Saturday, But Pezeshkian also said that both sides should return to the deal and “conclude it”.

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His remarks come amid growing fears that military action could resume as soon as this weekend, after US President Donald Trump said on Friday that he “may do another little Epic Fury”, using the codename of the US-Israeli war against Iran that started on February 28.

Iran’s Islamic Revolutionary Guard Corps (IRGC) has warned that even limited strikes would trigger a response “several times greater”, according to comments reported by the semi-official Fars News Agency.

Iranian Armed Forces Chief of Staff Ali Abdollahi said on Saturday that the US military would not be allowed in the Gulf “under any circumstances and at any time”. Abdollahi said Trump could only “dream” of seeing US forces enter the Gulf, adding that he would take his dream to the grave.

Trump has suggested he could take further military action against Iran, while Israeli Prime Minister Benjamin Netanyahu has said he remains committed to overthrowing the country’s government.

Both leaders face elections, with Israelis set to choose their next government on Tuesday. Meanwhile, Trump’s Republican Party faces crucial midterm elections on November 3, with Democrats potentially winning control of both the House of Representatives and the Senate. Such an outcome would be a major blow to Trump, who still has more than two years left in his final term in the White House.

Iranian government spokesperson Fatemeh Mohajerani said on Saturday that Tehran would not “wait for permission to defend itself”, adding that the country “seeks peace but will respond to any aggression with severe consequences”.

“Our position is clear: we do not flee from dialogue for peace, and we do not hesitate in defending the country. Those who harbour the illusion of destroying Iran must correct their calculations,” Mohajerani wrote in a memo.

Her comments came as Iranian judiciary chief Gholamhossein Mohseni Ejei met Supreme Leader Mojtaba Khamenei. The pair discussed how to tackle corruption and pursue compensation for Iranians affected by the US-Israeli war, among other issues.

Khamenei replaced his father as supreme leader after the latter was assassinated during the opening strikes of the war on February 28. He has not been seen in public since assuming the position in early March.

Parliament Speaker and chief negotiator Mohammad Bagher Ghalibaf was reported to have met Khamenei earlier this week.

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Burnley FC: 12 months of failure on the field and now unrest in the stands

Since 2010, Burnley have won promotion to the Premier League on five occasions and of their five subsequent relegations they have bounced back immediately three times – but achieving that for a fourth time is looking increasingly unlikely.

After Scott Parker’s departure towards the end of last season, Nicky Hayen was finally brought in as Burnley’s new head coach less than a month before the new Championship campaign started, after a move for Wales boss Craig Bellamy fell through.

“I think there is an element of sympathy among the fans for Hayen but two things can be true at the same time – you can sympathise and also think he’s out of his depth,” said Joe Redmond, creator and host of the Turfcast podcast., external

“He was brought in after pre-season had started, has been forced to work with some coaches left over from Scott Parker and had his main striker, Zian Flemming, sold from under him on transfer deadline day.

“These are clearly errors from the hierarchy but at the same time he clearly isn’t getting the best out of this squad – I’m sure there’s a decent manager in there somewhere but I don’t think he’s what we need right now.”

A total of 11 new players arrived under Hayen during a busy summer of transfer activity with 10 heading for the exit as the Belgian overhauled the squad.

What has followed has been nothing short of a horror show in the lead up to Halloween.

“I look at that squad and it’s been scattergun,” former Watford and Reading midfielder Jobi McAnuff, now an EFL pundit, told the BBC’s podcast 72+.

“They bounce up [to the Premier League], come down, go up, come down and they haven’t handled that well enough – we all knew Flemming was going but you leave it right until the end of the window and you’re killing the manager.

“Then you get [Jamie] Vardy in. I love him but he’s 39 and you cannot expect him to be your main man all season, he’s going to come on and chip in and be great around the dressing room.”

“At the very minimum we should be battling it out at the top end of the table,” added Redmond.

“This squad has proved it’s not good enough for that so far this season but one coming down from the Premier League should be able to compete, and if it can’t then something has gone seriously wrong.”

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Why Bank of America’s AML Failure Is a Wall Street Warning

Experts warn Bank of America’s hefty AML fine signals a reckoning for aging banking compliance.

When Bank of America released third-quarter financials on Oct. 14, shareholders took note of a $1.2 billion non-tax-deductible blow to earnings. The anti-money laundering, or AML, and sanctions penalty shaved 17 cents off its per-share net income.

But the fine itself may be the least of the bank’s worries.

Financial crime and AML experts told Global Finance that this penalty was not an outlier but a warning to the rest of the industry.

“If you looked at every bank in detail, you’d find problems,” ThetaRay CEO Brad Levy said in an interview. “It’s kind of like every house — when the inspector comes, there’s something wrong.”

What Happened

The Treasury Department’s Financial Crimes Enforcement Network (FinCEN) addressed the penalty. The segment cited Bank of America’s “failure to mitigate and report priority national security risks, including Chinese Money Laundering Networks and illicit finance along the southwest border.”

The fine is the third-largest in the department’s history, behind a roughly $4 billion settlement with Binance in 2023 and an approximately $3 billion settlement with TD Bank in 2024.

This particular cost includes $750 million that goes to the Office of the Comptroller of the Currency — the largest fine that regulator has ever imposed— plus $11.6 million to the Treasury’s Office of Foreign Assets Control over apparent violations of sanctions programs covering Iran, Russia, narcotics and global terrorism.

A Bank of America spokesperson issued the following statement to Global Finance: “Financial crime compliance is serious, and we are responsible for getting it right. We worked with regulators to reach these penalty resolutions stemming from violations cited in the previously reported 2024 OCC Consent Order and FinCEN’s investigation. We have invested billions of dollars in technology and dedicated thousands of employees to combat financial crime, and our team is far along with and committed to completing the work required to address the issues raised by our regulators.”

Fallout Extends Beyond Government Agencies

For Nikhil Raghuveera, CEO of Predicate, a startup that uses blockchain technology for AML enforcement, the real government-inflicted damage is not to Bank of America’s coffers but to its goodwill.

“The bank faces business and reputational damage with counterparties,” Raghuveera said. Partner institutions, clearing banks, and corporate clients typically tighten their own risk thresholds to protect themselves from secondary liability and run their own risk assessments. And a Bank Secrecy Act violation feeds directly into them, he explained.

“A large bank doesn’t lose its ability to operate, but it does face greater scrutiny and the potential loss of business opportunities,” Raghuveera added. “The regulator now sees the bank as unable to fix things itself. As a result, every new product or expansion gets reviewed through that lens.”

Regulatory Trust Broken

The hefty fine grabbed headlines, but according to Will Lawrence, CEO of San Francisco-based AML software maker Bretton AI Inc., the money matters less than what the bank has lost in regulatory trust.

Will Lawrence,
Bretton AI
Will Lawrence,
Bretton AI

“For a large bank, even a significant financial penalty may be manageable,” Lawrence said in an email. “What’s much harder is operating once regulators lose confidence in the institution’s ability to manage risk.”

That can mean independent monitoring, more board scrutiny and limits on growth.

“Even without formal restrictions on growth or acquisitions, unresolved compliance issues can complicate a bank’s expansion plans,” he said. “The financial penalty may be immediate, but remediation can take years.”

Big-name banks are also vulnerable if their methods for flagging suspicious activity remain outdated.

For example, when a typical analyst pulls data from different systems, reconstructs transactions, and documents the findings, that approach often falls short against sophisticated laundering networks, Lawrence explained.

“These are not necessarily risks you can understand by looking at one transaction or one customer in isolation,” he said. “You need to connect activity across accounts, counterparties and payment channels to identify broader patterns.”

Large penalties are rarely a one-time blip, Raghuveera said. “They tend to reflect patterns: transaction monitoring that’s poorly calibrated, SARs filed late or not at all, watchlists that aren’t kept current, and compliance teams lacking the staff, tools or authority to escalate.”

24/7 Reality Check

For Lawrence, true accountability raises certain questions: Who knew about the risks? Who had the authority to address them? Was appropriate action taken?

“A bank can have sophisticated monitoring systems, but if serious issues aren’t escalated or leadership doesn’t respond, the program isn’t working,” he added.

Also, Lawrence said, a bank can’t spend its way out of the problem. Regulators want evidence that changes are working, not just new policies or software.

“A bank can hire more analysts, purchase new technology, and rewrite its policies without fundamentally improving its ability to identify financial crime,” Lawrence said. Banks have also long tracked activity counts, such as the number of alerts reviewed or cases closed. “Those numbers tell you something about workload, but not necessarily whether you’re managing risk effectively.”

Levy, who spent nearly 20 years at Goldman Sachs before joining ThetaRay, expressed a similar sentiment. To put it plainly, legacy technology hasn’t kept pace.

“Most of these systems and processes are 10 to 30 years old,” he said, stressing the need for serious internal audits to accommodate the 24/7 banking world.

“Ten years ago, you could get away with it,” he said. “In the next five, you actually can’t… the speed-up in technology is going to be breathtaking.”

Anthony Noto covers corporate finance and private credit. Contact him at anoto@gfmag.com

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