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Mississippi issues cease and desist letter to investment giant BlackRock | Mississippi

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www.thecentersquare.com – By Steve Wilson | – 2024-03-28 13:22:00

(The Center Square) – Securities fraud in environmental, social and governance policies is being committed in Mississippi by investment giant BlackRock, says the in a cease and desist letter.

Mississippi Secretary of State Michael Watson, with jurisdiction over securities, gave the company 30 days to respond to his office's Wednesday letter. Penalties could include massive fines for what the Republican says is the misleading of investors. 

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“You've got a company with trillions of dollars of assets under management and they're playing political with Mississippi's hard-earned money,” Watson told The Center Square. “BlackRock speaks out of both sides of its mouth depending on who they're talking to. One day, it's about maximizing return and the next day it's about holding a company hostage to further their decarbonization efforts.

deserve to know the facts about their investments on the front end. BlackRock didn't play by those rules and that's why we've ordered them to quit committing securities fraud in our state.”

There are two primary claims that Watson's office makes against BlackRock. it says the company is defrauding investors with funds that are not related to environmental, social and governance policies, yet BlackRock's ethos incorporated those principles. The company has backtracked on some of those claims and says it wants to “act in the best interest of our clients and to be solely focused on their investment objectives.”

A second claim is that in its funds related to environmental, social and governance policies, the company touts these investments are beneficial to investors. The state says in its letter, “These statements are untrue, or omit to state material facts to make them not misleading, because the consideration of ESG factors does not provide an indication of better financial returns or current or future risk profiles.”

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BlackRock denied any wrongdoing in a statement sent to The Center Square.

“Many policymakers and officials have ideas on how we should invest our clients' assets,” BlackRock said in a statement. “We are always bound to invest consistent with our clients' choices, their best financial interests, and applicable .

“Our only agenda is maximizing risk-adjusted returns consistent with the funds' investment objectives. We operate in one of the most highly regulated industries in the country and are committed to following the law in every respect.”

Tennessee and have already taken regulatory action against BlackRock.

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“My hope is, once you start bringing more attention to this, more states will start paying attention,” Watson said. “Eventually, we all work together to push back as hard as we can. Hopefully BlackRock will pay attention and quit committing securities fraud in Mississippi.”

He also said that the letter gives the state the to get more information on BlackRock's investment policies. Watson said his office will provide information to the state's defined benefit pension system, the Public Employees' Retirement System of Mississippi, and assist them in divesting those funds if securities fraud has been committed in the state. 

BlackRock is managing nearly $9 trillion in assets, more than 65 times Mississippi's entire gross domestic product of $138 billion. Yet, the state has fought the David . Goliath battle before.



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TCS - Mississippi Secretary of State Michael Watson

Mississippi Secretary of State Michael Watson



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Watson, a former state senator from Pascagoula, was on the Senate floor during passage of the state's abortion ban law, known as the Heartbeat Bill. That law later became the center of the Dobbs case that superseded the Roe v. Wade and sent abortion policy back to the state legislatures. 

“People would tell me that you're wasting money, you're wasting time, you're not going to make a difference,” Watson said of the Heartbeat Bill. “And here we are, we flipped the abortion world on its head and saved a lot of lives because of it. Little old Mississippi, we rose up and we did something great. I think it takes courage, the ability to do the right thing no matter what the consequences.”

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The Center Square

Biden administration’s abortion-related rule challenged in litigation | Louisiana

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www.thecentersquare.com – By Steve Wilson | – 2024-05-14 13:01:00

(The Center Square) – The attorneys general of Louisiana and Mississippi have filed a seeking to stop a new rule by the Equal Employment Commission that they say could impose a national abortion regime.

Louisiana Attorney General Liz Murrill and Mississippi Attorney General Lynn Fitch filed the complaint in the U.S. District Court in Lake Charles on Monday that seeks to a rule that would require employers to accommodate employees' abortions under the Pregnant Workers Fairness Act. 

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This bipartisan bill was intended to protections for pregnant women in the workplace, “reasonable accomodations” related to pregnancy, childbirth or related medical conditions. 

The two Republican attorneys general are seeking an injunction to stop the rule, which goes in effect 60 days after it has been filed in the federal register. The rule is intended to implement the provisions of the Pregnant Workers Fairness Act passed by Congress in 2022.

“This new action by the EEOC is another example of bureaucrats rewriting acts of Congress to their own liking, and it's unconstitutional,” Murrill said in a release. “We will continue to challenge this administration's overreach and protect pregnant women.”

In the complaint, the two attorneys general say the new rule, which doesn't require employers to pay travel costs for an abortion or an employee's insurer to pay for an abortion, runs afoul of the U.S. Supreme Court in Dobbs v. Women's Health Organization, which overturned the Roe v. Wade decision and sent abortion policy back to the states.

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The rule requires employers in states that have largely outlawed abortion such as Louisiana and Mississippi to accommodate abortions or else face federal lawsuits for monetary damages and injunctive relief as any violation of EEOC rules can draw.

“The Pregnant Workers Fairness Act was a bipartisan effort to women in the workplace while they are pregnant and following childbirth,” Fitch said in a news release. “But the Biden administration is threatening to derail commonsense measures, like adequate seating, bathroom and water breaks, and relaxed dress codes, by reading into the law required accommodations for elective abortion, even where that overrides the will of the people or the religious liberty of the employer. 

“This administration will stop at nothing to undo the Dobbs decision, which gave the people back their power over abortion policymaking and to impose a national abortion regime.”

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The Center Square

Senators from 17 states want Postal Service to pause 10-year plan to save $160B | National

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www.thecentersquare.com – By Joe Mueller | – 2024-05-09 12:00:00

(The Center Square) – A bipartisan group of 26 U.S. senators from 17 states are urging of the U.S. Postal Service to delay execution of its strategic plan.

“We call on you to pause planned changes to the U.S. Postal Service's processing and delivery network under the ‘Delivering for America' plan, until you request and a comprehensive Advisory Opinion from the Postal Regulatory Commission to fully study the potential impacts of these changes,” according to a letter signed by the Senators and addressed to Postmaster General Louis DeJoy and the Board of Governors.

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Democratic Nevada Sens. Catherine Cortez Masto and Jacky Rosen signed the letter and highlighted ongoing demands to change the plan, made along with U.S. Rep. Mark Amodei, R-Nev. They highlighted planned changes to a facility in Reno, which will be downsized from a regional hub to a local center and its regional operations moved to Sacramento, Calif.

“We call on USPS to pause all changes, pending a full study of this plan by its regulator,” the letter stated. “While USPS claims these changes overall will improve service while reducing costs, there is evidence to the contrary in locations where USPS has implemented changes so far. USPS must stop implementation, restore service in those where changes were implemented, and fully understand the nationwide effects of its plan on service and communities.”

“Delivering For America,” a 60-page, 10-year plan published by USPS, states the organization is optimizing mail and packaging processing capabilities as it lost $87 during the last 14 years.

“The Plan's strategic initiatives are designed to reverse a projected $160 billion in losses over the next ten years by achieving break-even operating performance,” according to the publication.

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Changes in how people use the Postal Service resulted in costly inefficiencies, according to the plan.

“Our processing network was originally designed to meet the demands of a robust, and ever-growing mail market,” the plan stated. “Similarly, our facilities were located geographically and set up operationally to facilitate the timely and efficient processing of mail. As mail volume has decreased, our machines and facilities have been left under-utilized, leaving us with a physical network that does not correspond to the current and projected needs of our customers.”

In addition to the senators from Nevada, senators from Arizona, Colorado, Maine, Michigan, Montana, Mississippi, Nebraska, North Dakota, South Dakota, New Hampshire, New Jersey, Oregon, Tennessee, , Virginia and Wyoming also signed the letter. It highlighted problems associated with moving mail processing away from local communities and reductions in transporting mail, leaving mail sitting overnight in local offices.

“We are concerned about the impacts these changes have had so far, and the potential impacts that further changes could have,” the senators wrote. “In regions where USPS has implemented significant changes, on-time mail delivery has declined. In addition, it is not clear these changes will improve efficiency or costs. Despite these concerns, USPS has moved forward with announcing and approving additional facility changes across the country.”

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25 states fight EPA’s power plant smokestack regulations | West Virginia

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www.thecentersquare.com – By Jon Styf | – 2024-05-09 07:53:00

(The Center Square) – Virginia and Indiana are leading a group of 25 states asking for the U.S. Court of Appeals for the District of Columbia to declare the U.S. Environmental Protection Agency's new rule on coal, natural gas and oil power plants to be declared unlawful.

The new EPA rule will require coal and natural gas power plants to capture smokestack emissions or shutter.

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“The EPA continues to not fully understand the direction from the Supreme Court—unelected bureaucrats continue their pursuit to legislate rather than rely on elected members of for guidance,” West Virginia Morrisey said. “This green new deal agenda the Biden administration continues to force onto the people is setting up the plants to fail and therefore shutter, altering the nation's already stretched grid.”

Alabama, Alaska, Arkansas, Florida, Georgia, Idaho, Iowa, Kentucky, , Mississippi, Missouri, Montana, Nebraska, New Hampshire, North Dakota, Oklahoma, South Carolina, South Dakota, Tennessee, , Utah, Virginia and Wyoming are part of the lawsuit.

Morrisey and the attorneys general argue Congress did not give EPA the authority to create rules to remake the electricity grid and the rules are taking to make broad regulatory authority away from Congress.

West Virginia successfully fought EPA rules in front of the in 2022 as the court said the EPA should not use its regulatory authority to create broad new regulations with the Clean Act.

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West Virginia, Indiana and others have continued to fight several other EPA proposals the “Good Neighbor Plan” and the EPA's new rule on electric vehicles.

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