Was it something about the approaching equinox or the phase of the moon? Yesterday was just a very bad day for some high-profile leaders, and for one in particular.
-The Washington Post reported that Donald Trump used $258,000 from the Donald J. Trump Foundation to settle lawsuits against his for-profit businesses. Virtually none of the money was contributed to the foundation by him. Laws prohibit foundation leaders from self-dealing, and the article quoted legal experts calling Trump’s behavior “brazen,” “really shocking,” “classic self-dealing,” and “as blatant an example of self-dealing as I’ve seen in a while.” Following his established pattern of pouring gasoline on a fire, he told an audience later in the day about his plan to put Middle Eastern refugees in “safe zones” paid for by Gulf states, explaining, “It’s called OPM. I do that all the time in business. It’s called other people’s money. There’s nothing like doing things with other people’s money.” The obvious question now is whether the IRS or prosecutors will pursue the matter.
-President George H.W. Bush will reportedly vote for Hillary Clinton. So tweeted Kathleen Kennedy Townsend, daughter of Robert F. Kennedy and former lieutenant governor of Maryland, who met with Bush on Monday. As bizarre as this race has been, who would have dared to imagine that a former Republican president would vote for the wife of the Democrat who defeated him rather than for the Republican nominee? A Bush spokesman, when asked to confirm the report, said the former president “is not commenting on the presidential race.”
-Outrage built over Donald Trump Jr.’s tweet analogizing Syrian refugees to Skittles. For all the efforts of Trump campaign chiefs Stephen Bannon and Kellyanne Conway to professionalize the campaign, which have achieved much, they seem consumed just by trying to control the candidate.
-Trump continued to stand by New Jersey Gov. Chris Christie after a prosecutor stated that he was fully aware of the Bridgegate affair as it happened. Christie is leading Trump’s transition team, and as the New York Times drily observed, “In a typical election cycle, a declaration by federal prosecutors that a top adviser to a candidate was aware of such a damaging plot would have enormous ramifications.” While Christie has never been charged with any wrongdoing in connection with the affair, prosecutor Vikas Khanna’s statement suggests he has direct evidence. One can’t help wondering if more bad days for Christie and for Trump might be ahead.
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What We’re Reading Today
Charlotte erupts in protest
Hundreds of people have staged protests outside an apartment complex where a police officer shot a man – the police say he was carrying a gun, family members say a book. Police broke up the protest with tear gas, but then people regathered and blocked interstate highway 85. Charlotte Mayor Jennifer Roberts called for calm; the police officer was placed on administrative leave. CNN
VW faces $9 billion in claims….
…from investors in Germany wanting repayment for when the stock dropped following the discovery of the emissions cheating scandal. The German court says it has received 1,400 claims so far against Matthias Müller‘s company. WSJ
UN climate accord expected to go into effect this year
The United Nations Secretary General Ban Ki-moon is expected to announce today that he has enough votes to pass the 2015 Paris climate accord. This would put in place by the end of the year targets to reduce global emissions. The quick turnaround in passing the climate accord is to ensure the agreement is in place prior by the end of 2016, making it binding even if Donald Trump is elected. Trump has promised to end U.S.’s involvement in the accord. NYT
Mylan faces further scrutiny over the EpiPen price hike
West Virginia announced that it’s investigating Heather Bresch‘s company over whether the price hike defrauded the state’s Medicaid department, while Utah Senator Orrin Hatch said there’s concerns that Mylan classified the EpiPen as generic, reducing discounts to Medicaid users nationally. Bresch will testify in front of a House committee today; she is the daughter of West Virginia Senator Joe Manchin. Fortune
Building a Better Leader
As annual reviews lose popularity…
…you must also ask do the alternative reviews work better? It will depend on if the alternative reviews look to build skills or if they’re simply used to punish bad employees. Knowledge@Wharton
Don’t feel bad just because you have to leave early…
…to spend time with your children. Tracey Massey, president of Mars Chocolate in North America, says she doesn’t feel guilty when she has to leave early because it sets the tone for a better work culture. Fortune
If you want to encourage cheating within your organization…
…make sure to discourage communication, punish the person reporting wrongdoing and quickly assign blame without changing policy. It makes for a wonderful working environment, as well (sarcasm included). SmartBrief
Elizabeth Warren to John Stumpf: “You should resign”
Massachusetts Senator Warren came out strongly against Wells Fargo CEO Stumpf yesterday, saying he hasn’t held himself or senior executives accountable for the tactics that led to employees opening up bank accounts without customers’ knowledge. Stumpf has apologized over the scandal, and outlined new steps to prevent the practice in the future. CNNMoney
21 states sue over Obama’s minimum wage rule
The rule, which will take effect on December 1, will require employers to pay overtime for any worker making less than $47,500 a year. States say that President Obama is trying to unilaterally rewrite law. U.S. Labor Secretary Thomas Perez says the ruling is based on “sound legal and policy footing.” Fortune
Brazil’s former president to face corruption charges
Former president Luiz Inacio Lula da Silva, an icon of the country, will face charges that he accepted bribes related to the probe of corruption at the state-run oil company Petrobras. Lula has maintained that the charges were false, saying it’s a political witch hunt. Reuters
Up or Out
Intel has named Bob Swan its next CFO. WSJ
Petco has hired John Zavada as its CIO. Yahoo Finance
Fortune Reads and Videos
Bayer considers dumping the Monsanto name
If the $66 billion merger is approved, Monsanto’s name may be changed because of its bad reputation among environmentalists. Fortune
AT&T signs Turner Networks…
…to be involved in its future Internet video services. Turner owns CNN, TBS and TNT, among other channels. Fortune
Postal Savings Bank of China becomes the biggest IPO of the year
It raised $7 billion in its offering in Hong Kong, but most of the investors have ties to the Chinese government. Fortune
Pokémon Go has been dethroned
It’s no longer the top-grossing app in the U.S. after 74 days in first place, getting nudged out by Clash Royale. Fortune
“[Y]ou squeezed your employees to the breaking point so they would cheat customers and you could drive up the value of your stock and put hundreds of millions of dollars in your own pocket. And when it all blew up, you kept your job, you kept your multi-multimillion-dollar bonuses, and you went on television to blame thousands of $12-an-hour employees who were just trying to meet cross-sell quotas that made you rich. This is about accountability. You should resign.” — Senator Elizabeth Warren’s statements during Wells Fargo CEO John Stumpf’s Senate testimony. NPR