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Climate change raising risks of financial disaster for home owners, insurers and bankers on August 30, 2023 at 10:09 pm Business News | The Hill

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The rising weather-related risks from climate change, from coastal hurricanes to western wildfires, are increasing pinching insurance companies, which are raising rates and pulling back from parts of the country in an effort to stay in business.

Just this summer, two major insurance companies left Florida, adding to the long list of companies that have left the state. 

In July, Farmers Insurance announced it would no longer write policies in the state; in August, United Property and Casualty went bankrupt, leaving 22,000 of Floridians high and dry, and all Florida residents having to foot the bill to bail it out. 

Banks could be next, said Dennis Kelleher of public interest nonprofit Better Markets. 

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“The banking crisis is only right behind the climate and insurance crisis,” Kelleher told The Hill. “Every time an insurance company sounds an alarm, the banks ought to be shaking in their boots, because they’re getting the bill.”

Unprecedented disasters

The unprecedented hurricane cutting across the Florida Panhandle is just the latest in a string of billion-plus dollar disasters to hit the United States this year.

As of early August — before the fires that leveled Lahaina, and before Hurricanes Hilary and Idalia — the U.S. had experienced 15 climate disasters with losses exceeding $1 billion, according to federal data.

Those disasters are becoming more frequent. In the 1980s, an average of almost three months separated such large-scale disasters — but for the last five years, they’ve been coming about every three weeks.

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The backstop to these losses is the insurance industry, which has seen its costs increase exponentially in recent years. In 2021, the industry as a whole paid out nearly $4 billion more than it took in — and in 2022, following Hurricane Ian, those losses ballooned more than six times to nearly $27 billion, according to a review by a leading insurance trade group.

In the wake of these disasters, some insurance companies have left areas where the risk is highest, leasing an increasing numbers of Americans without insurance, according to the Wall Street Journal.

That’s in turn a risks for banks, since nearly two-thirds of U.S. home owners are paying a mortgage to a lender — generally a bank.

Banks, in turn, use these homes as collateral in a dizzying array of loans and associated financial derivatives — all of which are based, Kelleher argued, on the increasingly obsolete assumption that the properties themselves are backed by insurance. 

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In the past, this largely made sense. Banks didn’t worry about losing the real estate the loans were written against — they worried about maintaining the tightest possible spread between the equity homeowners were paying in, and the potential losses if they defaulted.

This assumption allowed banks to assume a loan-to-deposit ratio of 80 to 90 percent — in which a bank may only have $.10 or $.20 in deposits or real assets for every dollar it’s lending out.

That kind of ratio gives “very little cushion, but at the end of the day, it’s okay because you’ve got the physical assets,” Kelleher said.

But with the rise of climate change driven disasters, “the quality and reliability of the physical assets have dropped dramatically.” 

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Add the departure of insurance companies, he argued, and banks face the possibility of undergoing total losses for properties destroyed by disaster — losses that, in previous ages, insurance payments would have largely made up.

Kelleher argued that a wave of defaults is coming — one which will hit small community and regional banks first.

“We’re not talking about a decade, we’re talking over the next several years of there being significant bank and financial system consequences for what the insurance companies are experiencing right now,” he said.

A lack of data

It’s unclear how many uninsured properties exist in the United States, which itself is a danger.

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“While you would think that state insurance regulators would have created such a database and series of reports through the National Association of Insurance Commissioners, this is unfortunately not the case,” Carly Fabian, a specialist in insurance and climate change at nonprofit Public Citizen told the Hill.

Regulators are struggling to catch up. The National Association of Insurance Commissioners in August announced it would build a comprehensive data-set to help identify where “insurance availability and affordability” is more challenging in the U.S.

That’s a move it had once opposed, Fabian noted, “which suggests they’re feeling pressure” to get more data on the problem.

Some progressive lawmakers want state insurers to focus on collecting data to figure out where the risks are worse.

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“If you purchase a home in Pensacola today, current sea level rise projections through 2050 mean that your home will likely be under water before your mortgage is paid off,” Rep. Sean Casten (D-Ill.) told The Hill. 

He added that as insurance firms catch on and stop writing policies in those areas, “a cascading effect” risks spreading through the financial system, as financial institutions offload loans, potentially threatening U.S. financial stability.

“Congress and federal regulators have an obligation to do more to address this,” Casten said. 

Kelleher argued that financial regulators need to demand “stress tests,” in which key banking regulators — the Federal Reserve, the Office of Comptroller of the Currency, and the FDIC — require banks to audit their risk of failure in the face of different levels of serious climate upheaval.

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Even where these tests are performed, it isn’t clear that banks are taking them seriously. In a stress test performed by the European Central Bank (ECB), a world in which global heating reaches 3 degrees Celsius by 2050 — three times its current level — banks assumed their total losses would be just $78 billion.

This number, the ECB itself noted, “significantly understates the actual climate-related risk.”

The role of fossil fuels

In the U.S., there’s an added issue: both regulators and banks are taking heavy fire from the GOP and the broader fossil fuel industry, which is fighting hard to maintain a free flow of credit to the fossil fuel industry.

When the Federal Reserve last year announced it was opening an initial pilot project that would require six banks to audit their climate risk, Republicans cried foul, arguing this was the beginning of a move to defund fossil fuels.

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“The Fed’s new ‘pilot’ program is the first step toward pressuring banks into limiting loans to and investments in traditional energy companies and other disfavored carbon-emitting sectors,” Sen. Pat Toomey, ranking member of the Banking Committee, said in a statement

“There is no risk from global warming that banks aren’t already fully capable of pricing into their decisions, and the Fed’s intrusion into this process only underscores that the real risk is government.”

Whether or not banks are capable, they are “light years” behind insurance, Kelleher said.

“Bankers are all tied up with, you know, accusations of wokeness, and the power and influence of the oil and gas industry. They should be more like the insurance industry, which is, who cares why a climate disaster is coming?”

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“The only thing they should care about is, what the risks are, and what they should do about the risks.”

But while they’re attitude to reducing their direct exposure to climate change may be different, in one way, Fabian of Public Citizen noted, banking and insurance see eye to eye: both are happy to keep investing in the very fossil fuels whose combustion makes the problem worse. 

“Even as they pull away from homeowners, insurers like State Farm remain major investors in fossil fuels and others like AIG are both major investors and major underwriters of fossil fuel projects and companies,” she said.

​Equilibrium & Sustainability, Business, Energy & Environment, News, State Watch, California, Florida, Home insurance, Hurricane Ian, hurricane idalia The rising weather-related risks from climate change, from coastal hurricanes to western wildfires, are increasing pinching insurance companies, which are raising rates and pulling back from parts of the country in an effort to stay in business. Just this summer, two major insurance companies left Florida, adding to the long list of companies that have…  

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How Epstein’s Cash Shaped Artists, Agencies, and Algorithms

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Jeffrey Epstein’s money did more than buy private jets and legal leverage. It flowed into the same ecosystem that decides which artists get pushed to the front, which research gets labeled “cutting edge,” and which stories about race and power are treated as respectable debate instead of hate speech. That doesn’t mean he sat in a control room programming playlists. It means his worldview seeped into institutions that already shape what we hear, see, and believe.

The Gatekeepers and Their Stains

The fallout around Casey Wasserman is a vivid example of how this works. Wasserman built a powerhouse talent and marketing agency that controls a major slice of sports, entertainment, and the global touring business. When the Epstein files revealed friendly, flirtatious exchanges between Wasserman and Ghislaine Maxwell, and documented his ties to Epstein’s circle, artists and staff began to question whose money and relationships were quietly underwriting their careers.

That doesn’t prove Epstein “created” any particular star. But it shows that a man deeply entangled with Epstein was sitting at a choke point: deciding which artists get representation, which tours get resources, which festivals and campaigns happen. In an industry built on access and favor, proximity to someone like Epstein is not just gossip; it signals which values are tolerated at the top.

When a gatekeeper with that history sits between artists and the public, “the industry” stops being an abstract machine and starts looking like a web of human choices — choices that, for years, were made in rooms where Epstein’s name wasn’t considered a disqualifier.

Funding Brains, Not Just Brands

Epstein’s interest in culture didn’t end with celebrity selfies. He was obsessed with the science of brains, intelligence, and behavior — and that’s where his money begins to overlap with how audiences are modeled and, eventually, how algorithms are trained.

He cultivated relationships with scientists at elite universities and funded research into genomics, cognition, and brain development. In one high‑profile case, a UCLA professor specializing in music and the brain corresponded with Epstein for years and accepted funding for an institute focused on how music affects neural circuits. On its face, that looks like straightforward philanthropy. Put it next to his email trail and a different pattern appears.

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Epstein’s correspondence shows him pushing eugenics and “race science” again and again — arguing that genetic differences explain test score gaps between Black and white people, promoting the idea of editing human beings under the euphemism of “genetic altruism,” and surrounding himself with thinkers who entertained those frames. One researcher in his orbit described Black children as biologically better suited to running and hunting than to abstract thinking.

So you have a financier who is:

  • Funding brain and behavior research.
  • Deeply invested in ranking human groups by intelligence.
  • Embedded in networks that shape both scientific agendas and cultural production.

None of that proves a specific piece of music research turned into a specific Spotify recommendation. But it does show how his ideology was given time, money, and legitimacy in the very spaces that define what counts as serious knowledge about human minds.

How Ideas Leak Into Algorithms

There is another layer that is easier to see: what enters the knowledge base that machines learn from.

Fringe researchers recently misused a large U.S. study of children’s genetics and brain development to publish papers claiming racial hierarchies in IQ and tying Black people’s economic outcomes to supposed genetic deficits. Those papers then showed up as sources in answers from large AI systems when users asked about race and intelligence. Even after mainstream scientists criticized the work, it had already entered both the academic record and the training data of systems that help generate and rank content.

Epstein did not write those specific papers, but he funded the kind of people and projects that keep race‑IQ discourse alive inside elite spaces. Once that thinking is in the mix, recommendation engines and search systems don’t have to be explicitly racist to reproduce it. They simply mirror what’s in their training data and what has been treated as “serious” research.

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Zoomed out, the pipeline looks less like a neat conspiracy and more like an ecosystem:

  • Wealthy men fund “edgy” work on genes, brains, and behavior.
  • Some of that work revives old racist ideas with new data and jargon.
  • Those studies get scraped, indexed, and sometimes amplified by AI systems.
  • The same platforms host and boost music, video, and news — making decisions shaped by engagement patterns built on biased narratives.

The algorithm deciding what you see next is standing downstream from all of this.

The Celebrity as Smoke Screen

Epstein’s contact lists are full of directors, actors, musicians, authors, and public intellectuals. Many now insist they had no idea what he was doing. Some probably didn’t; others clearly chose not to ask. From Epstein’s perspective, the value of those relationships is obvious.

Being seen in orbit around beloved artists and cultural figures created a reputational firewall. If the public repeatedly saw him photographed with geniuses, Oscar winners, and hit‑makers, their brains filed him under “eccentric patron” rather than “dangerous predator.”

That softens the landing for his ideas, too. Race science sounds less toxic when it’s discussed over dinner at a university‑backed salon or exchanged in emails with a famous thinker.

The more oxygen is spent on the celebrity angle — who flew on which plane, who sat at which dinner — the less attention is left for what may matter more in the long run: the way his money and ideology were welcomed by institutions that shape culture and knowledge.

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Ghislaine Maxwell seen alongside Jeffrey Epstein in newly-released Epstein files from the DOJ. (DOJ)

What to Love, Who to Fear

The point is not to claim that Jeffrey Epstein was secretly programming your TikTok feed or hand‑picking your favorite rapper. The deeper question is what happens when a man with his worldview is allowed to invest in the people and institutions that decide:

  • Which artists are “marketable.”
  • Which scientific questions are “important.”
  • Which studies are “serious” enough to train our machines on.
  • Which faces and stories are framed as aspirational — and which as dangerous.

If your media diet feels saturated with certain kinds of Black representation — hyper‑visible in music and sports, under‑represented in positions of uncontested authority — while “objective” science quietly debates Black intelligence, that’s not random drift. It’s the outcome of centuries of narrative work that men like Epstein bought into and helped sustain.

No one can draw a straight, provable line from his bank account to a specific song or recommendation. But the lines he did draw — to elite agencies, to brain and music research, to race‑obsessed science networks — are enough to show this: his money was not only paying for crimes in private. It was also buying him a seat at the tables where culture and knowledge are made, where the stories about who to love and who to fear get quietly agreed upon.

Bill Clinton and English musician Mick Jagger in newly-released Epstein files from the DOJ. (DOJ)

A Challenge to Filmmakers and Creatives

For anyone making culture inside this system, that’s the uncomfortable part: this isn’t just a story about “them.” It’s also a story about you.

Filmmakers, showrunners, musicians, actors, and writers all sit at points where money, narrative, and visibility intersect. You rarely control where the capital ultimately comes from, but you do control what you validate, what you reproduce, and what you challenge.

Questions worth carrying into every room:

  • Whose gaze are you serving when you pitch, cast, and cut?
  • Which Black characters are being centered — and are they full humans or familiar stereotypes made safe for gatekeepers?
  • When someone says a project is “too political,” “too niche,” or “bad for the algorithm,” whose comfort is really being protected?
  • Are you treating “the industry” as a neutral force, or as a set of human choices you can push against?

If wealth like Epstein’s can quietly seep into agencies, labs, and institutions that decide what gets made and amplified, then the stories you choose to tell — and refuse to tell — become one of the few levers of resistance inside that machine. You may not control every funding source, but you can decide whether your work reinforces a world where Black people are data points and aesthetics, or one where they are subjects, authors, and owners.

The industry will always have its “gatekeepers.” The open question is whether creatives accept that role as fixed, or start behaving like counter‑programmers: naming the patterns, refusing easy archetypes, and building alternative pathways, platforms, and partnerships wherever possible. In a landscape where money has long been used to decide what to love and who to fear, your choices about whose stories get light are not just artistic decisions. They are acts of power.

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New DOJ Files Reveal Naomi Campbell’s Deep Ties to Jeffrey Epstein

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In early 2026, the global conversation surrounding the “Epstein files” has reached a fever pitch as the Department of Justice continues to un-redact millions of pages of internal records. Among the most explosive revelations are detailed email exchanges between Ghislaine Maxwell and Jeffrey Epstein that directly name supermodel Naomi Campbell. While Campbell has long maintained she was a peripheral figure in Epstein’s world, the latest documents—including an explicit message where Maxwell allegedly offered “two playmates” for the model—have forced a national re-evaluation of her proximity to the criminal enterprise.

The Logistics of a High-Fashion Connection

The declassified files provide a rare look into the operational relationship between the supermodel and the financier. Flight logs and internal staff emails from as late as 2016 show that Campbell’s travel was frequently subsidized by Epstein’s private fleet. In one exchange, Epstein’s assistants discussed the urgency of her travel requests, noting she had “no backup plan” and was reliant on his jet to reach international events.

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This level of logistical coordination suggests a relationship built on significant mutual favors, contrasting with Campbell’s previous descriptions of him as just another face in the crowd.

In Her Own Words: The “Sickened” Response

Campbell has not remained silent as these files have surfaced, though her defense has been consistent for years. In a widely cited 2019 video response that has been recirculated amid the 2026 leaks, she stated, “What he’s done is indefensible. I’m as sickened as everyone else is by it.” When confronted with photos of herself at parties alongside Epstein and Maxwell, she has argued against the concept of “guilt by association,” telling the press:

“I’ve always said that I knew him, as I knew many other people… I was introduced to him on my 31st birthday by my ex-boyfriend. He was always at the Victoria’s Secret shows.”

She has further emphasized her stance by aligning herself with those Epstein harmed, stating,

“I stand with the victims. I’m not a person who wants to see anyone abused, and I never have been.””

The Mystery of the “Two Playmates”

The most damaging piece of evidence in the recent 2026 release is an email where Maxwell reportedly tells Epstein she has “two playmates” ready for Campbell.

While the context of this “offer” remains a subject of intense debate—with some investigators suggesting it refers to the procurement of young women for social or sexual purposes—Campbell’s legal team has historically dismissed such claims as speculative. However, for a public already wary of elite power brokers, the specific wording used in these private DOJ records has created a “stop-the-scroll” moment that is proving difficult for the fashion icon to move past.

A Reputation at a Crossroads

As a trailblazer in the fashion industry, Campbell is now navigating a period where her professional achievements are being weighed against her presence in some of history’s most notorious social circles. The 2026 files don’t just name her; they place her within a broader system where modeling agents and scouts allegedly groomed young women under the guise of high-fashion opportunities. Whether these records prove a deeper complicity or simply illustrate the unavoidable overlap of the 1% remains the central question of the ongoing DOJ investigation.

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Google Accused Of Favoring White, Asian Staff As It Reaches $28 Million Deal That Excludes Black Workers

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Google has tentatively agreed to a $28 million settlement in a California class‑action lawsuit alleging that white and Asian employees were routinely paid more and placed on faster career tracks than colleagues from other racial and ethnic backgrounds.

How The Discrimination Claims Emerged

The lawsuit was brought by former Google employee Ana Cantu, who identifies as Mexican and racially Indigenous and worked in people operations and cloud departments for about seven years. Cantu alleges that despite strong performance, she remained stuck at the same level while white and Asian colleagues doing similar work received higher pay, higher “levels,” and more frequent promotions.

Cantu’s complaint claims that Latino, Indigenous, Native American, Native Hawaiian, Pacific Islander, and Alaska Native employees were systematically underpaid compared with white and Asian coworkers performing substantially similar roles. The suit also says employees who raised concerns about pay and leveling saw raises and promotions withheld, reinforcing what plaintiffs describe as a two‑tiered system inside the company.

Why Black Employees Were Left Out

Cantu’s legal team ultimately agreed to narrow the class to employees whose race and ethnicity were “most closely aligned” with hers, a condition that cleared the path to the current settlement.

The judge noted that Black employees were explicitly excluded from the settlement class after negotiations, meaning they will not share in the $28 million payout even though they were named in earlier versions of the case. Separate litigation on behalf of Black Google employees alleging racial bias in pay and promotions remains pending, leaving their claims to be resolved in a different forum.

What The Settlement Provides

Of the $28 million total, about $20.4 million is expected to be distributed to eligible class members after legal fees and penalties are deducted. Eligible workers include those in California who self‑identified as Hispanic, Latinx, Indigenous, Native American, American Indian, Native Hawaiian, Pacific Islander, and/or Alaska Native during the covered period.

Beyond cash payments, Google has also agreed to take steps aimed at addressing the alleged disparities, including reviewing pay and leveling practices for racial and ethnic gaps. The settlement still needs final court approval at a hearing scheduled for later this year, and affected employees will have a chance to opt out or object before any money is distributed.

H2: Google’s Response And The Broader Stakes

A Google spokesperson has said the company disputes the allegations but chose to settle in order to move forward, while reiterating its public commitment to fair pay, hiring, and advancement for all employees. The company has emphasized ongoing internal audits and equity initiatives, though plaintiffs argue those efforts did not prevent or correct the disparities outlined in the lawsuit.

For many observers, the exclusion of Black workers from the settlement highlights the legal and strategic complexities of class‑action discrimination cases, especially in large, diverse workplaces. The outcome of the remaining lawsuit brought on behalf of Black employees, alongside this $28 million deal, will help define how one of the world’s most powerful tech companies is held accountable for alleged racial inequities in pay and promotion.

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