Monday, September 28, 2020

USA
Cars have hit demonstrators 104 times since George Floyd protests began

Grace Hauck, USA TODAY•September 27, 2020


Dozens of people had gathered in Albuquerque, New Mexico, for a third night of protests demanding justice for Breonna Taylor when a car barreled through the crowd, hitting several protesters.

"It just went straight into the middle of the crowd and veered off toward the left," said Samantha Colombo, 25, an Albuquerque resident who said they've been protesting with dozens of other people for three nights at the same intersection. No one appeared to be injured, Colombo said. Video of the incident began to circulate on Twitter on Friday.

"For the first two nights, the police blocked off the streets. Today they did not, so we had a couple cars blocking the streets for us and people lining up their bikes," Colombo said. "There was this one car that for a few minutes was just beeping for a minute or so straight, so a few people went up to the car to get them to move, and they eventually just started going."

Amid thousands of protests nationwide this summer against police brutality, dozens of drivers have plowed into crowds of protesters marching in roadways, raising questions about the drivers' motivations.


New York, Denver, Minneapolis: Disturbing videos show vehicles plowing into George Floyd protests across USA
Two protesters climb onto the hood of a moving Detroit police SUV before being thrown off.

Witnesses, law enforcement and terrorism experts said some of the vehicle incidents appear to be targeted and politically motivated; others appear to be situations in which the driver became frightened or enraged by protesters surrounding their vehicle.

"There are groups that do want people to take their cars and drive them into Black Lives Matters protesters so that they won’t protest anymore. There’s an element of terrorism there. Is it all of them? No," said J.J. MacNab, a fellow at George Washington University's Program on Extremism. "I look at it as an anti-protester group of acts, some of which are white supremacists, some not."

There have been at least 104 incidents of people driving vehicles into protests from May 27 through Sept. 5, including 96 by civilians and eight by police, according to Ari Weil, a terrorism researcher at the University of Chicago's Project on Security and Threats who spoke with USA TODAY this summer. Weil began tracking the incidents as protests sprung up in the wake of George Floyd's death in police custody.

There have been at least two fatalities, in Seattle and in Bakersfield, California.
At least 43 incidents malicious and 39 drivers charged

Weil said that by analyzing news coverage, court documents and patterns of behavior – such as when people allegedly yelled slurs at protesters or turned around for a second hit – he determined that at least 43 of the incidents were malicious, and 39 drivers have been charged.

Most of the incidents happened in June, in the weeks following Floyd's May 25 killing, Weil said, and half of the incidents happened by June 7. While incidents continue to happen, they've trended downward since then, he said

"While these incidents were clustered in the beginning of the protest period, they continue to occur," Weil said on Twitter on Thursday. "As violent rhetoric intensifies in the lead up to the election, I worry about an uptick in these incidents."


New York, California, Oregon and Florida have seen the greatest number of incidents, according to Weil's data.

Just this past week, drivers struck protesters in Denver, in Laramie, Wyoming, and in Los Angeles, where one person was hospitalized, according to local news reports.

On Saturday, in Yorba Linda, California, south of Los Angeles, a woman believed to be supporting Black Lives Matter with the group Caravan4Justice drove through a crowd of protesters and counterprotesters, injuring two people who were transported by ambulance, according to the Orange County Sheriff's Department. A man had possible broken legs, and a woman had "multiple injuries all over her body," according to Carrie Braun, director of public affairs for the department.

The department released a statement late Friday saying the driver would be booked for attempted murder and assault with a deadly weapon, and that the investigation is ongoing.

Many of the incidents have been captured in photos or videos shared on social media: Earlier this summer, two New York police vehicles plowed into demonstrators as the crowd pushed a barricade against one of them; a woman in a black SUV drove through a crowd in Denver; a Detroit police vehicle accelerated away with a man flailing on the hood.

One of the more "clear-cut" cases of malice, MacNab said, was in early June in Lakeside, Virginia. An "avowed Klansman" drove up to protesters on a roadway, revved his engine, then drove through the crowd, wounding one person, Henrico County Commonwealth's Attorney Shannon Taylor said in a statement.

The 36-year-old man was "a propagandist of Confederate ideology," Taylor said. He was charged with four counts of assault with hate crimes, two counts of felonious attempted malicious wounding and one count of felony hit and run.
A screengrab of a Jeep hitting Black Lives Marchers at a Visalia protest on Saturday.

"We lived through this in Virginia in Charlottesville in 2017," Taylor said, referring to when a neo-Nazi plowed his car through a crowd of counterprotesters at a Unite the Right rally, killing Heather Heyer. The driver was sentenced to life in prison on hate crime charges.

In June in Visalia, California, occupants of a Jeep displaying a "Keep America Great" flag hit two protesters in the road, causing minor injuries, according to Visalia police. Witnesses said those inside the car mocked protesters by cupping their ears as if they couldn't hear their chants. The protesters started chanting profanities and throwing items before they approached the Jeep, which accelerated, hitting the protesters before driving off.
Protesters peacefully gathered outside the Tulare County Superior Court in California Monday morning to call for the prosecution of occupants of a Jeep that struck two Visalia activists during a Saturday demonstration.

County prosecutors didn't charge the driver, saying the protesters involved weren't "seriously injured" and the driver and his passengers felt threatened. Other civilians and police officers have similarly claimed that they drove through protesters because they were afraid of them and wanted to escape the situation.

MacNab noted that "some of that fear is going to come from racism and bigotry."

Officials in Minnesota said in June that a 35-year-old semitruck driver who drove through a crowd of thousands of protesters on a bridge did not deliberately target the group.

A lawyer for a man who hit two protesters in Seattle, killing one, said the crash was a "horrible, horrible accident." Prosecutors filed three felony charges against the man.
Videos of vehicle rammings have become 'a meme in white supremacy circles'

Video of many of the vehicle rammings has circulated on social media, including white supremacist websites, according to MacNab, who said she has seen "revolting" commentary on videos shared to white supremacist accounts on YouTube, Facebook and Twitter.

"This has become something of a meme in white supremacy circles. There’ll be a picture of a car driving into a crowd, and then there will be a humorous remark about it. It’s definitely part of the discourse," said Daniel Byman, a senior fellow at Brookings who researches counterterrorism and Middle East security. "They’re doing a lot of kidding-not-kidding sort of humor ... which is the modern white supremacist world."

Drivers striking protesters with cars: Indiana has seen at least 3 cases

Byman said earlier this summer that he's seen a meme shared by the Charlottesville killer circulating in white supremacist circles. Right-wing extremists turned the man into "a bit of a saint" after the killing, MacNab said.

Since the grand jury indictment in the Breonna Taylor case Wednesday, and the protests that have erupted in the ensuing days, the use of particular Twitter hashtags referencing such memes has more than doubled, according to Weil.

"These 'Run Them Over' memes continue to circulate. Twitter said they were going to block the hashtag All Lives Splatter, but it still remains in use," he said.
Vehicles have a history of being used for terror, and 'ISIS made it a science'

Vehicles have been used as tools of terror for decades, but it's become more common in the past 10 years, experts said. The Islamic State disseminated information about how to use the tactic, said Lorenzo Vidino, director of George Washington University's Program on Extremism.

"Between 2014 and 2017, we saw several attacks, and ISIS was very meticulous in a variety of languages that gave clear instructions about what trucks to use, how to rent a truck and how to hit a group," Vidino said. "ISIS made it a science."

Most of those attacks were in Europe and the Middle East, Vidino said. Terrorists influenced by the Islamic State used vehicles to kill people in Nice, France, in 2016 and on London Bridge in 2017. That year, a man influenced by the Islamic State killed eight people when he drove a pickup about 1 mile in Lower Manhattan.

Other extremist groups borrowed the tactic, Vidino said. In 2018, a member of a misogynist online subculture drove a van into downtown Toronto, killing 10 people.

The vehicular attacks have been "the trademark of the affiliated wannabes that are at times extremely deadly," he said. The tactic is cheap and doesn't take much coordination or organizational support. It's also "camera-friendly," Vidino said.

"The Charlottesville attack, it killed one person, but it stuck in everybody’s mind because you have the spectacle of bodies flying. It’s catchy. And that’s what a lot of extremists pursue. It terrorized people," he said.

In the U.S., the tactic was introduced by the far-right around 2016 to attack Black Lives Matter protests and demonstrations against the Dakota Access Pipeline, Weil said in a Twitter thread. That's when "the right began creating memes to celebrate" the attacks, he said.

"I would be very careful in the middle of the street," MacNab said. "There's a significant amount of people who think that any protester hit in the street has it coming, and that’s a dangerous mindset."

Contributing: Sheyanne N. Romero and Kyra Haas, Visalia (California) Times-Delta

Follow Grace Hauck on Twitter at @grace_hauck

This article originally appeared on USA TODAY: Cars hit people 104 times at BLM protests since George Floyd's death
An update on vehicle ramming and motorist-protest incidents in the last few months: cw: violent language
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Last month in Iowa City, a driver shut off his lights and drove into a protest, later saying they needed "an attitude adjustment"
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And these "Run Them Over" memes continue to circulate. Twitter said they were going to block the hashtag All Lives Splatter, but it still remains in use.
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And this behavior is encouraged by lawmakers--Florida Governor Ron DeSantis just proposed legislation that would provide protections for drivers, mirroring a range of state bills that failed to pass in 2017
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Ari Weil
@AriWeil
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Then, elected officials began further encouraging these attacks by attempting to legalize them. See the table below for 6 states where bills were proposed to provide protections to drivers who ran into protesters. Luckily none passed into law.
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BILLY BARR TRUMP'S BULLY BOY
Assistant U.S. Attorney Says William Barr 'Dishonors' Justice Department


Sebastian Murdock
Senior Reporter, HuffPost,
HuffPost•September 26, 2020


A federal prosecutor wrote a letter expressing his opposition to Attorney General William Barr, who he said “brought shame” to the Department of Justice.

“While I am a federal prosecutor, I am writing to express my own views, clearly not those of the department, on a matter that should concern all citizens: the unprecedented politicization of the office of the attorney general,” said James D. Herbert, assistant U.S. attorney for the District of Massachusetts, in a letter to The Boston Globe published Thursday.

Herbert said he felt compelled to speak out against Barr after the attorney general earlier this month lambasted the prosecutors who work for him.

“The attorney general acts as though his job is to serve only the political interests of Donald J. Trump. This is a dangerous abuse of power,” Herbert wrote, citing Barr’s misleading summary of the Mueller Report and his false claims about mail-in voting.- ADVERTISEMENT -


More recently, Barr took the unprecedented step of throwing the weight of the Justice Department behind Trump in a lawsuit filed by a rape accuser. Barr also recently designated New York City, Seattle and Portland, Oregon, “anarchist jurisdictions” in a bid to cut federal funding to the cities perceived as liberal.

“William Barr has done the president’s bidding at every turn,” Herbert wrote. “For 30 years I have been proud to say I work for the Department of Justice, but the current attorney general has brought shame on the department he purports to lead.”

HuffPost reached out to Barr’s office for comment.

Related...

William Barr: Black Lives Matter Movement 'Not Interested In Black Lives'

William Barr Wildly Compares Coronavirus Safety Measures To Slavery

Legal experts are freaking out about Bill Barr’s actions to help Trump win

Travis Gettys, Salon•September 26, 2020


Bill Barr ABC

Legal experts are increasingly alarmed by Attorney General William Barr's efforts to help President Donald Trump win re-election.

The attorney general has joined the president in attacking voting integrity and civil rights demonstrators, and he has described his role in the election in explicitly religious terms that show Barr believes he represents "moral discipline and virtue" against "individual rapacity," reported The Guardian.

"His abuses have only escalated as we have gotten closer and closer to the election, and as the president has felt more and more politically vulnerable," said Donald Sherman, deputy director of the Citizens for Responsibility and Ethics in Washington. "I can't put it more plainly than this: The attorney general is a threat to American citizens having free and fair access to the vote, and is a threat to American having their votes counted."


Barr has recently asked federal prosecutors to consider charging protesters with sedition and designated New York City, Portland and Seattle as "anarchy" zones, which helps Trump whip up hysteria about public safety.

"I think this attorney general is demonstrably more committed to the political success of the president, and the president's political agenda than any attorney general in history I can think of," said Neil Kinkopf, a Georgia State law professor who worked in the Office of Legal Counsel under Bill Clinton.

Kinkopf testified against Barr during his 2019 confirmation hearing, when he warned senators the deeply conservative Washington veteran believed in giving the chief executive "breathtaking" powers.

"When I testified against him, I recognized how dangerous the unitary executive theory is," Kinkopf said. "But what I didn't appreciate, and I don't think anybody appreciated, was just how fully he would deploy that theory in advance not of rule-of law values, but in order to advance both the president's political agenda, and I think more deeply for Barr, his own social and religious commitments."

The attorney general has accused Black Lives Matter protesters of fomenting chaos as part of a socialist revolution, and he has described himself as a bulwark in a battle between good and evil. 

"The attorney general sees himself clearly as fighting culture wars that are to him moral and religious," Kinkopf said, "and those are deeper, I think, commitments for him than the commitment to federalism, and so to the extent that the balance of federal and state power gets in the way of achieving what he wants to achieve in the culture wars, he's willing to cast that aside.

"So if there weren't a culture war angle on it, I think he would take the position that states and local governments should be left to police their own communities, and the federal government should keep its nose out," Kinkopf added. "But because he sees something at stake in the current protests that jeopardizes what he feels as being the proper order of society, he's not troubled about using federal power to pursue what he views as being the right results."

The Black wealth gap

The Week Staff, The Week•September 27, 2020



Decades after the civil rights movement, African Americans still hold a fraction of the wealth of white Americans. Why? Here's everything you need to know:

How big is the gap?

It's staggering. The net worth of a typical white family in 2016 — including home, retirement accounts, and all assets — was nearly 10 times greater than that of a Black family, at $171,000 to $17,600. This gulf even includes African Americans whose households are headed by college graduates, who actually have less net worth than white households headed by high school dropouts. Wealth begets wealth through generations, and African Americans have missed out on that transfer for centuries. Just 8 percent of Black families receive an inheritance from parents or grandparents. For someone with no ­buffer of savings and no family member who can help, any financial emergency — a sudden illness or job loss — is a catastrophe.


How did the gap start?

After the Civil War, Reconstruction was supposed to begin making up for the hundreds of years of slavery during which African Americans had wages, property, and even spouses and children stolen from them. But the "40 acres and a mule" promised by Gen. William Sherman was yanked away by Abraham Lincoln's successor, President Andrew Johnson, and the little land that had been parceled out was returned to the white former slaveholders. Most Blacks in the South after the war were forced to toil as sharecroppers, perpetually in debt to white landowners. Blacks who managed to succeed despite all this fell victim to white terrorism, as in the 1898 Wilmington, North Carolina, massacre that wiped out a Black-led government in the nation's only successful coup, or the 1921 Tulsa massacre in which jealous whites attacked, burned, and even bombed from the air a thriving neighborhood known as Black Wall Street. With segregation and Jim Crow laws depriving them of the vote and of economic opportunity, many Blacks abandoned the South in the Great Migration, only to find more-subtle discrimination waiting in the North.

What kind of discrimination?

The New Deal was meant to help the poor across America, but it had racism baked into it. Rather than overturning racial covenants that kept Blacks out of desirable neighborhoods, the new Federal Housing Administration promoted them. The government Home Owners' Loan Corporation marked majority-Black districts in red on maps, so banks would not extend government-insured loans there — suppressing both Black homeownership and business development. The corrosive effects of that "redlining" persist to this day. After World War II, the G.I. Bill, which paid for college or vocational training for veterans and offered subsidized mortgages, was administered by the states, which funneled the benefits away from Blacks. And the 1956 Federal Highway Act that helped create the suburbs bulldozed and isolated black neighborhoods, creating ghettos.


Didn't the Civil Rights Act help?

The 1964 Civil Rights Act prohibited discrimination and strengthened voting rights and the desegregation of schools. But even as it "struck down legal barriers," says historian Leon Litwack, "it failed to dismantle economic barriers." The wealth gap was already so large that even if Blacks were paid the same as whites for the same job — and they were not — they were unable to catch up. Meanwhile, the era of mass incarceration had begun. By the 1980s, Black men were 11 times as likely to be incarcerated as whites, thanks partly to laws punishing use of crack cocaine an order of magnitude harsher than powder cocaine, which was favored by wealthier whites. Our educational system also perpetuates Black poverty: Unlike in most other advanced nations, schools are funded locally and are tied to the local tax base, which means that people growing up in poor neighborhoods go to inadequate schools. Far from shrinking, the racial wealth gap has in fact grown over the past few decades, particularly after the 2008 financial crisis, which wiped out much of the progress blacks had made. While median white household incomes rose by a third from 1983 to 2016, typical Black household incomes actually dropped by 50 percent.

But don't some Black people succeed?

Yes, but individual efforts to "bootstrap" one's way up the economic ladder face enormous obstacles. A 2019 Georgetown University study showed that wealth in youth is a better predictor of success than intelligence. Racism in hiring persists, as numerous studies have shown that pit a résumé with a "Black-­sounding" name against a similar one with a white name. Marriage and stable families help create wealth, and married Black women have more wealth than single Black women. But many Black men with low incomes do not feel marriageable; moreover, a 2017 DuBois Cook Center study showed that wealth differences persist between the races despite marriage status. Structural racism leaves African Americans trapped in a wealth gap that is actually widening, not narrowing. "It is as though we have run up a credit-card bill and, having pledged to charge no more, remain befuddled that the balance does not disappear," Black writer and intellectual Ta-Nehisi Coates said in The Atlantic. "The effects of that balance, interest accruing daily, are all around us."

How COVID-19 worsened the gap

When the coronavirus hit this year, Black Americans were still reeling from the 2008 financial crisis. That downturn had wiped out 53 percent of all Black wealth, largely because subprime lenders had targeted Black communities with loans on bad terms. Then came the COVID-19 shutdown. While 22 percent of all U.S. businesses shuttered between February and April this year, 41 percent of Black-owned businesses closed. Many African-American business owners couldn't access the Payroll Protection Program, because loans tended to go to large firms that had existing relationships with major banks. One study found that white owners who went in person to a bank to ask for a PPP loan fared much better than Black owners who did so, even when the Black owners had better financial profiles. And many Black-owned businesses are sole proprietorships, which weren't covered. As a result, fewer than half of all African-American adults now have a job. "The pandemic is falling on those least able to bear its burdens," said Federal Reserve Chair Jerome Powell. "It is a great increaser of inequality."

This article was first published in the latest issue of The Week magazine. If you want to read more like it, you can try six risk-free issues of the magazine here.
Several hundred arrests amid protest calls in Egypt: rights group

© Reuters/AMR ABDALLAH DALSH FILE PHOTO: Egyptian President Abdel Fattah al-Sisi attends the funeral of former President Hosni Mubarak east of Cairo

CAIRO (Reuters) - Egyptian authorities have detained at least 382 people since Sept. 20 amid reports of small, scattered demonstrations against President Abdel Fattah al-Sisi, a rights group said on Monday.

The interior ministry could not be reached for comment.

The arrests come after security measures were tightened around the first anniversary of rare demonstrations in Cairo and other cities, triggered by appeals in September last year from an exiled former contractor and actor, Mohamed Ali.

Ali, who had posted videos online lambasting the authorities, called for more protests this month.

Videos posted on social media since Sept. 20 appeared to show several very small demonstrations involving up to several dozen people in different parts of the country.

Reuters could not independently verify the videos, but security sources confirmed some small and scattered protests on Friday, which they said were mainly in villages and outside big cities.

In one case, a witness said about 100 men had gathered in an area outside the city of Damietta and chanted "Leave, Sisi".

The Egyptian Commission for Rights and Freedoms said it had directly documented 249 detentions over the past nine days, while it said another 133 had been documented by other rights groups or lawyers.

The public prosecutor's office said on Sunday it had ordered the release of 68 minors detained for their alleged participation in "recent riots". It did not mention other arrests.

Security forces can be seen deployed in public spaces especially on Fridays, and there have been increased security checks.

The protests are partly fuelled by economic frustrations made worse by the coronavirus pandemic, and by a major government campaign to impose fines or demolitions on unlicensed housing, activists say.

In an apparent reference to the protests, Sisi praised Egyptians for enduring tough economic conditions on Sunday and said some were trying to exploit Egypt's challenges to undermine the country but would not succeed.

"They choose the difficult conditions to offend and sow suspicion among Egyptians about what we are doing - that this is at their expense and against them," Sisi said during the inauguration of a petrochemical plant.

"The people and the state are one entity. Nobody intervenes between us and nobody will be able to intervene between us."

Since his election in 2014 Sisi has overseen a broad crackdown on political dissent, which was extended with a wave of arrests after the protests last September.

Sisi says the government is looking after human rights by working to provide basic needs such as jobs and housing.

At the inauguration, a video on human rights was played that said the "safety and stability" of Egypt was one of the most important rights of its people.

(Editing by Giles Elgood)




Carleton PhD student detained in Turkey, accused of inciting protests

Nil Köksal


In the ten years they've been together, Ömer Ongun has not gone a day without hearing the voice of his partner, Cihan Erdal.

It's now been three days since they've spoken.

Their last conversation came on Friday, just moments before Erdal was detained in Istanbul's Besiktas neighbourhood.

"It was 2 a.m. for us, 9 a.m. for Cihan in Istanbul. He called me and said 'I love you. They are at my door. They're going to take me away,'" Ongun said.

Erdal, a 32-year-old PhD candidate at Carleton University and a permanent resident of Canada, is now being held at a detention centre in the Turkish capital, Ankara.

He was among dozens of people named in warrants issued across Turkey on Friday. Ongun, also a permanent resident, said Erdal's lawyer has not been allowed to see the specifics of his case file, but the allegations against all of the detainees relate to a letter written in 2014.

The letter called on the Turkish government to step in to help the Kurdish town of Kobani, in Syria, at the height of ISIS attacks.
Deadly protests

Thirty-seven people were killed in protests in Turkey's mainly Kurdish southeast that October as people filled the streets, angry the Turkish Army wasn't moving in to protect Kobani and its people.

The Turkish government accuses the signatories of that letter of supporting the protests.

Erdal was a member of the youth arm of the People's Democratic Party (HDP), a pro-Kurdish, legal political party in Turkey. It is the country's third largest party.

Its leader, Selahattin Demirtas, has been in prison since 2016. In recent years, dozens of elected HDP mayors have been forced out of their positions and replaced with government appointees.

The Turkish government accuses the HDP of supporting the Kurdistan Workers' Party (PKK) — an allegation the HDP denies.

Canada, the United States, and the European Union along with Turkey have labelled the PKK a terrorist organization. The conflict with the PKK has taken roughly 40,000 Turkish and Kurdish lives since 1984.
'It's ridiculous'

Ongun can not reconcile the accusations with the man he knows.

"Cihan is one of the kindest, most peaceful people in the world," he said in a telephone interview from his home in Ottawa. "He wanted to represent voices of LGBTQ youth, students, ecologists, you know, make their rights and needs visible. To accuse him for calling for violence and terrorism. It's devastating. It's ridiculous. We are all shocked."

Carleton University says it is equally shocked. In a letter released on Friday, the university's department of sociology and anthropology condemns Erdal's detention and says he has not been politically active for years.

"Cihan's research is on youth-led social movements in Europe, including in Turkey, focused on the stories of young activists about their involvement in social movements. His work is in no way critical of the Turkish state," the letter reads. "He was beginning interviews online, while awaiting approval under the new pandemic ethics process to begin face to face interviews in Turkey, Athens, and Paris."  
  
© Yilmaz Kazandioglu/Reuters Turkish troops patrol in Hakkari province, southeastern Turkey in June 2010 where Turkish troops and Kurdish fighters clashed.

Ongun said they were also in Turkey in August to check on their parents during the pandemic. Ongun returned to Canada, Erdal planned to stay a few more weeks to conduct his doctoral field research.

The university has reached out to Foreign Affairs Minister Francois Philippe-Champagne's office, the Turkish Embassy in Canada and the Canadian Embassy in Turkey, hoping to help secure his release.

The school is offering to cover any travel or accommodation expenses Erdal may have when he is released.

Global Affairs Canada told CBC News it was preparing a response to our request for information about Erdal's case.

Erdal has not been physically harmed in detention. His lawyer has been able to visit him, take him clothing and toiletries, and a pen and paper to write a letter to Ongun.

The lawyer sent him a photograph of it. "He said all he is doing is thinking about me and his family," Ongun said.

There are concerns his sexual orientation could make him a target during a prolonged detention.

The next step will be a court appearance in the coming days, perhaps as early as Monday. And then, Cihan's family and supporters hope, a swift release.

"He has a lot to contribute to this world. To Canada. To Turkey. We just want him back," Ongun said.
Liz Weston: Sustainable investing could get a lot harder


© Provided by The Canadian Press

Interest in sustainable investing is soaring, as more people become convinced that making a positive impact can be profitable as well as good for the planet and society. Unfortunately, the Labor Department doesn’t think these investments belong in your 401(k).


In June, the federal regulator proposed a rule that would restrict workplace retirement plans from investments that include environmental, social and governance considerations. Popularly known as ESG or socially responsible investing, this approach considers the sustainability of a company’s business practices.

The Labor Department says only returns, not business practices, should matter. But its proposal is unusual for a number of reasons, including its wide range of opponents. The rule has been denounced by some of the world’s largest investment managers, including BlackRock, Vanguard, State Street Global Advisors and Fidelity, along with groups representing pension funds and 401(k) providers. Many say the rule would make it so difficult or risky for workplace plans to offer ESGs that it effectively removes them from consideration.

The U.S. Chamber of Commerce, the American Bankers Association and the Investment Company Institute, among other business interests, warned the rule could raise costs, significantly limit investment options and increase the risk of lawsuits.

“This is out of step with mainstream investing,” says Aron Szapiro, director of policy research for investment research firm Morningstar. “This is pretty unworkable and it’s logically inconsistent.”

Far from acting in investors’ best interests, as workplace plan sponsors are required to do, the Labor Department seems determined to make retirement plans limit our options and potential returns.

SUSTAINABLE INVESTING IS NOW MAINSTREAM

The proposed rule might have made sense 20 years ago, when so-called “socially responsible” investing consisted of a handful of funds that excluded entire industries for social, political or religious reasons and sometimes sacrificed returns in the process.

But socially responsible investing has long since evolved into “sustainable” investing. Instead of making value judgments, it seeks companies making a quantifiably positive impact and steers clear of those that may pose costly risks.

This approach has spread rapidly. By 2018, one out of every four dollars under professional management was invested using strategies that consider environmental, social and corporate governance issues, according to the US SIF Foundation, a non-profit that researches sustainable investment. The number of mutual funds that say they consider sustainability grew from 81 in 2018 to 562 last year, Morningstar found. BlackRock, the world’s largest investment manager, announced in January that it would incorporate sustainability criteria into its investment decisions. Two weeks later, State Street Global Advisors, the third-largest asset manager, said it would use its influence to make sure companies were identifying and considering sustainability risks.

These investment managers haven’t become soft-headed do-gooders. They believe, with good evidence, that they’ll get better risk-adjusted returns if they consider a company’s impact on the environment, potential labour and product liability issues, executive compensation, and the effectiveness and diversity of its board of directors, among other factors.

Proponents of ESG investing say such concerns “are intrinsically tied to the ability of an enterprise to continue to generate profits or cash flow,” Szapiro says.

In fact, sustainable funds have outperformed conventional funds for the past few years and weathered the downturn earlier this year with fewer losses, Morningstar found.

THE RULE WOULD IMPOSE NEW COSTS ON PLANS

Screening out investments that use sustainability criteria would be an added expense that regulators don’t seem to have considered, Szapiro says.

“They say, ‘Well, we don’t think it’s gonna cost anything because we think plan sponsors simply won’t use ESG funds,’ but that requires identifying which ones are and are not,” Szapiro says.

“That’s a really big issue with cost that is simply not addressed.”

Another problem was the proposal’s short comment period. The Labor Department allowed feedback for just 30 days, closing comments on July 31. Normally, comments are accepted for 60, 90 or even 180 days, Szapiro says. The short timeline may indicate the department plans to implement the rule, despite overwhelmingly negative feedback.

YOU STILL HAVE OPTIONS FOR SUSTAINABLE INVESTING

If enacted, the rule may stymie the growth of sustainable investing strategies in retirement plans that the department regulates, which include 401(k)s and other defined contribution plans as well as most traditional corporate pensions. The rule won’t apply to public pensions, however, or to investments in individual accounts, including IRAs.

You also can invest in ESG funds if your 401(k) offers a “brokerage window,” which lets you invest outside of the plan’s normal investment lineup. These windows allow you to set up an account with an associated brokerage and pick from a much larger array of stocks, bonds, mutual funds and other investments.

You can research options using the Forum for Sustainable and Responsible Investment or an online broker’s mutual fund screening tools. In addition, some automated investment platforms – known as robo-advisors – offer ESG options.

It obviously would be easier if your 401(k) plan would do the screening and offer vetted options. As long as the Labor Department seems determined to prevent that, you’ll need to put in some work for a shot at better returns.

________________________________________

This column was provided to The Associated Press by the personal finance website NerdWallet. Liz Weston is a columnist at NerdWallet, a certified financial planner and author of “Your Credit Score.” Email: lweston@nerdwallet.com. Twitter: @lizweston.

RELATED LINKS:

NerdWallet: What Is Socially Responsible Investing (SRI) and How to Get Started http://bit.ly/nerdwallet-responsible-investing

Forum for Sustainable and Responsible Investment https://charts.ussif.org/mfpc/

Liz Weston Of Nerdwallet, The Associated Press