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Leon Black Calls Relationship With Jeffrey Epstein a ‘Terrible Mistake’

“Like many other people I respected, I decided to give Epstein a second chance,” he said. “This was a terrible mistake. I wish I could go back in time and change that decision, but I cannot.”At the request of Mr. Black, who is Apollo’s chief executive and chairman, the firm’s independent board members have already hired the law firm Dechert to investigate his dealings with Mr. Epstein. The review is expected to take several weeks to complete.Many big pensions and the consultants who advise them about where to invest their dollars are waiting for the results of the inquiry. At least one client, a public pension fund for Pennsylvania teachers, has already said it will not invest more money with Apollo until the investigation is over.Mr. Black, who said he was “by nature a private person,”...

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Leon Black Calls Relationship with Jeffrey Epstein a ‘Terrible Mistake’

“Like many other people I respected, I decided to give Epstein a second chance,” he said. “This was a terrible mistake. I wish I could go back in time and change that decision, but I cannot.”At the request of Mr. Black, who is Apollo’s chief executive and chairman, the firm’s independent board members have already hired the law firm Dechert to conduct an investigation into his dealings with Mr. Epstein. The review is expected to take several weeks to complete.Many big pensions and the consultants that advise them about where to invest their dollars are waiting for the results of the inquiry. At least one client, a public pension fund for Pennsylvania teachers, has already said it would not invest more money with Apollo until the investigation is over.Mr. Black, who said he is “by nature...

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Apollo Board Will Review Leon Black’s Ties to Jeffrey Epstein

The billionaire Leon Black’s decades-long relationship with the convicted sex offender Jeffrey Epstein will be reviewed by a group of board members at the private equity firm he leads, Apollo Global Management.A spokeswoman for Apollo said Tuesday night that Mr. Black requested the review by members of the firm’s conflicts committee during a regularly scheduled board meeting. Mr. Black asked for the review a little more than a week after The New York Times reported that he had wired at least $50 million in fees and donations to entities affiliated with Mr. Epstein in the U.S. Virgin Islands from 2012 to 2017.Shares of Apollo have fallen more than 13 percent since the report was published. The firm reports quarterly earnings on Oct. 29.In asking for the review, Mr. Black, an Apollo co-fo...

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Goldman Sachs Is Said to Admit Mistakes in 1MDB Scandal

An Asian subsidiary of Goldman Sachs will plead guilty to charges in the United States to resolve a foreign corruption and bribery case over the looting of billions of dollars from a Malaysian sovereign wealth fund, according to a person familiar with the agreement.The Wall Street bank’s parent company will admit mistakes, the person said, but will not itself have to enter a guilty plea as part of the deal with federal prosecutors. The bank also avoided the appointment of an outside monitor to review its compliance procedures.The settlement, which also requires the bank to pay more than $2 billion in penalties to the Justice Department and U.S. securities and banking regulators, is scheduled to be formally announced on Thursday morning, according to two people briefed on the plans.The a...

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U.S. Orders Eviction Moratorium for Most Through Year’s End

The Trump administration announced an order on Tuesday to bar evictions for most renters for the rest of the year as the nation grapples with the coronavirus pandemic.The order, put forward by the Centers for Disease Control and Prevention, said the action was needed to stop the spread of the virus and to avoid having renters wind up in shelters or other crowded living conditions, compounding the crisis.The moratorium would go further than the eviction ban under the pandemic CARES Act, which covered as many as 12.3 million renters in apartment complexes or single-family homes financed with federally backed mortgages. That provision expired in July, though landlords could not begin eviction proceedings for 30 days.To apply for the new moratorium, tenants will have to attest to a substant...

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As Evictions Loom, Lawyers Are Gearing Up to Help

Just a few weeks ago, Jessie Reed was worried about being evicted from her Omaha apartment with her three young children. Her landlord had already tried to force her out in May when she stopped paying rent after quitting her job at an Omaha Steaks warehouse. One of her children has severe asthma, and Ms. Reed was worried she would unwittingly catch the coronavirus at work and transmit it.But in June, a legal aid lawyer convinced a local judge that Ms. Reed was protected by a federal moratorium on evictions under the CARES Act, which Congress passed in March to cushion the economic fallout of the pandemic. The ruling has bought Ms. Reed, 32, time to settle her financial affairs.“I wanted a lawyer as a backup because the landlord was trying to intimidate me,” she said.For tenants, especia...

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Hedge funds and private equity firms gave loans. Now they’re suing.

With the delinquency rate on large commercial loans tied to real estate in the United States nearly doubling in just one month, big banks, which are among the largest real estate lenders, have been generally willing to give property owners time to work things out with tenants. A class of smaller lenders are showing their impatience.These lenders, which include hedge funds and private equity firms, have provided billions of dollars in so-called mezzanine financing to help owners of hotels, retail complexes and office buildings run their businesses.Already, there have been a few high-profile battles. In May, after the Mark Hotel, one of Manhattan’s most luxurious hotels, missed several payments, a California private equity firm moved to foreclose on its $35 million mezzanine loan. A New Y...

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Worried Lenders Pounce on Landlords Unable to Pay Their Loans

Five months into the pandemic, hotel rooms remain largely unreserved, office space sits empty and hardly anyone is venturing into malls. Commercial tenants are struggling to pay their rents, and property owners are struggling to make payments on the loans they took out to finance the buildings.Some real estate investors, including the hedge funds and private equity firms that hold those loans, have had enough. Unwilling to risk any more missed interest payments, they are taking property owners and developers to court, hoping to foreclose on their interests in the properties and minimize their financial losses.Already, there are a few high-profile battles, including one involving a retail complex in Times Square that is owned by the family of Jared Kushner, President Trump’s son-in-law. ...

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A project in Kentucky aims to show how home lending can build wealth.

Homeownership is a crucial part of a family’s ability to build wealth: A home is the largest asset for most American families, and the value it can gain over decades can be tapped during retirement or left to the next generation.But the share of Black households that own homes has only inched upward over the past 50 years, and the continuing homeownership gap is one of the main reasons the net worth of white households far exceeds that of Black families. One reason for the gap: the dearth of mortgages in communities where home prices are so low that most banks and lenders will not bother writing mortgages for them.Now a new program in Louisville, Ky., called the MicroMortgage Marketplace project, which officially started two weeks ago, hopes to demonstrate how to increase the availabili...

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Where a Little Mortgage Goes a Long Way

Park Community Credit Union, which made Mr. Smith’s mortgage, wrote 35; JPMorgan Chase — the nation’s biggest bank — made 29.The pilot project — which the Urban Institute is coordinating with the Homeownership Council of America and Fahe, a regional community development financial institution — is being funded with a $300,000 grant from Access Ventures, an investment firm, and additional financial backing from Fahe. Organizers hope to finance as many as 50 mortgages in Louisville and communities on the other side of the Ohio River in southern Indiana.The program will mainly serve first-time home buyers with credits scores as low as 640 — which most lenders consider a below-average rating. Buyers, who must be employed full time, can borrow up to $100,000 and can finance the entire purcha...

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