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Dana White, martial-arts magnate and Trump cheerleader

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ANYONE UNFAMILIAR with combat sports, or the leading lights of Donald Trump’s “MAGA world”, may have been surprised to see a bald, stocky man on the podium after Donald Trump’s victory speech. Shouting the president-elect’s praises with the practised passion of a carnival barker was Dana White, the boss of the Ultimate Fighting Championship (UFC), the world’s largest mixed martial-arts (MMA) promotion. Mr White knows a thing or two about talking up pugilistic characters like Mr Trump.

To the Trump faithful, he was more familiar. Mr White spoke at the Republican National Convention (RNC) in 2016, when Mr Trump became the party’s nominee for the first time. He told the convention of the origins of their friendship: when Mr White took over the failing UFC in 2001, no venue would play host to the “bloodsport”. That is, until Mr Trump offered one of his casinos. Expressing a thought that has since become a mantra for Trump fans, Mr White told the crowd: “Nobody took us seriously, except Donald Trump.”

Mr White praised the qualities of “the Donald Trump that I know”: his “great business instincts”, that he is a “hard worker” and that he is a “loyal and supportive friend”. That these claims were all highly disputable even in 2016 was irrelevant. Like any good fight promoter—and Mr Trump himself—Mr White knows you shouldn’t worry too much about truth when creating a myth.

Mr White’s own origin story, recounted in many interviews and features, is harder to fact-check. The standard version is the tale of a hard-scrabble kid who grew up on the streets of Southie (as South Boston is affectionately known by locals) and in Las Vegas. A bit of a brawler, he got into amateur boxing and eventually co-ran a gym. There he taught boxing to local youths and boxing fitness to businessmen and housewives.

After an extortion attempt by an associate of Whitey Bulger, a notorious local gangster once played on screen by Johnny Depp, he returned from Boston to Las Vegas. He opened another gym and got into MMA, a multi-discipline combat sport so violent that it used to be banned in 36 American states. (John McCain, a senator, presidential candidate and boxing fan from Arizona, once called it “human cockfighting”.) Mr White convinced two childhood friends to buy the UFC for $2m and let him run it.

He cleaned up the sport, professionalising and popularising it. UFC now airs in more than 170 countries and is worth $11.3bn, according to Forbes, a business magazine. The authorised version of Mr White’s story paints its hero as a charming rogue with a foul mouth and a bit of a temper, whose rough edges and upbringing made him the businessman—and showman—he is today. His superpower, he says proudly, is that he’s “a savage”.

Others paint a darker picture. In her “unauthorised biography” of Mr White, his own mother contests the “boy-raising-himself-in-the-streets myth”. And she says his move to Las Vegas was motivated by a falling-out with his business partner, making no mention of a run-in with organised crime. She admits her son’s importance to the popularisation of MMA. But she says his meteoric rise made him “egotistical, self-centred, arrogant and cruel”—a ruthless “tyrant” who rules those around him “by intimidation”.

Some who have had disagreements with Mr White might concur. He has had bitter and protracted legal fights with several of his fighters over allegations of low pay and exploitative contracts. (Mr White denies that there is any problem with fighters’ pay.) And a video that emerged of Mr White slapping his wife in 2022—an incident he admitted to and apologised for—suggests that his brash persona is not always harmless pantomime.

His long friendship with Mr Trump is perhaps unsurprising. Mr Trump is a fight fan, whether it be UFC, boxing or wrestling. His love of strongmen, literal and figurative, is well-documented. The once-and-future president may even see a little of himself in the self-promoter’s unapologetic machismo. Mr White spoke at the RNC not only in 2016 but the next two as well.

The president-elect doubtless understands that his friendship with the fight promoter helps him with young male voters. Some 49% of 18- to 29-year-olds plumped for him, according to exit polls, up from 41% in 2020. At Mr Trump’s victory celebration Mr White shouted out the names of podcasters and YouTube stars who appeal to the sort of young men who follow UFC. One of them was Joe Rogan, a comedian and former UFC commentator who is now among the world’s most popular podcasters.

Now the fight is won, what purse will Mr White receive? A spokesman has said  he has “no personal political ambitions”, and speculation that he may have secured himself a cabinet position still seems far-fetched. But whatever happens, UFC’s fighting spirit seems likely to remain in favour in the Trump White House and its boss a potent influence.

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Economics

BOI Reporting and the impact of the recent Federal Injunction

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The Corporate Transparency Act (CTA) is a legislative measure designed to enhance financial transparency

The Corporate Transparency Act (CTA) is a legislative measure designed to enhance financial transparency and mitigate risks such as money laundering, terrorist financing, and other illicit financial activities. The CTA aims to close loopholes and create a fairer business environment by requiring certain entities to disclose their beneficial ownership information. However, recent legal developments have temporarily impacted compliance requirements, bringing attention to the act’s ongoing litigation and implementation.

Federal Court Decision and Its Implications

On December 3, 2024, the U.S. District Court for the Eastern District of Texas issued a preliminary injunction in the case of Texas Top Cop Shop, Inc., et al. v. Garland, et al. (No. 4:24-cv-00478). This injunction temporarily halts the enforcement of the CTA, specifically its beneficial ownership reporting requirements. Additionally, the court order stays all deadlines for compliance.

As a result, reporting companies are currently not obligated to submit beneficial ownership information (BOI) reports to the Financial Crimes Enforcement Network (FinCEN). During the injunction, these entities are also shielded from liability for non-compliance with CTA mandates.

Despite this pause, FinCEN has clarified that companies may still voluntarily submit their BOI reports. This voluntary reporting option remains available for businesses that wish to align with the CTA’s transparency goals.

Overview of the Corporate Transparency Act

The CTA mandates that certain entities provide information about their beneficial owners—individuals who own or control a business. The act is intended to increase transparency, enhance national security, and reduce the anonymity that can facilitate financial crimes.

While the CTA has garnered support for its objectives, it has also faced legal challenges questioning its constitutionality. Courts in different jurisdictions have issued varying rulings, with some upholding the law and others granting temporary injunctions. For example, district courts in Virginia and Oregon have ruled in favor of the Department of the Treasury, asserting the CTA’s alignment with constitutional principles.

Compliance During the Injunction

Currently, the federal injunction exempts businesses from mandatory BOI filing requirements nationwide. This temporary halt will remain in place until further developments, such as a decision by an appellate court or a reversal of the injunction.

In response to the ruling, the Department of Justice, representing the Department of the Treasury, has filed an appeal. While the case proceeds through the legal system, FinCEN has confirmed its compliance with the court order.

Looking Ahead

The legal proceedings surrounding the CTA highlight the evolving nature of financial regulation. As courts continue to deliberate, businesses should monitor updates to remain informed about their obligations. By staying informed and prepared, businesses can effectively manage their compliance responsibilities and contribute to efforts that promote financial integrity and transparency.

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Economics

After a chaotic scramble, Congress strikes a budget deal

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Donald Trump is the most powerful Republican politician in a generation, but the president-elect is still no match for the most nihilistic members of his own party. The budget chaos that unfolded on Capitol Hill as the Christmas break approached is only a preview of the difficult realities Mr Trump will face when he starts to govern next month.

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Economics

Why Congress is so dysfunctional

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Budgetary chaos is a sign that governing will be harder than Donald Trump might assume

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