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Manhattanites once rolled their eyes at Donald Trump. Then they came to revile him. Soon 12 will decide if he is a felon. Jury selection in his first criminal trial, expected to last up to eight weeks in a shabby courtroom, has sped along; prosecutors will set out their case in a matter of days. One prospective juror confessed that the weight of the task at hand had kept her up at night: “This is, like, a big deal in the grand scheme of things.”
Yes and no. Manhattan’s district attorney, Alvin Bragg, has brought the first criminal indictment against a former president, who also happens to be running again. But the felony charges are low-level and the details tawdry. The case is about sex, money and blackmail. Mr Trump’s former lawyer and fixer, who will testify against him, once described the conduct at issue as the “filth and muck of politics” and, less delicately, a “shit sandwich”.
The charges centre on Mr Trump’s efforts to buy the silence of Stephanie Clifford, a former porn star better known as Stormy Daniels, before the 2016 election. Prosecutors allege that the payment was made to protect his candidacy and thus amounted to an undeclared campaign expense. Mr Trump is accused of falsifying business records to hide the pay-off. He denies any such scheme.
Early in his first campaign Mr Trump met his lawyer, Michael Cohen, and his friend David Pecker, then the boss of a tabloid publishing company. Mr Pecker agreed to be Mr Trump’s “eyes and ears”—to look out for damaging stories and alert the campaign to them. When a former Trump Tower doorman tried to sell a bogus story to tabloids about how Mr Trump had fathered an illegitimate child, Mr Pecker warned team Trump, which directed him to buy exclusive rights to the story and bury it, a practice known as “catch and kill”. A similar deal was struck when Karen McDougal, a former Playboy model, emerged from the woodwork to allege an affair with Mr Trump starting in 2006.
About a month before the election Ms Daniels surfaced, shopping around her story about a sexual encounter with Mr Trump, also in 2006. The “Access Hollywood” tape, in which Mr Trump bragged about grabbing women’s genitals, had just appeared in the press and nearly sunk his candidacy. The campaign could ill-afford headlines about how he had slept with a porn star while his wife was nursing their newborn son. This time Mr Cohen paid Ms Clifford $130,000 from his own pocket.
To reimburse Mr Cohen, Mr Trump allegedly agreed to pay him in monthly instalments and mislabel them as legal expenses in the company’s accounts. Hence the 34 felonies alleged by Mr Bragg: 11 related to invoices, 12 to ledger entries and 11 to cheques. Normally these would be misdemeanours. To upgrade them, prosecutors must show that the records were falsified to commit or conceal another crime. They have suggested a few: that the hush money violated federal campaign-finance rules, and that tax wasn’t properly paid on the reimbursements.
A parade of witnesses should bolster the prosecutors’ case. Mr Cohen and Mr Pecker will testify to Mr Trump’s alleged involvement in the scheme. There is an ample paper trail, including cheques that Mr Trump personally signed, and a recording of him discussing the payment for Ms McDougal’s silence.
Mr Trump’s lawyers, for their part, will contend that there was nothing illegal about the hush money: that it was paid purely to protect his personal reputation and spare his wife embarrassment, not to influence the vote or skirt campaign-finance rules. John Edwards, a former Democratic candidate for president, successfully made that argument and was acquitted of breaking campaign-finance laws to hide an affair and a child out of wedlock during the 2008 election. But it will not help that Mr Cohen has admitted in court that it was a crime. In 2018 he pleaded guilty to making an undeclared campaign contribution (among other charges) and spent just over a year in prison.
Mr Trump’s principal strategy, then, will be to impugn Mr Cohen’s credibility and paint him as a fabulist. Indeed Mr Cohen has an impressive record of lying under oath and a well-documented animus towards his former boss, who reportedly relished treating him like garbage. If Mr Trump is convicted, sentencing will be decided by the judge, Juan Merchan. Jail time seems unlikely for a first-time, white-collar felon. There is no mandatory minimum sentence. Each count carries a maximum of four years in prison.
Would a conviction sway voters? That Mr Trump wanted his philandering kept quiet is neither surprising nor news; Americans are inured to his sex scandals by now. Compared with his other indictments this is small bore. Voters consider it the least serious of the four and a plurality thinks a guilty verdict will have no bearing on his political career, according to polling by YouGov. An acquittal would vindicate Mr Trump’s claim to be the victim of a political crusade by Mr Bragg, an elected district attorney who is a Democrat.
The indictment has come in for heavy criticism, even among lawyers on the left. There was doubt about whether state prosecutors could bring a case that rests on a federal campaign-finance violation, since that is the domain of federal prosecutors. Those questions might arise on appeal, but for now they are academic: judges have refused to toss the case out. Of the four indictments against Mr Trump, it may be the only one to produce a verdict before the election in November. The other, weightier charges, about alleged election interference and the mishandling of classified documents, are beset by delays. ■
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In the world of financial management, accurate transaction recording is much more than a routine task—it is the foundation of fiscal integrity, operational transparency, and informed decision-making. By maintaining meticulous records, businesses ensure their financial ecosystem remains robust and reliable. This article explores the essential practices for precise transaction recording and its critical role in driving business success.
The Importance of Detailed Transaction Recording At the heart of accurate financial management is detailed transaction recording. Each transaction must include not only the monetary amount but also its nature, the parties involved, and the exact date and time. This level of detail creates a comprehensive audit trail that supports financial analysis, regulatory compliance, and future decision-making. Proper documentation also ensures that stakeholders have a clear and trustworthy view of an organization’s financial health.
Establishing a Robust Chart of Accounts A well-organized chart of accounts is fundamental to accurate transaction recording. This structured framework categorizes financial activities into meaningful groups, enabling businesses to track income, expenses, assets, and liabilities consistently. Regularly reviewing and updating the chart of accounts ensures it stays relevant as the business evolves, allowing for meaningful comparisons and trend analysis over time.
Leveraging Modern Accounting Software Advanced accounting software has revolutionized how businesses handle transaction recording. These tools automate repetitive tasks like data entry, synchronize transactions in real-time with bank feeds, and perform validation checks to minimize errors. Features such as cloud integration and customizable reports make these platforms invaluable for maintaining accurate, accessible, and up-to-date financial records.
The Power of Double-Entry Bookkeeping Double-entry bookkeeping remains a cornerstone of precise transaction management. By ensuring every transaction affects at least two accounts, this system inherently checks for errors and maintains balance within the financial records. For example, recording both a debit and a credit ensures that discrepancies are caught early, providing a reliable framework for accurate reporting.
The Role of Timely Documentation Prompt transaction recording is another critical factor in financial accuracy. Delays in documentation can lead to missing or incorrect entries, which may skew financial reports and complicate decision-making. A culture that prioritizes timely and accurate record-keeping ensures that a company always has real-time insights into its financial position, helping it adapt to changing conditions quickly.
Regular Reconciliation for Financial Integrity Periodic reconciliations act as a vital checkpoint in transaction recording. Whether conducted daily, weekly, or monthly, these reviews compare recorded transactions with external records, such as bank statements, to identify discrepancies. Early detection of errors ensures that records remain accurate and that the company’s financial statements are trustworthy.
Conclusion Mastering the art of accurate transaction recording is far more than a compliance requirement—it is a strategic necessity. By implementing detailed recording practices, leveraging advanced technology, and adhering to time-tested principles like double-entry bookkeeping, businesses can ensure financial transparency and operational efficiency. For finance professionals and business leaders, precise transaction recording is the bedrock of informed decision-making, stakeholder confidence, and long-term success.
With these strategies, businesses can build a reliable financial foundation that supports growth, resilience, and the ability to navigate an ever-changing economic landscape.
AS A SHUTDOWN looms, TikTok in America has the air of the last day of school. The Brits are saying goodbye to the Americans. Australians are waiting in the wings to replace banished American influencers. And American users are bidding farewell to their fictional Chinese spies—a joke referencing the American government’s accusation that China is using the app (which is owned by ByteDance, a Chinese tech giant) to surveil American citizens.
Firefighters battle flames during the Eaton Fire in Pasadena, California, U.S., Jan. 7, 2025.
Mario Anzuoni | Reuters
Climate-related natural disasters are driving up insurance costs for homeowners in the most-affected regions, according to a Treasury Department report released Thursday.
In a voluminous study covering 2018-22 and including some data beyond that, the department found that there were 84 disasters costing $1 billion or more, excluding floods, and that they caused a combined $609 billion in damages. Floods are not covered under homeowner policies.
During the period, costs for policies across all categories rose 8.7% faster than the rate of inflation. However, the burden went largely to those living in areas most hit by climate-related events.
For consumers living in the 20% of zip codes with the highest expected annual losses, premiums averaged $2,321, or 82% more than those living in the 20% of lowest-risk zip codes.
“Homeowners insurance is becoming more costly and less accessible for consumers as the costs of climate-related events pose growing challenges to both homeowners and insurers alike,” said Nellie Liang, undersecretary of the Treasury for domestic finance.
The report comes as rescue workers continue to battle raging wildfires in the Los Angeles area. At least 25 people have been killed and 180,000 homeowners have been displaced.
Treasury Secretary Janet Yellen said the costs from the fires are still unknown, but noted that the report reflected an ongoing serious problem. During the period studied, there was nearly double the annual total of disasters declared for climate-related events as in the period of 1960-2010 combined.
“Moreover, this [wildfire disaster] does not stand alone as evidence of this impact, with other climate-related events leading to challenges for Americans in finding affordable insurance coverage – from severe storms in the Great Plans to hurricanes in the Southeast,” Yellen said in a statement. “This report identifies alarming trends of rising costs of insurance, all of which threaten the long-term prosperity of American families.”
Both homeowners and insurers in the most-affected areas were paying in other ways as well.
Nonrenewal rates in the highest-risk areas were about 80% higher than those in less-risky areas, while insurers paid average claims of $24,000 in higher-risk areas compared to $19,000 in lowest-risk regions.
In the Southeast, which includes states such as Florida and Louisiana that frequently are slammed by hurricanes, the claim frequency was 20% higher than the national average.
In the Southwest, which includes California, wildfires tore through 3.3 million acres during the time period, with five events causing more than $100 million in damages. The average loss claim was nearly $27,000, or nearly 50% higher than the national average. Nonrenewal rates for insurance were 23.5% higher than the national average.
The Treasury Department released its findings with just three days left in the current administration. Treasury officials said they hope the administration under President-elect Donald Trump uses the report as a springboard for action.
“We certainly are hopeful that our successors stay focused on this issue and continue to produce important research on this issue and think about important and creative ways to address it,” an official said.
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