Markets Slip as Fed Independence Fears Rise and Global Power Plays Intensify | The Integrity Ledger

Welcome to The Integrity Ledger — Markets appear orderly, but beneath the calm, pressure is building across labor, capital, and governance systems. From policy shifts to technological disruption, today’s stories reveal what’s being tested now — and what could break if vigilance fades in the year ahead.

Brian Moynihan, Chairman and CEO of Bank of America, cautioned that the stock market could penalize Americans if the Federal Reserve's independence is compromised. He made these remarks during an interview on "Face The Nation" amid President Trump's intention to replace Jerome Powell as Fed chair.

Moynihan's warning highlights the critical role of an independent Federal Reserve in maintaining market stability. Investors may face increased volatility if political influence undermines central bank decisions, affecting economic confidence and financial conditions.

CBS News

The S&P 500 opened Monday down 0.2% amid rising trader caution driven by volatile asset movements and geopolitical tensions. Big tech names Nvidia and Palantir fell over 2% as protective positions by investor Michael Burry raised doubts on AI-driven market dominance. Energy and utilities sectors bucked the trend, with Devon Energy and Exxon Mobil gaining on rising oil prices.

Investors may continue to favor defensive sectors like energy and utilities amid geopolitical uncertainty and market volatility. The noted cautious stance signals potential moderation in big tech rallies, influencing portfolio allocations heading into 2025.

Financial Post

SoftBank Group Corp. has agreed to acquire DigitalBridge Group Inc. for $16 per share in cash, valuing the data center investor at $4 billion including debt. The deal, reflecting a 15% premium to DigitalBridge’s recent closing price, aligns with SoftBank's strategic push into digital infrastructure driven by the AI boom. The acquisition is expected to close in the second half of 2026, subject to regulatory approval.

This acquisition enhances SoftBank’s foothold in the rapidly expanding digital infrastructure sector, tapping into growing demand for data centers powering AI technology. It also strengthens SoftBank’s relationships with key digital infrastructure operators, positioning the conglomerate to capitalize on AI-driven computing growth.

Financial Post

Major U.S. banks are increasingly integrating Bitcoin into wealth management by expanding exposure through regulated ETFs, primarily targeting high-net-worth clients. Wells Fargo has notably built hundreds of millions in positions linked to BlackRock's spot Bitcoin ETF, signaling a strategic shift from speculation toward institutional adoption. This trend sees banks prioritizing ETF access over direct custody to manage regulatory complexity and retain client relationships.

Banks’ cautious, phased rollout of Bitcoin access to wealthy clients suggests digital assets will become a standard institutional asset class over time. Investors can expect broader, more regulated Bitcoin investment options within traditional financial channels, potentially stabilizing volatility and driving long-term market liquidity.

Bitcoin Ethereum News

The Senate will mark up the CLARITY Act in January 2026 following a 43-day government shutdown delay, aiming to regulate stablecoins as significant buyers of U.S. debt. The Act mandates 1:1 backing with U.S. Treasuries or cash, creating structural demand for short-term debt, with stablecoin market capitalization currently at $234 billion and projected to reach up to $4 trillion by 2035.

If approved, the CLARITY Act could transform stablecoins into a major U.S. debt holder, possibly surpassing China and Japan. Financial institutions like JPMorgan, Visa, and PayPal are already advancing stablecoin infrastructure, indicating substantial industry momentum despite political and regulatory challenges ahead.

Benzinga

MEDIROM Healthcare Technologies has partnered with World Foundation and Tools for Humanity to roll out 'Proof of Human' verification technology across Japan. Through a Master Service Agreement, MEDIROM will operate approximately 300 physical verification locations utilizing World ID, a blockchain-based solution co-created by Sam Altman and Alex Blania. The initiative aims to build trusted digital identity infrastructure amid rising AI-generated content challenges.

This collaboration positions MEDIROM to expand into digital identity services, creating a new revenue stream from operation fees and related offerings. By integrating Proof of Human technology into wellness and commercial locations nationwide, the company supports safer digital interactions, fostering greater trust in Japan's evolving digital society.

Benzinga

Oltenia Energy Complex, Romania's largest coal-based energy producer, suffered a Gentlemen ransomware attack on December 26, disabling key IT systems including ERP and email. The provider, responsible for roughly 30% of Romania’s electricity, reported partial operational impact without threatening the national grid. Authorities including the National Cyber Security Directorate and DIICOT are investigating the breach.

This attack underscores vulnerabilities in critical energy infrastructure, highlighting the need for robust cybersecurity and rapid incident response. Continued negotiations suggest potential data compromise risks, raising concerns for other utilities amid a string of recent ransomware incidents in Romania.

Bleeping Computer

Compass Diversified (NYSE:CODI) announced its financial results for Q2 2025, reporting net sales of $478.7 million, up from $426.7 million in Q2 2024, though posting a net loss attributable to Holdings of $51.2 million. The company reaffirmed its 2025 subsidiary Adjusted EBITDA guidance between $330 million and $360 million, excluding Lugano Holding, amid ongoing efforts to update its financial reporting and deliver disciplined capital allocation.

Investors should monitor CODI's progress in financial reporting enhancements and its impact on operational transparency. The adjusted EBITDA outlook signals a focus on underlying business performance despite reported losses, underscoring the importance of non-GAAP measures for evaluating the company's value creation prospects across its diverse subsidiaries.

Benzinga

Minnesota Governor Tim Walz’s administration announced new investigations following a viral documentary that revealed extensive fraud at licensed childcare and healthcare providers participating in state-funded aid programs. The independent film highlighted facilities that appeared non-operational despite receiving millions in government funds. Federal authorities estimate over $9 billion in fraud in Minnesota over seven years, with the FBI dismantling a $250 million scam linked to food aid.

Enhanced oversight measures and criminal prosecutions signal the state's intensified crackdown on fraud in public assistance programs. Businesses and providers should anticipate stricter audits and regulatory scrutiny, while policymakers may consider further legislative authority to combat similar abuses.

Daily Caller

Delhi Police arrested 10 individuals linked to an international cyber fraud syndicate responsible for scams exceeding Rs 50 crore. The pan-India operation, coordinated from Kerala with associates in Delhi and Mumbai, involved digital impersonation, phishing, and extortion across seven states.

The bust highlights law enforcement’s growing capability to dismantle complex cybercrime networks and recover illicit funds. Continued investigations aim to deliver justice for 61 reported victims and reveal further connections within this extensive fraud ring.

The Times Of India

Russian President Vladimir Putin signed a law allowing Russia to ignore rulings from foreign and international criminal courts amid efforts to hold Moscow accountable for alleged war crimes in Ukraine. This move responds to initiatives like the ICC arrest warrants against Putin, aiming to protect Russia from foreign legal actions without its consent.

Deccan Herald

In 2025, Bangladesh experienced political upheaval and economic hardship following the ouster of Prime Minister Sheikh Hasina, straining ties with India and shifting towards conservatism. The interim government led by Muhammad Yunus faced allegations of corruption amid rising political violence and anti-India sentiment. Economic challenges included slowed growth, rising debt, and unemployment, complicating regional relations.

The Economic Times

Chevron remains the only major US oil company operating in Venezuela despite stringent US sanctions, due to a specific license allowing it to produce and export oil under strict conditions. This arrangement helps Washington enforce sanctions by maintaining transparency and leverage over Caracas, as Chevron operates in joint ventures without providing fresh revenue to the Venezuelan government.

Euro News

China has launched large-scale military drills around Taiwan, simulating a blockade and seizure of key areas as a warning to separatist forces. These exercises, named Justice Mission 2025, follow the US approval of an $11 billion weapons package to Taiwan, escalating regional tensions.

4 News

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