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Fraud and Fallout: Boeing's Plea Deal

Fraud and Fallout: Boeing's Plea Deal

Plus, elementary pie baker.

Good morning and Happy Wednesday! Here are the Flag’s Top Five stories that should be on your radar to start the day:

US: Over 2M Texans out of power Tuesday after Beryl tears through the state (FOX Business)
World: At least 50 killed in Israeli attacks as Gaza City fighting rages (Al Jazeera) + Gazans flee Israeli assault that Hamas warns could threaten ceasefire talks (Reuters)
Business: United Airlines plane loses wheel on takeoff in Los Angeles, marking latest incident for the airline (CNN)
Technology: Amazon revives its Echo Spot with an upgraded look and improved audio (TechCrunch)
Sports: Novak Djokovic blasts 'disrespect' from fans during latest Wimbledon victory (USA Today)

And of course, some good news: Meet the 1st grade pie baker who won top prize at the State Fair of Texas.

POWERED BY THE FINANCE BUZZ

Hands Down Some of the Best Credit Cards for Balance Transfers

Did you know some credit cards can actually help you get out of debt faster? Yes, it sounds crazy. But it’s true. The secret: Find a card with a “0% intro APR" period for balance transfers. Then, transfer your debt balance and pay it down as much as possible during the intro period. No interest means you could pay off the debt faster. Check out the full list of cards you can use to do this here.

Left: Biden Won't Win With This Kind of Campaign, John Nichols, The Nation

Left: Will Biden Quit? Democrats Are in Chaos, Nicole Russell, USA Today

Left: The Biden Blame Game, Jill Filipovic, Slate

Right: Harris vs. Trump: The Race America Needs, Jill Lawrence, The Bulwark

Right: Welker Pushes Meet the Press Even Further Left, Paul Bedard, Washington Examiner

Right: Nonprofit Uses Voter Data To Juice Dem Turnout, Shawn Fleetwood, The Federalist

BOEING

Fraud and Fallout: Boeing's Plea Deal

Today’s Top Story in One Sentence: On Sunday, in a court filing, Boeing agreed to plead guilty to criminal fraud over two crashes of its 737 Max plane in 2018 and 2019 in Ethiopia and Indonesia.

Reporting from the Left: Boeing agrees to plead guilty to defrauding the FAA but escapes punishment sought by victims’ families (CNN)

Reporting from the Right: Boeing agrees to plea deal to avoid criminal trial over deadly 737 Max crashes (FOX Business)

LEFT-LEANING SENTIMENT

No Justice for Families

The Top Argument From The Left: ‘They can’t move on’: families of Boeing crash victims demand justice, Callum Jones, The Guardian: “Boeing did what beleaguered companies so often do when they want to repair a battered reputation: ousted its boss, reassured the regulators and attempted to draw a line under the matter. All the while, hundreds of families whose loved ones lost their lives awaited justice. Five years later, and even after this announcement, many feel they are still waiting. … The agreement, which was branded a ‘sweetheart deal’ by victims’ families, protected Boeing from a criminal conspiracy charge tied to the two Max crashes – and avoided a trial – provided the planemaker overhaul its compliance program and pay $2.5bn, including compensation and a criminal fine of $243.6m. ‘The families felt like they were completely brushed aside and ignored by the government: the very people they trusted to do the right thing, and hold Boeing to account,’ according to Erin Applebaum, attorney at Kreindler & Kreindler…’ [Justice Department] officials informed the relatives of their plan late last month, it proved another bitter blow. While Boeing will be charged with fraud, the company was offered a plea agreement by the justice department, again enabling it to avoid trial. … Above all, many of the victims’ relatives want accountability they feel has yet to materialize. Boeing’s public response to January’s panel blowout has only heightened their anger.”

Honorable Mention #1: Boeing plea deal in 737 Max crashes angers families and tests prosecutors, Lori Aratani and Ian Duncan, The Washington Post.

Honorable Mention #2: GUILTY: Boeing Agrees to Pay Millions for Deadly Crashes, Anna Conkling, The Daily Beast.

RIGHT-LEANING SENTIMENT

A Sweetheart Deal

The Top Argument From The Right: Boeing’s ‘sweetheart plea deal’ is too soft, Joseph Nepomuceno, Washington Examiner: “The Department of Justice is offering a plea deal to Boeing to avoid a trial on the company’s safety failures. The deal slaps the company with a fine and a few years of monitoring. It is unacceptable after the series of crashes in recent years. These debacles have revealed a company with deep-seated problems that require a harsher punishment to produce the needed changes. After the deadly crashes in 2018 and 2019, Boeing paid fines and promised to make changes to avoid criminal charges. In May, the Department of Justice found that Boeing had not made the required changes. On Sunday, the families of the victims announced that the Department of Justice was hoping to reach a plea deal with Boeing. … Boeing’s continued failures since the crashes have demonstrated the company’s troubles remain. In January, a door flew off a Boeing 737 Max 9 operated by Alaskan Airlines. After the Federal Aviation Administration grounded other Max 9s, United Airlines found loose bolts similar to the Alaskan Airlines flight on their Max 9 planes. … The challenges Boeing is facing have been decades in the making. At the turn of the millennium, Boeing’s leadership changed and outsourced much of its production. Now at least 600 suppliers produce Boeing’s airplane parts, many of whom use subcontractors.“

Honorable Mention #1: Hoping to Avoid Criminal Trial, Boeing Pleads Guilty to Fraud, Haley Strack, National Review.

Honorable Mention #2: Brother of 737 Max crash victim bashes DOJ's ‘sweetheart’ plea deal with Boeing, Danielle Genovese, FOX Business.

FLAG THIS

Americans Would Pay to Avoid Boeing

A survey of 1,000 U.S. adults who flew commercially in the past two years reveals a significant decline in public confidence in Boeing. The findings indicate that:

50.22% of respondents are willing to pay between $50 and $150 more for tickets on aircraft they perceive as safer than Boeing's.
23.74% would pay less than $50 extra.
19.06% are willing to pay between $151 and $250 more.
36.60% would choose to avoid flying on a Boeing aircraft due to recent incidents.
19.5% would not avoid Boeing.
38.7% are unsure about their choice.

The trend illustrated a general willingness among a majority of travelers to pay a premium for perceived safety and a notable segment of the population that is cautious about flying on Boeing aircraft (Newsweek).

Do you believe this plea deal does enough to hold Boeing accountable?

WATERCOOLER

Trailblazing Surgery, Sparkling Spoons, Exploding Fruit

On This Day in 1893, trailblazing physician Daniel Hale Williams successfully performed one of the world’s first open-heart surgeries at Provident Hospital in Chicago. Not only is he a pioneer of the procedure; he is one of just three African American physicians practicing in Chicago at a time when many white-run hospitals refused to treat Black patients—much less hire Black doctors.

Better Report: Why Are People Putting Aluminum Foil in Their Dishwasher?

Martha Stewart: Mixologists Agree: The Batanga Is the Cocktail of Summer—Here's How to Make It

Eater: Mold on Food, Explained

Today I learned bananas are slightly radioactive.