Metrolinx CEO promises fewer legal battles on future Ontario transit projects | Globalnews.ca


The head of Metrolinx is acknowledging the provincial transit agency has spent too much time embroiled in legal battles with its contractors, pledging a new approach after finally finishing the Eglinton Crosstown LRT.

Metrolinx CEO promises fewer legal battles on future Ontario transit projects  | Globalnews.ca

The light rail route carried its first passengers on Feb. 8, roughly six years after it was originally scheduled to open, bringing to a conclusion a messy period of Metrolinx’s history marked by delays, cost overruns and legal skirmishes.

The consortium building the Crosstown, Crosslinx Transit Solutions, took the government to court over delays during the COVID-19 pandemic and again over how the TTC had involved itself in testing for the line.

The group behind the Finch West LRT also took Metrolinx to court over how the TTC was involved in testing the line. Meanwhile, the consortium currently working on the Hurontario LRT found itself involved in legal battles with its subcontractors.

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On Thursday, Metrolinx CEO Michael Lindsay said one of the key lessons from the Eglinton Crosstown LRT was to work more collaboratively with the construction firms — and only head to court as a last resort.

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“It’s part of the reason we have a more progressive form of contracting now, where we’re sitting investing with the private sector partner in design, identifying constructability issues,” he told reporters. “That’s probably the most important thing to avoid downstream claims.”

Lindsay replaced former Metrolinx CEO Phil Verster last year, moving from another Crown corporation, Infrastructure Ontario.


“We have to always remember that our primary objective is to bring these transit lines into being as opposed to sitting on our rights, insisting on a legal strategy,” he added.

“That’s the thing that we are trying to do as we show up in these projects. And to the credit of our private partners, I think they’re trying to do the same.”

The lessons will be tested in real time for Lindsay, with several major transit projects still in the ground.

The Scarborough Subway Extension is currently halfway through tunnelling, while a western extension to the Eglinton Crosstown LRT is also being built. Stations are being hollowed out underground for the Ontario Line, and work is also taking place to extend the Yonge Street subway into Markham.

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Lindsay insisted that avoiding legal claims would not result in the government or Metrolinx rolling over to the demands of builders, prompting cost overruns.

“We’re never being disrespectful of taxpayer money,” he said. “There’s a balance here that needs to be struck between insisting upon the performance that we have contracted for and dealing with unknown issues when they arise.”

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Van Koeverden denies underfunding of Olympians – National | Globalnews.ca


MILAN – Canada’s Secretary of Sport knows what it is to be an Olympian, albeit in a summer sport.

Metrolinx CEO promises fewer legal battles on future Ontario transit projects  | Globalnews.ca

Adam van Koeverden, an Olympic kayak champion, said the fan came out in him at the Milan Cortina Winter Games, particularly while watching his favourite winter sport of cross-country skiing.

“Not just Canadian athletes, but all athletes,” he said Friday at the Canadian consulate in Milan. “I watch them, and I have a degree of educated awe that I can feel.”

The Liberal MP for Burlington North-Milton West, who was the 500-metre champion in 2004 and owns three more Olympic medals, was handed the sports post in Prime Minister Mark Carney’s first cabinet just under a year ago.

Van Koeverden served six years as parliamentary secretary to successive sport ministers after first being elected in 2019.

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Canadian athletes, and by extension the national sport system, are under a hot spotlight at the Olympic Games as successes and misses are magnified in the biggest multi-sport stage on the planet.

With three silver medals and four bronze, Canada had yet to win gold on Friday, which was the deepest a Canadian team had gone, not standing atop the podium since the 1988 Olympic Games in Calgary, where the host team was shut out of gold.

The Canadian Olympic and Paralympic committees have lobbied the federal government on behalf of national sport organizations (NSOs) for an increase in core funding, with the latest ask a $144-million raise in 2025.

Core funding is money all NSOs count on to fund operations, athletes, coaches and support staff, and they say it hasn’t increased since 2005. It’s been described as the “blood in the veins” of an organization.

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Two federal budgets have passed without an increase, although athletes saw a $410 raise in their monthly athlete assistance cheques in the 2024 budget.

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Chief executive officer David Shoemaker has said that Canada’s athletes “are having to increasingly do more with less.”

Van Koeverden maintains there’s been considerable investment in athletes by the federal government, which spends $266 million annually on sport.


“In the last seven years, we’ve managed to increase the athlete assistance program by 45 per cent,” he said, adding there have also been increases in mental health services, support for student-athletes and funding at sport institutes that provide science and medical resources.

“It has been dwelled on that one stream, which represents about 15 per cent of our sport funding, has remained the same, but the total sport budget and all of the things that I just mentioned, since the time when a lot of organizations have been indicating, about 20 years, has more than doubled.”

The sport system must also do more than build Olympians, van Koeverden said.

“That’s one reason that we fund sport, but there’s a dozen others too,” he said. “My main sort of policy obsession is making sure that everybody has an opportunity to play regardless of your financial background, your situation, where you live, who your parents are, how much money you got, whether you have a disability or not, whether you feel like you belong, let’s lower all those barriers.

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“It’s a question of do you want to fund Olympic performance for Olympic performance or do you want to fund sport for all the great reasons in the way that will benefit children, youth, families, seniors, communities, for all of the reasons and all the ways we know it can? What you get out of that is also Olympic performance. That’s my vision.”

Where the federal government has opened the coffers for sport, van Koeverden says, is in the infrastructure money in the 2025 federal budget to build and revitalize pools, arenas and fieldhouses.

“It used to be a be like a $200-million fund, and now it’s a $51-billion fund,” he said. “It’s shared with waste water and public transit, but the availability of funding for sport infrastructure is vastly broadened and increased.

“We’ve got good facilities in our country, but we need to build more. The prime minister is not shy about wanting to build Canada, and that includes sports facilities.”

As for Canada hosting another Olympic Games or a multi-sport event such as the Pan American or Commonwealth Games, van Koeverden said the push does not come from the federal government.

The feds provide financial support for such ventures, such as the $320 million for FIFA World Cup matches in Toronto and Vancouver later this year.

Van Koeverden is a believer in the public legacy pieces that multi-sport events leave behind.

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He points to the Milton velodrome in his riding, built for the 2015 Pan American Games, where Olympic track cyclists train, and parents push strollers when it’s snowing outside.

“Before we get too wrapped up in how much the Games cost to implement and do, let’s also look at how timely that infrastructure comes to fruition when we have a deadline and a Games to host,” he said.

“It is a matter of working together with all levels of government to make sure it’s a priority, to make that it’s utilizing existing infrastructure, to make sure the public money that goes into it is going to serve Canadians for decades.”

This report by The Canadian Press was first published Feb. 13, 2026.

&copy 2026 The Canadian Press


B.C. First Nation opposes cull on its territory after footage of ‘Judas’ wolf | Globalnews.ca


The B.C. government’s wolf cull program is facing new opposition due to a ‘Judas’ wolf being spotted on First Nations territory.

Metrolinx CEO promises fewer legal battles on future Ontario transit projects  | Globalnews.ca

The Gitxsan First Nation, near Hazelton, B.C., reportedly captured footage of a wolf on a snowy trail with what appears to be a collar around its neck.

“These are what’s called a Judas wolf,” Ian McAllister of Pacific Wild told Global News.

“So the government has been putting collars around the necks of wolves, and then in the snow follows them to reveal the rest of their pack where they’re killed by snipers and helicopters.”


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B.C. First Nation comes out against government wolf kill


The wolf cull has been taking place in B.C. for about 10 years and hundreds of wolves are killed every winter in order to protect threatened caribou herds.

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The program has been divisive on both sides, but the Allied Clans Coalition, Gitxsan Titleholders and caretakers of its Lax’yip (territories) have now written a letter to Randene Neill, B.C.’s Minister of Water, Land, and Resource Stewardship, stating that the government is not authorized to use collared Judas wolves and other predator management activities within their territories.

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“Within Gitxsan law and governance, Gibuu (Wolf) is not only a predator in our territory, but a central kin and teacher in our Adaawk and in our understandings of family, cooperation, territory, and balance,” the letter states.

“The health of wolf populations, and the way they are treated, is directly connected to how we understand our own responsibilities as caretakers of the Lax’yip and all that lives within it.”

The Allied Clans are requesting confirmation from the B.C. government to ensure that no wolf cull or predator management activities are authorized or carried out on their lands.

On Thursday, the Ministry of Water, Land and Resource Stewardship told Global News that no government-led predator reduction takes place in Gitxsan Territory.


Click to play video: 'UBC study findings on if wolf hunting impacts caribou'


UBC study findings on if wolf hunting impacts caribou


Last week, a study from the University of British Columbia found that the wolf kill program may not be as effective as previously thought, finding that in some places where wolves were removed, other predators like grizzly bears and wolverines were still a threat to caribou.

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In addition, a coalition of environmental organizations announced its intent to sue the Canadian government for delaying the full mapping of critical habitat for threatened caribou for more than 11 years.

“Southern Mountain Caribou have been listed as a threatened species for over two decades. Under SARA, (Species at Risk Act), the federal government must fully identify the critical habitat the species needs to survive and recover so they can take steps to protect that habitat,” a press release from the Wilderness Committee stated.

“But effective habitat protection cannot happen without full, accurate maps — and those maps remain unfinished.”

The Gitxsan First Nation did not respond to Global News’ request for an interview.


&copy 2026 Global News, a division of Corus Entertainment Inc.


Quebec political, business leaders tout Montreal as ideal to host NATO defence bank – Montreal | Globalnews.ca


The Quebec government joined Montreal’s business and political leaders to bolster the city’s candidacy to become the global headquarters for the proposed international Defence, Security and Resilience Bank (DSRB).

Metrolinx CEO promises fewer legal battles on future Ontario transit projects  | Globalnews.ca

Premier François Legault lauded Montreal as the bank’s potential home as he participated in an event alongside Montreal Mayor Soraya Martinez Ferrada and National Bank president Laurent Ferreira.

The defence bank, spearheaded by NATO countries, is meant to reduce borrowing costs for military spending by pooling credit strength.

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Quebec politicians and business leaders describe Montreal as the perfect city to host the new bank given that it is already an aerospace hub and hosts other international organizations.

The premier told a news conference that they want to speak with one voice to urge the federal government to choose Quebec.

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Toronto, Vancouver and Ottawa are also actively lobbying to host the bank’s headquarters, which comes with an estimated 3,500 jobs.


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BC premier David Eby pitches Vancouver as home for global defence bank


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Ford backs down on Crown Royal ban after reaching agreement with Diageo | Globalnews.ca


Ontario Premier Doug Ford is backing down from his threat to remove Crown Royal from the shelves of the LCBO after the government said it reached a $23-million agreement with the company that includes new investment but won’t replace the jobs lost.

Metrolinx CEO promises fewer legal battles on future Ontario transit projects  | Globalnews.ca

Months after Ford poured out a bottle of Crown Royal in protest of the company’s decision to shut down a bottling plant in Amherstburg, Ont., impacting roughly 200 jobs, the government said the two sides came to an agreement to avoid the upcoming escalation.

Ford said the $23 million, including everything from ingredient purchases to local economic development investments and advertising, is made up of new investments that “Ontario would not otherwise have seen” if it had not threatened the prohibition.

“By standing firm in our plan to protect Ontario workers, we’ve secured nearly $23 million in investments,” Ford said in a statement. “These investments will help keep Ontario workers on the job, strengthen provincial supply chains and support the local community in Amherstburg and the surrounding area.”

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The agreement, however, made no mention of the workers at the Amherstburg facility who are set to leave the facility when it shuts its doors at the end of February. While Ford had expressed hope that Diageo would replace the positions there, neither the government nor the company offered employment-related details.

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Through the fall months, Ford’s threat against Diageo intensified. At one point, he suggested he would ban other products made by the international drinks company, like Smirnoff vodka.


But pressure from across Canada began to mount at the end of the year, as political leaders in Quebec and Manitoba worried about what a ban on Crown Royal would do to the Diageo operations still employing people in their provinces.

Quebec’s finance minister said Ford’s plan to ban the whisky was misguided, while Manitoba Premier Wab Kinew mounted a campaign to get Ontario to back down. He visited a Crown Royal facility in his province and posted a video to social media, encouraging Ford to reconsider.

Ontario’s tone gradually softened and Ford began referencing an “olive branch” he said he was offering to Diageo. He moved from talking exclusively about the plant that was set to close to suggesting the jobs could be replaced in other ways.

“If Diageo comes and says, I’m going to replace these 200 workers by manufacturing bottles, doing their cartons, doing other things, more advertising, so on, so forth, and they can show me on paper. Then, we’ll sit down, and I’ll be open,” he said in January. “I’m pretty easygoing.”

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The agreement the government eventually reached with Diageo will see various spending commitments across the province. The plan includes money for a spirit maker and read-to-drink beverage makers.

Just over 20 per cent of the commitment is for “Ontario-based marketing and promotion.”

A spokesperson for Diageo would not confirm what its advertising budget was in Ontario before the agreement, but thanked the government for backing down on its proposed ban.

“We thank Premier Ford and his team for their exceptional leadership and collaboration in reaching this resolution,” they wrote in a statement.

“Diageo is pleased that Crown Royal, an iconic Canadian Whisky, will remain on the shelves of the LCBO, and we remain committed to Ontario through our significant investment in the province.”

&copy 2026 Global News, a division of Corus Entertainment Inc.


Deadline Friday to apply for Quebec Liberal leadership, Charles Milliard favoured – Montreal | Globalnews.ca


Today is the deadline to apply to be leader of the Quebec Liberal Party.

Metrolinx CEO promises fewer legal battles on future Ontario transit projects  | Globalnews.ca

Candidate Charles Milliard, former head of the Quebec federation of chambers of commerce, has the support of the majority of the party caucus.

Mario Roy, a farmer from Quebec’s Beauce region, is the only other person who has confirmed an interest in running, but he may be excluded by the party because of the debts he amassed from the 2025 leadership race.

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Milliard, 46, came in second last year to ex-federal cabinet minister Pablo Rodriguez, who resigned in December amid a crisis involving allegations of vote-buying and reimbursed donations.

Milliard is promising to renew the party that has fallen out of favour with large swaths of the francophone majority.

The race unfolds at a pivotal moment in Quebec politics with the Coalition Avenir Québec also seeking a new leader after Premier François Legault announced last month he would step down.

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Quebecers are scheduled to vote in the provincial election set for October.


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Pablo Rodriguez publicly resigns as Quebec Liberal leader after 6 months in job


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Europe has ‘failed’ in the face of Trump and Putin’s ‘wrecking ball’ politics, top security official says


US President Donald Trump holds a bilateral meeting with European Commission President Ursula Von der Leyen on the sidelines of the United Nations General Assembly in New York City on September 23, 2025.

Brendan Smialowski | Afp | Getty Images

Europe is “totally on the sidelines” on the global stage as “wrecking ball” politics has become the norm, the head of the continent’s biggest security forum has said.

Speaking to CNBC’s Annette Weisbach ahead of the Munich Security Conference (MSC), Wolfgang Ischinger, the organization’s chairman, said it was Europe’s “own fault” that its power on the global stage has been diminished.

“Europe has failed to speak with one voice to China and about China, Europe has failed with one voice, to come up with a clear concept about the future of the Middle East, including about how to deal or not to deal with the Iranian nuclear question,” said Ischinger, who is a former German ambassador to the U.S.

Earlier this week, the MSC published its 2026 report, for which Ischinger wrote the foreword. It warned that “the world has entered a period of wrecking-ball politics,” where “sweeping destruction … is the order of the day.”

The report said that U.S President Donald Trump was “at the forefront of those who promise to free their countries from the existing order’s constraints and rebuild stronger, more prosperous nations,” arguing he was just one movement “driven by resentment and regret over the liberal trajectory their societies have embarked on.”

Ischinger told CNBC that Europeans were “totally on the sidelines” on negotiations around Gaza and Ukraine.

“We have no role. Things have been decided by others,” he said. “When I look at the war in Ukraine, Europe has no place,” he said, adding the U.S. and Russia were leading discussions.

U.S. delegates have been helming peace talks with officials from Ukraine and Russia since late 2025, with European officials scrambling to maintain a say on how to end the four-year war between the two countries.

“Why the hell do we not have a place at the table? This is our continent. It’s our future,” Ischinger said on Friday. “The answer, of course, is not that Donald Trump is making a mistake. The answer … is that we have failed to speak with one voice.”

Ischinger added that he rejected “the blame game regarding the United States,” but for areas where Europe “clearly failed” to adopt a strategic position.

Delegates from all over the world are gathering for the Munich Security Conference on Friday. The event runs through Sunday.

Ischinger told CNBC that the “wrecking ball” was “being used by many” in addition to Trump, including right-wing extremist parties across Europe and Russian President Vladimir Putin.

But he called Trump “the single most prominent example” of someone who “questions existing arrangements and tries to replace them.” “That is for countries like Germany, which have been so dependent on the existing international rules … a worrisome development,” he added.

CNBC reached out to both the White House and the Kremlin for responses to the MSC’s commentary.

Transatlantic trust had also been damaged by Trump’s push for the U.S. to annex Greenland, Ischinger said.

After weeks of rhetoric on bringing the Arctic island — a Danish territory — under Washington’s control, Trump threatened to impose tariffs on European allies who stood in his way, before announcing a “deal” on Greenland had been reached.

Since Trump’s return to the White House, European leaders have been making commitments to drastically increase security spending. Last summer, European members of NATO agreed to raise defense spending to 5% of their individual national GDP — a move Trump had been pushing for for some time.

The spending plans have bolstered European defense primes, some of which have seen their shares more than double in value, while order backlogs have hit record levels.

Ischinger told CNBC Europe needed “to create a more consolidated, a more competitive, a more unified defense industry.”


Epstein files: Goldman Sachs top lawyer Kathryn Ruemmler to step down after email fallout


FILE PHOTO: White House counsel Kathryn Ruemmler listens as President Barack Obama speaks at an installation ceremony for FBI Director James Comey at FBI Headquarters in Washington, Monday, Oct. 28, 2013.

Charles Dharapak | AP

Top Goldman Sachs lawyer Kathryn Ruemmler said Thursday night that she will leave the investment bank at the end of June, a decision that came after a flurry of news articles highlighting documents detailing the former White House counsel’s often chummy email conversations with the notorious sex predator Jeffrey Epstein.

Goldman, for months, has defended Ruemmler after Congress and then the Department of Justice released emails between her and Epstein, as well as other documents related to investigations of him.

Ruemmler, who has been a key advisor to Goldman CEO David Solomon since joining the bank in 2020, told The Financial Times on Thursday, “I made the determination that the media attention on me, relating to my prior work as a defence attorney, was becoming a distraction.”

The FT first reported the 54-year-old’s decision to leave Goldman.

“Since I joined Goldman Sachs six years ago, it has been my privilege to help oversee the firm’s legal, reputational, and regulatory matters; to enhance our strong risk management processes; and to ensure that we live by our core value of integrity in everything we do,” Ruemmler said in a statement to CNBC.

“My responsibility is to put Goldman Sachs’ interests first,” Ruemmler said.

“Earlier today, I regretfully informed David Solomon of my intention to step down as Chief Legal Officer and General Counsel of Goldman Sachs as of June 30, 2026.”

Solomon, in a statement, said, “Throughout her tenure, Kathy has been an extraordinary general counsel, and we are grateful for her contributions and sound advice on a wide range of consequential legal matters for the firm.”

“As one of the most accomplished professionals in her field, Kathy has also been a mentor and friend to many of our people, and she will be missed. I accepted her resignation, and I respect her decision,” Solomon said.

Her announcement that she will leave Goldman comes nearly a week after The Wall Street Journal reported that Ruemmler was one of three people whom Epstein called on July 6, 2019, after being arrested by federal authorities on child sex trafficking charges at an airport in New Jersey.

The Journal’s report cites a handwritten set of notes by law enforcement about comments Epstein made inside an FBI vehicle after his arrest.

Those notes are among documents released in late January by the Department of Justice, CNBC has confirmed.

Other news articles detailed emails and documents showing how Epstein had made gifts to Ruemmler that included a Hermes bag, and other luxury items, such as a Fendi purse, spa visits, Bergdorf Goodman gift cards and flowers. On one occasion, she effusively thanked him, calling him “Uncle Jeffrey,” one email showed.

Ruemmler was a white-collar criminal defense lawyer at the firm Latham & Watkins during the years she was speaking with Epstein, whom she met in 2014.

An Aug. 14, 2014, email contained in the DOJ’s Epstein files shows how he asked her to represent his client, Bank Edmond de Rothschild.

“They have a justice department problem … like every other swiss bank,” Epstein wrote her.

Ruemmler took the bank as a client for Latham.

Ruemmler has said that she never represented Epstein, who killed himself in a New York federal jail weeks after his 2019 arrest.

Read more CNBC politics coverage

Ruemmler’s spokeswoman, Jennifer Connelly, told the Journal for its story last Friday, “These documents are consistent with what Ms. Ruemmler has repeatedly said: She knew Epstein when she was a criminal defense attorney and shared a client with him.”

“She was friendly with him in that context. She had no knowledge of any ongoing criminal conduct on his part,” Connelly said.

Ruemmler previously served as White House counsel under former President Barack Obama.

She is the latest person to lose a high-profile position because of her prior association with Epstein.

On Sunday, Morgan Sweeney resigned as chief of staff to British Prime Minister Keir Starmer, saying he took responsibility for advising Starmer to appoint Peter Mandelson as the United Kingdom’s ambassador to the United States. Starmer fired Mandelson from that post in September over disclosures about his connection to Epstein.

Last week, Brad Karp, chairman of the major corporate law firm Paul Weiss, resigned from that post after fallout over emails between him and Epstein. Karp is staying at the firm.

“In response to the Epstein emails, a Paul Weiss spokesman previously said, “Mr. Karp never witnessed or participated in any misconduct. Mr. Karp attended two group dinners in New York City and had a small number of social interactions by email, all of which he regrets.”

Karp said he was leaving the chairman’s post because of the distraction of the news stories.

In November, after a congressional committee released emails between Ruemmler and Epstein, Goldman Sachs spokesman Tony Fratto told CNBC, “These emails were private correspondence well before Kathy Ruemmler joined Goldman Sachs.”

“Kathy is an exceptional general counsel and we benefit from her judgment every day,” Fratto said at the time.

Ruemmler has previously told the Journal that she regrets ever knowing Epstein.

Among the new tranche of emails that the DOJ released in late January is one that Ruemmler sent Epstein in March 2019, four months before his arrest.

In that email, she offered advice on how to respond to criticism that he had previously received special treatment and a light punishment in 2008 because of his wealth and political connections when he avoided federal prosecution in exchange for pleading guilty in Florida state court to a charge of soliciting prostitution from an underage girl. 

At the time Epstein sought Ruemmler’s advice, he had been the subject of a series of articles in the Miami Herald that were critical of the decision by federal prosecutors not to file charges against him in 2008. Epstein ended up serving just 13 months in state prison in Florida, but was allowed out to go to his office during the day for much of that time.

The subject line of the email thread, “From wapo,” suggests that Epstein was reaching out to Ruemmler because of an inquiry by The Washington Post about him.

Ruemmler wrote in the email: “Something like: … ‘The criticism is wrong and reflects a fundamental [misunderstanding] of both the facts underlying Mr. Epstein’s case and how it was [prosecuted] by both local and federal authorities.”

“Far from [receiving] a sweetheart deal, Mr. Epstein was subjected to a lengthy, aggressive, [and] highly unusual federal investigation for what were, in essence, local [offenses] of sexual solicitation,” Ruemmler wrote. “He accepted responsibility, served [time and] prison, and paid significant monetary settlements to the victims [involved].”

Ruemmler, in a bracketed section, also suggested saying something like, “But for his wealth, it is hard to imagine that Mr. Epstein … would have received the aggressive treatment that he did from [federal] prosecutors, and he certainly would never have been subjected to the [salacious] and malicious treatment by the media that he continues to receive more than 10 years after the case was resolved.”


U.S.–China proxy battle over Panama Canal ports set to intensify as CK Hutchison warns of legal action


This aerial view shows the Taiwanese cargo ship Yang Ming sailing out of the Panama Canal on the Pacific side in Panama City on October 6, 2025.

Martin Bernetti | Afp | Getty Images

Hong Kong’s CK Hutchison Holdings has threatened legal action against Danish shipping giant A.P. Moller-Maersk after Panamanian authorities tapped the group to temporarily take over operations of two strategic ports at either end of the Panama Canal.

In a statement on Thursday, CK Hutchison warned A.P. Moller-Maersk that “any steps” the Danish group or its subsidiary takes to operate the ports without its agreement will likely “result in legal recourse.” That’s according to CNBC’s translation of the Chinese statement.

The simmering dispute has become a geopolitical flashpoint between Washington and Beijing, with Panama caught in the crossfires.

After U.S. President Donald Trump alleged last year that China was “running the Panama Canal,” CK Hutchison negotiated a $23 billion deal with a BlackRock-led consortium to sell its non-Chinese port subsidiaries. Beijing swiftly intervened, describing the sale as  “kowtowing” to American pressure and stalling the transaction.

Tensions intensified last month when Panama’s Supreme Court ruled that the concession held by a CK Hutchison subsidiary to operate the two ports was “unconstitutional.” The company pushed back, saying it “strongly disagreed” with the ruling and launched arbitration proceedings against Panama.

CK Hutchison on Thursday also said it had notified Panama of the dispute under an investment protection treaty, saying it would pursue “all available recourse including additional national and international legal proceedings.”

APM Terminals, the Maersk subsidiary asked to take over the ports, reportedly said it was not party to the legal dispute and had only offered to step in temporarily “to mitigate the risks that could affect essential services for regional and global trade.”

Maersk shares fell over 3% in Copenhagen on Thursday.

Who has the cards?

The stakes around Panama ports have risen sharply this year. The Panama court’s ruling was seen as a major victory for the U.S., given that the White House has made blocking China’s influence over the global trade artery one of its top priorities.

In its strongest rebuke yet, Beijing warned on Wednesday that the Central American country “will inevitably pay a heavy price both politically and economically,” unless it changes course. Beijing’s Hong Kong and Macao Affairs Office called the court ruling “logically flawed” and “utterly ridiculous.”

China also directed state firms to halt talks over new projects in Panama and asked shipping companies to consider rerouting cargo through other ports, Bloomberg reported last week.

The standoff may prove more manageable for Washington than it appears, according to Reva Goujon, a director at advisory firm Rhodium Group. The U.S. retains significant leverage through its treaty with Panama, which could allow it to defend any intervention on national security grounds, she said.

But Beijing has claimed a partial victory, by derailing Washington’s initial plans to acquire CK Hutchison’s global port holdings outright, Goujon said.

China needs to make the U.S. “clawback in Panama as difficult as possible to avoid setting a precedent,” Goujon said, noting that Chinese state-owned shipping giant Cosco’s Chancay port in Peru — a key infrastructure investment by Beijing in Latin America — is also in U.S. crosshairs.

The U.S. has raised sovereignty concerns over the port of Chancay, a deep-water facility near Lima. In a post on X on Thursday, the U.S. State Department’s bureau of Western Hemisphere Affairs said Peru could be “powerless” to oversee the critical port which was “under the jurisdiction of predatory Chinese owners.”

Prolonged legal battle?

For CK Hutchison, the lawfare will likely end in vein, analysts and law experts told CNBC.

“There’s little CK Hutchison can do even with behind-the-scenes support from Beijing,” Peter Alexander, managing director at Z-Ben Advisors.

Any legal claims — including wrongful interference with property and tortious interference — will ultimately hinge on whether CK Hutchison’s port concession is considered “live” or formally terminated, said Shahla Ali, a professor specializing in arbitration laws at the University of Hong Kong.

The duration of Maersk’s control over the ports will also be scrutinized, said Ali, who views the recent legal notice as “a deterrent” to keep the door open for further negotiation.

The Panama canal — a crucial trade passage that links the Atlantic and Pacific – handles roughly 40% of all U.S. container traffic each year. CK Hutchison’s subsidiary, Panama Ports Co., has operated them since 1997 and received a 25-year agreement renewal in 2021.

The canal was built in the early 20th century by the U.S. which operated it for decades before handing full control to Panama in 1999.

Analysts expected the dispute to drag on, potentially straining U.S.-China relations, already frayed by one year of tariff tensions, Beijing’s tightened grip on rare earth exports, disputes over Taiwan and Washington’s restrictions on tech exports.

CK Hutchison said Thursday that the continued operation of the two ports “depends solely on actions of the Panama Supreme Court and the Panamanian State,” which it cannot control.

U.S.–China proxy battle over Panama Canal ports set to intensify as CK Hutchison warns of legal action


Does ‘toothless’ report exonerate Quebec Liberals? The National Assembly is divided – Montreal | Globalnews.ca


There are mixed opinions at the National Assembly on just how much a report into possible wrongdoing during the last Quebec Liberal leadership race exonerates the party.

Metrolinx CEO promises fewer legal battles on future Ontario transit projects  | Globalnews.ca

The result of an investigation by an ex-judge found no conclusive evidence of a vote-buying scheme within Pablo Rodriguez’s campaign, but critics say the report “means nothing.”

“I’m really happy that this day arrived,” said Chomedey MNA Sona Lakhoyan Olivier, following the release of retired judge Jacques Fournier’s 39-page report.

“From the beginning, I was saying it’s not my writing, but nobody was listening to me. So this inquiry helped me prove my innocence.”

Lakhoyan Olivier was excluded from the Liberal caucus amid allegations that her riding office was improperly used for partisan purposes. She was also accused of being involved in text messages published by the Journal de Montreal last year that pointed to “brownies,” or $100 bills being given to people who voted for Rodriguez.

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Those allegations led the Liberals to order the independent inquiry.

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After interviewing more than a dozen witnesses, reviewing documents, emails and text messages, Fournier found no evidence that she was involved in a vote-buying scheme. He concludes the texts were “edited” and said he could not prove whether vote buying took place or not.

“The report proved that there’s no evidence at all supporting these allegations, and I think that it’s worth mentioning,” said interim Liberal leader Marc Tanguay.

Fournier found no proof that Rodriguez had any knowledge of wrongdoing. The former federal cabinet minister ended up resigning over allegations of impropriety during his leadership campaign.


“His report clearly demonstrates that my team and I never took part in, nor witnessed, any wrongdoing during the leadership race,” Rodriguez wrote on X on Feb 11.

The Liberals’ rivals, however, are attacking Fournier’s report.

“I think Justice Fournier is very honest by saying that he didn’t have the tools to do that task. He’s a toothless watchdog, and he said it as such,” said Parti Québécois Leader Paul St. Pierre Plamondon.

In the report, Fournier himself admits he had limited power.

“Having no institutional powers of coercion or investigation, this report is based on the voluntary statements of the various witnesses I contacted,” he writes.

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Quebec Solidaire co-spokesperson Ruba Ghazal also diminished the report’s significance.

“This report doesn’t mean anything. The report said, ‘We don’t know.’ This is what the judge says. ‘I can’t have any conclusion, because I don’t have the tools to do this investigation.’” Ghazal told reporters.

In a statement, Journal de Montreal editor Dany Doucet said the newspaper stands behind its reporting on the text messages.

“The former judge does not know the identity of our sources and himself acknowledges that he did not have access to all of the information and text messages in our possession,” he said.

The Rodriguez leadership campaign is still being investigated by Quebec’s anti-corruption police unit, and the National Assembly’s ethics commissioner is still looking into Lakhoyan Olivier’s actions.

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