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2019年2月6日 星期三

On The Money: Consumer bureau proposes scrapping borrower safeguards from payday loan rule | Negotiators running out of time to avert shutdown | Trump nominates World Bank critic as its next chief

 
 
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Happy Wednesday and welcome back to On The Money. I’m Sylvan Lane, and here’s your nightly guide to everything affecting your bills, bank account and bottom line.

See something I missed? Let me know at slane@thehill.com or tweet me @SylvanLane. And if you like your newsletter, you can subscribe to it here: http://bit.ly/1NxxW2N.

Write us with tips, suggestions and news: slane@thehill.com, vneedham@thehill.com, njagoda@thehill.com and nelis@thehill.com. Follow us on Twitter: @SylvanLane, @VickofTheHill, @NJagoda and @NivElis.

 

THE BIG DEAL — Consumer bureau proposes scrapping borrower safeguards from payday loan rule: The Consumer Financial Protection Bureau (CFPB) on Wednesday proposed striking certain borrower safeguards from a 2017 regulation on short-term, high-interest loans.

The bureau on Wednesday kicked off a proposal to loosen the bureau’s rule on “payday” loans, a measure meant to protect vulnerable consumers from bottomless debt.

The proposed rewrite would eliminate underwriting provisions under the rule meant to ensure recipients of payday loans will have the ability to repay them despite high interest rates. I explain how here.

 

The background:

  • The payday rule was a major priority for former CFPB Director Richard Cordray (D), who resigned from the agency shortly after the regulation was finalized in October 2017.
     
  • It created new restrictions and standards for small-dollar lenders before they offer loans and limited the ways that lenders could acquire what they’re owed.
  • Former Acting CFPB Director Mick Mulvaney announced in January 2018, shortly after he replaced Cordray, that the bureau would propose a drastic rollback of the payday rule. The announcement delighted the rule’s critics and set the stage for a heated battle over its future.
     

The proposal:  

  • The proposed rewrite would eliminate underwriting provisions under the rule meant to ensure recipients of payday loans will have the ability to repay them despite high interest rates.
  • The CFPB will accept comments on their proposal for three months before analyzing feedback and submitting a rewrite of the rule for feedback.
  • The bureau on Wednesday also sought to delay the deadline to comply with the rule until November 2020 ahead of what could be a lengthy and tense battle to finalize the rewrite.
     

Reactions:

Consumer protection groups, progressive nonprofits and Democratic lawmakers have fiercely defended the payday rule from Republican and industry attacks. Supporters of the rule say it’s a sorely needed protection from lenders that trap customers into debt they can’t afford to pay, then collect fees and settlements.

  • “Eliminating these common sense protections will result in millions of hardworking families trapped in a cycle of debt and poverty,” said Sen. Sherrod Brown (Ohio), the top Democrat on the Senate Banking Committee.
  • Rebecca Borné, senior policy counsel at the Center for Responsible Lending, said the CFPB “is siding with the payday loan sharks instead of the American people.”
     
  • “The Trump administration’s political efforts to roll back the rule will hurt those who are being abused and mistreated by ruinous loans,” said Cordray, the former CFPB director.

 

Republicans welcomed changes to the rule, which they panned in 2017 as a drastic abuse of the CFPB’s authority that would choke off crucial credit products for consumers with limited options.

  • Rep. Patrick McHenry (R-N.C.), said the update “will give consumers the opportunity to make their own decisions on credit availability needs for themselves and their families.”

But some in the financial services industry wants the CFPB to go even further with reeling back the rule.

  • “The Bureau should examine all aspects of the rule to prevent unintended consequences for loans the original rule was not intended to cover,” said Richard Hunt, president and CEO of the Consumer Bankers Association.
  • “We believe the 2017 final rule must be repealed in its entirety,” said Dennis Shaul, CEO of the Community Financial Services Association of America (CFSA), a trade group for short-term lenders.”
     

On tap tomorrow

  • House Ways and Means Committee: Hearing on legislative proposals to mandate the disclosure of presidential tax returns, 10 a.m.

 

LEADING THE DAY

Negotiators running out of time to avert shutdown: It’s crunch time for lawmakers seeking to reach a deal on securing the border that would prevent the second partial government shutdown of 2019.

Lawmakers warn they have just a matter of days to reach a deal that could then be considered by the House and Senate and signed by President Trump by their Feb. 15 deadline.

Without an agreement by then, about 25 percent of the government would again shut down.

Negotiators say they face significant hurdles to reach a deal, including how much money to spend on physical barriers.

“I hope that we will do our job. Will we? That’s the question of the hour,” said Sen. Richard Shelby (R-Ala.), a chairman of the Senate Appropriations Committee. The Hill’s Jordain Carney and Niv Elis fill us in.

 

Trump nominates World Bank critic as its next chief: President Trump on Wednesday said he would nominate David Malpass, the Treasury Department undersecretary for international affairs and a critic of the modern development finance system, to be next president of the World Bank.

If approved by the World Bank’s board of directors, Malpass would lead the international lender's efforts to fund economic development projects in poor and middling countries.

Malpass, the administration’s financial development ambassador, was among Trump’s top candidates and an early favorite to replace outgoing World Bank president Jim Yong Kim, who announced last month he’d be leaving the bank before his term expires.

The U.S. is the largest shareholder among the more 170 countries that pool their resources for the World Bank and has chosen each of its presidents since the lender opened in 1945. But Malpass’s fierce criticism of the World Bank and similar institutions could spark a fight over the bank's future and end that precedent. I explain why here.

 

GOOD TO KNOW

  • If President Trump follows through on plans to increase tariffs on Chinese imports next month, the U.S. economy would lose 934,000 jobs, according to an estimate published Wednesday by a pro-trade group.
     
  • General Motors's hourly workers will get profit-sharing checks of up to $10,750 this year, the company announced Wednesday.
     

ODDS AND ENDS

  • T-Mobile and Sprint are ramping up their efforts to get regulators to sign off on their $26 billion merger, promising not to raise prices on consumers and tapping former public officials to help sell the deal.
 
 
 
 
 
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Overnight Energy: GOP pushes back on climate | 2018 was fourth hottest year on record | Park Service reverses on using fees

 
 
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REPUBLICANS RESIST DEMS’ CLIMATE PUSH: Democratic leaders asserted their newfound control of the House on Wednesday by convening two key committee hearings on climate change that each emphasized the need for swift action on curbing greenhouse gas emissions after years of inaction under former Republican leadership.

The two simultaneous hearings held by the House Natural Resources and Energy and Commerce committees Wednesday were the first in 9 and 6 years respectively to focus on fixing climate change.

They both came the day after President Trump hailed oil and gas production as part of the United States's “energy revolution” at the State of the Union, throwing a spotlight on the current state of disconnect between Democrats and Republicans on the issue of climate policy.

{mosads}“Today we turn the page on this committee from climate change denial to climate action,” said House Natural Resources chairman Rep. Raul Grijalva (D-Ariz.) in his opening statement. “The Democratic majority is here to listen to people -- to work for people, to hear from Americans across the country, from all walks of life whose experiences emphasize the need to address this crisis.”

Grijalva, whose committee oversees the Interior Department, said he hopes to focus on the impacts of oil and gas drilling on public lands, explore the implications of climate change on heat waves, forest fires and flooding and bring science back to agency decision making.

“The Trump administration chooses to mock science and mislead the public on what our country will look like if we do nothing,” he said.

“Climate change is an urgent problem it demands urgent action and a sense of purpose from congress, this committee will offer both.”

Read more.

Happy Wednesday! Welcome to Overnight Energy, The Hill's roundup of the latest energy and environment news.

Please send tips and comments to Timothy Cama, tcama@thehill.com, and Miranda Green, mgreen@thehill.com. Follow us on Twitter: @Timothy_Cama, @mirandacgreen, @thehill.

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US AGENCIES: 2018 WAS FOURTH HOTTEST YEAR ON RECORD: Last year was the fourth-hottest on record by average temperature, according to new reports from NASA and the National Oceanic and Atmospheric Association (NOAA).

Only 2015, 2016 and 2017 were hotter than 2018 in terms of average temperature, according to the NOAA, which added on Wednesday that nine of the 10 warmest years have occurred since 2005.

The National Aeronautics and Space Administration reached the same results in its study.

“2018 is yet again an extremely warm year on top of a long-term global warming trend,” Goddard Institute for Space Studies Director Gavin Schmidt said in a statement.

“The impacts of long-term global warming are already being felt - in coastal flooding, heat waves, intense precipitation and ecosystem change,” he added.

NASA said in a presentation that the results confirm the agency's belief that climate change is being driven by human emissions.

“The key message is that the planet is warming. The long-term trends are extremely robust,” Schmidt said. “And our understanding of why those trends are occurring is also very robust, it’s because of the increases in greenhouse gases that we put into the atmosphere over the last hundred years.”

Read more.

PARK SERVICE BACKTRACKS ON ENTRANCE FEES: The National Park Service (NPS) will retroactively pull from congressionally appropriated funds to pay for the park maintenance and other operations the Trump administration authorized during the partial government shutdown, according to an internal NPS memo obtained by The Hill Wednesday.

Dan Smith, NPS’s deputy director and its top official, told staff in an emailed memo that the agency will reverse its earlier, controversial decision to use park visitor entrance fees to pay for maintenance and staffing needs under the shutdown.

Instead, he said, the NPS will use money from the spending bill Congress approved to end the shutdown to pay for those costs.

“We have confirmed with the [White House] Office of Management and Budget that the NPS can move obligations made during the appropriations lapse from the FLREA fee account and apply those obligations to the National Park Service annual operating account," Smith said, making reference to “rec fees” collected under the Federal Lands Recreation Enhancement Act (FLREA).

That law lays out specific allowable uses for the collected fees, including improving visitor access and enhancing law enforcement.

“In short, Congress has enabled us to fully restore the FLREA account to pre-lapse levels,” Smith said.

During the five-week government shutdown, the Trump administration opted to leave national parks open despite the furloughing of a majority of park staff. The decision lead to a number of maintenance issues at parks, including clogged bathrooms, overflowing trash cans and at times the misuse of park sites. Joshua Tree National Park and other parks in the West  felt the heaviest burden, as the shutdown occurred during the height of their visitation season.

Acting Interior Secretary David Bernhardt in early January made the unprecedented move to let parks pull from their visitor entrance fees to allow staff to return to run the parks.

The decision generated immediate criticism from conservation groups and Democrats, who argued that it was both illegal and short-sighted, since parks use that money for major maintenance projects.

Read more.

Dem seeks GAO probe: Earlier Wednesday, Rep. Betty McCollum (D-Minn.) asked the Government Accountability Office (GAO) to examine whether the use of recreation fees during the shutdown was illegal.

McCollum, chairwoman of the Appropriations Committee panel that oversees the Interior Department’s budget, made the request after holding a hearing on the decision by the department.

“I’m more than convinced, sadly, that the administration has ignored the law and the policies that the agencies have had in place for years to protect our citizens and our public lands,” she said as she closed the hearing.

“I believe the decision was made to open up the parks to mitigate the impacts of the Trump shutdown, and I fear that the administration is willfully ignoring the counsel of dedicated men and women who work every day in the parks,” she continued.

McCollum said earlier in the hearing that it’s important for Congress to assert its power of the purse under the Constitution, which states that federal agencies cannot spend money unless Congress appropriates it.

“The law prohibits the executive branch from spending federal tax dollars unless those dollars have been expressly appropriated by Congress,” she said. “Money can only be used for specific purposes authorized by Congress.”

McCollum said using the fees could violate laws like the Antideficiency Act and the Purpose Statute of 1809, which put strict limitations on how agencies spend money.

Read more.

Back of his hand: In a previously unreported letter last month, Bernhardt assured McCollum that using the fees to operate parks was legal, in response to her questions about the policy.

The letter said, in part: “I assure you that my respect for and care of the laws Congress has provided to us to carry out our mission is deep. In some instances, I know the laws we administer as well as I know the back of my own hand.”

Speaking after the hearing Wednesday, McCollum disputed that. “I disagree with that,” she said.

TRUMP ADMIN SEEKS TO ROLL BACK LIGHT BULB STANDARD: The Trump administration wants to roll back energy efficiency standards for certain light bulbs.

In a proposal released Wednesday, the Department of Energy (DOE) proposed repealing an Obama administration regulation that expanded the number of light bulbs subject to stringent efficiency standards under existing regulations, effective next year.

Those standards have already greatly increased the market for high-efficiency light-emitting diode (LED) bulbs and reduced sales of traditional incandescent bulbs.

Trump officials say their predecessors improperly interpreted the 1975 law that allows for such standards.

“DOE has since determined that the legal basis underlying those revisions misconstrued existing law,” the agency wrote in the notice that is due to be published in the Federal Register in the coming days.

Groups that supported the more stringent rules slammed the rollback proposal.

“This is another senseless and illegal Trump administration rollback that will needlessly hike our energy bills and spew tons more pollution into the air, harming the health of our children and the environment,” Noah Horowitz, director of the Natural Resources Defense Council’s Center for Energy Efficiency Standards, said in a statement.

“Even with today’s highly efficient LED light bulbs on the market, Trump’s Department of Energy wants to keep 2.7 billion of our lighting sockets mired in a world of dinosaur, energy-guzzling lighting technology that basically hasn’t been updated for more than a hundred years.”

Read more.

ON TAP THURSDAY:

The Senate Energy and Natural Resources Committee will hold a hearing on the outlook for energy innovation. Witnesses will include the Department of Energy’s Undersecretary for Science Paul Dabbar and former Energy Secretary Ernest Moniz.

The Environmental Law Institute will start its annual environment law conference.

OUTSIDE THE BELTWAY:

The Intercept explores South Carolina’s failed nuclear power plant project, which it characterizes as spending $9 billion “to dig a hole in the ground and fill it back up.”

Daimler AG had talked with Tesla Inc. last year about creating an electric van together, Bloomberg reports.

The first oil shipments from the United States to China in months are in transit, CNBC reports.

IN CASE YOU MISSED IT:

Check out stories from Wednesday:

- Republicans push back at first climate hearings

- Trump admin seeks to roll back light bulb efficiency rule

- Trump: We cannot continue to spend 'billions' on 'preventable' forest fires

- Native Americans protest border wall at site of Texas butterfly habitat

- Park Service backtracks, won’t use entrance fees to pay for shutdown operations

- Dem chairwoman seeks watchdog probe of Park Service’s shutdown operations

- 2018 was fourth-hottest recorded year, NOAA and NASA say

 
 
 
 
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Hillicon Valley: House Intel panel will release Russia interviews | T-Mobile, Sprint step up merger push | DHS cyber office hosting webinars on China | Nest warns customers to shore up password security

 
 
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Welcome to Hillicon Valley, The Hill's newsletter detailing all you need to know about the tech and cyber news from Capitol Hill to Silicon Valley. If you don’t already, be sure to sign up for our newsletter with this LINK.

Welcome! Follow the cyber team, Olivia Beavers (@olivia_beavers) and Jacqueline Thomsen (@jacq_thomsen), and the tech team, Harper Neidig (@hneidig) and Emily Birnbaum (@birnbaum_e).

OPEN FOR BUSINESS: The House Intelligence Committee on Wednesday voted to give special counsel Robert Mueller transcripts from dozens of witness interviews from the panel’s Russia probe.

The move will provide Mueller with roughly 50 transcripts of committee interviews as he continues to investigate Russian interference and potential coordination between President Trump’s campaign and Moscow.

“That includes transcripts that the special counsel and Justice Department have not had access to and a great many that they have, but have not been allowed to use for particular purposes including in prosecutions for false statements, obstruction, or perjury or any other like offense,” Committee Chairman Adam Schiff (D-Calif.) told reporters on Wednesday.{mosads}

Rep. Mike Conaway (R-Texas) told reporters that lawmakers approved of the release in a bipartisan voice vote in a closed-door meeting.

Mueller will now have access to nonpublic transcripts of closed-door interviews with Donald Trump Jr., the president’s eldest son; former White House communications director Hope Hicks; senior White House adviser and the president’s son-in-law, Jared Kushner; the president’s former attorney, Michael Cohen; former Trump campaign manager Corey Lewandowski; and others.

The documents will allow Mueller’s team to compare what witnesses said about key events like the June 2016 Trump Tower meeting between Trump Jr., Kushner, former Trump campaign chairman Paul Manafort and Russian lawyer Natalia Veselnitskaya.

The transcripts also catalogue interviews with several Obama administration officials, including former Director of National Intelligence James Clapper and former Deputy Attorney General Sally Yates, as well as current and former Trump administration officials like Director of National Intelligence Dan Coats and former Attorney General Jeff Sessions.

Read more here.

AND: Schiff lays out Intel panel's Russia probe parameters.

Schiff, who is now empowered with the authority of a committee gavel, said the committee is going to start the probe by focusing on five key areas.

The areas are matters directly related to Russian interference; possible coordination between the Trump campaign and Moscow; whether a foreign actor has sought to compromise or holds leverage over President Trump; whether Trump or anyone in his orbit are under foreign influence; and whether any actors are trying to "impede" or "obstruct" investigations into these matters.

Read more here.

LET’S HOPE THEY WORK ON THEIR SUPERBOWL ADS: T-Mobile and Sprint are ramping up their efforts to get regulators to sign off on their $26 billion merger, promising not to raise prices on consumers and tapping former public officials to help sell the deal.

T-Mobile CEO John Legere wrote a letter to Ajit Pai, the chairman of the Federal Communications Commission (FCC), on Monday pledging that if the merger is allowed to go through, the combined companies will not raise prices on consumers for at least three years.

He also lashed out at the outspoken legion of merger critics, whom he derided as business rivals “largely employed by Big Telco and Big Cable.”

“To remove any remaining doubt or concerns about New T-Mobile’s prices while we are combining our networks over the next three years, T-Mobile today is submitting to the Commission a commitment that I stand behind — a commitment that New T-Mobile will make available the same or better rate plans for our services as those offered today by T-Mobile or Sprint,” Legere wrote.

“We believe this merger makes consumers better off, and we’re willing to put our money where our mouth is.”

The mega-deal, which the companies predict will close in the first half of the year, would combine two of the nation’s four largest mobile carriers, worrying many Democrats and public advocates who fear the impact on competition and consumers. Read more here.

CALL US, BEEP US, IF YOU WANT TO REACH US: The Department of Homeland Security's top cyber official is hosting a series of webinars with company stakeholders in an attempt to facilitate discussions about malicious Chinese cyber activity.

Christopher Krebs, the first director of the DHS's Cybersecurity and Infrastructure Security Agency (CISA), said this communication is a "foundational activity" he hopes will encourage increased sharing between his agency and their businesses.

"The objective of the webinar is to help folks understand, identify and reduce vulnerabilities and threats. What we want to do is to get them to come back and work with us in the event that they find something," Krebs told The Hill in an exclusive interview on Tuesday.

Krebs listed a series of sectors that China is likely to target and said Beijing has made it clear it wants to grow in these areas.

"One of the things we are trying to educate is if you are in a strategic sector — those include robotics and automated machine tools, next generation information technology, biotechnology, aircraft and aircraft components, clean energy vehicles, and electrical generation and transmission — if you are in one of those sectors, and if you do business in China, you are a target," Krebs said.

Krebs said these Chinese hackers were looking to compromise managed service providers (MSPs) to get to their customers — it was using their MSPs as the jumping off point to get to the true intended target.

The webinar set for Wednesday afternoon has reached capacity at 2000 participants, Krebs said, who added that they have several others that they are scheduling that are also quickly filling up. A second one is scheduled for next week.

Read more here.

SPEAKING OF CHINA: Chinese-backed hackers targeted firms in the U.S. and Norway with an extended cyber espionage campaign over the course of nearly a year, security researchers said Wednesday.

Researchers at the firm Recorded Future said they believe actors from the group APT10 targeted the companies to “gain access to networks and steal valuable intellectual property or gain commercial advantage.”

Among those targeted was an international apparel company, an American law firm that specializes in intellectual property law, and a Norwegian IT and cloud services managed service provider (MSP) called Visma.

The researchers said the attackers were able to access the firms’ networks and then deploy malware that allowed the hackers to obtain proprietary information.

“We believe APT10 is the most significant Chinese state-sponsored cyber threat to global corporations known to date,” the Recorded Future report states.

Chinese actors affiliated with APT10 have been active since 2009, and began attacking MSPs in 2017. Read more here.

1234 & PASSWORD: Nest, the Google-owned smart home company, is warning its customers to tighten up their password security to prevent cameras and other in-home devices from being compromised.

Nest sent the email warning to all of its users on Wednesday following an incident in Northern California where a family’s security camera was accessed by someone who had obtained their password.

The company emphasized that its security system had not been breached, but that users could still be vulnerable if they didn't take precautions with their passwords.

“For context, even though Nest was not breached, customers may be vulnerable because their email addresses and passwords are freely available on the internet,” Nest wrote to its customers. “If a website is compromised, it’s possible for someone to gain access to user email addresses and passwords, and from there, gain access to any accounts that use the same login credentials.”

Last month, a family in Orinda, Calif., heard a warning of an impending missile attack from North Korea blaring over their Nest security camera. The company later said that the family’s password information for another website had been compromised.

Read more here.

HACK THE PENTAGON: Congress has a new rising target when it comes to cyber: The Pentagon.

The U.S. military last year was given the green light to start offensive cyber operations against foreign adversaries, an area that one new Democratic subcommittee chair says he will keep a close eye on in the coming months.

But recent internal reports have pointed to a lack of basic cybersecurity measures within the Department of Defense (DOD) itself, with one DOD report last week finding that the military is “at risk from adversarial cyber operations.”

And lawmakers have indicated that they will use this upcoming Congress to look at the Pentagon's cyber preparedness, both in terms of carrying out and fending off cyberattacks.

Rep. Jim Langevin (D-R.I.), the chair of the House Armed Services Committee’s intelligence subcommittee, which oversees cybersecurity for the Pentagon, said he is particularly concerned about the offensive cyberattacks that the U.S. could carry out.

He said that in the past, the U.S may have been too cautious in conducting cyber operations. But he warned against officials going too far and fast in exercising their newly found authorities and said that he plans to hold hearings on the topic.

“Cyberspace, in some ways, it's already a Wild West. We don't want to make it worse,” Langevin said. “Wherever possible, we should working with our allies and friends in this space as we carry out the strategies — it's important to have a whole of government approach.” Read more here.

HOLDING ZUCK ACCOUNTABLE: The Counter Extremism Project (CEP) this week invited Facebook CEO Mark Zuckerberg to host a public conversation about removing extremist content from the platform.

The group extended the invitation following Zuckerberg's commitment earlier this year to host a series of "public discussions about the future of technology in society."

Mark Wallace, the head of CEP, called on Zuckerberg participate in a meeting with with four experts on extremist content.

"Facebook needs to work with experts if it wants to rid its platform of extremist materials," Wallace said in a statement Tuesday. "Individuals at CEP are experts in the policy and science behind online content moderation which can help Facebook better understand how to combat this threat."

“We would welcome the opportunity to engage with Mr. Zuckerberg directly and transparently to the benefit of Americans who many times are the targets of extreme content inciting terrorist acts," he added.

More on Facebook’s efforts to remove terrorist content here.

LIFT OFF: NASA and SpaceX are now targeting March to launch their new capsule, the Associated Press reported Wednesday.

Officials reportedly set March 2 as the launch date.

The Dragon, designed to take astronauts to the International Space Station, will have no one on board for its initial test flight. If the test is successful, two National Aeronautics and Space Administration astronauts will take a test flight in July, according to the AP.

The U.S. has not launched astronauts from American soil since NASA cancelled their shuttle program in 2011.

NASA has partnered with SpaceX and Boeing to develop a commercial crew program.

Read more here.
 

An Op-Ed to chew on: Government spectrum delays are fueling Chinese dominance in 5G.

 

A lighter click: This profile of Beto O’Rourke as a “rebel-in-moderation youth.”

 

NOTABLE LINKS FROM AROUND THE WEB:

Trump points to tech in State of the Union. (Axios)

NYPD warns Google to stop revealing DUI checkpoints. (New York Post)

How to stop Facebook’s dangerous app integration ploy. (New York Times)

After scrutiny, Instacart will end its controversial tipping policy. (BuzzFeed News)  

How hackers break into iCloud on a locked iPhone. (MotherBoard)

 
 
 
 
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