Good morning. Regulators in Washington have rolled back rules put in place after the 2008 financial crisis that limited how much risk banks can take in corporate lending and fueled the boom in the multitrillion-dollar private credit industry.

• Crackdown ends: The so-called leveraged lending guidance was put in place in 2013 by the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency and the Federal Reserve as part of a crackdown on banks’ ability to make riskier loans. The rules effectively made banks unable to underwrite higher-risk loans for companies like private-equity targets or for high-growth technology companies that had negative-to-no earnings.
   
• Closing a gap: The 2013 guidance opened a window for big private investment funds that weren’t regulated, which stepped into the gap. The private credit industry has now become a giant on Wall Street and a competitor to the banks. Friday, the FDIC and OCC said the 2013 guidance was “overly restrictive” and “resulted in a significant drop in leveraged lending market share by regulated banks and significant growth in leveraged lending market share by nonbanks, pushing this type of lending outside of the regulatory perimeter.”
   
• Banks keep winning: The rollback amounts to the latest win for banks under the Trump administration, which has defanged a consumer protection advocate, stopped an initiative to make banks hold more capital and fostered a more welcoming environment for corporate mergers and acquisitions that banks help arrange.

New York Times escalates battle against Perplexity with new lawsuit.

The New York Times is suing generative-AI startup Perplexity for copyright infringement, expanding its legal fight against artificial-intelligence companies that it says steal and then profit off its content.

In its lawsuit, the Times accused Perplexity of illegally crawling its material and repackaging original Times stories in “verbatim or near-verbatim” written responses to users. It also accused the company of copyright infringement for its videos, podcasts and images, and of fabricating information and falsely attributing it to the Times.

Ex-Goldman banker loses appeal in 1MDB case.

An ex-Goldman Sachs Group banker has lost an appeal to overturn his conviction in the U.S. for his involvement in Malaysia’s 1MDB bribery scandal, Risk Journal reports.

The U.S. Court of Appeals for the Second Circuit on Friday rejected a bid from Roger Ng, a Malaysian national, to overturn a conviction for helping to loot billions of dollars from state wealth fund 1Malaysia Development Bhd., better known as 1MDB.

• It could be months before a resolution determines the future of the Consumer Financial Protection Bureau.
   
• Netflix beat out Paramount and Comcast to land a $72 billion deal for Warner Bros. Discovery’s studios and HBO Max streaming service. Now it has to win over the Trump administration.
   
• SolarWinds’ Tim Brown escaped the Securities and Exchange Commission, but future cyber chiefs might not.
   
• Banks should tell their compliance teams to focus on cartels as they work to show law enforcement they are taking the Trump administration’s priorities seriously, a financial crimes lawyer said in a Risk Journal webinar.
   
• Southwest Airlines is off the hook for an $11 million payment imposed by the Biden administration related to its 2022 holiday meltdown, according to a Transportation Department order issued Friday.
   
• A European Union financial reporting body wants to simplify company sustainability reporting standards, as the bloc seeks to keep both climate and competitiveness on the agenda.
   
• Australia imposed sanctions on 45 vessels linked to Russia’s shadow fleet.

Trump’s new national-security strategy takes aim at Europe.

President Trump has issued a new national-security strategy that sharply criticizes the “unrealistic expectations” of European leaders for settling the war in Ukraine and calls for an end to NATO expansion.

The long-awaited document sets out the core principles of Trump’s “America First” foreign policy, underscoring its priorities of addressing dangers in the Western Hemisphere, including the use of “lethal force” to stop drug cartels, and competing economically with China.

• U.S. Flips History by Casting Europe—Not Russia—as Villain in New Security Policy

AI job losses are coming, tech execs say.

It is one of the biggest, unresolved economic debates: Just how many white-collar professionals will lose their jobs because of artificial intelligence?

At The Wall Street Journal’s Tech Live Qatar event this week, the question came up on stage, over meals and in conversations alongside the conference. Even the most optimistic technology executives said the labor market should brace for at least some disruptions in the months ahead.

Exactly how much pain workers endure—and which roles face the greatest likelihood of being overtaken by AI—brought conflicting views.

• Chinese forces are battling dizzying altitudes to expand the country's military footprint.
   
• Eurovision, one of the world’s most kitsch and popular singing contests, has been thrown into turmoil after several European countries said they would boycott next year’s contest because Israel was still being allowed to participate despite the Gaza war.
   
• An amphibious assault by China to conquer Taiwan would be one of the toughest military operations to pull off. Here’s how it might look.

• The Pentagon is getting serious about hypersonic weapons, a technology that has eluded the U.S. military for decades. It is looking to startups, with no experience but billions of dollars backing them, to fill an increasingly glaring hole in the national arsenal.
   
• A federal judge Friday ordered the release of grand-jury transcripts from the Justice Department’s investigation into Jeffrey Epstein in Florida, citing a new law mandating that files related to the convicted sex offender be made public.
   
• Two former board members at independent federal agencies who are Black allege President Trump removed them earlier this year because of their race.
   
• SpaceX is kicking off a secondary share sale that would value the rocket maker at $800 billion, people familiar with the matter said, surpassing OpenAI to make it the most valuable U.S. private company.

Follow us on X at @WSJRisk. Send tips to our reporters Max Fillion at max.fillion@dowjones.com, Mengqi Sun at mengqi.sun@wsj.com and Richard Vanderford at richard.vanderford@wsj.com.

You can also reach us by replying to any newsletter, or by emailing our editor David Smagalla at david.smagalla@wsj.com.