Good morning. Federal regulators moved to lift an unprecedented punishment that had handcuffed growth at Wells Fargo, a milestone in the bank’s efforts to repair its tarnished reputation after its fake-accounts scandal erupted nearly a decade ago.

The Federal Reserve Board of Governors voted to remove the restriction that had capped the bank’s assets at around $2 trillion. It was the most severe rebuke handed down after the bank’s disclosure it had opened millions of unauthorized customer accounts. The 2018 order had pointed to “widespread consumer abuses and compliance breakdowns.”

For the first time in seven years, the fourth-largest U.S. bank will be able to grow its balance sheet and redirect resources it had been pouring into efforts to fix itself. It will once again have the freedom to gather deposits, increase loans to companies and households and grow its Wall Street businesses or even do deals.

The removal of the asset cap “marks a pivotal milestone” for Wells Fargo, said Chief Executive Charlie Scharf, who was brought in from BNY to fix the bank in 2019.

The bank said it would give full-time employees a special $2,000 award.

Proposed beneficial ownership rule change panned.

Law enforcement groups, bipartisan lawmakers and anti-corruption groups are urging the Treasury Department to rework a proposed rule that will require some companies to report their owners, saying the rule should apply more broadly.

The Trump administration’s proposed rule, which was put forward in March, calls for foreign-owned businesses, but not those with U.S. owners, to report their ownership to help fight money laundering. Treasury Secretary Scott Bessent said at the time that the decision was part of the Trump administration’s agenda to “rein in burdensome regulations.”

SEC chairman says no impact from FCPA pause.

The Securities and Exchange Commission’s foreign bribery enforcement hasn’t been affected by President Trump’s executive order pausing enforcement of the Foreign Corrupt Practices Act, agency Chairman Paul Atkins said.

“To my knowledge nothing has been directly affected by that but I’m happy to get back to you,” Atkins said responding to a question on the pause from U.S. Sen. Chris Coons, a Democrat from Delaware, during a committee hearing on Tuesday.

• Citigroup is dropping its policy restricting banking services to businesses that sell guns to those under 21. The turnaround comes after President Trump, Republican leaders and others have accused the banking industry of discriminating against customers on political grounds.
   
• The U.S. Supreme Court has declined to hear a case that threatened to undercut the constitutional basis of Finra, the brokerage industry’s self-regulatory organization. The closely watched dispute could also have affected the authority of other similar nongovernment entities that operate as regulators.

U.S., world growth to slow amid tariff turmoil, OECD warns.

The world economy will lose pace this year, hamstrung by uncertainty stemming from whipsawing U.S. trade policy, according to the Organization for Economic Cooperation and Development’s new forecasts.

Further increases to trade barriers would dampen global growth even more, the OECD warned, urging governments to strike trade deals to forestall an even sharper slowdown. “Lower growth and less trade will hit incomes and slow job growth,” the group said.

• China’s Manufacturing Activity Tumbles
• Trump Administration Asks Nations for Best Offer on Trade Deals

Russia and Ukraine ratchet up war while trying to show Trump they want peace.

Ukraine’s weekend attacks against military airfields deep inside Russia signal the long-stalemated war is entering a perilous phase, with both sides seemingly intent on escalation and prospects for a U.S.-brokered peace deal receding.

Only a day after the Ukrainian drones dealt a blow to Russia’s bomber fleet in a brazen attack that stunned Moscow, the two sides met for a second round of talks in Istanbul after President Trump declared again that he wanted a quick deal to halt the fighting.

• Inside the Ukrainian Drone Operation That Devastated Russia’s Bomber Fleet

• A left-leaning politician who has warned against South Korea becoming overly dependent on the U.S. won the country’s presidential vote, an outcome that could shift Seoul’s relations with China and North Korea.
   
• Federal Emergency Management Agency officials are scrapping a hurricane-response plan that its recently appointed leader, David Richardson, had said was close to completion, according to agency staff.
   
• A string of recent cyberattacks has targeted big retailers, scooping up customer information and disrupting online sales.
   
• Australia’s economy slowed sharply in the first three months of 2025, leaving it vulnerable to emerging weakness in world growth as the global trade war and a surge in geopolitical risk undermines the confidence of firms and consumers.

• Former White House cost-cutting czar Elon Musk called President Trump’s “big, beautiful” tax and spending package a “disgusting abomination,” stepping up his criticism just as the Senate is trying to quickly pass the measure and get it signed into law by July 4.
   
• The mayor of Newark on Tuesday sued New Jersey’s top federal prosecutor Alina Habba over his arrest last month outside an immigration detention facility in his city, accusing her of false arrest, malicious prosecution and defaming him to advance her political agenda.
   
• Nvidia has overtaken Microsoft as the largest U.S. company by market value, regaining the throne that it forfeited during the AI-stock selloff in late January.
   
• Warner Bros. Discovery shareholders rejected the multimillion-dollar pay packages of Chief Executive David Zaslav and his leadership team.

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