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The Morning Risk Report: Risk of Banklike Regulation Fades for Big Financial Firms |
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The government removed Prudential’s designation as a ‘systemically important financial institution.’ PHOTO: VICTOR J. BLUE/BLOOMBERG NEWS
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Good day. The Financial Stability Oversight Council rescinded Prudential Financial Inc.’s designation as a “systemically important financial institution,” or SIFI, a label that comes with tighter scrutiny from the Federal Reserve, The Wall Street Journal’s Ryan Tracy reports.
It’s the strongest signal yet that the risk of heightened post-financial-crisis supervision is fading for firms outside the banking sector. The decision followed a yearslong campaign by Prudential to reverse regulators’ 2013 determination that its failure could threaten the economy.
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Prudential was the last of the four nonbank firms to escape the designation. And unlike the other companies, Prudential won the decision without changing its business model.
Trump-appointed officials are also considering policy changes expected to reduce the chance that nonbanks—insurance companies, hedge funds, and other firms—are designated as SIFI ever again.
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Islamic State group militants hold up their flag, in this March 30, 2014, as they patrol in a commandeered Iraqi military vehicle in Fallujah, Iraq. PHOTO: UNCREDITED/ASSOCIATED PRESS
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U.S. Puts Sanctions on Iraq-Based Money-Service
Business |
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The U.S. Treasury Department put sanctions on Afaq Dubai, an Iraq-based money services business that is alleged to have been moving money for Islamic State, Risk & Compliance Journal’s Samuel Rubenfeld reports.
The sanctions announced Wednesday continue ongoing U.S. efforts to target financial facilitators that move money on behalf of Islamic State. The Treasury last month put sanctions on two facilitators it alleged were connected to operations the Caribbean and the Middle East.
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Treasury Official Charged with Leaking Bank Information to Reporter |
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A Treasury Department official was charged with disclosing to a reporter information about financial transactions related to the Russia investigation, the latest move in the Justice Department’s efforts to target leaks to the media.
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SEC Charges Former Insurance Wunderkind With Fraud |
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Banks Take Fight Against New Loan-Loss Rule to
Washington |
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Some banks are fighting a rearguard action to blunt the impact of a new accounting rule that revamps how they book losses on soured loans. Members of Congress are siding with the banks in their dispute with independent rule makers.
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EBay Sues Amazon, Alleging Sellers Were Illegally
Poached |
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Deutsche Bank Ex-Traders Guilty in Libor Rigging
Scandal |
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Two former Deutsche Bank AG traders were found guilty of trying to rig a key lending benchmark that was considered as one of the most important barometers of the world’s financial health.
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Steve Penny, Former USA Gymnastics President, Is
Arrested |
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The former president of USA Gymnastics was arrested on evidence-tampering charges arising from an investigation into sexual-abuse allegations and other misconduct at the women’s national gymnastics team’s training camp.
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Funds Back Proposal to Remove Zuckerberg as Facebook Chairman |
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Several public funds with holdings in Facebook Inc., including New York City’s pension funds, are backing a shareholder proposal to push out Chief Executive Mark Zuckerberg as chairman of the social-media giant’s board of directors.
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Campbell Soup-Maker Descendants Say They Support Board |
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Key members of the family that has effectively controlled Campbell Soup Co. for more than a century said they would support the current board, narrowing the odds for an activist investor's effort to replace the entire board.
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Constellation CEO Rob Sands to Step Down From Corona
Brewer |
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Constellation Brands Inc., a family-controlled company that transformed itself from a boxed-wine seller to the brewer of Corona and has bet big on marijuana, is handing the reins to an outsider for the first time.
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An Army Veteran Wages War on Social-Media Disinformation |
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Kris Goldsmith has become the cybersleuth for the Vietnam Veterans of America, hunting fake Facebook pages that sow discord and often have roots overseas.
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Ties to Saudi Prince Weigh On SoftBank Fund’s Future |
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Billionaire Japanese tech investor Masayoshi Son and Saudi crown prince Mohammed bin Salman have been mutual supporters and business partners—but the disappearance of journalist Jamal Khashoggi has cast a shadow.
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Fund Managers Increasingly Wary on Global Growth |
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More than one-third of fund managers expect global growth to decelerate in the next year—the most pessimistic outlook since November 2008, according to a monthly survey by Bank of America Merrill Lynch.
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Uber Targets Trucking With New Trailer-Rental Business |
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Uber Technologies Inc., in its ongoing quest to move beyond its unprofitable business of connecting drivers with passengers, is adding a new tractor-trailer rental business to help big-rig truckers haul freight around the country.
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Novartis to Buy Cancer-Drug Maker Endocyte for $2.1
Billion |
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Novartis AG on Thursday said it would pay $2.1 billion for Endocyte Inc., a U.S. company developing a new treatment for prostate cancer, the Swiss pharmaceutical giant’s latest move to double down on high-value prescription drugs.
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Tesla Advances in China, Buying Land Purchase for a Factory |
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Tesla Inc. gained a foothold in the world’s biggest market for electric vehicles, completing the purchase of land for its new Shanghai plant, the company announced.
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