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The Morning Risk Report: U.S. to Reduce Use of Corporate Monitors |
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The Justice Department is reviewing its enforcement policy on corporate crime. PHOTO: JIM BOURG/REUTERS
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Good day. The U.S. could reduce its use of compliance monitors in corporate crime settlements, according to new guidance from the Justice Department.
A closer look: The guidance indicates that the government will more closely examine whether a monitor is needed when settling corporate crime cases by weighing the projected costs to the business, the scope of the monitor’s role and if the scope is appropriately tailored. Imposing a monitor “will not be necessary in many corporate criminal resolutions,” a U.S. official said.
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Changing policy: The guidance comes amid a broader review of corporate criminal enforcement policy by the Justice Department. Officials have changed policy governing foreign bribery enforcement and disbanded an Obama-era financial fraud task force, launching a new group on market integrity.
Stronger hand for companies: Companies will have a greater opportunity to prove the adequacy of their compliance improvements since discovering the misconduct, said Daniel R. Alonso, managing director and general counsel of Exiger LLC, a consultancy. “They may have a few more arguments now to avoid a monitor,” he said.
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Ex-Head of ‘Bad Bank’ Accused Over Bribes, Boudoirs and Banquets |
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A former Communist Party chief and ex-head of China’s largest “bad bank” will be prosecuted for using his position for personal gain after being swept up in President Xi Jinping’s yearslong crackdown on corruption.
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Google’s CEO Defends Potential Return to China |
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Google’s chief executive defended his company’s plan to explore a search engine tailored for users in China despite concerns that it would mean complying with the country’s strict internet censors.
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Drug Industry Pushes Back Against Listing of Prices in TV
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CFPB to Define ‘Abusive’ Acts by Financial Firms |
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A regulator plans to explain what it considers to be “abusive” practices by companies selling financial services, to give a clearer idea of what behavior would get companies into trouble under new government enforcement powers.
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Stephen Schwarzman, chief executive officer of Blackstone Group, is among the top Wall Street executives who announced they won’t attend this month’s investment conference in Saudi Arabia. PHOTO: EHRENZE/EPA/SHUTTERSTOCK
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Top Wall Street Executives Shun Saudi Conference |
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A desert conference to celebrate Saudi Arabia’s arrival on the global financial stage has become a test for corporate titans weighing the potential profits from dealings with the kingdom against the risk of public backlash.
The conference comes amid allegations that the Saudi government murdered dissident journalist Jamal Khashoggi. The Saudis have denied any involvement.
Three of Wall Street’s most powerful executives— JPMorgan Chase & Co. Chief Executive James Dimon, BlackRock Inc. CEO Laurence Fink and Stephen Schwarzman, the chief of private-equity giant Blackstone Group LP—pulled out of the event. The heads of three major European banks—HSBC Holdings PLC, Credit Suisse Group AG and Standard Chartered—have followed suit.
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How Robots and Drones Will Change Retail Forever |
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What if you could store and deliver goods as easily as data? Amazon, Walmart and others are using AI and robotics to transform everything from appliance shopping to grocery delivery.
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Many businesses are using $9.99-a-month subscriptions to Spotify or Apple Music, whose terms of service offer only personal, noncommercial uses. PHOTO: JAAP ARRIENS/ZUMA PRESS
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The Background Music You Hear May Not Be Licensed |
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Services like Spotify and Apple Music have returned the music business to growth by getting consumers to pay again after years of rampant piracy.
But those same services are being used in violation of usage policies in commercial settings like coffee shops and small retail stores at an estimated cost of $2.65 billion each year to artists, labels and publishers, according to a new report from Nielsen Music.
Playing music in businesses or other public settings requires permission from some of those rights-holders, but technology has sometimes gotten ahead of existing licensing mechanisms.
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Companies With Newly Flush Pensions See Chance to Unload the Risk |
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U.S. corporate pensions are at the highest funded level since the financial crisis, which could lead more companies to turn over to insurers the responsibility for paying retirees.
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