Good morning. Federal regulators say they still haven't seen Citigroup make sufficient progress fixing its internal controls, the latest rebuke for the U.S. megabank.

• Additional fine: The Federal Reserve and the Office of the Comptroller of the Currency on Wednesday announced the bank is agreeing to pay about $135.6 million for violating the terms of a 2020 agreement to fix its risk-management systems. Wednesday's fines come on top of the $400 million the company previously agreed to pay to settle the 2020 findings.
   
• Controls issues: Regulators have pressed the bank for years to fix its controls. An acquisition spree left Citi with a jumble of internal systems it never fully integrated. Calls from business leaders to improve technology functions went unheeded. And when executives had to choose between expensive upgrades and short-term profitability goals, the latter almost always won out, The Wall Street Journal reported in June.
   
• Citi's response: Citi released a statement from its CEO, Jane Fraser, acknowledging areas where "we have not made progress quickly enough. As we’ve said from the beginning of this multi-year effort, we’re committed to spending what is necessary to address our consent orders," she said.

Archegos founder Bill Hwang found guilty on fraud charges.

Bill Hwang, the founder of Archegos Capital Management, was convicted Wednesday of manipulating stock prices and defrauding banks in a scheme that minted him a multibillion-dollar fortune before his firm collapsed in March 2021.

Federal prosecutors in the Manhattan U.S. Attorney’s Office accused Hwang of misleading banks to borrow billions of dollars as part of an effort to drive up prices of a handful of media and tech stocks in Archegos’s portfolio.

BitMEX pleads guilty to U.S. charge over anti-money-laundering failure.

Cryptocurrency exchange BitMEX has pleaded guilty to a U.S. criminal charge over its failure to maintain an adequate anti-money-laundering program, federal prosecutors said.

BitMEX, once among the world’s leading crypto platforms, pleaded guilty Wednesday in federal court in Manhattan to a single count of violating the Bank Secrecy Act. The BSA requires financial institutions take steps to prevent money laundering, but prosecutors said BitMEX flaunted those rules while knowingly doing business with U.S.-based customers.

• The Federal Trade Commission is preparing to sue the largest three pharmacy-benefit managers over their tactics for negotiating prices for drugs including insulin, after a two-year investigation into whether the companies steer patients away from less-expensive medicines.
   
• A federal jury has found SCWorx’s former Chief Executive Marc Schessel guilty for his participation in a scheme to mislead investors about the healthcare company’s procurement of Covid-19 rapid test kits.
   
• A bankruptcy judge ordered airplane parts supplier Incora to unwind a 2022 financing deal, a defeat for Pimco, Silver Point and other investment firms that used it to leapfrog other creditors.
   
• Overhauls that make markets more competitive and open have largely stalled over the last half-decade, while a new focus on industrial policy makes it more important to tame the activities of lobbyists, the Organization for Economic Cooperation and Development said Wednesday.
   
• The Biden administration is imposing tariffs on Mexican imports that use steel or aluminum from China in hopes of stopping the metals from entering the U.S. duty-free.
   
• Germany will remove Chinese components from the country’s 5G mobile networks by the end of 2029, ending years of debate that had left the country dragging far behind allies in addressing what the U.S. has warned was a key vulnerability.
   
• Millions of homeowners are forced to pay hundreds or even thousands of dollars when they refinance their mortgages to protect against unexpected costs from a challenged property title. Yet claims on such insurance are exceedingly rare. Payouts may only amount to about 3% of overall premiums, according to loss data released by Doma, a financial-technology company that sells title-insurance policies.
   
• The European Union said that Apple’s decision to let third-party mobile wallet and payment services use the technology behind its Apple Pay app fully addressed its concerns that the iPhone maker was stifling competition.

Biden, Texas officials spar over Beryl response as power outages persist.

President Biden and Texas’ lieutenant governor are at odds over who is at fault for the pace of the federal response to Hurricane Beryl, as Houston-area residents swelter without power.

Biden didn’t issue a major disaster declaration for the state until Tuesday, a day after the storm made landfall as a Category 1 hurricane outside Houston. The storm knocked out power for millions and killed several people.

• The U.S. will soon begin shipping to Israel the 500-pound bombs that the Biden administration had previously suspended, ending a two-month pause it had imposed in a bid to reduce civilian casualties in Gaza, U.S. officials said.
   
• A corner of Wall Street long shunned by investors is suddenly in demand. Higher rates over the past two years were expected to slam risky corporate borrowers that rely heavily on floating-rate debt. That hasn’t happened.
   
• Home insurers are pushing for big rate increases and weakened consumer protections—and increasingly getting what they ask for.
   
• The International Energy Agency trimmed its forecast for oil-demand growth next year and raised supply estimates, a scenario that would likely leave the market in surplus, reinforcing its expectations of a major glut this decade.

Most recently chief legal officer of blockchain-analytics firm Elliptic, Melican has joined the New York State Department of Financial Services as its deputy superintendent for limited purpose and virtual currency trusts. He succeeds David Hunter, a former bank examiner at Office of the Comptroller of the Currency, who held the NYDFS role since December 2022.

Before Elliptic, Melican worked as managing director for risk-management company Exiger, leading its anti-money-laundering, anticorruption and due diligence practices. He began his career as an assistant district attorney in the Manhattan District Attorney’s office, where he spent eight years.

• China’s e-commerce juggernaut Alibaba Group is reigniting a yearslong effort to expand overseas as it seeks to offset a weakened grip on online retail at home. This time, it’s adding artificial intelligence to the mix.
   
• President Biden’s wall of support for his re-election bid began to crumble Wednesday, as a Democratic senator called for him to exit from the race, a party heavyweight indicated his candidacy remains an open question and a megawatt Hollywood donor said he can’t win.
   
• The federal government has spent $22 billion in recent years on technology from the top 100 national-security startups, a paltry portion of overall contract spending and less than half of what venture capitalists have invested in those same companies.
   
• Tony Robbins donned ear protection and stepped inside a nondescript metal building in southwestern Pennsylvania. What the celebrity motivational speaker saw was mesmerizing.
   
• Busy airports and robust summer travel bookings haven’t resulted in a heftier profit for Delta Air Lines.

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