Good morning. French President Emmanuel Macron’s call Monday for sanctions banning imports of Russian oil and coal into the European Union following the weekend’s allegations of atrocities in Ukraine is set to trigger the most divisive intra-EU clash yet over how to respond to Russia’s invasion of its neighbor.

European governments, some of them divided internally on the issue, have so far tiptoed around energy imports, with proponents of some form of energy ban—including Poland, the Baltic States, Sweden and the Netherlands—accepting that opposition in other capitals remained too strong.

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The EU was readying a new sanctions package for this week that was set to avoid any form of new energy sanctions, instead proposing measures intended to reinforce sanctions decisions already taken in previous weeks.

Yet the emerging reports of potential war crimes committed in Bucha—a town near Kyiv where the bodies of hundreds of people killed during the war were found over the weekend—has shifted the debate over what the EU should do to stop funding Russia’s war effort. That has pushed capitals that have so far trodden carefully on energy sanctions to be more openly supportive.

“What happened in Bucha requires a new round of sanctions,” Mr. Macron said. “Already on coal and oil, which we know would be particularly painful, we can act.”

Brian Nelson, undersecretary for terrorism and financial intelligence and the senior U.S. Treasury official for sanctions, will be speaking at the Risk & Compliance Forum on May 10. We’ve also added a breakout session to discuss navigating sanctions imposed on Russia due to the Ukraine war. Use the code DJR&C to sign up here.

Credit Suisse Group AG gave new details Monday on how it was caught out by the collapse of Greensill Capital in March 2021 and why it overlooked earlier red flags.

Credit Suisse said an internal review found that the reputational damage and economic failure from Greensill could have been averted if individual managers and employees had conducted themselves “more appropriately.” It fired 10 people and is clawing back $43 million in pay. The bank had already said it would restructure its asset-management arm.

The Swiss bank has said it didn’t know until the last minute in February 2021 that Greensill’s business was at risk and insurance on debtors in the funds was expiring, precipitating Greensill’s bankruptcy. It ran $10 billion in investment funds with Greensill and so far has been unable to recover all of the funds for investors.

Efforts to recoup the fund investments took a blow Monday when Greensill’s largest insurer, Tokio Marine Holdings Inc., alleged that multiple insurance policies had been “fraudulently obtained” by Greensill.

Mr. Gensler has been urging crypto-trading platforms such as Coinbase Global Inc. to submit to SEC oversight for months, saying the firms allow investors to buy and sell assets that meet the legal definition of securities. The trading platforms have refused. They dispute the assertion that they list securities and cite a variety of technical reasons why they view SEC regulation as impractical.

• Elon Musk has set the stage for a new fight with the Securities and Exchange Commission, this time over how he disclosed his investment in Twitter Inc. that has made him the company’s largest investor.
   
• An investor accused Morgan Stanley of leaking information about a large sale of shares of Palantir Technologies Inc., saddling it with millions of dollars in losses.
   
• U.S. and Spanish authorities seized a $90 million super yacht in Spain that they said is owned by a sanctioned oligarch with close ties to Russian President Vladimir Putin, marking the first such seizure in the Biden administration’s efforts to hunt down the luxury real estate, private jets, yachts and other assets of Russian elites stashed around the globe.
   
• Private-equity firms are navigating the complications of cutting sanctioned Russian investors out of their funds, a task that can create challenges for a fund’s remaining investors or even threaten the fund itself.
   
• Judge Ketanji Brown Jackson cleared a procedural hurdle on her way to all-but-certain confirmation as the first Black woman to serve on the Supreme Court, as three Republicans joined all 50 senators who caucus with the Democrats in voting to move her nomination forward Monday night.
   
• Shanghai extended lockdown measures as it concluded a day of testing of all 25 million of its residents for Covid-19 Monday, aided by thousands of medical workers who arrived over the weekend from across the country.

Western leaders vowed to investigate alleged war crimes in Ukraine and impose new penalties on Moscow over purported Russian atrocities against Ukrainian civilians that have sparked international condemnation and outrage.

President Biden called for a war crimes trial over the accounts of rape and killings of hundreds of civilians in Bucha and other formerly Russian-occupied towns around the Ukrainian capital and said Russian President Vladimir Putin must be held accountable.

“We have to get all the detail so this can be an actual war-crime trial. This guy is brutal, and what’s happening in Bucha is outrageous and everyone has seen it,” Mr. Biden told reporters at the White House on Monday, adding that Washington was seeking additional sanctions against Moscow, but he didn’t provide details.

The U.S. and European Union said Monday that they would assist Ukrainian authorities with investigations and collecting evidence.

• Ukraine Intelligence Represents New Front in Information War

• Countries must make major, rapid shifts away from fossil fuels and to renewable energy to meet the goals in the 2015 Paris agreement, climate experts tapped by the United Nations said in a report released Monday.
   
• When China tapped career bureaucrat Carrie Lam to become Hong Kong’s top official in 2017, she was widely viewed as a conciliatory figure. Instead, Mrs. Lam, who said Monday that she wouldn’t seek a second term, has presided over the most divisive period since the former British colony returned to Chinese rule a quarter-century ago.
   
• American consumers are starting to cut costs on mainstays from toothpaste to baby formula as inflation hits a swath of the economy that had thus far proven resistant to substantial price increases.

Companies, already warned to remain alert to potential Russian cyberattacks, are battling operations by online activists aiming to bruise corporate reputations amid the war in Ukraine.

Recent public campaigns by the hacker collective Anonymous against Nestlé SA and other companies continuing to operate in Russia underline the increasing business risks. The high visibility of hacktivists requires extra efforts from companies in internal response and outward crisis communication, cybersecurity and risk experts said.

“The claim of a breach can cause a significant disruption of operations in a business because they need to put resources into investigating it,” said Scott Algeier, executive director of the Information Technology Information Sharing and Analysis Center.

• Block Inc. said a former employee downloaded reports from the payments company’s Cash App without Block’s permission that contained information from some U.S. customers.

A judge struck down a California law that requires public companies based in the state to have at least one board director from underrepresented groups, a setback to efforts to mandate board diversity.

Judge Terry Green of the Superior Court of California in Los Angeles County granted a summary judgment in favor of a lawsuit challenging the law as unconstitutional, according to a decision issued Friday. Judge Green offered no reasoning for his decision.

The law, enacted in 2020, required the boards of publicly traded companies based in the state to have at least one racially, ethnically or otherwise diverse director by 2021.

• Starbucks Corp. said it is suspending billions of dollars in share repurchases, a move that interim Chief Executive Officer Howard Schultz said would free up cash to invest in cafes and employees.
   
• Novartis AG said Monday that it is undergoing a restructuring that it expects will save the company $1 billion by 2024. Several of the Swiss pharmaceutical company’s top management, including its chief medical officer, will be leaving, the company said.
   
• Hasbro Inc. rejected calls from an activist investor to spin off its Wizards of the Coast gaming unit and added two directors to its board, setting up a proxy battle at its coming annual meeting.

The German government will temporarily take control of a key unit of Russian state-owned natural-gas giant Gazprom PJSC in Germany in a bid to secure gas deliveries, as tensions grow between Russia and Europe over energy supplies.

Economy minister Robert Habeck said Monday that the Federal Network Agency would become a trustee of Gazprom Germania GmbH until Sept. 30. The move comes after Gazprom on Friday said that it was exiting its business in Germany without elaborating.

• China Evergrande Group and some of its biggest offshore creditors have reached agreement on moving restructuring talks forward, helping stave off their threats of taking over the company’s offshore businesses after $2 billion in offshore cash was seized by banks, according to people familiar with the matter.

Send comments to the Risk & Compliance editor, David Smagalla, at david.smagalla@wsj.com

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