Good morning. Multiple federal regulators are probing Morgan Stanley over how it vets clients who are at risk of laundering money through the bank’s sprawling wealth-management division.

• Pile on: The Securities and Exchange Commission, the Office of the Comptroller of the Currency and other Treasury Department offices are involved, according to people familiar with the matter. That is in addition to the Federal Reserve, whose similar probe The Wall Street Journal reported in November. 
   
• Know your customer: The main issues regulators are looking at boil down to whether Morgan Stanley has been sufficiently investigating the identities of prospective clients and where their wealth comes from, as well as how it monitors its clients’ financial activity. Some of the probes are focused on the bank’s international clients.
   
• Client questions: The SEC last year sent Morgan Stanley a list of current and former clients with questions about how they were vetted. It also questioned why Morgan Stanley’s financial-adviser unit, which works directly with affluent individuals, did business with some clients who were cut off by E*Trade, the Morgan Stanley-owned digital trading platform, because of red flags.

U.S. foreign investment watchdog to gain new powers under administration proposal.

A panel that reviews foreign investments will get new powers to obtain information and levy higher fines under a proposal from the Treasury Department, a move that comes amid intense official scrutiny on U.S.-China investment flows.

The proposal announced Thursday would allow Cfius, the Committee on Foreign Investment in the U.S., to more easily subpoena companies involved in corporate acquisitions and to expand the types of information it can require they turn over. Cfius would also be allowed to levy up to $5 million in fines for certain violations, up from $250,000.

Boeing reveals executives got an extra $500,000 in private jet perks.

An internal Boeing review found that Chief Executive David Calhoun and other top executives took personal trips worth more than $500,000 on the company’s private jets and other planes that were improperly recorded as business travel.

The review and correction, which Boeing disclosed in a securities filing, was prompted by a Wall Street Journal investigation last year into the executives’ use of the company’s fleet of private jets, people familiar with the matter said.

• Social-media platform X has received an inquiry from U.S. lawmakers related to the company’s continuing legal standoff with Brazilian authorities, Elon Musk said.

Asia economies to keep growing despite China slowdown, other headwinds.

Asia’s economic expansion is expected to remain healthy this year despite a slowdown in China and uncertainty abroad, the Asian Development Bank said as it revised up forecasts for the region.

Growth in developing economies will be supported by resilient domestic demand, the Manila, Philippines-based multilateral bank said. The ADB now expects developing Asia to expand 4.9% in 2024, up from the 4.8% growth it had projected in December.

• China Struggles to Kick Deflationary Concerns

Fed rate cuts are now a matter of if, not just when.

Another firmer-than-anticipated inflation report delivered a meaningful setback Wednesday to the Federal Reserve’s hope that it could buoy prospects of a so-called soft landing by dialing back some of the past year’s interest-rate increases.

Solid hiring and the prospect that inflation might settle out closer to 3% than the Fed’s 2% goal could call into question whether the central bank will be able to cut rates until much later in the year without evidence of a sharper slowdown in the economy.

• Why Inflation Is Biden’s Most Stubborn Political Problem

• Lufthansa suspended flights to and from Tehran due to heightened security risks in the Middle East after U.S. officials said that an attack on Israeli assets by Iran or its proxies could be imminent.

• In a landmark case, a group of Swiss women won their claim that authorities aren’t doing enough to mitigate the effects of climate change.
   
• Lands’ End is expected to report a profit for the first time in three years by nudging customers to pay full price.
   
• AI is coming for the enterprise as the technology is making deepfakes more lifelike than ever.
   
• Watch: How executives are talking about social purpose now.

• O.J. Simpson, the football star and Hollywood celebrity whose murder trial became a landmark moment in the national debate over race and criminal justice, has died. He was 76 years old.
   
• Amazon CEO Andy Jassy said generative artificial intelligence could be one of the largest technological transformations in decades.
   
• Shohei Ohtani’s longtime interpreter Ippei Mizuhara has been charged with unlawfully transferring $16 million from the baseball superstar’s bank account in order for Mizuhara to place bets with an illegal bookmaker in California.
   
• Fears are rising over the fate of the remaining hostages held in Gaza after Hamas said it was unsure whether it could bring forth 40 Israeli civilian captives as part of a U.S.-backed cease-fire proposal, according to officials familiar with the negotiations.

Follow us on X at @WSJRisk. Follow Risk & Compliance editor David Smagalla @DSmagalla_DJ and reporters Mengqi Sun @_MengqiSun, Dylan Tokar @dgtokar and Richard Vanderford @VanderfordRich.

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