Good morning. NatWest Group Chief Executive Alison Rose has stepped down after her conversation with a journalist about an outspoken Brexit campaigner engulfed the U.K. banking giant in a political drama.

The move came less than a day after Rose admitted “a serious error of judgment” in talking to a journalist about the decision by Coutts, a NatWest subsidiary that caters to the rich, to close the account of Nigel Farage, a well-known and divisive political figure in the U.K.

• Private bank, public scandal: Farage had publicly claimed that Coutts closed his account at least in part because of his political views. But after Rose talked to Simon Jack, a BBC journalist, the reporter wrote a story stating the closure was a commercial decision. Documents subsequently released by Farage called that into question and the BBC updated the article to say it was inaccurate. Rose said she wasn’t part of the decision-making process to close the account.
   
• Widespread condemnation: The idea that a British bank would close a customer’s account based even in part on their political views led to widespread condemnation of NatWest, even among political commentators who typically disagree with Farage.
   
• Toughen rules: Several leading politicians in the ruling Conservative Party criticized the bank, which is still part-owned by the government after a financial crisis-era bailout. David Davis, a former cabinet minister, called the decision to close Farage’s account “thinly veiled political discrimination.” U.K. Prime Minister Rishi Sunak said the government intended to toughen rules on bank account closures.

3M is making progress in tackling liability lawsuits, CEO says.

3M said a more than $10 billion settlement to resolve contamination claims related to so-called forever chemicals showed progress in the company’s efforts to resolve waves of litigation that have weighed on its stock.

Emphasizing resolutions. The St. Paul, Minn.-based maker of consumer and industrial products agreed last month to settle allegations by about 300 cities that 3M-manufactured PFAS chemicals tainted drinking water. Chief Executive Mike Roman said Tuesday the move aligned with 3M’s broader strategy of managing the lawsuits and resolving claims through mediation when it makes sense.

Legal challenges continue. 3M is battling liability lawsuits on multiple fronts. In addition to claims related to PFAS, many of which have yet to be resolved, the company is in the midst of a federal lawsuit in which more than 230,000 veterans allege earplugs made by 3M subsidiary Aearo Technologies didn’t work properly. 3M has said the earplugs worked when used correctly.

• The U.S. Senate Finance Committee is investigating former Apollo Global Management Chief Executive Leon Black’s tax strategies and dealings with the late disgraced financier Jeffrey Epstein, pressing the private-equity billionaire for information on Epstein’s high-price tax advice.
   
• The Public Company Accounting Oversight Board found greater auditing deficiencies in its inspections of accounting firms last year as the firms faced staff turnover and generally used less experienced workers.

The world tied $3.5 trillion-plus of debt to inflation. The costs are now adding up.

Governments and companies around the world spent decades loading up on trillions of dollars of debt whose interest costs rise and fall alongside inflation. But what served as cheap funding when prices were stagnant has rapidly become more expensive.

The end of an era. The inflation-linked headache echoes the broader challenges arising at the end of more than a decade of global easy money, in which debtors borrowed vast amounts at very low, and sometimes negative, interest rates. Investors are on alert for financial vulnerabilities after a crisis in U.S. regional banks this year, and with strains emerging in commercial property.

• Office building investors are in full retreat from most U.S. cities. Some are finding a haven in Japan, where most workers have returned to the office and banks are eager to lend.
   
• The extreme heat blanketing the southern regions of the U.S., Mexico, and Europe this month would have been nearly impossible without the warming effects of human-induced climate change, according to a study released Tuesday by a group of European scientists who carry out rapid assessments of extreme weather events.
   
• A Russian jet fighter damaged a U.S. MQ-9 Reaper drone over Syria by releasing flares close to the American aircraft, the U.S. military said Tuesday.
   
• Large companies in the U.S. have sought bankruptcy protection at a faster pace this year, as they struggle to meet rising costs and shifts in consumer spending.

The two will lead the division, whose 1,000-plus inspectors focus on compliance checks, while its director, Richard Best, is on extended medical leave, the regulator announced Tuesday.

Greiner also serves as the national associate director of the SEC’s investment adviser/investment company examination program, and is the associate director for its home office investment adviser/investment company examination program. Cassidy is also the national associate director of the examination division’s technology controls program. Both will continue in their existing roles while serving as interim acting co-directors of the division, the regulator said.

• X Corp. is cutting ad prices as it tries to woo brands back to the Elon Musk-owned platform.
   
• Banc of California agreed to buy PacWest Bancorp in a move by the lenders to further shore themselves up following a regional-banking crisis earlier this year.
   
• Google reported a pickup in revenue growth during the most recent quarter, signaling continued improvement in the online advertising market, and said it would shake up its top finance role as the company attempts to capitalize on advancements in artificial intelligence.
   
• Hundreds of Airbus jetliners will require inspections after a new problem with their Pratt & Whitney engines, adding another potential airline disruption in coming months.
   
• TikTok is launching an e-commerce business in the U.S. to sell made-in-China goods to consumers, stepping up its rivalry with popular shopping platforms Shein and Temu.
   
• Chinese leader Xi Jinping removed his handpicked foreign minister after less than seven months on the job, a surprise move that leaves more questions than answers around China’s black-box political system.

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