Good morning. Federal regulators want more mutual funds to live up to their names.

The Securities and Exchange Commission voted 4-1 Wednesday to subject more funds to its so-called Names Rule, which says funds whose moniker suggests a particular investment strategy must allocate at least 80% of their portfolio to such assets.

“Funds’ investment portfolio should match a fund’s advertised investment focus,” SEC Chair Gary Gensler said. Agency officials noted that a fund’s name is often the first piece of information consumers see when shopping for investments.

• Why? Regulators are aiming to address concerns about “greenwashing” by asset managers who tout an emphasis on sustainability by including terms like ESG—or environmental, social and governance—in the names of their funds. Such funds have become an important revenue source for some asset managers as fees for traditional index funds face downward pressure.
   
• In addition to ESG funds, the updated rule will cover thematic names, such as “value” or “growth.” Asset managers will have to explain how they define terms in their name but will have broad leeway to do so. That means two funds with the same name may hold different investments.
   
• Enforcement actions: The SEC in early 2021 formed a task force to step up enforcement against firms making deceptive or empty claims about their environmental or social values. In the past 18 months, the agency has fined the asset-management arms of banks including BNY Mellon and Goldman Sachs.

The WSJ Pro Sustainable Business Forum on Oct. 12 will include a discussion about risk and resilience in corporate sustainability programs with Maryam Golnaraghi, director of climate change and environment at The Geneva Association, and Torolf Hamm, head of physical catastrophe and climate risk management at Willis Towers Watson.

Other sessions will cover reporting to U.S. and European standards, the role of artificial intelligence and what corporate decarbonization measures are proving effective. Register here.

SpaceX sues Justice Department to stop discrimination case.

Elon Musk’s SpaceX sued the Justice Department to stop the hiring discrimination case brought against the rocket company last month.

SpaceX’s lawsuit said that the Justice Department’s lawsuit is unconstitutional because the case would be heard in an administrative court and not in a federal court with a jury.

SpaceX was sued by the Justice Department in August, alleging that the company discouraged refugees from applying for positions and refused to hire them or consider their applications. The agency said SpaceX wrongly claimed that federal laws meant that it could only hire U.S. citizens and permanent residents. The suit was filed before the Office of the Chief Administrative Hearing Officer, within a division of the Justice Department.

Iran’s oil exports have soared during quiet diplomacy with U.S.

The U.S. backed away from some actions meant to stop Iran’s oil shipments as Washington and Tehran conducted negotiations that led to Monday’s release of five Americans, part of a larger step back from sanctions enforcement that has seen Iran’s energy exports grow, according to current and former U.S. officials.

The release of the five Americans came days after the Biden administration issued a waiver for international banks to transfer $6 billion in frozen Iranian money from South Korea to Qatar. The prisoners’ return to the U.S. also follows months of rising Iranian oil shipments, including to China, Iran’s biggest buyer, as Washington chose not to aggressively enforce the international sanctions regime, according to people familiar with the matter.

Iran’s energy exports have been rising over the past several years, which former officials say suggests that the U.S. made a policy decision, even before the recent talks over detainees, to not aggressively enforce sanctions as it has sought to re-engage Iran at the negotiating table.

• The Federal Trade Commission disclosed new details in its lawsuit against Amazon.com to publicly name three executives who the agency says played a key role in a scheme to enroll customers unwittingly in the company’s Prime program and make it difficult for them to cancel their subscription.
   
• TikTok had hardly any friends in government earlier this year as the Biden administration, Congress and state legislatures were threatening to ban the Chinese-owned video giant. TikTok now has many more friends, with something in common: backing from billionaire financier Jeff Yass. They’ve helped stall attempts to outlaw America’s most-downloaded app.
   
• Kiwi Camara, a Harvard Law School prodigy turned technology entrepreneur, drew attention last week when he resigned from software supplier CS Disco walking away from stock options once valued at nearly $110 million. Current and former employees now say he abruptly quit as chief executive after the small company’s board began investigating allegations that he groped a young female employee.
   
• The events that led Michigan State to move toward firing football coach Mel Tucker began 10 months ago, when a prominent anti-rape activist filed a sexual misconduct complaint against him. Yet the school’s leaders only rolled into action in the past 10 days, after a newspaper story detailed the allegations and early findings against him.
   
• Many big U.S. companies have been fighting in Washington to block rules requiring them to disclose their greenhouse-gas emissions. They picked the wrong fight. California and the European Union are both poised to approve rules that require companies that do business there to disclose their emissions.
   
• A cyberattack on cleaning-products maker Clorox is providing an early test for new rules on disclosing cyberattacks, in a case that is being closely watched by business leaders.

Zelensky, Ukraine’s war messenger, confronts a more wary Washington.

Ukrainian President Volodymyr Zelensky arrives in Washington on Thursday at a different political moment than his last visit.

In December, clad in an olive drab sweater, Zelensky delivered an impassioned speech to a packed House chamber that drew standing ovations. Admiring senators likened him to Winston Churchill, another wartime leader who rallied foreign allies. Then-Speaker Nancy Pelosi (D., Calif.) presented him with an American flag.

Nine months after that December speech, Zelensky’s pitch for continued U.S. help halting Russian aggression is expected to be less cinematic, more pragmatic and potentially combative.

• Ukrainian Tactics Put Russia on the Defensive in the Black Sea
• GOP Lawmakers Warn White House on Ukraine Aid

How U.S. households got turned upside down by higher interest rates.

A new reality has finally started to set in across American households: Higher interest rates are here to stay.

These higher-for-longer rates are starting to exact a toll on households that need to borrow now, especially for major purchases such as homes and cars. Those who have to rely on credit-card debt, where rates rise along with the market interest rates, are also feeling the bite.

• It isn’t a political slogan that would win many votes: Make Britain Boring Again. But for the first time in nearly a decade—after nonstop drama from Brexit to the colorful antics of Boris Johnson—politics in Britain is eliciting yawns rather than headlines. And that’s good news for the world’s sixth-biggest economy.
   
• It isn’t just regular Americans who are having trouble buying houses these days. America’s biggest landlords can’t find houses to buy either.
   
• A federal program that provides critical flood insurance is set to lapse unless renewed by the end of the month, potentially stranding new home buyers in need of coverage.
   
• Long lines at airports. Delayed food-safety inspections. Halted infrastructure projects. Military personnel working without pay. These are just some of the potential consequences if the federal government partially shuts down next month, according to the White House. 
   
• Tether Holdings resumed lending out its own stablecoins to customers, less than a year after it said it would wind down the practice. Its lending represents a potential risk to the crypto world. 
   
• China has sent some of its largest swarms of jet fighters and warships into the air and waters around Taiwan this month.
   
• Two prototype U.S. drone ships have arrived in Japan for their first deployment in the western Pacific, testing surveillance and attack capabilities that the Navy might find useful against China’s larger fleet.
   
• Israeli officials are quietly working with the Biden administration on a polarizing proposal to set up a U.S.-run uranium-enrichment operation in Saudi Arabia as part of a complex three-way deal to establish official diplomatic relations between the two Middle Eastern countries, according to U.S. and Israeli officials.

• A federal court that oversees appeals in patent cases suspended a 96-year-old judge amid concerns about her mental competence, a rare instance in which a court has moved to sideline one of its life-tenured members for health reasons.
   

• The United Auto Workers strike at U.S. carmakers exposes a conflict at the heart of the Biden administration’s economic policy that could be difficult to resolve.
   
• In a significant concession to New York City Mayor Eric Adams and other blue-state officials, the Biden administration has agreed to make roughly 470,000 Venezuelan migrants eligible for work permits aimed at easing the financial strain on major migrant destinations.
   
• The White House said the U.S. is in “very active” discussions aimed at securing the release of jailed Wall Street Journal reporter Evan Gershkovich, but warned that freeing him could be difficult.

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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