Good morning. Regulators are investigating some of the biggest U.S. banks for their handling of customer funds on the peer-to-peer payments platform Zelle, which has been facing scrutiny over scams and fraudulent transactions.

The Consumer Financial Protection Bureau probe focuses on JPMorgan Chase, Bank of America and Wells Fargo, among other large banks, according to people familiar with the matter.

• Scams in focus: Zelle, created in 2017 to compete with popular money-transfer services such as Venmo and Cash App, is owned by a consortium of seven of the largest U.S. banks including JPMorgan, Wells Fargo and Bank of America. The network now handles a larger dollar value of transactions than Venmo. Banks are required to refund customers for transactions they didn’t authorize, but there isn’t legal protection for customers who send the money themselves. Reversing erroneous transfers is usually impossible.
   
• The probe: It is broad in nature and meant to examine how the banks respond when customers dispute transactions made through Zelle, the people said. JPMorgan disclosed in a filing Friday that it was responding to CFPB inquiries regarding Zelle; other large banks are expected to disclose contact with the CFPB soon.
   
• Part of CFPB’s focuses: It looks at whether banks are proactive enough in shutting down accounts controlled by scammers, the people familiar with the matter said. The CFPB is also examining the degree to which banks vet the identity and background of deposit-account customers who end up being bad actors.

The battle over disability pay and mental-health leave. 

More workers are seeking paid time off to treat mental-health conditions such as anxiety, depression or post-traumatic stress disorder, and they are facing more resistance than do employees with straight medical claims, according to lawyers, industry experts and data from insurance-claim administrators.

Companies say they take workers’ mental health seriously and that they want valid claims paid out. They also say there are legitimate reasons for questioning a medical provider’s conclusions about an employee’s ability to perform a job, because it can be more difficult to assess the effects of a mental condition than it is for a medical ailment such as a broken hip.

• The Financial Conduct Authority will hit U.K. financial firms with a survey about how their staff use encrypted messaging services in the coming weeks, reports Financial News (subscription required).
   
• Tesla is recalling 1.68 million cars in China to fix the same hood problem that recently affected models in the U.S.
   
• The U.S. isn’t ready to wean itself from Chinese drones. Police departments, rescue workers are part of the fight against calls to outlaw DJI sales in the U.S.
   
• Factories are still a major source of safety concerns at Boeing, according to testimony from current and former company employees, contractors and regulators at a federal hearing this week.
   
• Qantas Airways said it would withhold bonuses totaling some $6.1 million from former Chief Executive Alan Joyce, saying the Australian carrier’s reputation and relationships were damaged under his watch.
   
• The family of a French explorer who died last year on an expedition to the Titanic has filed a wrongful-death lawsuit against the submersible’s operator OceanGate, alleging gross negligence.

Glencore sticks with Coal, cites pendulum shift on ESG. 

Glencore abandoned a plan to spin off its coal business after shareholders encouraged it to keep mining the fossil fuel, in the latest signal that the finance world’s sustainable-investing craze is fizzling out.

London-listed Glencore, one of the world’s biggest producers of electricity-generating thermal coal, said Wednesday it asked investors with two-thirds of voting shares for their views on the spin off. Of those who expressed a preference, more than 95% wanted Glencore to retain coal, the company said.

• It took just seconds for an underground South Korean residential parking lot to be engulfed in flames. The culprit: a Mercedes-Benz EQE electric vehicle that hadn’t been charging. The blaze dominated national news in South Korea. Some organizations are pushing for EVs to be parked outdoors, residents are protesting and lawmakers are proposing new safety measures.
   
• Ukraine launched an armored incursion into Russia’s lightly defended Kursk region in a surprise move early Tuesday that caused panic among civilians and forced Moscow to rush in additional troops.
   
• The economic angst that delivered a summer scare to global markets could hand a surprise to American consumers this fall: lower prices at the pump.

James Raby will succeed Una Neary, who plans to retire this year after six years as compliance chief, Black Rock's chief legal officer Chris Meade wrote in a memo to employees on Wednesday.

Dutch lender ABN AMRO taps new risk chief. 

ABN AMRO Bank intends to name Serena Fioravanti as its new chief risk officer. Her appointment, effective on Oct. 1, is contingent on formal approval by the European Central Bank, according to the Dutch lender.

Fioravanti comes to ABN AMRO from Credit Suisse, where she served for almost four years as the chief risk officer for subsidiary Credit Suisse Switzerland.

• JD Vance and Tim Walz don’t agree on much, but there is one thing they both can get behind: Diet Mountain Dew.
   
• The prisoner swap last week that brought Wall Street Journal reporter Evan Gershkovich home didn’t free a pair of well-known Russian cybercriminals in U.S. prisons long rumored to be part of the negotiations between Washington and Moscow.
   
• The Seine is gross, but swimmers have a solution: a can of Coke. After braving the bacteria-laden waters of the French capital, some of the world’s fittest athletes will immediately take a slug of sugary soda. ‘If you Google it, it says it can help.’
   
• Taylor Swift’s three planned shows in Vienna this week were canceled after government officials said they arrested two people over a planned terrorist attack at her concert stadium.

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