Good morning. The American Bankers Association was one of the biggest proponents of a new corporate ownership registry, saying it hoped the project would help cut regulatory costs for its members. But the industry group on Tuesday made an about-turn, attacking the U.S. Treasury Department over how it plans to manage a key part of the database.

• Taking Treasury to task: The ABA in a letter said a proposal by the Treasury related to who will have access to the database was “fatally flawed” and should be withdrawn. 
   
• Restricting access: The Financial Crimes Enforcement Network, which is charged with building the new database, in a proposal released in December said it would give banks and other financial institutions access to the database, but with limits. Under the proposal, banks wouldn’t have direct access to the registry and would be required to submit requests for an electronic transcript. Banks also would have to seek consent from customers before submitting a request.
   
• Potential impact too great, says ABA: The banking trade organization on Tuesday said the restrictions placed around banks’ access to the registry were too great. The group’s letter was cosigned by bankers associations for 50 states and Puerto Rico. “The proposal creates a framework in which banks’ access to the registry will be so limited that it will effectively be useless, resulting in a dual reporting regime for both banks and small businesses,” the group wrote.
   
• Bottom line: The letter is a rebuke from a key supporter of the registry, which lawmakers hoped would limit the use of anonymous shell companies. It comes as the Treasury bureau tasked with creating the database faces resource constraints, delays and a lawsuit.

TikTok’s Talks With U.S. Have an Unofficial Player: China.

As TikTok pushes for an agreement with U.S. officials over its operations, an unofficial force at the negotiating table is the Chinese government. 

Balancing act. The negotiations are part of a broader battle over technological dominance and come amid geopolitical tensions heightened most recently by a spat over surveillance that erupted after the U.S. shot down a Chinese balloon over its territory.

Binance hires Gemini executive as chief compliance officer.

Binance said Noah Perlman has joined as its chief compliance officer from rival Gemini Trust Co., reports Risk & Compliance Journal’s Mengqi Sun, as the cryptocurrency exchange continues to beef up its legal and compliance team amid regulatory scrutiny.

Under pressure. The compliance officer appointment comes as Binance said this week that the New York Department of Financial Services has ordered its partner Paxos Trust Co. to stop issuing Binance’s BUSD stablecoin, which is one of the largest dollar-pegged cryptocurrencies.

• The Federal Trade Commission’s lone Republican member said Tuesday she was resigning, describing her move as a protest against the leadership strategy and ethics of the Democratic chair of the antitrust and consumer-protection agency.
   
• Norfolk Southern Corp. is facing scrutiny from regulators, public officials and residents as cleanup and environmental-monitoring efforts continue in a small Ohio town after the derailment of a train carrying hazardous chemicals.

Cyber insurers unlikely to offer higher coverage limits despite better conditions.

Insurers don’t expect the amount they are willing to cover through cyber policies to expand dramatically in the near future, despite signs of a recovery from shock losses in recent years.

Covering big risks. Most major cyber insurers are willing to write insurance for their largest customers up to around $15 million, said Jeremy Gittler, practice leader and head of cyber for the Americas at AXA SA’s XL reinsurance unit, which issues insurance for insurers. But few are likely to start issuing policies for $20 million or $50 million, which large companies sometimes need to cobble together full coverage from multiple carriers.

Inflation report keeps Fed on track to continue rate increases.

Tuesday’s strong inflation report is likely to keep Federal Reserve officials on track to raise interest rates at their meeting in March and to signal that further increases will be likely.

More hikes expected. “We must remain prepared to continue rate increases for a longer period than previously anticipated if such a path is necessary to respond to changes in the economic outlook or to offset any undesired easing in conditions,” said Dallas Fed President Lorie Logan in remarks Tuesday in Prairie View, Texas.

• America’s allies in Asia are raising their vigilance against high-altitude balloons after Washington accused Beijing of using them in a global spying program.
   
• The North Atlantic Treaty Organization warned the start of a major new Russian offensive in Ukraine was now under way.
   
• The International Monetary Fund has started negotiating with Ukrainian officials to put together what could be its largest loan package for the country since Russia’s invasion.

Mr. Ferraro, who will head the Somerset, N.J.-based company’s legal leadership team, previously served as chief legal officer and secretary for financial-services company Innovate Corp., and as general counsel and deputy chief compliance officer for business development company Prospect Capital.

• President Biden’s reshuffle of his economic team could have its most immediate economic impact on the Federal Reserve, with the departure of the central bank’s vice chair, Lael Brainard, for the White House.
   
• The U.S. military is considering sending Ukraine thousands of seized weapons and more than a million rounds of ammunition once bound for Iran-backed fighters in Yemen.
   
• Air India Ltd. ordered 470 jets from Boeing Co. and Airbus SE, marking the largest deal for commercial aircraft in aviation history and coming as airlines scramble for jets to meet surging demand for air travel.
   
• Tesla Inc. workers in Buffalo, N.Y., have launched a campaign to form what would be the electric-vehicle maker’s first union in the U.S.
   
• Former Vice President Mike Pence is preparing to challenge a subpoena issued by the special prosecutor investigating former President Donald Trump’s efforts to overturn the 2020 presidential election.
   
• When the suspected Chinese spy balloon that was shot down Feb. 4 crossed the U.S. at altitudes as high as 65,000 feet, the balloon floated into the murky zone aloft where no international consensus exists about which, if any, nation wields control.

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