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The Morning Risk Report: Danske Bank Expects $2.1 Billion Settlement of Money-Laundering Probe
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Good morning. Danske Bank, Denmark’s largest bank, said it expects to pay the equivalent of $2.1 billion to settle a money-laundering probe by U.S. and Danish authorities, closing a chapter that has dragged on for years.
Danske said Thursday that it took additional provisions in the third quarter to cover that amount, which it is estimating based on discussions with the U.S. Department of Justice, the U.S. Securities and Exchange Commission and the Danish special crime unit.
The bank said talks are ongoing and there is still uncertainty that a resolution will be reached. “Danske Bank is working toward a coordinated resolution before year-end,” it added.
Shares of the bank soared 12% on the news, which ends years of speculation about the size of the fine.
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Content from our Sponsor: DELOITTE
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WSJ Risk & Compliance Forum
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Speakers at the WSJ Risk & Compliance Forum on Nov. 16 include Brian Nelson from the U.S. Treasury Department and Robert Silvers from the Department of Homeland Security, along with multiple experts on corporate risk and compliance. Sign up here for discussions on economic sanctions, forced labor, climate change regulation, whistleblowers and cybersecurity.
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The U.S. government has accused Tornado Cash of letting users launder billions of dollars in virtual currency. PHOTO: LUKE MACGREGOR/BLOOMBERG NEWS
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Cryptocurrency firms including Coinbase Global Inc. and advocacy groups likely face a long journey—and long odds—to win their lawsuits aiming to remove crypto mixer Tornado Cash from the U.S. Treasury Department’s sanctions list, where it landed due to money-laundering allegations.
Efforts to be removed from the Treasury’s sanctions list can be costly and time-consuming, and they often fail, sanctions lawyers said. While crypto advocates and companies contend that Tornado Cash’s sanctions infringe on personal rights to privacy—an important issue for the nascent industry—crypto experts said Tornado Cash might not be the best test case for that argument.
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Credit Suisse Group AG appointed a former Goldman Sachs Group Inc. compliance executive as its new chief compliance officer, as the Swiss lender looks to move on from a period of scandals, hefty losses and executive turnover.
Nita Patel, who is currently the chief compliance officer for Credit Suisse’s asset-management division and its U.K. investment bank, will become the lender’s new compliance chief and join the executive board on Nov. 1, the bank said Thursday.
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Insider trading typically evokes the idea of a well-connected investor using secret information to profit from stock trades. Now, a federal judge has allowed the Justice Department to use the same kind of narrative in a first-ever case about the trading of digital tokens—even though prosecutors didn’t bring traditional insider-trading charges.
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Federal prosecutors and securities regulators are investigating whether Tesla Inc. misled consumers and investors about how its advanced driver-assistance system performed, according to a person familiar with the matter.
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A federal judge dismissed a Pennsylvania mother’s lawsuit against TikTok for circulating the “blackout challenge,” citing a federal law that shielded the social-media company from responsibility regarding her 10-year-old daughter’s death.
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The detention of a Huawei Technologies Co. executive and retaliatory incarceration of two Canadians opened an acrimonious new era between the U.S. and China.
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President Biden discussing national security this week with senior defense officials at the White House. PHOTO: SAUL LOEB/AGENCE FRANCE-PRESSE/GETTY IMAGES
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The Biden administration unveiled a new defense strategy Thursday, casting China as the greatest danger to American security and calling for an urgent, concerted effort to build the military capabilities to deter Beijing in the decades to come.
The strategy document warns that China is seeking to undermine U.S. alliances in the Indo-Pacific, is engaging in coercive activity on Taiwan and is posing a potential threat to the U.S. homeland through its ability to mount cyberattacks against the U.S. industrial base and the system used to mobilize American forces.
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A wave of protests triggered by rocketing living costs and a looming recession is sweeping across Europe, testing the resolve of governments that have so far maintained unity in their costly economic war with Russia.
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The European Central Bank raised interest rates by three-quarters of a percentage point for the second time in a row Thursday, but signaled mounting concerns about economic growth, prompting investors to bet that the bank will soon reduce the scale of its rate hikes.
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Russia said it could target U.S. commercial satellites if they are used to help Ukraine, expanding its threats of reprisals to a new theater that could hit closer to home for American interests.
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China showed no signs of easing its zero-Covid policies that are taking a heavy toll on its economy, as fresh cases disrupted businesses in major cities and food supplies in a remote northwestern region.
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Vijaya Gadde, Twitter’s top legal executive, whom Elon Musk mocked on the site earlier this year, was among the ousted executives. PHOTO: MARTINA ALBERTAZZI/BLOOMBERG NEWS
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Elon Musk fired several Twitter Inc. executives after completing his takeover of the company, according to people familiar with the matter, capping an unusual corporate battle and setting up one of the world’s most influential social-media platforms for potentially broad change.
Mr. Musk fired Chief Executive Parag Agrawal and Chief Financial Officer Ned Segal after the deal closed, the people said. Mr. Musk also fired Vijaya Gadde, Twitter’s top legal and policy executive, and Sean Edgett, general counsel. Spokespeople for Twitter didn’t comment.
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The National Basketball Association named media executive Tammy Henault to be its chief marketing officer as it sharpens its focus on its direct-to-consumer platforms.
Ms. Henault, who starts in her new role Nov. 21, succeeds Kate Jhaveri , who departed in August. She joins the NBA after eight years at Paramount Global, where most recently she was senior vice president overseeing consumer marketing for the media company’s streaming platform, Paramount+.
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Merck & Co. shuffled leadership of the drugmaker’s board of directors, naming Chief Executive Rob Davis as chairman to succeed Ken Frazier.
The shuffle means Mr. Frazier, who retired as chief executive last year, steps away from the company that he had run for a decade. Mr. Frazier served as chairman of the 14-member board since 2011.
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Airline executives say that the robust bookings they saw over the summer have continued into the fall. PHOTO: LM OTERO/ASSOCIATED PRESS
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Southwest Airlines Co. said strong travel demand continues to bolster profit, but cautioned that delays in deliveries of Boeing Co. jets are likely to continue into 2024.
Southwest is the latest in a series of airlines to flag snarled aircraft deliveries as a limiting factor as they race to keep up with appetite for travel that shows little signs of easing.
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McDonald’s Corp. said it is bracing for an economic downturn in the U.S. and Europe and it plans to keep its meals affordable relative to competitors to continue attracting consumers.
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Intel Corp. is beginning targeted job cuts and making other adjustments including reducing factory hours to cope with the economic downturn, Chief Executive Pat Gelsinger said.
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French oil giant TotalEnergies SE has booked a new $3.1 billion accounting charge linked to its Russian assets, taking its total Russia-related impairments to nearly $11 billion this year, among the highest out of Western companies.
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The impact of robots on logistics operations is growing more complicated as companies weigh how automation affects recruiting both management leaders and staffers for the warehouse floor.
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The New York Post has posted content that a spokeswoman called vile and reprehensible. PHOTO: AFP VIA GETTY IMAGES
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An employee accessed the New York Post’s publishing system, posting unauthorized, fake content to the news outlet’s website and Twitter account Thursday morning.
A Post spokeswoman said an employee was responsible for the unauthorized activity, adding that the employee has been terminated. “We’ve since taken down the vile and reprehensible content posted,” she said in an emailed statement.
Tweets that appeared to come from the Post included fake quotes with crude language from New York Republican gubernatorial candidate Lee Zeldin and GOP Gov. Greg Abbott of Texas.
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Skechers USA Inc. said Kanye West, the rapper and fashion-brand owner who goes by Ye, was escorted from one of its California corporate offices after visiting unannounced. The Skechers announcement comes as companies, including Adidas AG and Gap Inc., have distanced themselves from the artist in the wake of his erratic behavior and anti-Semitic comments in recent weeks.
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