Good morning. The Justice Department has tapped Glenn Leon, the compliance chief of Hewlett Packard Enterprise Co., to lead a team of prosecutors responsible for some of the department’s biggest investigations into white-collar fraud and corruption.

Mr. Leon, a former federal prosecutor who has served as HP Enterprise’s chief ethics and compliance officer since 2015, will become chief of the Justice Department’s criminal fraud section, a department official said Tuesday.

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“Glenn is a highly-experienced federal prosecutor, having previously served as a supervisor in the fraud section and for over a decade as an assistant U.S. attorney in the District of Columbia,” Kenneth Polite Jr., the assistant attorney general in charge of the department’s criminal division, said in a statement. Mr. Leon’s extensive investigations, trial and in-house compliance experience at a Fortune 500 company made him a good fit for the job, Mr. Polite said.

Ms. Chen, who helped advise criminal prosecutors as the first in-house compliance counsel expert at the Justice Department, will serve as a senior adviser in the R&G Insights Lab, Ropes & Gray said Tuesday.

U.S. and Canadian banks are evaluating their risk culture more often, a recent survey by the Risk Management Association showed.

All banks surveyed now regularly evaluate their risk cultures, up from about half of banks surveyed five years ago, RMA said in a survey released Tuesday. About 75% evaluate their culture at least annually, RMA found.

“Banks are not only investing heavily in risk management capabilities, but also evaluating whether their risk cultures are being effectively communicated by leaders, reinforced with training and encouraged by incentives,” said Rafael DeLeon, senior vice president of industry engagement at Ncontracts, which collaborated in producing the survey.

The survey drew responses from 57 community, regional, super-regional money center and investment banks based in the U.S. and Canada, a group that included Ally Financial Inc., Discover Financial Services, Royal Bank of Canada and Charles Schwab Corp.

–Richard Vanderford

Handling environmental, social and governance issues has become an integral part of the risk-management profession, according to a survey conducted by a U.K.-based association.

About 45% of respondents to a survey by risk management group Airmic reported they had some responsibility for ESG in their organization. ESG issues also topped the list of what survey respondents sought to educate themselves in, with 26% saying they wanted to learn more about the environment and climate.

“More and more organizations believe that climate change will start to have a material impact on their business within one to two years, as borne out by previous Airmic research,” the association said.

Airmic released the results of the survey, conducted from March to May, on Tuesday. The association’s membership includes risk managers and insurance managers at some of the largest U.K.-based companies, with a majority of members surveyed reporting they work for companies with more than £1 billion, equivalent to $1.3 billion, in annual revenue.

–Richard Vanderford

A handful of prominent American CEOs, including BlackRock Inc.’s Larry Fink and the bosses at Delta Air Lines Inc., Netflix Inc. and Universal Pictures, have landed on a fresh list of sanctions Russia has imposed in retaliation for blistering economic restrictions the West has rolled out against Moscow.

The U.S., U.K. and the European Union have issued sanctions on a widening array of entities and individuals they say are complicit in Russia’s invasion of Ukraine or are close to Russian President Vladimir Putin. 

Russia’s Foreign Ministry said that it would impose sanctions on dozens of U.S. nationals in what it said was a response to “the ever-expanding U.S. sanctions against Russian political and public figures, as well as representatives of domestic businesses.”

Sens. Cynthia Lummis (R., Wyo.) and Kirsten Gillibrand (D., N.Y.) outlined a bill Tuesday dubbed the Responsible Financial Innovation Act, which aims to create a “complete regulatory framework for digital assets.” In a joint press release, they said it would balance the crypto market’s need for guardrails and consumer protections with a desire to promote financial innovation.

The Securities and Exchange Commission’s expected changes to U.S. stock-trading rules are likely to prompt fierce opposition from the brokerages and electronic market-making firms that handle small investors’ orders, analysts and traders say.

The agency is preparing to propose major changes to the stock market’s plumbing as soon as this fall, The Wall Street Journal reported Monday. SEC Chairman Gary Gensler is expected to outline some of the SEC’s plans Wednesday in a speech. The changes grew out of the frenzied trading in GameStop Corp. and other meme stocks in early 2021, which resulted in heavy scrutiny of the handling of individual investors’ trades.

• The U.S. Treasury moved to block U.S. investors from making purchases of Russian debt in secondary markets, an apparent expansion from existing policy that only prohibited purchases of newly issued Russian government debt and some Russian corporate debts.
   
• Two major financial players are suing the London Metal Exchange for a total of nearly half a billion dollars, after the exchange earlier this year suspended nickel trading and canceled some trades following wild swings in the metal’s price.
   
• Sales of Apple Inc. products that use the company’s proprietary Lightning charger port would be banned in the European Union under a deal lawmakers agreed Tuesday, aiming to set a common charging standard for mobile phones and other portable electronic devices, and potentially hitting the U.S. tech giant in one of its biggest markets.
   
• The Financial Reporting Council fined PricewaterhouseCoopers on Tuesday after the U.K. audit and accounting regulator found issues with the firm’s audits of two construction groups.
   
• Goodyear Tire & Rubber Co. has told U.S. auto-safety regulators it is recalling a tire that has been linked to at least eight deaths and several dozen injuries, after years of resisting such a move and defending the tire as safe.
   
• The Federal Trade Commission is probing CVS Caremark, Express Scripts Inc. and other large pharmacy-benefits managers over what impact their business models have on the accessibility and affordability of prescription drugs.

European officials blamed Moscow for a looming global food crisis as Russia’s blockade of Ukrainian ports threatens the country’s grain exports, while fighting rages in the east.

Russia’s ambassador to the United Nations, Vasily Nebenzya, walked out of a Security Council meeting on Monday after European Council President Charles Michel accused the Kremlin of weaponizing food supplies, in a heated exchange.

European Union foreign-policy chief Josep Borrell also cast doubt on Russia’s claims that it isn’t hindering the export of grain, citing reports that Moscow struck Ukraine’s second-biggest grain terminal in the southern port city of Mykolaiv over the weekend.

• Looming Food Crisis Related to War Divides Biden Administration
• Russian Invasion Expected to Double Inflation Rates in Rich Countries

The trade gap in goods and services fell 19.1% in April from the prior month to a seasonally adjusted $87.1 billion, the Commerce Department said Tuesday, retreating from a record $107.7 billion deficit the prior month.

• World Bank Warns of Stagflation Risk, Cuts Global Growth Forecast
• Yellen and World Bank Expect Elevated Inflation to Persist

• Prime Minister Fumio Kishida deleted a pledge from earlier government statements calling for Japan’s budget to be balanced by 2025. And he declined to give a date by which Japan would do something to lower its government debt, while promising to significantly increase military spending.
   
• British Prime Minister Boris Johnson on Tuesday pledged to refocus his government on tackling voters’ priorities, trying to rally his party behind him following an effort by his fellow Conservative lawmakers to oust him.
   
• Omicron Covid-19 variants BA.4 and BA.5 are on the rise in the U.S., adding two more highly contagious versions of the virus to the mix that has fueled a springtime surge in cases.

Companies are hanging onto the London interbank offered rate for existing loans and derivatives despite a push from regulators to abandon the troubled interest-rate benchmark, whose demise is about a year away.

Financial authorities started phasing out Libor in 2017 after traders at large banks manipulated the rate, which underpins trillions of dollars of financial contracts, such as mortgages, corporate loans and interest-rate derivatives. The benchmark is set to expire by June 30, 2023.

Cyberattacks are becoming more common for small businesses, and many aren’t prepared to deal with an attack.

As small businesses have accelerated their adoption of new technologies for remote work, communication, production and sales during the pandemic, their expanded computer networks have created new vulnerabilities to phishing and ransomware attacks. But many small businesses still don’t expect to be targeted by hackers, so preparing for a cyberattack is well down their list of priorities.

Congress recently approved a federal law requiring companies to report cyberattacks and share relevant data with federal authorities. But concerns about the law remain, both in the corporate world and in federal law-enforcement agencies. Questions include: Which types of businesses and what types of incidents? Also, major incidents are to be reported within 72 hours—but when exactly do those 72 hours begin?

U.S. Rep. Yvette Clarke, a New York Democrat and one of the engineers of the law, recently participated in the virtual WSJ Pro Cybersecurity Forum. Ms. Clarke, a senior member of the House Committee on Homeland Security, spoke with David Uberti, a reporter for The Wall Street Journal.

Luxury consignor The RealReal Inc. said its chief executive is stepping down Tuesday, becoming the latest online retailer to replace its founder at a time of upheaval in the shopping industry.

Julie Wainwright, who founded the company in 2011 and has since led the online marketplace, is also resigning as board chair and member of The RealReal’s board. The changes are effective immediately. Ms. Wainwright will continue to serve in an advisory role through the end of this year.

• Microsoft’s Augmented-Reality Chief Plans to Leave Company

Thousands of workers in the U.K. are beginning a four-day workweek this week, one of the largest tests to date of whether employees can accomplish just as much—for the same pay—in fewer hours.

More than 3,300 workers at 70 businesses ranging from banks to fast-food restaurants to marketing agencies are participating in the six-month pilot project.

The study is the latest effort to examine whether reducing workers’ hours can improve employee well-being without sacrificing productivity, an approach that has attracted more attention in recent years, according to company executives, labor organizers, academics and some governments. 

• Deutsche Bank AG relocated hundreds of employees from its technology center in Russia to Berlin and decided to make the German capital a tech center for its investment and corporate banking activities.
   
• The chief executive of Toshiba Corp., the Japanese industrial conglomerate that has put itself up for sale, said he wanted any buyer to keep the company in one piece to promote innovation.
   
• Bayer AG’s $63 billion bet on Monsanto Co. is finally showing signs of paying off, as food shortages stoked by Russia’s invasion of Ukraine drive demand for seeds and pesticides to boost global crop production.
   
• Target Corp. warned its profit would drop because it needs to cancel orders with vendors and offer discounts to clear out unwanted goods, the latest sign of the sudden mismatch between supply and demand inside America’s stores.
   
• Credit Suisse Group AG warned its capital position is eroding and that it expects another quarterly loss from weak market conditions and lower earnings in its investment bank.

Private-equity firms have spent decades raking in giant sums from pension funds and other big institutions. Now they are going hat in hand to a different kind of investor: everyday millionaires.

Some of the biggest firms, including Blackstone Inc., Blue Owl Capital Inc., Apollo Global Management Inc. and Ares Management Corp., have created a host of new products aimed at people with $1 million to $5 million in investible assets and are hiring armies of staff to market them to private banks and independent financial advisers.

Behind the effort is the recognition that institutions, which committed nearly $1.3 trillion to private markets in 2021, according to PitchBook, have all but filled up on them.