Good morning. Toronto-Dominion Bank fired more than a dozen people for conduct issues related to failings in its anti-money-laundering program in the U.S., a person familiar with the matter said.

Since problems with TD’s processes to prevent money laundering came to light and the big Canadian lender entered the crosshairs of U.S. regulators and the Justice Department, it has launched an overhaul of the program and has moved to bring in new technologies and made a number of changes to anti-money-laundering leadership.

• Cleaning house: The person said action was taken against certain leadership in the anti-money-laundering function and people working in U.S. bank branches who were found to have breached TD’s internal code of conduct, which employees agree to each year. Some employees were fired as criminal charges were brought against them. Other disciplinary steps were imposed on staff where the bank determined there were minor infringements, the person added.
   
• Confirmation: In a conference call with analysts Thursday following the release of TD’s financial results for the fiscal second quarter, President and Chief Executive Bharat Masrani said that, as an internal investigation into the failings has advanced, the bank took action against responsible employees, including termination. Numbers and who was let go weren’t disclosed.
   
• Waiting for possible fines: TD last year disclosed a DOJ probe into its anti-money-laundering practices, and it more recently said it also is subject to three other anti-money-laundering investigations in the U.S. It set aside US$450 million to resolve one of those inquiries during the latest quarter, and has said it expects additional penalties.
   

Note to readers: The Morning Risk Report won't be published Monday in observance of Memorial Day in the U.S. We will be back in your inbox on Tuesday.

Justice Department sues to break up Live Nation-Ticketmaster.

The Justice Department and more than two dozen states sued Live Nation on Thursday, alleging the entertainment giant has a monopoly in ticketing and concert promotion and should be broken up.

The lawsuit, filed in a New York federal court, alleges Live Nation used its power to squelch competition and retaliate against promoters and venues that threatened its dominance. The company chokes off competition in key pieces of the concert system, driving prices and fees higher for fans, the department said.

Norfolk Southern settles government’s Ohio derailment probe.

Norfolk Southern has agreed to pay hundreds of millions of dollars to resolve the federal government’s investigation into the February 2023 train derailment in East Palestine, Ohio.

The Environmental Protection Agency and Justice Department said the settlement was valued at more than $310 million. A tally of the penalty and financial commitments laid out by Norfolk Southern total more than $373 million.

• The Office of the Comptroller of the Currency issued an enforcement action against a unit of Comerica, saying it found “unsafe or unsound practices” related to its risk governance and internal controls.
   
• A day after the House of Representatives voted 279-136 to pass a bill that would demolish regulatory barriers for crypto firms, some advocates are wondering if they can get even more from lawmakers in the form of less-stringent oversight.
   
• The Securities and Exchange Commission approved the first U.S. exchange-traded funds holding ether—the largest cryptocurrency behind bitcoin—in an about-face that surprised the crypto community.

NOAA predicts the most hurricanes that it has ever forecast.

Federal officials forecast a record-breaking Atlantic hurricane season with the largest number of major storms since the National Oceanic and Atmospheric Administration began issuing seasonal hurricane outlooks in 1998.

This season will see between 17 and 25 named storms with winds of 39 miles an hour or higher, NOAA officials said Thursday. Of those, eight to 13 are forecast to become hurricanes with winds of 74 miles an hour or higher. Four to seven major hurricanes of Category 3 or above with maximum sustained winds of 111 miles an hour or higher are expected to form. Each of these numbers is the highest that NOAA has ever forecast. After the forecast, shares of insurance companies took a hit.

Chinese military launches drills encircling Taiwan in test of new president.

One of the nightmare scenarios facing Taiwan’s new president, Lai Ching-te, is a potential blockade of the island democracy by the Chinese military. Beijing wasted little time in giving him a sense of what that might look like.

On Thursday, just three days after Lai’s inauguration in Taipei, the Eastern Command of China’s People’s Liberation Army said it sent army, navy, air and rocket forces into areas surrounding Taiwan for large-scale combat drills.

• Global economic growth is becoming more broad based, with surveys indicating that business activity in both the U.S. and the eurozone gained momentum in May.
   
• Around 80% of the world’s gum arabic is harvested from Sudan’s acacia trees, and the widely used ingredient has become a funding source for both sides in the country’s civil war.
   
• Singapore’s economy looks on track for a strong year, with hopes underpinned by better-than-expected growth, steadying inflation and improving trade.
   
• France’s President Emmanuel Macron said he was open to suspending a contentious voting-rights bill that triggered deadly riots in New Caledonia on the condition that order is restored across the French overseas territory and factions return to the negotiating table.
   
• In early July, British voters face a choice between two politicians who are offering an unusual political recipe these days: a return to dull pragmatism in a world of polarizing populism.

• Once perceived as hippies and tree-huggers, chief sustainability officers have seen their role evolve from a backroom marketing function to being key figures in a company’s operations. 
   
• More marketers are tapping into modern fears and discomforts, rather than selling consumers the perfect life. Technology is a growing target.
   
• Investors are using shareholder proposals to drag corporations into U.S. political and cultural fights, but legal challenges could allow big companies to shut them down.
   
• Private lenders are getting choosy in today’s high-interest-rate environment about which businesses to rescue, abandoning a bet against a quick drop in rates.

• A man, thrown across the aisle, slammed into seats. Another hit the ceiling. A woman, airborne, crashed into a luggage bin. It was one of the worst turbulence accidents ever.
   
• Good news for Americans hitting the road over what could be a record Memorial Day weekend of driving: Prices at the pump are ticking lower again.
   
• Families of several female Israeli soldiers being held hostage in Gaza released a video of their abduction during the Oct. 7 attacks led by the Islamist militant group Hamas, in what they said was an attempt to pressure the Israeli government as negotiations over their release have stalled.
   
• The Louisville detective whose encounter with Scottie Scheffler led to the stunning arrest of the world’s No. 1 golfer at the PGA Championship violated department policy by not turning on his body camera, the city’s police chief and mayor said Thursday.
   
• Former President Donald Trump said his relationship with Russian leader Vladimir Putin would help secure the release of Evan Gershkovich, the Wall Street Journal reporter detained in a Moscow jail for more than a year.

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