Good morning. Boeing has agreed to plead guilty to misleading air-safety regulators in the run-up to two deadly 737 MAX crashes, a stunning concession that would brand the world’s biggest aerospace company a felon.

• What we know about the new plea deal. The company will formally acknowledge guilt and accept fresh punishment over its dealings with the Federal Aviation Administration before two 737 MAX crashes that killed 346 people, according to a late Sunday court filing. As part of a plea to one count of conspiracy to defraud the U.S., prosecutors have asked the company to pay a second $244 million criminal fine and spend $455 million over the next three years to improve its compliance and safety programs. Boeing also must hire an independent monitor for three years to oversee those improvements.
   
• The downsides of being a corporate felon. Pleading guilty creates business challenges for Boeing. Companies with felony convictions can be suspended or barred as defense contractors. Boeing is expected to seek a waiver from that consequence. The company was awarded Defense Department contracts last year valued at $22.8 billion, according to federal data. Boeing and the Defense Department are in talks on the issue, a person familiar with the matter said.
   

• How did the company get here? In a 2021 deal, Boeing paid a $243.6 million criminal fine and $500 million to compensate the families of deceased passengers—but avoided harsher measures. That more lenient settlement then faced several unexpected obstacles. First, prosecutors failed to notify the families of the crash victims about the terms of the original settlement, violating a law that protects the rights of crime victims. Later, new safety issues caused prosecutors to argue that Boeing hadn’t upheld their end of the deal, which included maintaining an effective compliance program.

• A focus on victims. The Justice Department in recent years has said it will place a renewed focus on the victims of corporate wrongdoing. As part of the new plea deal, Boeing’s board of directors has agreed to meet with victims’ family members. Still, many family members feel the settlement falls short. “The families intend to argue that the plea deal with Boeing unfairly makes concessions to Boeing that other criminal defendants would never receive and fails to hold Boeing accountable for the deaths of 346 persons,” an attorney for the families said in a recent court filing.

U.S. plans broader look at real-estate deals near military bases.

More foreign real-estate transactions near U.S. bases stateside would face scrutiny under a new Biden administration proposal, a move that comes amid concerns about China.

The U.S. Treasury Department on Monday proposed a vast expansion of the number of domestic installations it watches under a law that allows the government to block foreigners from buying land.

The proposal would allow the Committee on Foreign Investment in the U.S., which reviews deals for national security issues, to look into real-estate purchases near more than 50 military sites that hadn’t previously been covered. Some of the added installations are deemed sensitive enough that even deals up to 100 miles away could be blocked.

Property fraud allegations snowball as commercial real-estate values fall.

U.S. prosecutors are cracking down on commercial mortgage fraud, a growing push that is sending shudders through the $4.7 trillion industry by raising questions about the numbers underpinning major property loans.

Regulators and federal prosecutors say that property loans based on doctored building financials and valuations have been rising. This type of fraud became more widespread between the mid-2010s and 2021, federal investigators and real-estate brokers say, when commercial property prices surged to new highs and landlords had much to gain from such maneuvers.

• Private insurers involved in the government’s Medicare Advantage program made hundreds of thousands of questionable diagnoses that triggered extra taxpayer-funded payments from 2018 to 2021, including outright wrong ones, according to a Wall Street Journal analysis of billions of Medicare records.
   
• The Federal Bureau of Investigation is probing allegations of rape and sexual assault by three siblings in one of the most famous families in luxury real estate, according to people familiar with the matter and a document reviewed by The Wall Street Journal.

The ECB’s counter-contagion tool remains untested.

French legislative elections concluded without a hint of financial turbulence across the eurozone, and that means the European Central Bank’s untested counter-contagion tool will remain untested.

Sunday’s results don’t remove uncertainty, nor do they make it likely that France will quickly contain an unexpectedly rapid rise in borrowing. But the outcome does reduce the likelihood of a big, additional surge in borrowing and confrontation with the rest of the European Union over its budget rules.

With votes in, France now faces a fractious Parliament that threatens an unprecedented period of political paralysis, revealing a country that is deeply split along lines of class, geography and religion.

Related: 

• French Stocks Recover From Initial Fall After Leftist Alliance Win
• In France, Investors Get the Centrist Limbo They Wanted

• Unemployment rates are set to pick up only slightly across the world’s rich countries in the short term, while real wages will continue to rise as profit growth cools, the Organization for Economic Cooperation and Development said Tuesday.
   
• Houston city officials said it could take days to restore power to millions of customers after Hurricane Beryl swept through the region, flattening homes and leaving several people dead.

Moody on Monday joined Akin Gump Strauss Hauer & Feld, where he will work as a partner in its white collar defense and investigations practice. At DOJ, he rose to serve as an assistant chief of the FCPA unit, and worked on cases such as the agency’s $860 million settlement with French financial services firm Société Générale.

• President Biden dug in Monday, telling a broad array of Democrats that he was committed to “running this race to the end” and that it was time for conversations about changing nominees to stop, as concerns about his candidacy grew louder.
   
• Israel launched airstrikes and sent ground troops back into Gaza City, where it said militants continued to operate months after heavy fighting concluded there, underlining how the war in Gaza is dragging on nine months after it started.
   
• Russia launched its largest missile attack on Ukraine in months on Monday, striking a children’s hospital in Kyiv as well as other sites across the country, in an assault that left at least 33 people dead and more than 100 injured, according to Ukrainian officials.
   
• A global coalition of nations that advocates for a free press has condemned the Russian prosecution of Wall Street Journal reporter Evan Gershkovich and called for his release.

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