Good morning. The European Union has approved a plan that will allow companies to keep storing data about Europeans on U.S. soil, averting a potentially costly disruption in trans-Atlantic data flows.

The deal announced Monday by the European Commission, the EU’s executive arm, marks the culmination of lengthy negotiations with the U.S. about data transfers that are used by thousands of companies to do things like sell online ads and measure traffic to their websites.

• Why it matters: The issue has proved a concern for some of the world’s biggest tech companies. EU privacy regulators earlier this year fined Meta 1.2 billion euros, equivalent to $1.3 billion, for storing information about European users on servers in the U.S.
   
• Legal challenges: The deal approved Monday—known as the Trans-Atlantic Data Privacy Framework—is expected to face a legal challenge from European privacy advocates, who have long said that the U.S. needs to make substantial changes to surveillance laws.
   
• A new court: The agreement requires the U.S. to create a court that will have the authority to handle EU individuals’ claims and impose remedies if it finds that U.S. laws were violated. President Biden announced the creation of the court, which the U.S. called the Data Protection Review Court, in an executive order last year.

Silicon Valley Bank’s former parent sues FDIC over $2 billion in deposits.

Silicon Valley Bank’s former parent company, SVB Financial, is suing the Federal Deposit Insurance Corp., seeking the return of about $2 billion that SVB Financial had deposited at the bank and that the regulator seized after its collapse.

When the FDIC took over Silicon Valley Bank in March, federal regulators said that depositors would be able to access all their funds stored at the bank, rather than the standard $250,000 guaranteed by federal deposit insurance.

• Massachusetts lawmakers are weighing a near total ban on buying and selling of location data drawn from consumers’ mobile devices in the state, in what would be a first-in-the-nation effort to rein in a billion-dollar industry.
   
• Ozempic is under review by European drug-safety regulators after they received reports of suicidal thoughts linked to the popular weight-loss drug and another medicine in the class.
   
• Donald Trump’s legal team asked a federal court in Florida late Monday to delay the former president’s criminal trial over his handling of classified documents after he left office, saying it wants time to review the inquiry that led to his indictment.

America’s biggest banks are going to need more capital.

The Federal Reserve’s regulatory chief outlined steps to strengthen the financial cushions for larger banks, which he said would help boost the resilience of the system after a spate of midsize bank failures this year.

The changes, which regulators are expected to propose this summer, come after what Michael Barr, the Fed’s vice chair for supervision, described as a holistic review of big-bank capital requirements. Under the plan, large banks could be required to hold an additional 2 percentage points of capital, or an additional $2 of capital for every $100 of risk-weighted assets, he said.

Bitcoin, Coinbase are soaring despite obstacles facing spot bitcoin ETFs.

Bitcoin and crypto stock Coinbase Global have soared on hopes that an exchange-traded fund that holds the digital currency will soon be approved by U.S. regulators. Analysts say that outcome faces long odds.

Bitcoin has climbed about 20% since June 15, when BlackRock filed paperwork with regulators to launch an ETF that would own bitcoin. Shares of Coinbase Global, which is listed as the custodian for the fund’s bitcoin holdings, leapt more than 40% over the same period.

• Global consulting company Bain said one of Shanghai’s top Communist Party officials visited its office in the city, in what appears to be an effort to ease heightened concerns of foreign businesses in China following a series of raids and arrests.
   
• Heavy rains and thunderstorms overwhelmed New York’s Hudson Valley and barreled into Vermont Monday, leaving at least one person dead and flooding homes and roads, officials said.

• Turkey approved Sweden’s bid to join the North Atlantic Treaty Organization, paving the way for the alliance to complete a historic expansion launched in response to Russia’s invasion of Ukraine.
   
• President Biden has emerged as the leading opponent to granting Ukraine speedy membership to NATO, putting him at odds with several key U.S. allies.
   
• Wagner leader Yevgeny Prigozhin and his lieutenants met with Russian President Vladimir Putin days after the group’s short-lived revolt against Moscow, according to the Kremlin, a sign that the paramilitary chief and his forces remain important players in Russian security and politics.
   
• Larry Nassar, the former gymnastics doctor who sexually abused hundreds of his patients, was stabbed multiple times in federal prison Sunday, a union leader representing prison employees said.
   
• Taiwan’s Foxconn Technology said it has ended a partnership to make chips with India-focused resources conglomerate Vedanta, a setback to India’s nascent plans to become a semiconductor manufacturing hub.

Follow us on Twitter at @WSJRisk. Follow Risk & Compliance editor David Smagalla @DSmagalla_DJ and reporters Mengqi Sun @_MengqiSun, Dylan Tokar @dgtokar and Richard Vanderford @VanderfordRich.

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