Good morning. Call it the $78 million typo.

That is how much Citigroup agreed to pay U.K. regulators for a trader’s fat finger when typing in an order to sell shares, an episode that caused a brief “flash crash” in European stocks.

• Big typo: In May 2022, the unnamed trader in Citigroup’s global markets unit was working from home in London on a public holiday. He planned to sell a basket of shares worth $58 million, but made an “inputting error” when punching in the order in the bank’s computer system, the U.K.’s Financial Conduct Authority said Wednesday, entering the value of the stocks into the wrong field. 
   
• Erroneous orders: Instead of $58 million, the basket created had a value of $444 billion. Citigroup’s controls kicked in and blocked most of that sum from being traded, but a big chunk still made it onto the markets. Roughly $189 billion of the basket went to an algorithm that then sliced it into portions to be sold throughout the day, the FCA said. As a result, $1.4 billion of equities was sold on European exchanges before the trader canceled the order, the FCA said. 
   
• Internal controls scrutinized: The FCA and the Bank of England’s Prudential Regulation Authority faulted Citigroup’s internal controls for having no hard block that would have rejected the entire basket of equities from making it to the market. “Due to poor design, the trader was also able to manually override a pop-up alert, without being required to scroll down and read all the alerts within it,” the FCA said.

FTX’s Sam Bankman-Fried being transferred to new prison. 

Federal officials began the process of transferring Sam Bankman-Fried to a new prison early Wednesday, overriding his wish to stay in New York while helping to prepare his appeal, according to a spokesman for the jailed FTX founder. 

The spokesman said he couldn’t confirm Bankman-Fried’s destination, but people familiar with the matter said the founder of the cryptocurrency exchange was told in recent days that he would be moved to a federal correctional facility in Mendota, Calif.

Hours after the transfer process began, the judge who oversaw Bankman-Fried’s trial issued an order recommending that the Federal Bureau of Prisons keep him jailed in New York “to facilitate access to appellate counsel.”

Justice Department not charging Merck KGaA subsidiary over export controls scheme.

The Justice Department said Wednesday that it won’t bring charges against life-sciences and electronics company Merck KGaA’s North American unit after it proactively disclosed information about a scheme by a company insider and others to export sensitive biochemicals to China.

Instead, according to federal prosecutors, two of the men involved in the scheme had pleaded guilty to wire fraud conspiracy charges.

The decision makes the Merck KGaA’s life-sciences unit the first company to be awarded a so-called declination under a leniency policy that the Justice Department’s national security division first created in 2019 and revised earlier this year.

• Guo Wengui, a showy Beijing property-developer-turned-critic of China, will face trial Wednesday in New York on federal racketeering charges that allege he leveraged opposition to the Chinese Communist Party into a $1 billion fraud that funded his own lavish lifestyle.
   
• The Securities and Exchange Commission’s $10 million fine of Intercontinental Exchange over its handling of a 2021 cyber incident shows the regulator is zeroing in on how companies report hacks, though some commissioners said the amount was too high.
   
• Nebraska sued TikTok on Wednesday, alleging the platform was designed to be addictive and is harmful to children.
   
• The potential sale of an American ammunition maker to a Czech arms company is drawing scrutiny from some lawmakers, highlighting concern about foreign ownership in a key industry in the midst of global arms shortages sparked by the continuing wars in Ukraine and Gaza.
   
• A bipartisan pair of influential lawmakers proposed new rules forcing presidents to make their tax returns public and mandating that family members reveal more financial information, but the measure drew opposition from the White House.

ICC staff was to hear Israel’s defense, but charges came first.

Israeli government staffers were preparing for a visit with a team from the International Criminal Court on Monday when they got a jolt: The court’s prosecutor was moving ahead to charge Prime Minister Benjamin Netanyahu and Defense Minister Yoav Gallant with war crimes.

Prosecutor Karim Khan’s staff was scheduled to land in Israel that same day for at least a week of meetings, where government and military officials would explain Israel’s conduct during the war in Gaza and argue that it was consistent with international law, people familiar with the matter said. The meetings were meant to lay the groundwork for Khan’s own visit to Israel.

• Three European nations said they would recognize an independent Palestinian state, reflecting deepening international frustration with Israel’s war in Gaza, where the Israeli military was moving deeper into Rafah to shore up its control of the besieged enclave’s border with Egypt.
   
• As the death of Iranian President Ebrahim Raisi brings forward urgent questions surrounding the country’s leadership, Mojtaba Khamenei, the powerful and secretive son of Supreme Leader Ali Khamenei, is poised to play a central role.
   
• Federal Reserve officials concluded at their most recent meeting they would need to hold interest rates at their current level for longer than they previously anticipated after a third straight disappointing inflation reading last month.

• British Prime Minister Rishi Sunak called a surprise summer election for July 4, a gamble by the British leader to galvanize his restive Conservative Party as it trails the opposition Labour Party by double digits in the polls.
   
• The Class of 2024 is about to join a job market nearly as turbulent as their college years.
   
• There’s a reason corporate employees feel miserable in their jobs. Inside many large organizations, a thicket of bureaucracy and internal processes weighs on white-collar workers, making it tough for them to achieve any real results, one executive says.
   
• DuPont said Wednesday it would split into three separate companies and said current Chief Executive Edward Breen would transition to executive chairman, effective June 1.

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