Good morning. Global regulators spent more than a decade trying to ensure that a large bank could fail without any government support. Despite this year’s bank failures, they are still working on it.

Global regulators are reviewing the March failures, including Credit Suisse’s collapse and Swiss officials’ decision to push UBS to acquire its rival in a deal with billions of public money, people familiar with the probe said. Swiss officials chose to sidestep the postcrisis plan for global megabanks, under which Credit Suisse would have been wound down by regulators or restructured into a new entity.

In the U.S., regulators are considering new rules as soon as this month that would force midsize banks to add to their financial cushions in case of insolvency, people familiar with the plans said. The March failures of Silicon Valley Bank and another midsize bank prompted officials to take extraordinary steps to promise depositors they could access their money.

• At issue: The 2010 Dodd-Frank financial overhaul requires the biggest banks to write plans showing how they could be dismantled in bankruptcy without using taxpayer money. If regulators think the so-called living wills aren’t credible, they have the authority to break up the banks. Dodd-Frank also empowers regulators to seize a failing megabank and wind it down outside of normal bankruptcy proceedings if financial stability is at risk, as a backup option.
   
• New doubts: Some former U.S. officials say that while the big-bank wind-down plans might seem credible on paper, it is doubtful any regulator would actually rely upon them in a crisis. Daniel Tarullo, a former Federal Reserve governor who was the central bank’s point person on regulation, told the Brookings Institution recently that officials might not think even a modest risk of igniting a larger meltdown by allowing a megabank to fail would be worth taking.

UBS to pay $1.44 billion to settle financial crisis-era case.

UBS will pay $1.44 billion to settle U.S. Justice Department allegations that it defrauded investors who bought bonds backed by mortgages before the financial crisis, marking the end to a decadelong string of prosecutions against Wall Street’s biggest players.

The case is the last among more than a dozen DOJ prosecutions against banks and other financial institutions over securities backed by subprime loans, the agency said.

• A grand jury in Atlanta charged Donald Trump, Rudy Giuliani and other Trump allies with operating a criminal enterprise that sought to overturn Joe Biden’s electoral victory in Georgia, marking the fourth time the former president has been indicted this year and deepening his legal woes ahead of the 2024 election.
   
• The University of Chicago has agreed to pay $13.5 million to settle a lawsuit in which it was accused of illegally colluding with other top universities to limit financial aid to students, making it the first defendant in the case to settle.
   
• Hunter Biden’s legal team said late Sunday the Justice Department had decided to “renege on the previously agreed-upon plea agreement,” escalating a dispute that is threatening to become a factor in the 2024 presidential race.

Montana must do more to address climate change, judge rules.

Montana must do more to protect the state and its residents from climate change, a judge ruled Monday in a landmark decision that cited a state constitutional right to a clean environment.

State District Judge Kathy Seeley ruled in favor of a group of youth plaintiffs and invalidated a pair of laws prohibiting state agencies from considering the effects of greenhouse-gas emissions.

“The degradation to Montana’s environment, and the resulting harm to Plaintiffs, will worsen if the State continues ignoring GHG emissions and climate change,” Seeley wrote.

• Maui Wildfire Death Toll Climbs as Residents Brace for More Victims

• The Biden administration offered detailed guidance for colleges navigating new restrictions on how they consider race in their admissions decisions, including providing examples of what types of essays would be allowed and how schools can recruit prospective students without running afoul of the law.
   
• Russia’s central bank raised its key interest rate at an emergency meeting to stem a sharp selloff in the ruble, a slide that has brought into focus the mounting financial costs of Moscow’s war in Ukraine.

Aon names new head of commercial risk. Professional services firm Aon has named Joe Peiser as the new chief executive of its commercial risk unit. Peiser, who joined Aon in 2021 as head of commercial risk for North America, succeeds Lambros Lambrou, who was named Aon’s chief executive of human capital.

• The world’s biggest economies are offering huge subsidies in a cutthroat race to win the industries of the future. The losers: all the countries that can’t pay up.
   
• Esmark said it made an all-cash offer to acquire United States Steel, ratcheting up competition to acquire the century-old steelmaker.
   
• Negotiations between striking television and movie writers and major studios have resumed, with signs of progress on certain issues, giving the entertainment industry a glimmer of hope amid the monthslong labor dispute.
   
• China’s latest property crisis is threatening to spill over into the broader economy, worrying investors and causing a broad market selloff.
   
• American companies are in the midst of an AI recruiting frenzy, and some are willing to pay salaries approaching seven figures to hire top talent.

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