Good morning. BNP Paribas said the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission are investigating it over its employees’ use of messaging applications that broke record-keeping rules.

The French bank and its broker-dealer division have reached proposed resolutions with the respective regulators to resolve the probes, BNP Paribas said in its second-quarter earnings report that became public Thursday. The proposed resolutions are subject to approval by the CFTC and SEC, the bank said.

BNP Paribas, while not specifying the amount of fines it expects to pay as part of its proposed resolutions, disclosed that it has also set aside €125 million, or about $137.3 million, for litigation, according to the financial statements.

A spokesman for the bank declined to comment.

Microsoft faces mounting scrutiny over China-linked email hack.

Microsoft is attracting renewed scrutiny and accusations of negligent security over a hack that allowed China to spy on top Biden administration officials, as some security researchers say the breach may be worse than initially suspected.

The Chinese hack, disclosed earlier this month, compromised the unclassified Microsoft email inboxes of senior State Department officials, including the U.S. ambassador to China, as well as Commerce Secretary Gina Raimondo and others, according to U.S. officials.

Full details about the attack, including how it began, aren’t publicly known, but it has prompted a number of congressional inquiries.

Bank capital rules could hit wealth managers.

U.S. regulators plan to make large banks bolster their financial footing, moves that could have an outsize effect on companies such as American Express and Morgan Stanley that rely on types of fee income targeted by the new rules.

Banking regulators on Thursday proposed new rules that could raise overall capital requirements by roughly 20% at the largest banks, officials said.

• The Justice Department and Environmental Protection Agency are investigating the potential health and environmental risks stemming from a sprawling network of toxic lead-sheathed telecom cables across the U.S.
   
• Former casino magnate Steve Wynn, an inventor of the modern Las Vegas Strip, has agreed to an effective ban from Nevada’s gambling industry in a settlement over his alleged sexual misconduct against former employees.
   
• Facebook removed content related to Covid-19 in response to pressure from the Biden administration, including posts claiming the virus was man-made, according to internal company communications viewed by The Wall Street Journal.
   
• Beneficient executives and board directors headed for the exits over signs of trouble—long before a financial blowup that is now under investigation by the SEC and which could leave nearly 28,000 investors empty-handed.

U.S. economic growth accelerates, defying slowdown expectations.

Gross domestic product grew at a seasonally- and inflation-adjusted 2.4% annual rate in the second quarter, the Commerce Department said Thursday. That was faster than economists expected and above the 2% growth in the first three months of the year.

Consumer spending cooled but rose enough to drive overall growth alongside much stronger business investment in the second quarter. Those factors combined to buck economists’ earlier expectations that a downturn would start in the middle of this year due to higher interest rates.

• The European Central Bank raised its key interest rate by a quarter percentage point but signaled it might soon pause its yearlong campaign of rate increases, sending the euro tumbling.
   
• New Russian attacks against U.S. drones have made Syria a fraught arena for military competition between Moscow and Washington. Meanwhile, this week’s military coup in Niger threatens to disrupt the entire U.S. strategy for fighting Islamist militants as they expand across western Africa, and potentially hand Russia a strategic advantage as it tries to widen its own influence in the region.
   
• Moscow’s decision to pull out of a deal allowing Ukrainian grain to be exported globally is a high-stakes gamble by President Vladimir Putin that risks diplomatic tensions with two of his country’s most influential partners, China and Turkey.

• Drugmaker Mallinckrodt is talking to hedge funds about filing for bankruptcy and avoiding payments intended to help people addicted to opioids.
   
• Companies are cutting executive salaries, typically untouched in corporate belt-tightening, as they trim budgets and lay off workers. For many executives, it's largely symbolic—most of their pay comes in bonuses and equity.
   
• Hospital operators have collaborated on an extensive list of best practices for third-party cybersecurity risk management, which some security chiefs say is their top priority.
   
• Large U.S. companies have filed for bankruptcy at a faster pace this year, in part from tighter financial markets and lingering pandemic effects.
   

🎧 Listen to Vista Equity Partners President David Breach discuss the private-equity firm's strategy for recruiting talent and what it takes to ascend the ranks.

• Many employees shut down when managers raise their voices, but others say candid feedback—even the loud kind—is underrated.
   
• Airlines are finding ways to live without business travelers.
   
• Senate Republicans closed ranks around Minority Leader Mitch McConnell, brushing off questions about his ability to continue in his job after he froze for about 20 seconds at a press conference on Wednesday.
   
• When employees go on parental leave, companies often face a difficult question: What do you do with the workload those employees leave behind?
   
• Donald Trump sought to have surveillance footage from his Mar-a-Lago club deleted so it couldn’t be turned over to a grand jury, special counsel Jack Smith alleged in new charges related to the former president’s retention of classified documents after he left the White House.

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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