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The Morning Risk Report: Private-Equity Giants Near Settlements With SEC Over Texting Violations
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Being investigated: Blackstone, TPG and Carlyle Group disclosed in their latest quarterly filings that they have been cooperating with the U.S. Securities and Exchange Commission’s record-keeping investigations and have begun discussions with the agency’s enforcement staff about potential resolutions.
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The rules: Under SEC rules, financial firms are required to preserve and monitor their employees’ written communications, which creates a paper trail for regulators to monitor and enforce compliance with federal laws.
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Use of prohibited apps: Firms whose employees talk about business over prohibited mobile apps such as WhatsApp risk violating those rules if they don’t retain or monitor those messages. In many cases, according to the SEC, firms haven’t collected those messages because they were exchanged on employees’ personal devices.
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Part of industry sweep: The three firms said they had received requests for information related to the retention of electronic business communications, including text messages, in October 2022 as a part of an industrywide sweep. They subsequently disclosed the probes in their respective securities filings, The Wall Street Journal previously reported. Spokespeople for Blackstone, Carlyle and TPG all declined to comment.
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Content from: DELOITTE
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Investment Management: Planning, Prioritizing for Increased Regulatory Intensity
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New rules and requirements will likely affect everything from compliance programs to governance practices to investor disclosures—while collaboration and flexibility can help mitigate related risk. Keep Reading ›
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JPMorgan had already been fined about $350 million for surveillance failures. PHOTO: JIMIN KIM/ZUMA PRESS
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JPMorgan fined $200 million for compliance failures in trading.
JPMorgan Chase was fined $200 million by another federal regulator for failing to properly surveil billions of trades that the bank has executed since 2014.
The allegations. The Commodity Futures Trading Commission on Friday alleged that JPMorgan failed to capture data related to trades that its clients executed through at least 30 different trading venues. For one type of contract, JPMorgan failed to collect data on more than 99% of orders made by algorithmic trading firms, the regulator said.
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Norway’s oil fund to vote against Exxon Mobil amid shareholder rights concern.
The world’s largest sovereign wealth fund will vote against the re-election of Exxon Mobil director Joseph Hooley, becoming the latest investor to oppose a move by the U.S. oil giant they say undermines shareholder rights.
Norges Bank Investment Management, the arm of Norway’s central bank that manages the country’s $1.6 trillion oil fund, has joined a growing list of shareholders to air their concerns over a lawsuit filed by Exxon Mobil against two sustainability investor groups.
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Proxy-advisory firm Glass Lewis has advised Tesla shareholders to vote against Elon Musk’s multibillion-dollar pay package at the company’s meeting next month.
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The National Collegiate Athletic Association and the five most prominent athletic conferences agreed to a $2.77 billion settlement of a class-action lawsuit on Thursday, ushering in a new era of college sports in which schools can pay athletes directly.
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The United Auto Workers filed objections to a failed unionization vote at an Alabama Mercedes-Benz plant, pushing for a fresh vote and alleging the automaker had interfered with the election.
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A report by former prosecutor Robert J. Cleary has largely cleared FTX bankruptcy counsel Sullivan & Cromwell of wrongdoing, according to WSJ Pro Bankruptcy (subscription required).
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Chinese Premier Li Qiang leaving Seoul on Monday after attending trilateral meetings. PHOTO: LEE JIN-MAN/ASSOCIATED PRESS
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China courts U.S.’s top Asian allies on trade, but will It succeed?
China sought to drive a wedge on trade between the U.S. and its Asian allies, using a rare exchange with the leaders of Japan and South Korea to champion a multipolar world without economic discrimination.
Emphasizing economic links. Chinese Premier Li Qiang, on a two-day visit to Seoul, touted the merits of harmonizing economic ties between the three Asian countries, as Washington has moved to raise tariffs on Chinese electric vehicles and curb China’s high-tech ambitions. Chinese leader Xi Jinping carried a similar message on his recent trip to Europe.
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Netanyahu says killing of vivilians in Israeli strike was ‘tragic mistake.'
Prime Minister Benjamin Netanyahu of Israel called the deaths of civilians in an airstrike in the southern Gaza city of Rafah a “tragic mistake,” pledging an investigation as international condemnation mounted against the attack that Palestinian officials said killed dozens.
Israeli and Egyptian officials also held urgent talks on Monday after a rare cross-border clash between the two countries’ forces left an Egyptian officer dead, as they tried to prevent the situation from spiraling out of control.
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In space warfare, the U.S. military is seeking the ultimate high ground.
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The Biden administration is pressing European allies to back off plans to rebuke Iran for advances in its nuclear program, even as it expands its stockpile of near-weapons-grade fissile material to a record level, according to diplomats involved in discussions.
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Ukraine hit a Russian military complex in Crimea with U.S.-provided long-range missiles Thursday night.
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The Wall Street Journal flew out with U.S. Marines to remote locations from where they might one day fight China.
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Severe storms, with tornadoes, rampaged across states including Texas, Oklahoma, Arkansas, and Kentucky over Memorial Day weekend, killing at least 20 people and injuring dozens more amid a trail of flattened homes and downed power lines.
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$3.5 Billion
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Average amount in erroneous stock purchases each day, based on current trading volumes, according to Rutgers University finance professors Vadim Balashov and Andrei Nikiforov.
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Demand for artificial intelligence is still booming, a year after the phenomenon first took Wall Street by storm. Far beyond the tech sector, investors are finding winners in old-school pick-and-shovel stocks.
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The leaders of Exxon Mobil, Chevron and Hess are duking it out over a generational oil discovery in Guyana.
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Taylor Swift wasn’t onstage at the Justice Department when top officials unveiled their lawsuit against Live Nation and Ticketmaster. But she’s definitely part of the show.
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Nippon Steel has launched a charm offensive to win support for its planned acquisition of U.S. Steel in a bid to counter the deal’s staunchest critics.
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Being rushed, typos and confusing ticker symbols are among the reasons small investors cite when they’ve bought the wrong stock.
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