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The Office of the Comptroller of the Currency (OCC) has reintroduced a streamlined process for bank mergers, reversing a previous policy that mandated closer scrutiny for larger deals. This interim final rule eliminates the requirement for more deliberate consideration of mergers involving banks with assets exceeding $50bn, a policy established under President Joe Biden. Acting Comptroller of the Currency Rodney Hood said: "The OCC's actions today reduce burden and uncertainty for banks and supports a regulatory framework for bank mergers that is effective and not excessive." The new rule aims to encourage economic growth by reducing government intervention in the banking sector. The OCC also confirmed banks and federal savings associations under its jurisdiction can trade crypto on behalf of customers and outsource bank-permissible crypto activities, including custody and execution services, to third parties.

 

Coin Telegraph

Reuters

The Detroit Three automakers - General Motors, Ford, and Stellantis - have criticized President Trump's trade deal with the UK, arguing it could negatively impact the U.S. auto industry by allowing British carmakers to export vehicles to the U.S. at a lower tariff rate than those from Mexico and Canada. The American Automotive Policy Council said: "Under this deal, it will now be cheaper to import a U.K. vehicle with very little U.S. content than a USMCA compliant vehicle from Mexico or Canada." Automakers are concerned that this agreement could set a precedent for future trade deals that disadvantage vehicles assembled in North America.

 

Reuters

The notorious ransomware group Lockbit has reportedly experienced a breach of its own, as indicated by a rogue post on one of its darkweb sites. The message, stating "Don't do crime CRIME IS BAD xoxo from Prague," included a link to what appears to be a cache of leaked data. Christiaan Beek, senior director of threat analytics at Rapid7, said that "The leaked information looks real." He highlighted the aggressive tactics Lockbit employs to extract even small payouts from victims. Some darkweb sites linked to Lockbit were found to be inoperative, suggesting potential disruptions in their operations. Lockbit, often referred to as "the Walmart of ransomware groups," has previously survived significant law enforcement actions, demonstrating its resilience in the cybercrime landscape.

 

Reuters

U.S. labor productivity fell in the first quarter for the first time since the second quarter of 2022, resulting in a surge in labor costs that could squeeze margins for businesses at a time when they are facing rising costs from tariffs. Nonfarm productivity, which measures hourly output per worker, fell at a 0.8% annualized rate last quarter, the Labor Department's Bureau of Labor Statistics said on Thursday. Because of the decline in productivity, unit labor costs — what businesses pay employees to produce one unit of output — jumped 5.7% in the January-March period, the most in a year. Labor costs increased at a 1.3% rate from a year ago. Hourly compensation shot up at a 4.8% rate after advancing at 3.7% pace in the prior quarter. It grew at a 2.7% rate from a year ago.

 

Bloomberg

U.S. wholesale inventories increased slightly less than initially expected in March, the Commerce Department has reported, amid decreases in the stocks of electrical, lumber, apparel and farm products. Stocks at wholesalers rose 0.4%, revised down from the 0.5% gain estimated last month. They rose 2.2% on a year-on-year basis in March. Businesses front-loaded imports in the first quarter, seeking to avoid President Donald Trump's sweeping duties on foreign goods, resulting in a large trade deficit. The report also said wholesale sales increased by 0.6% in March after surging by 2% in February. While sales of durable goods shot up by 1%, sales of non-durable goods rose by 0.3%. The inventories/sales ratio for merchant wholesalers came in unchanged from the previous month at 1.30.

 

Reuters

RTT News

A bill aimed at establishing a regulatory framework for stablecoins in the U.S. Senate has failed to advance, falling short of the 60 votes needed to end debate. The setback is seen as a significant blow to the cryptocurrency industry, which has been advocating for clearer regulations and had previously portrayed the issue as bipartisan. Concerns from Senate Democrats, particularly regarding President Trump's crypto ventures, contributed to the bill's failure, with some lawmakers expressing disappointment over the lack of negotiation on key provisions.

 

Reuters

The Trump administration is set to revoke and revise a Biden-era regulation that imposed restrictions on the export of advanced AI chips, which aimed to limit China's access to such technology. A spokesperson for the Department of Commerce described the Biden rule as "overly complex" and indicated that the new approach would simplify regulations and promote American innovation in the AI sector.

 

Reuters

Coinbase, the biggest cryptocurrency exchange in the U.S. with a market value in excess of $50bn, has agreed to buy Deribit, the world’s biggest trading platform for bitcoin and ether options, for $2.9bn in the digital market’s largest ever deal as the industry prepares for an expected wave of demand from asset managers and banks. Greg Tusar, head of institutional product at Coinbase, said: “We believe crypto options are on the cusp of significant expansion, similar to the equity options boom of the 1990s.” 

 

Wall Street Journal

The Food and Drug Administration (FDA) has been in discussions with OpenAI to explore the integration of AI in expediting the drug approval process. FDA commissioner Marty Makary has questioned the lengthy timeline for bringing new drugs to market. The meetings are part of a broader initiative to modernise the agency's operations, and while no contracts have been signed yet, the potential for AI to assist in various aspects of drug evaluation is being actively considered.

 

Wired

Meta Platforms has secured a $168m verdict against Israeli spyware firm NSO, concluding a lengthy legal battle over NSO's exploitation of a vulnerability in WhatsApp to deploy spyware. The jury awarded Meta $444,719 in compensatory damages and $167.3m in punitive damages, marking a significant victory for privacy and security against illegal spyware practices. NSO plans to review the verdict and may pursue legal remedies.

 

Reuters

Hudson's Bay Co. is seeking court approval to repay as much as C$165m owed to its senior lenders, as the retailer's liquidation sales continue to clear out its stores across the country. The court filing also revealed that company insiders, including executive chairman Richard Baker, are not bidding on any of the company’s assets. Hudson’s Bay, its advisers and the monitor overseeing the process, are now reviewing multiple bids for both the store leases and part or all of the company’s assets and operations, which include its intellectual property.

 

The Globe and Mail

Finland, Sweden, Norway, Denmark and Estonia are planning to launch offline card payment systems to provide back-up if internet connections are cut, including due to sabotage. Bank of Finland board member Tuomas Valimaki said the planned roll out comes after the Baltic Sea region has experienced several instances of unexplained damage to critical undersea infrastructure in recent years. Russia has been accused by Western intelligence services of committing various acts of sabotage. "Since card payments require functioning international data links, Finland must be prepared for interruptions. Many other countries are of course in the same situation," Valimaki said, adding Norway, Sweden, Denmark and Estonia were also planning to introduce offline card payments.

 

Reuters

Chicago-born Cardinal Robert F. Prevost was on Thursday named the 267th pontiff of the Roman Catholic Church and the first American pope, taking the name Leo XIV. Writing for the Los Angeles Times, Matt Hamilton takes a look at the life of Pope Leo XIII, who served as pontiff from 1878 to 1903. In 1891, he used his platform to defend union organizing and the rights of workers in his encyclical, “Rerum Novarum.” He condemned “wealthy owners and all masters” who sought to profit off “the indigent and destitute.” His writing launched a latter-day focus by successive popes on the underclasses, capitalism and the concentration of wealth and power in the hands of the few, Hamilton writes.

 

Los Angeles Times