– JPMorgan Chase CEO Jamie Dimon is leading a cross-industry initiative to address the associated with the rapid adoption of AI, with more than 40 companies approached to join the effort. The initiative is expanding the Alliance for Critical Infrastructure, which JPMorgan co-founded, to bring together businesses across financial services, energy, water, telecoms and transportation.
The group aims to develop a shared understanding of how AI is being used, identify associated risks and establish safeguards. It will also work with the Trump administration on policy and government engagement, with the expanded alliance expected to be fully operational by the end of the year.
As reported exclusively by Reuters (paywall), recent attacks targeting water systems have highlighted the need for greater information sharing between industries, while Dimon has emphasized the importance of coordinated responses as AI capabilities develop.
– The US Department of Justice (DOJ) has withdrawn decades-old guidance on ISS, due to antitrust concerns over consolidation in the proxy advisory industry. According to Reuters, the move puts renewed scrutiny on ISS and Glass Lewis, which dominate the market for services that help institutional investors and mutual funds make corporate voting decisions.
The DOJ rescinded a 1987 letter stating that ISS’s business model did not raise antitrust concerns. The agency said the circumstances have changed since then, noting that ISS now advises companies directly on issues including executive compensation and corporate governance, alongside advising shareholders.
The two firms have faced growing criticism from Republican lawmakers and conservative groups over their influence on corporate governance and support for environmental, social and governance proposals. President Donald Trump has previously called for an antitrust investigation into the proxy advisers.
– US public pension funds and business groups are clashing over SEC’s decision to abandon its climate-related disclosure rules, highlighting a divide between investors and companies over the value of standardized climate information.
According to The Financial Times (paywall), pension funds including Calpers and Calstrs are among investors opposing the SEC’s decision to rescind the Biden-era climate risk disclosure rule, which was adopted but never took effect after facing lawsuits from Republican-led states and trade groups, amid continued arguments that climate-related financial risks remain relevant to investment decisions. Meanwhile business groups have welcomed the SEC’s shift, arguing the rules imposed unnecessary costs and regulatory burdens on companies.
The dispute comes as the SEC considers formally rescinding its climate disclosure rules after deciding not to defend them in court. The agency’s move has prompted investors and other stakeholders to argue that removing standardized requirements could make it harder to assess companies’ exposure to climate-related financial risks.
– US senators Cynthia Lummis, Eric Schmitt, Pete Ricketts and Jon Husted have introduced four Congressional Review Act resolutions aiming to overturn Environmental Protection Agency (EPA) waivers that allow California to impose stricter emissions regulations through the California Air Resources Board (CARB).
The resolutions target CARB’s small off-road engine mandate, the Advanced Clean Cars I program, a 2013 Advanced Clean Car Program waiver and a 2009 waiver allowing California to regulate vehicle greenhouse gas emissions. The senators argue the waivers allow California to influence vehicle and equipment standards nationally, raising costs and limiting consumer choice.
Lummis said the effort would restore Congress’ authority over national policy, while the senators argued California should not be able to dictate regulations beyond its borders. The resolutions have received support from Americans for Prosperity and The LIBRE Initiative. The lawmakers also cited Congress’ use of the CRA last year to overturn three other California emissions regulations.
– Americans for Equal Opportunity has filed a discrimination charge with the US Equal Employment Opportunity Commission against an education nonprofit and 14 law firms over an internship program it alleges uses race-based preferences. As report by Bloomberg Law (paywall), the group is asking the agency to investigate the program, which places recent college graduates in internships at law firms and other organizations.
The firms named in the July 29 charge include Alston & Bird, Cooley, Covington & Burling, Cravath, Debevoise & Plimpton, Foley Hoag, Jones Day, Morgan Lewis, Patterson Belknap, Proskauer Rose, Quinn Emanuel, Wachtell, White & Case and WilmerHale.
The complaint is part of a broader campaign by anti-DE&I groups challenging workplace diversity programs under Title VII of the Civil Rights Act.
– The SEC is to establish a specialized Financial Reporting and Accounting Unit within its Division of Enforcement to pursue financial reporting fraud and misconduct involving accounting and auditing. The unit will provide dedicated expertise and capacity for cases involving accounting and financial reporting, while working with staff across the agency to align enforcement with the SEC’s policy goals.
The unit will be led by Timothy Zimmerman, who joined the Enforcement Division in May as a senior advisor to its director. Zimmerman previously spent 12 years at an international law firm and most recently served as deputy general counsel at an international accounting and professional services firm.
Natalie Bannerman
Natalie is a former telecoms and infrastructure journalist, a role she held for nearly seven years. Before this, she worked in the B2C startup space, covering lifestyle, arts and culture reporting. As senior reporter for Governance Intelligence she...
