– The SEC and the CFTC have launched a joint request for public comment aimed at ‘clarifying and harmonizing’ derivatives product definitions under the regulatory framework established by the Dodd-Frank Act.
The initiative seeks feedback on whether current definitions, interpretations and jurisdictional boundaries are still suitable as financial markets, products and trading practices continue to evolve.
Both agencies are seeking input on issues including the definitions of swaps and security-based swaps, the treatment of mixed swaps, emerging financial products, jurisdictional questions and areas where additional regulatory clarity may be needed. They are also inviting suggestions on potential alternative compliance approaches.
CFTC chairman Michael Selig said the consultation provides an opportunity to address longstanding ambiguities within Title VII of Dodd-Frank that have hindered competition and innovation.
– JPMorgan Chase has promoted Doug Petno and Troy Rohrbaugh to co-presidents in a major management reshuffle widely seen as the clearest indication yet of its succession plans for longtime CEO Jamie Dimon.
According to The Wall Street Journal (paywall), the appointments position both executives as leading contenders to eventually succeed Dimon, who has led the bank for more than 20 years.
As part of the changes, Rohrbaugh will take charge of the consumer and community banking division, while Petno will become sole head of the commercial and investment bank.
The shake-up also includes the retirement of senior executive Marianne Lake, who had long been viewed as a leading candidate to replace Dimon. Her exit, alongside earlier indications that COO Jennifer Piepszak was not seeking the top role, narrows the field of those running for succession.
– SpaceX has received the lowest possible ESG rating from index provider MSCI, awarded just ahead of its $75 bn public listing earlier this month, the The Financial Times (paywall) reports.
The company was assigned a triple C rating on June 11, one day before its IPO, placing it among the weakest performers in MSCI's ESG framework. The ratings provider said SpaceX was 'lagging its industry based on its high exposure and failure to manage significant ESG risks'. The company also received a score of one out of 10 in MSCI's controversies category, triggering an orange flag designation linked to severe ongoing controversies.
Frédéric Ducoulombier, program director at EDHEC Climate Institute, said the ratings reflected 'major governance concerns' and described the situation as 'very close to a governance horror story for public-market investors'. SpaceX scored 3.2 out of 10 in MSCI's governance assessment.
– Bayer secured a major legal victory after the US Supreme Court ruled 7-2 that federal pesticide regulations preempt state-law claims alleging the company failed to warn consumers that its Roundup weedkiller could cause cancer.
According to Bloomberg (paywall), the decision is expected to significantly reduce Bayer’s exposure to tens of thousands of lawsuits linked to glyphosate, Roundup’s active ingredient.
The court overturned a $1.25 mn Missouri jury award granted to John Durnell, who claimed he developed non-Hodgkin lymphoma after years of using Roundup. Writing for the majority, Justice Brett Kavanaugh said federal law requires uniform pesticide labeling and that the US Environmental Protection Agency has not mandated a cancer warning for glyphosate products.
– Uber’s board of directors has been sued by shareholders who accuse management of prioritizing growth over compliance, resulting in thousands of lawsuits related to alleged sexual assault and harassment by drivers.
According to Reuters (paywall), the lawsuit – which was filed in federal court in San Francisco and led by the Police and Fire Retirement System of the City of Detroit – alleges that directors and executives ignored repeated warnings about safety and compliance failures.
The complaint describes Uber as a ‘serial compliance offender’ and claims oversight shortcomings also contributed to government lawsuits alleging discrimination against disabled passengers and deceptive billing practices tied to the Uber One subscription service.
According to the filing, Uber faced 3,571 lawsuits involving driver sexual misconduct as of June 1. Shareholders are seeking to hold directors financially accountable for alleged breaches of fiduciary duties and securities laws. Uber rejected the claims, saying the lawsuit is based on ‘misleading, false narratives’ that the company has already addressed publicly and in court.
– Baker Hughes has offered remedies to EU regulators in a bid to secure antitrust approval for its proposed $13.6 bn acquisition of Chart Industries, according to Reuters. The details of the concessions were not disclosed, in line with the regulator’s standard practice.
The European Commission has set a July 10 deadline to decide whether to approve the deal. Before reaching a decision, regulators are expected to consult customers and competitors of both companies to assess whether the proposed remedies adequately address competition concerns. The Commission could accept the concessions, request additional measures or launch an in-depth four-month investigation.
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...
