Good morning. The Justice Department has sent far-ranging subpoenas to several of America’s largest banks including JPMorgan Chase and Bank of America, requesting information about whether they “debanked” clients, or improperly closed customer accounts for political reasons, according to people familiar with the matter.

The subpoenas from the U.S. Attorney’s Office in Washington, D.C., headed by Jeanine Pirro, escalate a campaign by President Trump to root out evidence that banks allegedly discriminated against conservatives and politically controversial industries, including his own family.

• High-profile target: The president last year said he was cut off from bank accounts and denied new ones from JPMorgan and Bank of America after his first administration ended in violent riots at the Capitol. In August, he signed an executive order directing banking regulators to investigate whether financial institutions had engaged in “politicized or unlawful debanking” and take appropriate action, including by levying financial penalties.
   
• Justice Department involvement: Until now, the review has primarily been the mandate of the Office of the Comptroller of the Currency, a Treasury Department bureau that oversees the nation’s biggest banks. But Trump’s executive order also instructed regulators to refer matters to the attorney general as necessary.
   
• Legitimate reasons? Banks have said they don’t close accounts for religious or political reasons. They have said decisions to avoid certain industries or clients are in accord with laws that require banks to screen for criminal activity and money laundering or are in response to other regulatory pressures meant to safeguard the banks.

Trump regulator proposes new rules on what’s allowed on prediction markets.

Trump regulators are proposing an expansive new set of rules on how they will govern the booming prediction markets, with parameters that will continue to allow most sports-related bets while trying to avoid inviting obvious manipulation.

The Commodity Futures Trading Commission is seeking the ability to block prediction wagers it finds aren’t in the public interest or that seem highly susceptible to manipulation, such as in cases where one person could have outsize impact on the result. The regulator proposed the new rules on Wednesday, confirming an earlier report in The Wall Street Journal.

• An effort in San Francisco to raise taxes on companies with highly paid executives has failed.
   
• Cloud platform Vercel resolved a civil contempt case with the Justice Department over its failure to adequately respond to a search warrant, Risk Journal reports (free link).
   
• Investment advisors are struggling to meet bedrock fiduciary obligations around disclosing and mitigating conflicts of interest involving their compensation models, regulators are warning.
   
• A former TD Bank employee from Florida was sentenced to 24 months in prison for accepting bribes and participating in a money-laundering scheme.
   
• South Korean authorities have fined Coupang around $410 million after one of the country’s worst data-breach cases.

White House reins in AI-testing unit as national-security concerns grow.

Trump administration officials have asked a government artificial-intelligence testing unit to stop issuing public reports, the latest signal that the White House is tightening control over AI models as national-security concerns increase.

Administration officials including National Cyber Director Sean Cairncross have told the Center for AI Standards and Innovation to halt publication of its model assessments while an executive order President Trump signed last week is implemented, people familiar with the matter said. The order represented a win for Cairncross and Treasury Secretary Scott Bessent, who have pushed for security considerations to play a bigger role in model evaluation.

AI shifts cyber’s hardest problem from finding flaws to fixing them.

The latest generation of AI models can detect software weaknesses at unprecedented speed. This capability compresses the timeline between discovery and exploitation, placing immense pressure on organizations to fix vulnerabilities before attackers act. Thousands, and sometimes millions, of flaws can be uncovered by these models, posing a triage challenge.

“Prioritization is the new battleground,” said Rex Thexton, a senior managing director at consulting firm Accenture.

• Taiwan fired U.S. mobile missile launchers into the strategic waters directly facing China for the first time, sending a message of resolve to Beijing and Washington.
   
• The U.S. and Iran exchanged a second successive round of fire overnight, after American forces launched strikes against several targets in Iran on President Trump’s orders.
   
• Three Indian sailors were killed in a U.S. operation to enforce its blockade of Iran, an Indian official said Thursday, the first reported deaths from the American effort to starve its foe of petrodollars and force it to make a deal to end the war.
   
• An aluminum-rolling plant in upstate New York that supplies Ford Motor and other automakers will restart production Wednesday, nine months after a fire caused a supply crisis for the car industry, the plant’s owner said.
   
• Unionized workers at a Michigan plant producing a key component for General Motors trucks have reached a tentative agreement for a new labor contract following a 10-day strike.

Shell CEO sees long recovery for global fuel supply.

Shell Chief Executive Wael Sawan predicts it will take at least 12 months for the global energy system to recover after the Strait of Hormuz reopens and is deemed safe for oil tankers to cross, and has no predictions for when that will be.

Although negotiations continue among the U.S., Israel and Iran for an end to the conflict in the region, the Strait of Hormuz remains closed. After it is clear and safe, restoring the global flow of fuel will take “a year or longer,” Sawan said, speaking Wednesday at the WSJ CEO Council Summit in London. That is a more sober outlook than the predictions of several months by some industry analysts.

• Workers have begun to embrace “microshifting,” or carving their day into short chunks of work, with intentional breaks for family time or personal replenishment.
   
• Visa will provide secure payment services for shopping within ChatGPT in a new collaboration with artificial-intelligence company OpenAI.
   
• Bill Gates told Congress his affairs had nothing to do with Jeffrey Epstein.

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