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The investigation is focused on whether the employees traded on non-public information about the bank’s financial health, the report said. The U.S. Attorney’s Office for the Southern District of New York is leading the investigation, according to the report.

First Republic Bank’s stock has plummeted more than 10% since the news broke. The bank has been struggling with a surge in loan defaults due to the coronavirus pandemic. It has also been hit by a series of lawsuits from investors who allege the bank misled them about its financial health.

The bank has said it is cooperating with the investigation and that it has “robust policies and procedures in place to ensure compliance with all applicable laws and regulations.” It has also said it is committed to “maintaining the highest standards of ethical conduct.”

The investigation is a reminder of the importance of compliance with insider trading laws. Companies must ensure that their employees are not trading on non-public information, as this could lead to serious legal and financial consequences.

Airbus has confirmed that it is not looking to launch a stretched version of its A220 jet in the current environment. Speculation of an imminent launch at the Paris Airshow circulated on Wednesday after a Bank of America note suggested it would be announced there. However, an Airbus spokesperson said that the A220-100 and A220-300 are priority and they are not looking to launch a new sub-model in the current environment.

A larger version of the A220 program, acquired from Bombardier in 2018, would help lower total production costs but eat into a market currently served by the 150-seat A320neo. Most industry sources expect an A220-500 launch to be closer to the middle of the decade. Airbus CEO Guillaume Faury has indicated that resolving industrial delays is the planemaker’s top priority amid continued pressure on small suppliers.

Mercedes-Benz is making a strong commitment to electric mobility with the launch of five fully electric models and the upcoming addition of an electric CLA sedan and GLC crossover. At their North American dealer meeting, the automaker highlighted their progress and the impact of the recently unveiled EQ models on sales performance. According to a report by Electrek, Mercedes is gearing up to take on Tesla’s Model 3 with an electric CLA sedan, expected to get 400 miles of driving range and arrive in the US next year. The brand is also expected to launch an electric GLC as a successor to the EQC electric crossover. With these new additions, Mercedes-Benz is set to further strengthen their position in the luxury EV segment.

Moody’s, one of the world’s leading credit rating agencies, expects the U.S. government to continue to pay its debts on time. However, public statements from lawmakers during the debt ceiling negotiations could prompt a change in its assessments before a potential default. Moody’s currently has an “Aaa” rating for the U.S. government with a stable outlook, the highest creditworthiness evaluation Moody’s gives to borrowers.

Should the government reach the X-date without an agreement, Moody’s expects principal payments of maturing debt would not be at risk as the Treasury could auction new debt to refund old liabilities while remaining under the existing debt limit. However, interest payments would need to be prioritized to avoid a default.

Should a missed payment occur, Moody’s would downgrade the government by one notch, even in case of a brief default. Investors have to contend with this risk ahead of the June 1 deadline indicated by the U.S. Treasury to raise the government’s $31.4 debt ceiling, with Democrats and Republicans still deeply divided on how to curb the federal deficit.

Citigroup Inc. (NYSE:C) has scrapped plans to sell its Mexican consumer unit, Banamex, and will instead list it in 2025. The surprise move delays the bank’s overhaul and is likely to cause investor anxiety due to the country’s leftist president.

Citi is considering a dual stock listing, possibly in Mexico City and New York, for the unit. The bank had been in talks to sell Banamex to Mexican billionaire German Larrea’s conglomerate Grupo Mexico, but tensions between the conglomerate and Mexican President Andres Manuel Lopez Obrador led to the deal being abandoned.

Citi first bought Banamex in 2001 for $12.5 billion and announced in January 2022 that it would exit Mexico. The sale was part of a broader overhaul at the U.S. No.3 bank, which has struggled for years to gain scale and profitability from a myriad of businesses worldwide.

It remains unclear what investor appetite would be for such a deal, especially given the Mexican government’s opposition to layoffs that could be needed to make the unit more competitive. Citi CEO Jane Fraser said in a statement that the bank had decided an IPO would be the best path to “advancing our goal to simplify our firm.”

Stocks are falling on Wednesday as negotiations on the debt ceiling continue with the deadline quickly approaching. Abercrombie & Fitch Company (NYSE:ANF) shares jumped 27% as the specialty retailer reported a surprise profit for the first quarter and a gain in net sales. Kohl’s Corp (NYSE:KSS) shares also rose 7.7% after a surprise profit. Petco Health and Wellness Company Inc (NASDAQ:WOOF) shares fell 15% after providing weak revenue guidance for the current quarter. Palo Alto Networks Inc (NASDAQ:PANW) shares rose 7.4% after the cybersecurity firm raised its guidance for profit, sales and billings for the fiscal year. Intuit Inc (NASDAQ:INTU) shares fell 6.9% after the maker of financial software reported third-quarter revenue below forecasts. Sarepta Therapeutics Inc (NASDAQ:SRPT) shares slid 11% after the biotech said the FDA was pushing back a decision date on its muscular dystrophy gene therapy by about a month.

The French stock market closed lower on Wednesday, with the CAC 40 index falling 1.70%. Losses in the Consumer Goods, Industrials and Basic Materials sectors weighed on the index. Eurofins Scientific SE was the best performer, rising 0.19%, while STMicroelectronics NV was the worst, falling 5.38%. The CAC 40 VIX, which measures the implied volatility of CAC 40 options, was unchanged at 18.96. Gold Futures for June delivery was down 0.69%, while Crude oil for delivery in July rose 0.92%. The EUR/USD was unchanged at 1.08, while the US Dollar Index Futures was up 0.37%.

Microsoft Corp (MSFT) is appealing the decision by British regulators to block its $75 billion takeover of Activision Blizzard (ATVI). The appeal is expected to be lodged by the end of Wednesday. Microsoft has not yet responded to a Reuters request for comment.

The decision to block the takeover was made by the Competition and Markets Authority (CMA) in July, citing concerns that the deal would reduce competition in the gaming industry. The CMA argued that the merger would reduce the number of major players in the market, leading to higher prices and less choice for consumers.

The appeal is the latest development in the ongoing saga between Microsoft and the CMA. Microsoft has argued that the takeover would create a stronger gaming platform and provide more opportunities for gamers. It remains to be seen whether the appeal will be successful.

A U.S. judge has rejected former JPMorgan Chase & Co executive Jes Staley’s bid to dismiss the bank’s lawsuit against him. The ruling means Staley, who is also a former Barclays Plc chief executive, could be liable for millions of dollars over his ties to Jeffrey Epstein, a JPMorgan client from 1998 to 2013. JPMorgan faces two lawsuits over Epstein, and has denied liability. One is a proposed class action by women, led by a former ballet dancer known as Jane Doe 1, who say Epstein sexually abused them. The other is by the U.S. Virgin Islands, where Epstein allegedly abused women on a private island he owned. Judge Jed Rakoff will provide reasons for his ruling “in due course.”

Israel stocks closed lower on Wednesday, with losses in the Communication, Technology and Biomed sectors leading the TA 35 index down 0.85%. Shikun & Binui was the best performer, rising 3.37%, while OPC Energy Ltd was the worst, falling 7.79%. Crude oil for July delivery rose 1.26%, while the June Gold Futures contract fell 0.77%. The US Dollar Index Futures was up 0.42%.