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The SEC has reportedly subpoenaed a number of Wall Street banks for information tied to AI-focused hedge fund Situational Awareness’s near-collapse last month. The hedge fund was a client of Goldman Sachs, JPMorgan, Citigroup and Bank of America, according to regulatory filings. The agency is said to be seeking information about the fund’s trades, leverage and communications with lenders. The request for information does not mean the banks, or Situational Awareness, are accused of wrongdoing by the SEC. “It is to be expected that regulators would closely examine any ​funds that are high profile, produce significant returns, or have particularly dramatic drawdowns,” Situational Awareness said in a statement. “We are a highly-regulated business and will cooperate to the fullest extent with any regulatory request.”

 

Bloomberg

CNBC

Financial Times

New York Times

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Alabama has launched an investigation into OpenAI after its models hacked ​technology company Hugging Face last month. In a 14-page order, state attorney general Steve Marshall ordered the ChatGPT maker to hand over internal records about the incident, along with other material, including the identity of every employee involved in the intrusion or in the testing that precipitated it. A multi-state coalition, including Alabama, sent ​a letter earlier this month to OpenAI demanding transparency and accountability regarding the incident.

 

ABS-CBN

Reuters

Private capital group Apollo says it suffered a cyber-attack in July, compromising personal data including names, dates of birth, addresses and social security numbers. The firm said there was no evidence of personal information being used for identity theft or fraud "at this time." Affected individuals whose information was stolen are being offered complimentary ​third-party identity protection and credit monitoring services by the ​firm, ⁠Apollo Global Head Of Human Capital Matthew Breitfelder has said.

 

Reuters

First Brands Group is set to wind down its remaining operations after a Houston bankruptcy judge rejected its proposed Chapter 11 restructuring plan and converted the auto-parts supplier’s case to Chapter 7 liquidation. The rejected plan would have created a litigation trust to pursue billions of dollars of claims against financial institutions and former management, but these claims will instead be handled by a court-appointed trustee, reducing lenders’ control over potential recoveries. The bankruptcy, which began in September, has uncovered roughly $2bn of off-balance-sheet liabilities alongside allegations of fabricated invoices, missing records and other misconduct. Some lenders have already seen the value of a $1.1bn bankruptcy loan disappear, while the company also faces a $286m U.S. government claim relating to alleged tariff evasion and penalties on underreported Chinese imports. Founder and former chief executive Patrick James and his brother Edward James face federal fraud charges, which they deny. Former chief financial officer Stephen Graham and former vice president of finance Peter Andrew Brumbergs have pleaded guilty to federal fraud charges.

 

Bloomberg

Wall Street Journal

Target has apologized and withdrawn a children’s clown Halloween costume after critics said its appearance evoked blackface and racist minstrel imagery. The retailer said the costume was “offensive and should never have been part of our assortment” and is reviewing how it was approved for sale. The controversy comes as Target seeks to rebuild its brand following weak sales and criticism over its handling of its 2023 Pride collection and subsequent rollback of diversity, equity and inclusion initiatives. Some Black consumers linked the latest incident to those DEI changes, while Target acknowledged the costume was particularly hurtful to its Black customers, employees and partners.

 

USA Today

Newsweek

Reuters

Bankrupt Spirit Airlines sold millions of employee messages and internal files to Google for $10m, in a deal that provided the tech giant with real-world data for AI training. But the purchase of the data is opposed by flight attendants, who say that privacy protections attached to the transaction do not adequately cover sensitive information. The Association of Flight Attendants-CWA, which represents flight attendants nationwide, has filed an objection in the U.S. Bankruptcy Court for the Southern District of New York. Google, which disputes the data risk, told Fortune that there will be no personal identifying information that is of concern included in the data obtained by Google. “We acquired part of an enterprise dataset from Spirit Airlines, which can be helpful in improving our products and AI models,” A Google spokesperson told Fortune. “We will not receive any personal information from this dataset.”

 

Fortune

The Jerusalem Post

Jeff Bezos has argued that the bottom 50% of U.S. earners should pay no federal individual income tax, saying the relatively small amount they contribute would be better left with households to ease financial pressures, support entrepreneurship, and increase economic opportunity. Tax Foundation analysis of IRS data shows that the bottom half paid $69.9bn, or 3.26%, of the $2.14tn collected in federal individual income taxes in 2023, while the top 50% contributed 96.74%. Mr. Bezos has not presented a detailed legislative proposal or explained precisely how the lost revenue would be replaced, although he has called for greater government efficiency and spending discipline. His proposal would apply only to federal individual income taxes, meaning workers would continue paying Social Security and Medicare payroll taxes, as well as applicable state and local taxes.

 

International Business Times

The Supreme Court has ruled that lower courts acted prematurely in pausing parts of President Donald Trump's executive order aimed at regulating mail-in ballots. It nevertheless remains unclear how much of the executive order can be put in place before the midterm elections. The decision leaves room for additional court challenges that could further slow Trump’s order, and other similar cases have already been filed. The U.S. Postal Service laid out how it would implement the order last week, but time is running short to impose major changes. The Supreme Court’s conservative majority didn’t decide the legality of Trump’s order, instead ruling that states which sued did not have the legal right to challenge it.

 

AP News

The Columbus Dispatch

Boston Globe

Canadian Prime Minister Mark Carney has said Canada will only resume trade negotiations with the Trump administration when the U.S. approaches talks as a genuine economic partner, after Ottawa walked away over last-minute demands it considered unfair and economically damaging. Mr Carney said the proposed terms would have weakened Canadian industries over time and restricted Canada's ability to pursue other trade agreements. President Donald Trump has threatened to raise tariffs on Canadian automobiles, car parts and steel to 50% from January 1st, after around C$28bn ($202bn) of Canadian exports were hit with 50% tariffs over the weekend. Mr Carney said the measures reinforced his view that the U.S. is seeking to undermine major Canadian industries, including automotive and aluminum. Canada is considering potential responses, with Ontario Premier Doug Ford proposing electricity surcharges on U.S. exports, although Mr Carney has stressed a calm approach while leaving further measures open.

 

AP News

CBC News

Reuters

The Globe and Mail

U.S. manufacturers could face a shortage of as many as 1.9 million workers by 2033, even as reshoring, foreign investment, and apprenticeship programs create new jobs and expand the training pipeline. Deloitte and The Manufacturing Institute estimate the sector may need up to 3.8 million additional workers between 2024 and 2033, while an aging workforce means manufacturers risk losing decades of practical knowledge as experienced employees retire. The challenge extends beyond recruiting enough workers, as companies must also preserve the production expertise held by veteran employees. Manufacturers are increasingly documenting instructions, processes, and labor requirements within production systems so new employees can learn without relying solely on experienced mentors. Research suggests that better knowledge transfer makes employees 2.7 times less likely to leave within a year.

 

Billings Gazette

U.S. health officials are investigating a food poisoning outbreak linked to alfalfa sprouts that has sickened 55 people across 15 states, including four who have been hospitalized. Of 34 patients interviewed, 26 reported eating alfalfa sprouts. The outbreak involves salmonella and multiple strains of E. coli, including Shiga toxin-producing E. coli, which can cause severe gastrointestinal illness and, in some cases, acute kidney failure. Officials have linked cases to alfalfa sprouts produced by Minnesota-based Everything Sprouts and sold under the Calco and Everything Sprouts brands to restaurants and grocery stores. The company has not issued a recall, according to the FDA. Last year, the agency sent Everything Sprouts a warning letter after inspections identified several concerns at its facilities.

 

Los Angeles Times

US News and World Report