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State Department Announces Quad Initiative on Indo-Pacific Energy Security
WASHINGTON, May 28 -- The U.S. State Department, along with the partner governments of Australia, India, and Japan, released a joint statement outlining a unified framework to ensure energy stability and market resilience during the Quad Foreign Ministers' Meeting in New Delhi, India. The member nations intend to launch the Quad Initiative on Indo-Pacific Energy Security, an effort aimed at protecting critical maritime routes and maintaining open trade flows for oil, gas and downstream commodities like fertilizers. Under this framework, the participant countries will collaborate through a designated ... Show Full Article WASHINGTON, May 28 -- The U.S. State Department, along with the partner governments of Australia, India, and Japan, released a joint statement outlining a unified framework to ensure energy stability and market resilience during the Quad Foreign Ministers' Meeting in New Delhi, India. The member nations intend to launch the Quad Initiative on Indo-Pacific Energy Security, an effort aimed at protecting critical maritime routes and maintaining open trade flows for oil, gas and downstream commodities like fertilizers. Under this framework, the participant countries will collaborate through a designatedengagement plan focusing on international market analysis, technology sharing, and emergency response exercises. The partner governments will also establish the Quad Fuel Security Forum to facilitate high-level discussions and coordinate regional supply management. This cooperative effort is designed to support vulnerable developing countries while maximizing energy safety across the region in times of global market volatility.
-- Marlyn T. Vitin, Targeted News Service
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Here is the text of the statement on May 26, 2026:
The text of the following statement was released by the governments of Australia, India, Japan, and the United States of America on the occasion of the Quad Foreign Ministers' Meeting in New Delhi, India.
The United States, Australia, India, and Japan are united by a common vision for a free and open Indo-Pacific, underpinned by robust economic and energy systems. Recognizing shifts in the global energy landscape and escalating geopolitical complexities, we are accelerating collaboration to ensure energy stability and security. We recognize impacts of disruptions to global markets, particularly in relation to oil, gas, and petrochemical products as well as essential goods and critical downstream derivatives such as fertilizers, fall heavily on the Indo-Pacific region. Our leaders have expressed a clear collective intent to cooperate on energy security and resilience.
We affirm our support for the following principles:
* Reiterate our strong commitment to ensure well-functioning, stable, transparent, secure and resilient energy markets.
* Reaffirm the importance of resilient and diversified supply chains, including energy products and other downstream commodities.
* Reinforce the importance of secure and uninterrupted trade flows, including the safety of navigation and the protection of critical maritime routes and infrastructure, as essential to global economic stability and energy security.
* Reiterate the importance of ensuring unimpeded freedom of navigation and uninterrupted flow of global commerce, including in the Strait of Hormuz, and opposing any restrictive measures hampering the flow of commercial vessels.
* Recognize our shared commitment to maintain open trade flows of energy products.
* Affirm the importance of cooperation across the entire energy value chain including the contribution of diversification to energy security.
* Recognize the importance of energy resources for the resilience and prosperity of vulnerable developing countries in the Indo-Pacific region and acknowledge in particular the specific energy security vulnerabilities for small-island developing countries, such as in the Pacific.
* Maximize efforts to support each other's and the region's energy security needs during times of restricted global energy markets.
* Encourage all energy market participants, including producing, transit, and consuming countries, to maintain transparent and open energy markets to ensure the stable availability of energy products across the Indo-Pacific region and globally in times of significant energy market volatility and disruptions.
* Highlight the importance of regional initiatives to strengthen energy resilience, such as Japan's Partnership On Wide Energy and Resources Resilience (POWERR Asia), India's support to energy security in South Asia and Australia's support to energy security in Southeast Asia and the Pacific, including through the $2 billion Southeast Asia Investment Financing Facility, Australian Development Investments and support for the ASEAN Power Grid, as well as financial assistance to Pacific island countries (including AUD30 million in budget support to Fiji).
To this end, the United States, Australia, India, and Japan will work to identify areas of cooperation for the Quad Initiative on Indo-Pacific Energy Security in technology, management, policy, international market analysis, and emergency response exercises through an engagement plan. This group effort would aim to recognize and leverage the unique resources and capabilities of each country's energy sector, including to strengthen their respective strategic petroleum systems. We will work with our partners in the Indo-Pacific to help strengthen regional energy resilience.
To achieve this, the Quad will convene a Quad Fuel Security Forum to coordinate high-level discussions and facilitate cooperation.
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Original text here: https://www.state.gov/releases/office-of-the-spokesperson/2026/05/quad-statement-on-indo-pacific-energy-security/
Secretary of State Rubio Issues Statement on Azerbaijan National Day
WASHINGTON, May 28 -- The U.S. State Department issued the following statement on May 27, 2026, by Secretary Marco Rubio on Azerbaijan National Day:* * *
On behalf of the United States of America, I congratulate the people of Azerbaijan on your Independence Day.
Over the past year, we have elevated our relationship to a Strategic Partnership, culminating in Vice President JD Vance and President Ilham Aliyev signing a Strategic Partnership Charter in Baku.
We look forward to further enhancing our partnership by expanding regional connectivity, economic ties, and security cooperation.
The ... Show Full Article WASHINGTON, May 28 -- The U.S. State Department issued the following statement on May 27, 2026, by Secretary Marco Rubio on Azerbaijan National Day: * * * On behalf of the United States of America, I congratulate the people of Azerbaijan on your Independence Day. Over the past year, we have elevated our relationship to a Strategic Partnership, culminating in Vice President JD Vance and President Ilham Aliyev signing a Strategic Partnership Charter in Baku. We look forward to further enhancing our partnership by expanding regional connectivity, economic ties, and security cooperation. TheUnited States applauds Azerbaijan's commitment to durable peace in the South Caucasus and looks forward to continuing our collaboration on these efforts. We look forward to deepening our partnership this coming year and into the future.
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Original text here: https://www.state.gov/releases/office-of-the-spokesperson/2026/05/azerbaijan-national-day-2/
SEC Chairman Atkins Issues Remarks at Stanford Rock Center for Corporate Governance
MENLO PARK, California, May 28 -- The Securities and Exchange Commission issued the following remarks on May 26, 2026, by Chairman Paul S. Atkins at the Stanford Rock Center for Corporate Governance:* * *
Good afternoon, ladies and gentlemen. It is a pleasure to join you here today. And thank you, Bobby [Bartlett], for your generous introduction. Of course, I should also like to extend my thanks to the Stanford Rock Center for Corporate Governance for the opportunity to discuss our ongoing work at the SEC--work that I know touches the professional lives of many in this room.
To the business ... Show Full Article MENLO PARK, California, May 28 -- The Securities and Exchange Commission issued the following remarks on May 26, 2026, by Chairman Paul S. Atkins at the Stanford Rock Center for Corporate Governance: * * * Good afternoon, ladies and gentlemen. It is a pleasure to join you here today. And thank you, Bobby [Bartlett], for your generous introduction. Of course, I should also like to extend my thanks to the Stanford Rock Center for Corporate Governance for the opportunity to discuss our ongoing work at the SEC--work that I know touches the professional lives of many in this room. To the businessleaders and market participants who have joined us, thank you. I am grateful for your presence, and I trust that the reflections that I intend to share today will prove both insightful and meaningful to your work.
But before I do, I must note the customary disclaimer that the views I express here are my own as Chairman, and not necessarily those of the SEC as an institution or of the other Commissioners.
***
Over the past year, we have moved decisively on our agenda to return to first principles across every dimension of the SEC's mandate--namely, to protect investors; maintain fair, orderly, and efficient markets; and facilitate capital formation. Fundamental to fulfilling this mandate--especially to protect investors and promote capital formation--is expanding the number of publicly listed companies. Accordingly, one of the most ambitious aspects of my policy agenda as Chairman is to incentivize more companies to go public and stay public--or, as I have often put it, to Make IPOs Great Again.
Vibrant public and private markets can and should co-exist--they are not mutually exclusive. However, the strength of the U.S. public markets over the past ninety years has primarily powered the innovation of our entrepreneurs, the prosperity of our workers, and the economic growth of our nation. Public markets function as the anchor of American capital formation because they forge liquidity, transparency, price discovery, and accountability in a way that private markets cannot fully replicate. As a result, public markets also provide meaningful investment opportunities for millions of Americans. More than a corporate milestone, every IPO is an invitation for workers and savers to share in the prosperity of the next generation of American enterprise. When more companies become public, especially earlier in their life cycle, all investors--not just a select few with access to the private markets--can participate in and benefit from the growth in their value.
Shortly after I left the SEC as a staff member in the mid-1990s, more than 7,800 companies were listed on the U.S. securities exchanges.[1] When I returned as Chairman a year ago, that number had fallen by roughly 40 percent.[2] Today, companies tend not to go public, if at all, until after their Series D or E round of private fundraising, whereas thirty years ago, an IPO would be the equivalent of today's Series B or C.[3]
Revitalizing our public markets means dismantling the barriers that drove companies away in the first place. Overly burdensome SEC rules may not be the sole reason for this decline--but where regulatory frictions are a determinant of it, the agency is moving intently to remove them. In the time that we have together, I will first share what we have achieved thus far to that end before turning to what we still plan to accomplish.
***
Some of you may recall that last September, the Commission issued a policy statement regarding companies' inclusion of mandatory arbitration provisions in their governing documents.[4] These provisions require shareholders to arbitrate their claims against the company that arise under the federal securities laws. Prior to our statement, the SEC staff, with the apparent support of agency leadership, told companies on an ad hoc basis that including such a provision would prevent their registered offering from proceeding or substantially delay it. Those days of unwritten, consequential policies are over. Our formal Commission policy statement reversed this shadow position and clarified that, based on Supreme Court precedent, mandatory arbitration provisions are not inconsistent with the federal securities laws. This decision reaffirms that the SEC is not a merit regulator and must operate within its mandate as a disclosure agency--including with respect to a company's chosen method of resolving disputes with its shareholders.
In that same spirit, the Commission earlier this month proposed amendments that, if adopted, would provide public companies with the option of filing one semiannual report each year, in lieu of three quarterly reports.[5] Removing the SEC's thumb from the scale, as we proposed, affords companies regulatory flexibility based on their industry, business model, and investor expectations.
Just last week, the Commission issued two additional proposals that, if adopted, would build upon legislative and regulatory concepts that have proven successful in the past, and which aim to extend that success to more companies in the future--particularly small and mid-sized companies, creating further incentive to go and stay public.
The first--referred to as registered offering reform[6]--would expand access to the SEC's "shelf registration" process, which allows public companies to access the public markets quickly and when market conditions are most favorable. Currently, due to eligibility restrictions, newly public companies cannot use shelf registration, and smaller companies have only limited access to shelf registration. Registered offering reform, meanwhile, would expand the full availability of shelf registration to nearly all public companies--including the newest and the smallest--increasing the number of eligible companies by 60 percent. Additionally, this proposal would extend certain offering and communications flexibilities--currently reserved for large companies that have been public for at least one year--to all companies listed on a U.S. securities exchange. This change alone would represent a 200 percent increase in companies receiving these flexibilities.
The second reform that we proposed last week--referred to as filer status reform[7]--would re-calibrate disclosure requirements based on a company's size and how long it has been public. As a result, more companies would receive relief from some of the most onerous SEC requirements, including the obligation to obtain an auditor attestation of internal control over financial reporting. Currently, that benefit is reserved for newly public and smaller companies. Filer status reform would broaden it to approximately 81 percent of public companies, including certain seasoned and mid-sized issuers. The proposal would also build on the "IPO on-ramp" concept that Congress created by extending the length of time that companies can potentially remain on the on-ramp and be exempt from the auditor attestation requirement--and others like it.
***
Taken together, these actions reflect the SEC's significant progress since I became Chairman to incentivize more companies to go and stay public and, in doing so, to revitalize our capital markets. But, the work is far from finished, and additional noteworthy initiatives are on the horizon.
The Commission staff is well underway in developing recommendations for proposed changes to rationalize, simplify, and modernize the SEC's public company disclosure requirements, including with respect to executive compensation. Guided by materiality as our north star, I would like to see the Commission's disclosure regime reflect the minimum effective dose of regulation necessary to elicit information that is material to a reasonable investor, without requiring information that is indisputably immaterial.
Of course, the incentives for going public are only as effective as the process that companies must navigate to capitalize on them. With that in mind, I have asked the Commission staff to prepare recommendations to modernize the IPO process itself.
I routinely hear from companies and their advisors that one of the challenges of the IPO process is navigating the communication--or gun-jumping--rules under the Securities Act of 1933. In light of this, I would like to see any rulemaking in this area include considerable reforms to these rules. When Congress originally enacted the Securities Act, a company could not make any written or oral "offers" to sell securities before a registration statement became effective.[8] But as Linda Quinn--a former director of the SEC's Division of Corporation Finance--once questioned, "[d]o we need to continue to register offers?"[9]
Over time, both Congress and the Commission eased the prohibition on offers.[10] However, the Commission's spider web of gun-jumping prohibitions and exceptions remains difficult to maneuver. Moreover, the last time that the Commission implemented significant reform in this area was more than 20 years ago.[11] The ways in which businesses communicated with employees, customers, and potential investors at that time bears little resemblance to how they do so now. As the Commission staff prepares its recommendations, I look forward to constructing a more harmonized set of rules that offer clarity, simplicity, and congruity with today's technology.
Modernizing the IPO process also invites a broader reassessment of the method by which companies become public. IPOs conducted through a firm commitment underwriting offer many benefits and have been, and likely will remain, the dominant path for companies intending to go public--but they are by no means the only one. For example, in recent years, combining with a special purpose acquisition company, or SPAC, has become a popular workaround to the process of becoming a public company.[12] But, instead of standing idly by while companies pursue indirect paths to going public, regulators and market participants should move decisively to remedy the root causes and remove the barriers to more direct approaches.
For the public market debut of companies offering the next generation of products and services, the "traditional" IPO process may, in some respects, still be stuck in the prior generation. So I call on founders, executives, investors, bankers, lawyers, and others to boldly innovate and remain open to alternative methods of taking a company public. Now, an alternative method may not be ideal for every company, but for some, it may offer faster and cheaper execution, less susceptibility to unfavorable market conditions, and greater valuation certainty. And, if the market does develop an alternative method, the SEC and other regulators should not introduce or maintain regulatory frictions that stand in the way.
Consider, for example, becoming a public company through a direct listing--the path that Spotify took in 2018. In anticipation of that listing on the New York Stock Exchange, the NYSE proposed amendments to its listing standards that would have required only an Exchange Act registration statement, without a concurrent Securities Act registration statement.[13] However, the NYSE ultimately withdrew this aspect of the proposal, and the listing standards that the Commission approved retained the Securities Act registration requirement.[14] Nasdaq's standards for direct listings similarly require a Securities Act registration statement.[15]
Initial registration statements filed under the Exchange Act and the Securities Act contain largely the same company disclosure and generally undergo the same Commission staff review process. However, a Securities Act registration statement subjects the company--and any person deemed to be an underwriter--to more stringent liability standards for material misstatements or omissions under section 11 of the Act. Yet following a unanimous 2023 Supreme Court decision,[16] investors who purchase shares following a direct listing may find it difficult to establish a claim pursuant to section 11, though recourse through other liability provisions under the federal securities laws remains possible.[17]
As we look for ways to improve the process and method of becoming a public company, regulators and market participants might consider revisiting how direct listings are conducted and the associated legal requirements. As part of this consideration, it behooves us to ask questions such as: following the 2023 Supreme Court decision, does the market really believe that a Securities Act registration statement continues to offer meaningful investor protections in the direct listing context? Is the requirement to prepare a Securities Act registration statement--as opposed to an Exchange Act one--a hindrance for companies contemplating a direct listing? And beyond the form of the registration statement, are there other regulatory frictions in the direct listing process that the Commission or its staff can reduce through rulemaking or guidance, respectively, while preserving investor protections?
These are the types of questions that I hope today's conversation will inspire you to answer. But I am equally eager to hear your broader ideas for modernizing IPOs overall, whether that means improving the SEC's communication or other IPO-related rules, or identifying ways that the agency can remove roadblocks to non-traditional paths to going public. Beginning today, the SEC will accept written comments, and I encourage you to submit yours by July 27, though we will still consider comments received after that date. All ideas are most welcome. I have just one request--that you be bold and creative. And as you share your ideas, you have my word that we are listening.
***
With that, thank you for your time and attention today. And Peter [Robinson], I now look forward to our discussion. Thank you.
***
[The information below is included to establish a public comment file and was not part of Chairman Atkins's delivered remarks.]
Members of the public who wish to provide their views on ways to improve the SEC's communication or other rules related to IPOs, or how the agency can remove roadblocks to methods of going public unrelated to a "traditional" IPO, may submit comments electronically or on paper.
Please submit comments using one method only. Information that we receive will be posted on the SEC's website without change. Persons submitting comments are cautioned that we do not redact or edit personal identifying information from comment submissions. You should submit only information that you wish to make publicly available. We may redact in part or withhold entirely from publication submitted material that is obscene or subject to copyright protection. All submissions should refer to File Number CLL-16, and the file number should be included on the subject line if email is used. Please submit your comments as soon as possible and by no later than July 27, 2026.
Electronic Comments:
Use the SEC's Internet submission form or send an email to rule-comments@sec.gov with "CLL-16" included in the subject line.
Paper Comments:
Send paper comments to Vanessa Countryman, Secretary, Securities and Exchange Commission, 100 F Street, N.E., Washington, D.C. 20549-1090.
Comment letters received are available at https://www.sec.gov/rules-regulations/public-comments/cll-16 .
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[1] Based on information provided by Commission staff in the Division of Economic and Risk Analysis.
[2] Id.
[3] See, e.g., Jay R. Ritter, Initial Public Offerings: Median Age of IPOs Through 2025 (Dec. 31, 2025) (the median age of an IPO company in the mid-1990s was eight, compared to 12 in 2025), available at https://site.warrington.ufl.edu/ritter/files/IPOs-Age-of-Companies-Going-Public.pdf; and Amy Deen Westbrook, We('re) Working on Corporate Governance: Stakeholder Vulnerability in Unicorn Companies, 23 U. Pa. J. Bus. L. 505, 520 (2021) ("The average time between first venture-capital financing and going public has increased from approximately four years in the 1990s to seven years today ...Startups are not only able to stay independent and privately held long after they first raise capital, late-stage startups have seen an increase in the amount of capital they are able to raise...").
[4] Acceleration of Effectiveness of Registration Statements of Issuers with Certain Mandatory Arbitration Provisions, Release No. 33-11389 (Sept. 17, 2025) [90 FR 45125 (Sept. 19, 2025)], available at https://www.federalregister.gov/documents/2025/09/19/2025-18238/acceleration-of-effectiveness-of-registration-statements-of-issuers-with-certain-mandatory.
[5] Semiannual Reporting, Release No. 34-105368 (May 5, 2026) [91 FR 24968 (May 7, 2026)], available at https://www.federalregister.gov/documents/2026/05/07/2026-09095/semiannual-reporting.
[6] Registered Offering Reform, Release No. 33-11418 (May 19, 2026) [91 FR 31022 (May 26, 2026)], available at https://www.federalregister.gov/documents/2026/05/26/2026-10373/registered-offering-reform.
[7] Enhancement of Emerging Growth Company Accommodations and Simplification of Filer Status for Reporting Companies, Release No. 34-105515 (May 19, 2026) [91 FR 30086 (May 21, 2026)], available at https://www.federalregister.gov/documents/2026/05/21/2026-10222/enhancement-of-emerging-growth-company-accommodations-and-simplification-of-filer-status-for.
[8] See Louis Loss, Joel Seligman & Troy Paredes, Securities Regulation ch. 2.B.2 (7th ed.).
[9] Linda C. Quinn, Reforming the Securities Act of 1933: A Conceptual Framework, 10 Insights, Jan. 1996, at 25, 27, available at https://www.sec.gov/info/smallbus/acsec/reformingsa33.pdf.
[10] See generally Louis Loss, Joel Seligman & Troy Paredes, Securities Regulation ch. 2.B (7th ed.); Charles L. Bennett, Jeffrey J. Posner & Bruce S. Foerster, Capital Markets Handbook Sec. 3.04 (7th ed. 2026 supp.).
[11] Securities Offering Reform, Release No. 33-8591 (Dec. 1, 2005) [70 FR 44721 (Aug. 3, 2025)], available at https://www.federalregister.gov/documents/2005/08/03/05-14560/securities-offering-reform.
[12] See Jay R. Ritter, Special Purpose Acquisition Company (SPAC) IPOs tbl.15c (Apr. 14, 2026) (514 deSPACs between 2021 and 2025), available at https://site.warrington.ufl.edu/ritter/files/IPOs-SPACs.pdf.
[13] Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing of Proposed Rule Change to Amend Section 102.01B of the NYSE Listed Company Manual to Modify the Requirements that Apply to Companies that List Without a Prior Exchange Act Registration and that Are Not Listing in Connection with an Underwritten Initial Public Offering, Release No. 34-80313, File No. SR-NYSE-2017-12 (Mar. 27, 2017) [82 FR 16082, 16083 (Mar. 31, 2017)], available at https://www.federalregister.gov/documents/2017/03/31/2017-06332/self-regulatory-organizations-new-york-stock-exchange-llc-notice-of-filing-of-proposed-rule-change.
[14] Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing of Amendment No. 3 and Order Granting Accelerated Approval of Proposed Rule Change, as Modified by Amendment No. 3, to Amend Section 102.01B of the NYSE Listed Company Manual, Release No. 34-82627, File No. SR-NYSE-2017-30 (Feb. 2, 2018) [83 FR 5650, note 11 (Feb. 8, 2018)], available at https://www.federalregister.gov/documents/2018/02/08/2018-02501/self-regulatory-organizations-new-york-stock-exchange-llc-notice-of-filing-of-amendment-no-3-and.
[15] Nasdaq Rule IM-5315-1.
[16] Slack Techs., LLC v. Pirani, 598 U.S. 759 (2023).
[17] See U.S. Supreme Court Adopts Narrow Reading of Liability Under the Securities Act of 1933, Sullivan & Cromwell LLP (June 5, 2023), available at https://www.sullcrom.com/SullivanCromwell/_Assets/PDFs/Memos/sc-publication-scotus-adopts-narrow-reading-securities-act-1933.pdf.
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Original text here: https://www.sec.gov/newsroom/speeches-statements/atkins-052626-remarks-stanford-rock-center-corporate-governance
Justice Department Recovers Over $6M in Additional Funds Linked to 1MDB Scheme
WASHINGTON, May 28 -- The U.S. Department of Justice issued the following news release on May 27, 2026:* * *
Justice Department Recovers Over $6M in Additional Funds Linked to 1MDB Scheme
The Justice Department announced today that it has obtained an order forfeiting a luxury New York apartment purchased with funds misappropriated from 1MDB, a Malaysian Sovereign Wealth Fund, along with certain rental income. This action resolves a civil forfeiture case filed in the United States District Court for the Central District of California seeking the recovery of over $6 million in assets associated ... Show Full Article WASHINGTON, May 28 -- The U.S. Department of Justice issued the following news release on May 27, 2026: * * * Justice Department Recovers Over $6M in Additional Funds Linked to 1MDB Scheme The Justice Department announced today that it has obtained an order forfeiting a luxury New York apartment purchased with funds misappropriated from 1MDB, a Malaysian Sovereign Wealth Fund, along with certain rental income. This action resolves a civil forfeiture case filed in the United States District Court for the Central District of California seeking the recovery of over $6 million in assets associatedwith an international conspiracy to launder funds misappropriated from 1MDB.
As alleged in civil forfeiture complaints filed in this case, billions of dollars in funds belonging to 1MDB were misappropriated from 2009 through 2015 by high-level officials of 1MDB and their associates, and Low Taek Jho, also known as Jho Low, through a criminal scheme involving international money laundering and embezzlement. Millions of dollars in such misappropriated funds were then used to purchase a luxury condominium unit in New York City for the benefit of May Ling Catherine Tan (Tan), a personal assistant for Low, who also profited from this asset by retaining rental proceeds. Under the forfeiture order entered in this case, the condominium and rental proceeds held by Tan will be forfeited to the U.S. government.
1MDB was created by the government of Malaysia to promote economic development in Malaysia through global partnerships and foreign direct investment. Its funds were intended to be used for improving the well-being of the Malaysian people. Instead, funds held by 1MDB and proceeds of bonds issued for and on behalf of 1MDB were misappropriated and spent by Low and his co-conspirators on a wide variety of extravagant items, including luxury homes and properties in Beverly Hills, California, New York, and London; a 300-foot superyacht; and fine art by Monet and Van Gogh. The funds also were sent into numerous business investments, including a boutique hotel in Beverly Hills, the movie production company that made "The Wolf of Wall Street," the redevelopment of the Park Lane Hotel in Manhattan, and shares in EMI, the largest private music-rights holder. As alleged, other funds were provided to various public officials and co-conspirators.
Trial Attorney Barbara Levy of the Criminal Division's Money Laundering, Narcotics and Forfeiture Section (MNF) is prosecuting the civil forfeiture case, with assistance from the U.S. Attorney's Office for the Central District of California, and the Justice Department's Office of International Affairs, and the US Marshals. The FBI's International Corruption Squad in New York is leading the investigation.
MNF's International Unit investigates and prosecutes cross-border money laundering schemes involving transnational criminal organizations, cartels, foreign official corruption and related money laundering affecting the U.S. financial system, and prosecutes criminal cases and civil forfeiture matters to recover the proceeds of those crimes.
Significant assistance has also been provided to the Justice Department over the course of its work in the investigations and civil and criminal litigation by the Attorney General's Chambers of Malaysia, Royal Malaysian Police, Malaysian Anti-Corruption Commission, U.K. Financial Conduct Authority, U.K. Prudential Regulation Authority, U.K. National Crime Agency, Attorney General's Chambers of the Territory of the British Virgin Islands, Attorney General's Office of the Bailiwick of Guernsey and Guernsey Economic Crime Division, International Anti-Corruption Coordination Centre, Attorney General's Chambers of Singapore, Singapore Police Force -- Commercial Affairs Division, Office of the Attorney General and Federal Office of Justice of Switzerland, judicial investigating authority of the Grand Duchy of Luxembourg, Criminal Investigation Department of the Grand-Ducal Police of Luxembourg, Republic of Indonesia, Latvian authorities, and French authorities, including the Parquet National Financier and Agency for Management and Recovery of Seized and Confiscated Assets (AGRASC).
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Original text here: https://www.justice.gov/opa/pr/justice-department-recovers-over-6m-additional-funds-linked-1mdb-scheme
Fed Vice Chair Jefferson Issues Remarks at 2026 Bank of Japan-Institute for Monetary and Economic Studies Conference
TOKYO, Japan, May 28 -- The Federal Reserve issued the following remarks on May 27, 2026, by Vice Chair Philip N. Jefferson at the 2026 Bank of Japan-Institute for Monetary and Economic Studies Conference:* * *
Global Economic Developments and the U.S. Economy
Good morning. It is an honor to be here at the Bank of Japan, and I appreciate the opportunity to speak with you today.1 I am looking forward to our discussion, but first I want to share some framing thoughts. I will briefly discuss three developments in the global economy that I am monitoring, and then I will update you on my outlook ... Show Full Article TOKYO, Japan, May 28 -- The Federal Reserve issued the following remarks on May 27, 2026, by Vice Chair Philip N. Jefferson at the 2026 Bank of Japan-Institute for Monetary and Economic Studies Conference: * * * Global Economic Developments and the U.S. Economy Good morning. It is an honor to be here at the Bank of Japan, and I appreciate the opportunity to speak with you today.1 I am looking forward to our discussion, but first I want to share some framing thoughts. I will briefly discuss three developments in the global economy that I am monitoring, and then I will update you on my outlookfor the U.S. economy and the path of monetary policy.
The first global development I am tracking is the significant increase in energy prices due to the conflict in the Middle East. The rise in crude oil prices poses downside risks to growth and upside risks to inflation around the globe. Elevated energy prices are particularly challenging for countries like Japan that are net energy importers. While being a net energy exporter buffers the U.S. to an extent against energy shocks, it is not immune to the effects of disruption to global supply. Gasoline prices in the U.S. increased significantly since the onset of the conflict and remain notably elevated. I am watching whether higher energy prices will start to weigh on consumer spending.
The second development is the rapid advancement of artificial intelligence (AI) technology. As a central banker, I am optimistic about AI's promise to drive productivity and growth, though I am also monitoring its effects on the labor market and inflation.
And the third development is the effects of disrupted trade flows on the global economy. Since the pandemic, there have been multiple disruptions to global trade that have affected both supply and price levels.
Against this global backdrop, my focus, of course, is on the U.S. economy. Recent economic growth in the U.S. has been solid, though I expect a more modest pace of growth this year as households face high energy costs. The U.S. labor market is broadly stable, with both hiring and firing at relatively low levels. I see risks to the labor market as somewhat skewed to the downside. Disinflation in the U.S. stalled over the preceding year, largely because of increased tariffs. In recent months, inflation moved notably higher because of higher energy costs. I expect inflation to decline later this year as the effects of tariffs and the energy shock wane, but I view risks around my inflation outlook as tilted to the upside.
I am firmly committed to returning inflation to the Federal Open Market Committee's (FOMC) 2 percent target, aligned with our dual-mandate objectives of price stability and maximum employment given to us by Congress. At our last meeting, in late April, the FOMC decided to maintain the target range for the federal funds rate at 3-1/2 to 3-3/4 percent. I believe this policy stance leaves us well positioned to respond to economic developments based on the incoming data, the evolving outlook, and the balance of risks. I have not prejudged the next meeting and look forward to engaging with my colleagues about the policy necessary to best achieve our dual-mandate goals.
Thank you once again for the opportunity to speak with you today. I look forward to our discussion.
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Original text here: https://www.federalreserve.gov/newsevents/speech/jefferson20260527a.htm
FEMA Approves More Than $28 Million in Funding to Help Communities Recover From Recent Disasters and Strengthen Their Resilience Against Future Disasters in Mid-Atlantic States
WASHINGTON, May 28 -- The U.S. Department of Homeland Security Federal Emergency Management Agency issued the following news release on May 27, 2026:* * *
FEMA Approves More Than $28 Million in Funding to Help Communities Recover from Recent Disasters and Strengthen Their Resilience Against Future Disasters in Mid-Atlantic States
PHILADELPHIA -- Today, FEMA announced the approval of more than $28 million in post-disaster funding for Public Assistance and Hazard Mitigation Grant Program projects in Delaware, Maryland, Pennsylvania, Virginia, West Virginia, and the District of Columbia. These ... Show Full Article WASHINGTON, May 28 -- The U.S. Department of Homeland Security Federal Emergency Management Agency issued the following news release on May 27, 2026: * * * FEMA Approves More Than $28 Million in Funding to Help Communities Recover from Recent Disasters and Strengthen Their Resilience Against Future Disasters in Mid-Atlantic States PHILADELPHIA -- Today, FEMA announced the approval of more than $28 million in post-disaster funding for Public Assistance and Hazard Mitigation Grant Program projects in Delaware, Maryland, Pennsylvania, Virginia, West Virginia, and the District of Columbia. Theseprograms empower states, local communities, tribes and territories to recover to rebuild more resilient, safer communities and protect infrastructure from future events. With this funding, President Donald J. Trump is keeping his promise to reform federal disaster support and ensure that taxpayer money is spent only on projects that deliver safety and security to the American people.
The funding approved today includes $27.5 million under FEMA's Public Assistance program awarded across five states and the District of Columbia.
FEMA disburses this money to states because state and local leaders are best positioned to know how these funds will be most effectively spent. The funded projects include repairs to critical infrastructure, restoration of public buildings, road repairs and reimbursement for costs incurred to ensure public health and safety after a disaster.
Examples of projects reimbursed through Public Assistance funding approved today include:
* $818,427 to the City of Baltimore and $556,290 to the D.C. Office of Contracts & Procurement for their efforts in 2020 to prevent the spread of COVID-19
* $645,160 to West Virginia Division of Highways for road repair from the storms and flooding in June 2025
* $230,000 to Delaware Emergency Management Agency for state management costs related to Hurricane Ida in 2021
* $196,193 to Tioga County, Pa., to repair damages resulting from Tropical Storm Debby in 2024
In addition, FEMA is awarding $900,000 to the City of Williamsburg, Va., to retrofit the Waller Mill Dam and help prevent, eliminate or reduce future disaster-related damage. This money is being distributed through FEMA's Hazard Mitigation Grant Program. Through this program, state, local or territory governments and Tribal Nations take proactive mitigation measures such as acquiring hazard-prone homes and businesses, adopting and enforcing building codes and standards, protecting against floods through elevations and drainage improvement projects, building safe rooms and upgrading utilities and infrastructure.
FEMA coordinates directly with the state on all hazard mitigation projects. This aligns with FEMA's principles of ensuring that disaster recovery and mitigation is state-led and federally supported.
These projects are the latest examples of billions of dollars in disaster recovery provided by FEMA to support state and local communities as they work to rebuild from recent natural disasters.
FEMA continues its renewed commitment to help communities recover from disasters like hurricanes, severe storms, tornadoes and wildfires while making them more resilient from future disasters.
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FEMA's mission is helping people before, during and after disasters.
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Original text here: https://www.fema.gov/press-release/20260527/fema-approves-more-28-million-funding-help-communities-recover-recent
FDIC Quarterly Banking Profile First Quarter 2026
WASHINGTON, May 28 -- The Federal Deposit Insurance Corporation issued the following agency statement on May 27, 2026:* * *
FDIC Quarterly Banking Profile First Quarter 2026
Today, the FDIC is releasing first quarter 2026 performance results for FDIC-insured institutions.
The banking industry finished the quarter with higher earnings quarter-over-quarter, resulting in a return on assets ratio (ROA) of 1.26 percent. Domestic deposits increased for the seventh consecutive quarter and loan growth was strong. Asset quality metrics remained generally favorable despite continued weakness in certain ... Show Full Article WASHINGTON, May 28 -- The Federal Deposit Insurance Corporation issued the following agency statement on May 27, 2026: * * * FDIC Quarterly Banking Profile First Quarter 2026 Today, the FDIC is releasing first quarter 2026 performance results for FDIC-insured institutions. The banking industry finished the quarter with higher earnings quarter-over-quarter, resulting in a return on assets ratio (ROA) of 1.26 percent. Domestic deposits increased for the seventh consecutive quarter and loan growth was strong. Asset quality metrics remained generally favorable despite continued weakness in certainportfolios, which the FDIC continues to monitor closely. Unrealized losses remained elevated.
The banking industry continued to have strong capital and liquidity levels, which support lending and protect against potential losses.
Quarterly Net Income (Chart 1)
Chart 1 shows that the banking industry reported quarterly net income of $80.5 billion in the first quarter, an increase of $2.8 billion, or 3.6 percent, from the prior quarter. The rise in quarterly earnings was driven by robust growth in noninterest income at larger institutions but was partially offset by higher noninterest expense and lower net interest income. The banking industry reported an ROA of 1.26 percent in first quarter 2026, up 2 basis points from the prior quarter and up 10 basis points from the year-ago quarter.
Community bank net income increased 3.9 percent from the prior quarter due to lower provision and noninterest expenses. The quarterly pretax ROA at community banks was 1.42 percent in first quarter 2026, up 7 basis points from the prior quarter and 26 basis points from the year-ago quarter.
Quarter-Over-Quarter Change in Net Income (Chart 2)
Note: Striped bars show a negative effect on net income; solid bars show a positive effect on net income.
Chart 2 shows the breakdown of the changes in the industry's net income quarter over quarter. The primary driver of the industry's $2.8 billion increase in net income was higher noninterest income, which rose $5.0 billion, or 5.8 percent. Gains in noninterest income were attributable to larger institutions. Industry gains were partially offset by higher noninterest expense, which increased $2.5 billion, or 1.6 percent, and lower net interest income, which declined $1.6 billion, or 0.8 percent.
Quarterly Net Interest Margin (Chart 3)
Chart 3 shows the average net interest margin (NIM) for the industry and the five asset-size groups on which the Quarterly Banking Profile reports. The industry's NIM decreased 8 basis points from the prior quarter to 3.31 percent but was up 6 basis points from the year-ago quarter. NIM decreased across all asset-size cohorts.
The community bank NIM decreased to 3.71 percent, down 6 basis points from the prior quarter but up 24 basis points from the year-ago quarter.
Quarterly Change in Yield on Earning Assets and Cost of Funds (Chart 4)
Note: Ratios are annualized.
Chart 4 shows the quarter-over-quarter changes in the industry's average yield on earning assets and average cost of funds. During the quarter, the yield on earning assets decreased more than the cost of funds. This resulted in an 8 basis point decline in the industry's NIM in first quarter 2026.
For community banks, the yield on earning assets decreased 18 basis points and the cost of funds fell 12 basis points, resulting in a 6 basis point decline in the NIM in first quarter 2026.
Quarterly Credit Loss Provisions (Chart 5)
Chart 5 shows that the industry's provision expense was $21.4 billion in the first quarter, rising 2.3 percent from the prior quarter but falling 4.6 percent from the year-ago quarter.
Loans and Securities Greater than Three Years as a Percent of Total Assets (Chart 6)
Note: Insured Call Report filers only.
Chart 6 shows that longer-term loans and securities as a share of the banking industry's total assets fell for the 13th consecutive quarter to 33.0 percent after peaking at 39.7 percent in fourth quarter 2022. The industry's longer-term assets as a share of total assets were the lowest since 2020.
At community banks, longer-term loans and securities as a share of total assets remained unchanged from the prior quarter at 43.0 percent.
Unrealized Gains (Losses) on Investment Securities (Chart 7)
Note: Insured Call report filers only. Unrealized losses on securities solely reflect the difference between the market value and book value of non-equity securities as of quarter end. This chart does not reflect unrealized.
Chart 7 shows the level of unrealized losses on held-to-maturity and available-for-sale securities portfolios. Total unrealized losses increased $19.0 billion, or 6.2 percent, from the prior quarter to $325.1 billion. The 30-year mortgage rate remained relatively flat during the first two months of the quarter but rose in the month of March, decreasing the value of mortgage-backed securities reported by banks and increasing unrealized losses.
Quarterly Change in Loan Balances (Chart 8)
Note: ASC Topics 810 and 860 resulted in the consolidation of large amounts of securitized loan balances back onto banks' balance sheets in the first quarter 2010. Although the amount consolidated cannot be precisely quantified, the industry would have reported a decline in load balances for the quarter absent this change in accounting standards.
Chart 8 shows the change in loan balances on a quarterly and annual basis. The industry's total loans increased $215 billion, or 1.6 percent, in the first quarter. Commercial and industrial (C&I) loans and loans to nondepository financial institutions had the largest dollar increase among reported categories. Loans to purchase or carry securities, including margin loans and nonfarm nonresidential commercial real estate (CRE) loans, also contributed to the industry's quarterly loan growth. The industry's annual rate of loan growth in the first quarter accelerated to 7.1 percent, the fastest annual growth rate since first quarter 2023.
Total loans at community banks increased 0.8 percent from the prior quarter and 5.4 percent from the prior year, led by increases in nonfarm nonresidential CRE and C&I portfolios.
Past Due and Nonaccrual Rate and Quarterly Net Charge-Off Rate (Chart 9)
Chart 9 shows that asset quality metrics for the industry remained generally favorable. The overall past-due and nonaccrual (PDNA) rate declined from the prior quarter to 1.53 percent.1 The PDNA rates for multifamily CRE, non-owner-occupied CRE, credit card portfolios, and auto loans remained elevated.
The industry's quarterly net charge-off rate was 0.59 percent, down 4 basis points from the prior quarter and 8 basis points from the year-ago quarter. Most of the quarterly decline was led by declining nonfarm nonresidential net charge-offs.
Bank Non-Owner Occupied, Nonfarm Nonresidential Loan Past-Due and Nonaccrual Rates by Asset Size (Chart 10)
Looking deeper into the CRE portfolio, the elevated PDNA rates of non-owner-occupied property loans eased in the first quarter, particularly among larger institutions. The non-owner-occupied CRE PDNA rate for banks with assets greater than $250 billion declined for the sixth consecutive quarter to 3.40 percent, below the recent peak of 4.99 percent in third quarter 2024 but well above the pre-pandemic average rate of 0.58 percent.2 However, these large banks have lower concentrations of such loans in relation to total assets and capital than smaller banks, mitigating the overall risk. Overall, the industry's volume of PDNA non-owner-occupied CRE loans declined $300.7 million, or 1.3 percent, from the prior quarter.
Reserve Coverage Ratio (Chart 11)
Note: The reserve coverage ratio is the allowance for the credit losses to noncurrent loans and leases. The term "noncurrent loans" is used to describe loans that are 90 or more days past-due or on nonaccrual status.
Chart 11 shows that the reserve coverage ratio fell to 166.8 percent in the quarter, as noncurrent loans increased by a greater amount than the increase in allowance for credit losses.
The reserve coverage ratio at community banks declined to 146.6 percent, driven by both lower allowance and an increase in noncurrent loans (a contrast to the broader industry).
Quarterly Change in Asset Funding (Chart 12)
Chart 12 shows that domestic deposits increased for the seventh consecutive quarter, rising $389.7 billion, or 2.1 percent, during the first quarter. Estimated uninsured domestic deposits, up $233.5 billion, drove the increase from the prior quarter. The industry's nondeposit liabilities increased $393.9 billion during the quarter, driven by an increase in repurchase agreements and trading liabilities.
Number of Banks on the "Problem Bank List" (Chart 13)
Chart 13 shows the number of banks on the FDIC's "Problem Bank List." Banks on this list have a CAMELS composite rating of "4" or "5." The number of banks on the list declined by a net of six in the first quarter to 54 banks. The number of problem banks was 1.3 percent of total banks, which is in the normal range of 1 to 2 percent for non-crisis periods. Three banks opened and one bank failed during the first quarter.
Deposit Insurance Fund (DIF) Reserve Ratio and Balance (Chart 14)
Note: The reserve ratio is calculated as the ratio of the DIF to estimate insured deposits and is calculate as of quarter end.
Chart 14 shows that the balance of the Deposit Insurance Fund (DIF) was $157.4 billion on March 31, 2026, up $3.6 billion from the fourth quarter. Assessment revenue continued to be the primary driver of the increase, adding $3.1 billion to the DIF balance, followed by $1.2 billion in interest earned on investment securities. Growth in the DIF over the quarter was partially offset by unrealized losses on available-for-sale securities of $280 million and operating expenses of $526 million.
Estimated insured deposits increased 1.7 percent during the first quarter and 2.0 percent from the year-ago quarter. The reserve ratio, which is calculated as the ratio of the DIF to estimated insured deposits, increased 1 basis point in the first quarter to 1.43 percent and was 12 basis points higher than the year-ago quarter.
In conclusion, the banking industry continued to show resilience in first quarter 2026. The industry saw robust loan and deposit growth during the quarter. Strong capital and liquidity levels continue to support lending and protect against potential losses. However, the industry still faces weakness in certain loan portfolios and elevated unrealized losses. These issues will remain matters of ongoing supervisory attention by the FDIC.
1. In this statement, the terms "past-due and nonaccrual" or "PDNA" are used to describe loans that are 30 or more days past-due or on nonaccrual status.
2. The period used to calculate pre-pandemic averages is first quarter 2015 through fourth quarter 2019.
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Original text here: https://www.fdic.gov/news/speeches/2026/fdic-quarterly-banking-profile-first-quarter-2026