Risk Management
SEC Enforcement Actions Fell 30% in Fiscal Year 2025: Cornerstone Report
A report released this week by NYU Pollack Center for Law & Business and Cornerstone Research shows that in fiscal year 2025 (ending September 30), the number of enforcement actions brought by the U.S. Securities and Exchange Commission (SEC) against public companies decreased by 30% year-over-year, totaling 56 cases. Of these, 93% of enforcement actions occurred during Gary Gensler's tenure as SEC Chair, while only 4 cases emerged after Paul Atkins took office. The report noted that total monetary settlements decreased by 45% year-over-year to $808 million, the lowest level in over a decade.
US September nonfarm payrolls beat expectations, unemployment rate rises to 4.4%
Data released by the US Department of Labor on Thursday showed that nonfarm payrolls increased by 119,000 in September, higher than market expectations, but the unemployment rate climbed to 4.4%, the highest level in nearly four years. Meanwhile, employment growth data for July and August were revised down by a combined 33,000. Samuel Tombs, chief US economist at Pantheon Macroeconomics, believes that the September employment data may overstate labor demand and does not constitute a reason against the Fed cutting interest rates. Fed officials are clearly divided on the policy path for December, and interest rate futures markets show a 60.2% probability of holding rates steady.
Inflation remains high for four consecutive years, and small business owners are most worried about cost pressure - Bank of America survey
The Bank of America 2025 Business Owner Report shows that inflation has exceeded the Federal Reserve's 2% target for four consecutive years, becoming the top concern for small businesses. 70% of respondents view inflation as the primary risk, 64% have raised prices, and 77% report an average cost increase of 18%. Despite an uncertain economic outlook, 74% of businesses remain positive, 59% plan to expand, and 43% intend to increase hiring.
FASB Launches New Crypto Asset Transfer Project, Focusing on Accounting for Wrapped Tokens and Receipt Tokens
The Financial Accounting Standards Board (FASB) voted unanimously on Wednesday to add the accounting for transfers of crypto assets, including wrapped tokens and receipt tokens, to its high-priority technical agenda. The project may expand the scope of the 2023 guidance, Crypto Assets (Subtopic 350-60), in response to stakeholder feedback and recommendations from the President's Working Group on Digital Asset Markets.
Gartner: CFO Finance Teams' AI Adoption Growth Slows, Challenges and Optimism Coexist
According to the latest survey released by Gartner on Tuesday, the adoption rate of artificial intelligence among corporate finance teams in 2025 is roughly the same as in 2024, although optimism about the technology has risen. Among 183 surveyed CFOs and senior finance executives, 59% said they use AI within their departments, slightly up from 58% last year. Of those adopters, 67% are more optimistic about AI than they were last year. The research indicates that data literacy, data quality, and skill shortages remain major barriers, while use cases such as knowledge management and accounts payable automation are the most common.
C-suite executives themselves violate corporate AI usage policies
Although companies have established AI usage policies, both executives and employees engage in violations. A Nitro survey found that over two-thirds of C-suite executives recently used unauthorized AI tools, and more than half believe security and compliance implementation is difficult. Shadow AI increases the risk of data breaches, with global average losses exceeding $4 million. Experts point out that insufficient tool practicality is one of the main causes of violations, and adoption should be driven by value rather than coercion.
Alphabet, HP, IBM finance executives: AI pilots need to proceed with caution
At an online conference hosted by Financial Executives International (FEI), finance executives from major U.S. companies including Alphabet, Meta, HP, IBM, and ServiceNow shared their organizations' experiences and lessons learned in AI applications. They agreed that AI is already having an impact in corporate finance, but success depends on strategic and disciplined adoption. The conference, held from November 13 to 15, focused on practical use cases of AI in finance functions, emphasizing maintaining a 'human-in-the-loop' approach in deployment, and prioritizing data quality and process optimization sequencing.
Financial Industry CFOs Face Cybersecurity Compliance Pressure: Survey Reveals 53% See It as Top Challenge
A report released by cybersecurity company Omega Systems indicates that over half (53%) of CFOs in the financial services industry view keeping pace with changing cybersecurity regulations as their primary concern. Despite heightened regulatory risks, many companies remain constrained by insufficient budgets, legacy infrastructure, and inefficient manual processes. The report also found significant divergence between CFOs and CIOs in regulatory perception, with only 38% of CIOs viewing regulatory changes as a top issue.
New York Fed: November Manufacturing Activity Expanded at Fastest Pace in a Year
The New York Fed's November manufacturing survey showed that factory activity in New York State expanded at the fastest pace in a year, with growth in new orders and shipments as the main drivers. Despite signs of softening in the national labor market, local employment rose slightly and working hours extended. Businesses' optimism about the outlook declined from the previous month but still expected conditions to improve. Meanwhile, the federal government shutdown delayed the release of key economic data, and Fed Vice Chair Jefferson and Governor Waller expressed differing views on the policy path.
Apollo Chief Economist: 55% of CPI Basket Items Rise Over 3% Annually, Constraining Fed's December Rate Cut Space
Torsten Sløk, Chief Economist at Apollo Global Management, stated that 55% of items in the CPI basket have annualized increases exceeding 3%, well above the Fed's long-term target of 2%, which makes it difficult for the Fed to cut rates in December.