Jul 2, 2018

Report: Federal probe of Facebook involves SEC

Facebook CEO Mark Zuckerberg. Photo: Josh Edelson/AFP/Getty Images

The federal government's investigation of Facebook's misuse of user information with the data company Cambridge Analytica, already underway at both the Department of Justice and the Federal Trade Commission, also involves the Securities and Exchange Commission, according to the Washington Post.

Why it matters: Although the Post story does not specify the SEC's focus, the commission could be looking at whether Facebook improperly withheld information from investors about its relationship with Cambridge Analytica.

Line of inquiry: The Post says the inquiry by the government is looking at "what Facebook has reported publicly about its sharing of information with Cambridge Analytica, whether those representations square with the underlying facts and whether Facebook made sufficiently complete and timely disclosures to the public and investors."

What Facebook is saying: Facebook confirmed that all four agencies (Justice Department, FTC, SEC, and also the FBI) have asked questions. "We are cooperating with officials in the U.S., U.K. and beyond. We’ve provided public testimony, answered questions, and pledged to continue our assistance as their work continues," said a spokesperson.

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Biden: George Floyd's last words are "a wake-up call for our nation"

Former Vice President Joe Biden meets with clergy members and community activists during a visit to Bethel AME Church in Wilmington, Del. on June 1, 2020. Photo: JIM WATSON/AFP via Getty Images

Joe Biden will call George Floyd’s dying words “a wake-up call for our nation,” and criticize President Trump’s decision to unleash tear gas on peaceful protesters outside the White House, in a civil rights speech from Philadelphia on Tuesday.

Why it matters: Biden in the address will seek to draw a sharp contrast between himself and Trump, whose first remarks addressing nationwide unrest Monday highlighted law and order, extreme demonstrations of militarized “strength” and other blustery threats.

The alarm over climate financial risk gets louder because of coronavirus

Illustration: Sarah Grillo/Axios

The COVID-19 pandemic underscores why market regulators, companies and investors should do a better job planning for climate risks to the financial system, a pair of reports finds.

Driving the news: The International Monetary Fund said projected increases in the frequency and severity of natural disasters are a potential threat that investors probably aren't weighing enough.

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Facebook's first major public worker walkout

Illustration: Sarah Grillo/Axios

Disgruntled Facebook employees, upset for days over the company's decision not to take down what they saw as calls for violence from President Trump, made their grievances public on Monday, with reportedly hundreds of workers staging a virtual walkout.

Why it matters: Facebook staffers have pushed back against controversial management choices in the past, but they've never before made public their dissent en masse. The protest suggests that the company — already battered by privacy scandals and political tensions — could be beginning to lose at least some of its workforce's trust.