Big banks hit on 'living wills', how Elon Musk built his empire and why luck matters

Regulators warned five big US banks to reform or face harsh sanctions after plans to show how they could be wound up in a crisis were deemed inadequate. The “living will” plans — a central pillar of post-financial crisis reforms — are intended to prevent more taxpayer bailouts of big institutions and the kind of chaos sparked by the 2008 collapse of Lehman Brothers.

JPMorgan, Bank of America, Wells Fargo, Bank of New York Mellon and State Street were all taken to task over plans that regulators said were “not credible or would not facilitate an orderly resolution” in a crisis. (FT)

In the news

Russian warplanes ‘buzz’ US ship Two Russian jets flew within metres of a US guided missile destroyer almost a dozen times in what American officers have described as a “simulated attack.” The incident earlier this week in the Baltic Sea was “one of the most aggressive acts in recent memory”, one official said. (FT)

S Korea ruling party loses majority The chances of President Park Geun-hye pushing through her reform agenda took a hit on Wednesday when her ruling party lost its parliamentary majority in general elections. The country went to the polls amid threats from North Korea that it would conduct a fifth nuclear test. (FT, NAR)

‘Sell RBS at a loss’ Chancellor George Osborne will have to consider selling the public stake in Royal Bank of Scotland at a loss because keeping it in the public sector is bad for the bank and the economy, the outgoing head of the Treasury has claimed. (FT)

Maria Sharapova: unforced error? The five-time grand slam tennis champion was among 40 Russian athletes who tested positive for meldonium after the drug was added to the World Anti-Doping Agency’s list of banned substances on January 1. But Wada is now considering overturning the bans it handed down — including Sharapova’s — as it said it was unable to establish how quickly the drug cleared the human body. (Reuters)

Stocks hit high on China data Global shares registered another peak for the year as better than expected trade figures from China eased growth fears, sparking firmer risk appetite and less demand for havens. (FT)

Stage set for Argentina bond sale A US appeals court has cleared the way for Argentina to raise as much as $15bn to pay holdout creditors, enabling the Latin American nation to re-enter international capital markets after more than a decade on the sidelines. (FT)

Peabody Energy files for bankruptcy The crisis in coal mining claimed its biggest victim yetwith the world’s largest private sector coal producer by output filing a petition for Chapter 11 protection. (FT)

It's a big day for

Jeremy Corbyn, who is set to end a long political journey on the issue of Europe by coming out firmly in favour of Britain’s remaining in the EU, as Labour seeks to mobilise its support behind the Remain campaign. (FT)

Bank of England The latest interest rate decision will come out amid signs of a slowing economy and a raging debate over Britain’s place in the EU ahead of the June 23 referendum. (FT)

Food for thought

India: water wars The country is facing a two-pronged water crisis: acute shortages from below-average monsoons, as well as chronic water depletion affecting both rural and urban areas. Now, experts fear the long-term mismanagement of water could begin affecting industry and the broader economy. (FT)

How Elon Musk built his empire Step-by-step infographic charts the circumstances faced and decisions made by the tech entrepreneur from his early life in South Africa to his current position as head of SpaceX and Tesla. (Visual Capitalist)

The case for living beyond your means An increasing number of everyday people are leasing a lifestyle beyond their reach in order to project an image of power and authority — and it can often prove to be a good long-term investment. Studies have found that job candidates instantly increased their status in the eyes of interviewers by actively signalling that they could afford luxury brands and were, thus, higher up in the hierarchy of capitalism. (BBC)

Companies are not global citizens The nation state has proved to be extraordinarily durable — and, for all their global ambitions, companies have not broken free of that, writes the FT’s Michael Skapinker. “While businesses have become global, governments have been reminding them that they are still citizens of the countries in which they started and do most of their business.” (FT)

'I am on the kill list' Four missiles have been fired at Malik Jalal. He has taken to sleeping outside under trees to avoid becoming a magnet of death for his family. This is what it feels like to be hunted by predator drones. (Independent)

Why luck matters Chance plays a far larger role in life outcomes than most people realise. And yet, the luckiest among us appear especially unlikely to appreciate our good fortune. (The Atlantic)

Video of the day

Has the oil price bottomed? As industry leaders gather at the FT Commodities Global Summit in Lausanne, Anjli Raval quizzes delegates on whether the oil price has stabilised. (FT)