Kyndryl Holdings, the tech company spun off from IBM, is facing scrutiny from the U.S. Securities and Exchange Commission (SEC) and saw its stock dive 50% after an accounting probe and the departure of its CFO, according to a Fortune report. The company's audit committee is reviewing its accounting practices, including cash management and internal controls, which has delayed its financial filings.
The SEC's Division of Enforcement requested voluntary document submissions from Kyndryl, prompting the audit committee's review, as detailed in a Monday SEC filing. The review encompasses the company's cash management practices, related disclosures, and the effectiveness of internal controls over financial reporting.
In other financial news, Bretton AI secured $75 million in funding to utilize artificial intelligence in combating financial crime, as reported by Fortune. Will Lawrence, the founder, observed the challenges of compliance in anti-money laundering and know-your-customer operations. His company aims to leverage generative AI to streamline these processes.
The U.S. government's fiscal situation also came under scrutiny, with the Congressional Budget Office (CBO) reporting a deficit for the first four months of fiscal year 2026. The government borrowed $696 billion during this period, averaging $43.5 billion per week, according to the CBO. Total national debt now exceeds $38.5 trillion, while U.S. GDP is approximately $31 trillion, according to the Federal Reserve Bank of St. Louis. Interest payments on the debt are projected to exceed $1 trillion for 2026.
American Airlines CEO Robert Isom is facing mounting pressure, with the Association of Professional Flight Attendants (APFA) issuing a unanimous vote of no confidence, as reported by Fortune. The APFA stated, "Our airline is falling dangerously behind its competitors, and the current leadership has failed to change course." Isom is also facing criticism from the Allied Pilots Association.
In the realm of academic publishing, a recent Career Column in Nature highlighted concerns about the publishing system's sustainability. Statistician Adrian Barnett warned of a potential collapse and explained his decision to reduce his publishing output.
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