World Street | JPMorgan sues ATM exploiters; Volkswagen closes German plants; Musk’s $1M giveaway faces lawsuit; and more

World Street offers a sneak peek into the world of business and the economy.

The Biden administration has restricted U.S. investments in China’s high-tech sectors to curb military advancements. JPMorgan sues customers who exploited an ATM glitch. Jamie Dimon criticizes U.S. financial regulations, vowing to challenge ineffective rules. Volkswagen plans historic factory closures in Germany, risking mass layoffs. All this and more on this edition of World Street.

China Clampdown

The Biden administration has implemented new restrictions on US investments in China’s advanced tech sectors, covering semiconductors, quantum computing, and AI. These rules, following over a year of consideration, ban specific investments and mandate government notifications for others.

The objective is to prevent American resources from advancing Chinese technologies that may bolster Beijing's military capabilities.

Funds Feud

JPMorgan Chase has initiated legal action against customers who exploited an ATM glitch, allowing them to withdraw money before a check bounced. On Monday, the bank filed lawsuits in multiple federal courts, targeting individuals who withdrew substantial sums in the so-called "infinite money glitch," which gained traction on TikTok and other social media platforms in late August.

Retaliation Ripple

Oil prices fell over 6%—the steepest drop in two years—after Israel’s expected retaliation spared Iran’s petroleum infrastructure. The Saturday strike targeted Iranian military sites in response to Tehran's missile attacks on October 1.

Leading up to the retaliation, oil markets had been volatile, with Brent prices touching $80 per barrel amid speculation about potential impacts on Iran's oil assets. The White House had cautioned against targeting Iran’s oil or nuclear facilities.

Dimon Defiant

JPMorgan Chase CEO Jamie Dimon criticized several U.S. financial regulations on Monday, pledging to challenge policies he believes won’t enhance banking safety. Dimon, 68, denounced what he termed “overlapping or ill-conceived” rules on capital requirements, card payments, and open banking, asserting, “It’s time to fight back.”

He noted that many banks avoid clashing with regulators for fear of retaliation. Dimon shared that Fed officials warned him his outspoken stance could invite scrutiny.

Factory Freeze

Volkswagen is planning to close several plants in Germany for the first time in its 87-year history, which could result in tens of thousands of layoffs, according to worker representatives. Europe’s largest carmaker and Germany’s biggest employer is reportedly set to shut at least three of its 10 factories, reduce staff at remaining sites, and cut pay by 10%, said Daniela Cavallo, chair of Volkswagen’s works council, in Wolfsburg on Monday.

Musk’s Millions

Philadelphia District Attorney Larry Krasner filed a lawsuit against Elon Musk and his political action committee, claiming a $1 million-a-day giveaway targeting registered voters in swing states constitutes an “illegal lottery scheme.”

The civil complaint argues this initiative violates Pennsylvania’s lottery and consumer protection laws and demands an immediate halt to prevent potential voter influence ahead of the November 5 presidential election.