Boeing pleads guilty to defrauding the FAA

TheStreet’s Conway Gittens brings you the biggest news of the day, including what investors are watching and another black eye for Boeing.

Transcript

00:00I'm Conway Gittens reporting from the New York Stock Exchange. Here's what we're watching

00:03on the street today. Stocks are coming off a mixed yet winning session on Wall Street

00:07after the S&P 500 and the Nasdaq notched record highs. Investors look ahead to a busy week

00:12with the start of second quarter earnings season, Fed Chair Powell's testimony to Congress

00:17and key inflation data expected. In other business headlines, Boeing has agreed to plead

00:23guilty to defrauding the Federal Aviation Administration. The guilty plea is to one

00:28charge of conspiracy to defraud the United States stemming from its role in two max 737

00:34crashes that killed 346 people. According to the Department of Justice, Boeing deceived

00:40the FAA during the certification process for the aircraft model. Boeing will pay up to

00:45$487 million in fines. However, families of the victims sought more than $24 billion.

00:53Despite the fine and reputational damage, Boeing avoided what could have been a disastrous

00:58blow to the company's future, losing its right to do business with the government. 37 percent

01:04of its revenue in 2023 came from federal contracts. However, the Department of Justice said the

01:09plea only resolves the issue with the Boeing company itself and not with any individual

01:15for their potential roles in the deception, nor does the plea cover any newer incidents

01:20involving the 737 Max. Boeing has lost roughly $32 billion since its 737 Max fleet was temporarily

01:28grounded after the second fatal crash in 2019. That'll do it for your daily briefing from

01:33the New York Stock Exchange. I'm Conway Gittens with The Street.