US Justice Department offers plea deal to Boeing over MAX crash
- The US Justice Department has presented a plea deal to Boeing over alleged violations of a deferred prosecution agreement.
- The deal would involve Boeing pleading guilty to a conspiracy charge, paying a fine, and entering a three-year probation period.
- The lawyer representing the victims of the 737 Max crashes criticized the potential deal as a 'sweetheart deal.'
In today's CNBC Daily Open report, significant developments in the international markets have been highlighted. U.S. prosecutors are seeking a guilty plea from Boeing in connection to the two fatal 737 Max crashes in 2018 and 2019. Meanwhile, Nike CEO John Donahoe is facing discontent as the company's stock plunged 20% after predicting a substantial sales decline. On the cryptocurrency front, the bankrupt Japanese bitcoin exchange Mt. Gox is set to repay creditors nearly $9 billion worth of Bitcoin following a 2011 hack, potentially benefiting those who have waited a decade for this windfall. The tech sector has been a driving force in market performance in 2024, with the S&P 500 tech group up 28% and Nvidia soaring 149%. Bank of America anticipates that Nvidia and Apple could continue to deliver strong returns. Despite this, there are expectations that the market rally will broaden beyond megacaps, with the Federal Reserve's favored inflation measure aligning with expectations, hinting at possible interest rate cuts later in the year. The Justice Department has presented Boeing with a plea deal related to the 737 Max crashes, offering the company the choice to plead guilty or go to trial. However, families of the crash victims have expressed outrage over what they perceive as a lenient deal that lacks accountability for the lives lost. The proposed deal includes a $2.5 billion payment and the implementation of compliance and ethics programs, with the charge potentially being dropped after three years if Boeing complies. Boeing's recent safety failures and production issues have raised concerns, leading to a potential breach of its 2021 agreement with the Justice Department. The company faces the possibility of criminal prosecution following a series of safety lapses, including a door plug incident on an Alaska Airlines flight. Reports also indicate gaps in Boeing's safety culture, highlighting a disconnect between management and employees, as well as fears of retaliation for reporting safety concerns.