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Dimon, Schwarzman and Fink show that business leaders are now diplomats

The Saudi government’s so-called Davos in the Desert investment conference took a serious hit over the past 48 hours when three Wall Street executives withdrew over the disappearance and possible killing of the Saudi journalist Jamal Khashoggi. Andrew has the back story on how Jamie Dimon of JPMorgan Chase, Steve Schwarzman of Blackstone and Larry Fink of BlackRock decided to bail.

Their decision gave other executives cover to withdraw. But as the WSJ points out, plenty still plan to attend. And pulling out of the conference doesn’t mean cutting business ties with the Saudis altogether. (The talent agency Endeavor is an exception, trying to unwind a $400 million deal with the Saudis.)

The U.S. government’s response so far has been inaction. The Treasury secretary, Steven Mnuchin, is still scheduled to attend the conference. And President Trump floated the idea of “rogue killers” being responsible for Mr. Khashoggi’s apparent death (though the Saudi government is reportedly weighing admitting he died). That has left a void that Andrew says business leaders are starting to fill:

How a conference known as the Davos in the Desert turned into a crucible for these executives and others demonstrates the curious change the world has seen under a businessman president: America’s moral compass being steered by the C-suite, rather than the Oval Office.

More Saudi news: The Khashoggi controversy is giving deal makers pause. Saudi threats to retaliate against any punishment may break a 45-year taboo. And while Saudi Arabia is the biggest buyer of U.S. arms, it doesn’t spend as much as Mr. Trump says.