Mistimed writedowns lesser of mining M&A evils 18 Oct 2017 Rio Tinto has been accused by the SEC of hiding the plunging value of a coal mine it bought in 2011. The charges are serious, but at least accounting procedures are fairly clear. If only there were rules that could prevent mining bosses getting carried away during M&A upswings.
College-sports fraud case obscures the real crime 26 Sep 2017 Federal prosecutors have charged 10 people, including four coaches, with using bribes to influence university basketball players. The government says the case exposes the dark underbelly of the sport. But fraud flourishes largely because the NCAA cartel refuses to pay athletes.
Viewsroom: Ray Dalio taps his inner communist 14 Sep 2017 Bridgewater’s founder thinks his kindred spirit resides in China’s anti-corruption czar Wang Qishan. Both seek radical transparency – though Dalio’s hunt is tied to forging a business in the Middle Kingdom. Plus: Exxon’s salvation may lie in the oil fields of West Texas.
Brazil’s Temer gets a win as more graft oozes up 6 Sep 2017 Forcing state lender BNDES to cut back soft loans to business will shrink the government's role in the economy and help its ailing finances. New graft allegations against the president’s predecessors show how badly such measures are needed. Sometimes corruption can be his friend.
Petrobras takes the drama out of its crisis 11 Aug 2017 The state-controlled oil company has often resembled a character in one of Brazil's more lurid telenovelas: blessed with great potential, but profligate and easily corrupted. Second-quarter results, though, tell a dull but encouraging tale of rehab under CEO Pedro Parente.
Brazil’s Congress discounts cost of corruption 3 Aug 2017 Lawmakers voted to shield President Michel Temer from criminal trial, at least for now. The calculus set immediate economic interests, which should benefit from the decision, against the longer-term merits of tackling political graft. Call it the net present value of shame.
Brazil pork mongers find comfort in flip-flops 31 Jul 2017 Selling trendy sandal maker Alpargatas to wealthy banking families will help meatpacking-to-pulp firm J&F pay a huge fine for bribing politicians. The original purchase, from a company also embroiled in scandal, is being probed by authorities too. It's a Brazilian microcosm.
Lula graft conviction is a sad boon for Brazil 12 Jul 2017 At his popular peak, the ex-president offered a magical moderate leftism that both markets and the poor could love. He hoped to regain power in 2018. Positive investor reaction to his prison sentence shows how dead that dream is. Brazilians face harder, more realistic choices.
Amec probe pollutes tricky oil merger 12 Jul 2017 John Wood Group shares fell more than 6 percent after the company it is taking over, Amec Foster Wheeler, said it was under investigation for possible bribery. The probe was a known risk, but the bad timing, combined with a low oil price, makes the 2.2 bln pound deal look rash.
Brazil shambles toward zombie rule 27 Jun 2017 President Temer probably can cling to his job despite corruption charges leveled by the country's top prosecutor. His focus on survival, however, is apt to sap life from much-needed efforts at fiscal restraint. Semi-paralysis will be the state of play until 2018 elections.
Dumb and Dumber 1MDB money trail is one to cherish 16 Jun 2017 Cash from the Malaysian fund ended up in a yacht, art, and rights to the film “Dumb and Dumber To”, the DOJ claims. The charges are incredible. But authorities are unlikely to recoup much. And alas, the days of U.S. crusades against global financial crime look numbered.
Zimbabwe takes monetary lunacy to the next level 22 May 2017 The African state suffered hyperinflation in 2007 after paying bills by printing its own currency. A decade on, it is doing so by printing U.S. dollars instead. The idea of conjuring foreign currency from nowhere with the tap of a keyboard sounds too good to be true – and is.
Samsung trial tests South Korea’s rule of law 9 May 2017 Bribery charges have turned the group's de facto leader, Jay Y. Lee, into a public enemy. A guilty verdict, if merited, could help rebuild trust in the system after an epic corruption scandal. It is equally important that he gets a fair trial despite the popular outrage.
Mallya arrest could energise India bad debt fight 18 Apr 2017 Liquor baron Vijay Mallya fled to the United Kingdom after banks sued to recover $1.4 billion. If his arrest leads to extradition it would make an example of the poster child of India’s bad loan problem. That would help New Delhi sell any bailout of state banks to the public.
Jes Staley’s “honest mistake” still hurts Barclays 10 Apr 2017 The UK bank's CEO will get a pay cut after trying twice to unmask a whistleblower. The regulator thinks bosses shouldn't have to go for honest errors – which Barclays says this was. But it doesn't say good things about internal processes – or Staley's knowledge of them.
South Africa’s slow burn cuts chances of quick fix 6 Apr 2017 President Jacob Zuma seems to be doing his best to get foreign investors to dump domestic assets. That may not lead to a sudden stop: only a small minority face being forced sellers. The bad news is that this could slow the process to replace him with a more responsible leader.
Credit Suisse raid jabs at private bank model 3 Apr 2017 The Swiss bank has stressed zero tolerance for tax evasion after authorities swooped on three offices. Credit Suisse may be scrupulous, but managing money for the wealthy brings certain recurring risks – not least because of Swiss private banks' historic pledge of utter secrecy.
Gordhan exit is dual blow for South African debt 31 Mar 2017 President Jacob Zuma has fired his respected Finance Minister Pravin Gordhan. Instead of action to rein in South Africa’s debt, it will probably now rise. The damage to the state’s credibility means the cost of servicing the debt pile will head in the same unsettling direction.
South Africa’s real problem: credibility downgrade 28 Mar 2017 President Jacob Zuma's abrupt recalling of his respected finance minister hit domestic assets. The latest spat could speed a downgrade of the state's sovereign debt, although much of that appears priced in. The greater damage would be to South Africa’s institutional solidity.
Banks could do more in money laundering battle 22 Mar 2017 ING faces probes over links to a years-old graft case in central Asia, while UK lenders face questions over illicit Russian funds. The common theme is the difficulty of compliance in a world of faceless shell companies. The key is for banks to lobby harder for transparency.