Ghosn’s power would get lost in translation 24 Sep 2019 The SEC claims the former Nissan boss hid half his salary to avoid public opprobrium, and was able to do so because of lax controls. It’s a stark contrast to the United States, where governance is strong but social pressure over pay is weak. Both systems fail in different ways.
Nordic banks’ soft regulators invite U.S. wrath 19 Jun 2019 Shares in Danske and Swedbank have fallen sharply due to concerns about American probes into money laundering. A $900 million fine by Dutch regulators helped ING escape U.S. ire for similar breaches. Laws limiting penalties in Scandinavia mean banks there may not be so lucky.
Oligarchs take U.S. sanctions risk in their stride 8 Apr 2019 The Russian owners of Evraz recently cut their stake below 50 pct, which offsets potential heat over their Kremlin links. That doesn’t mean fellow metal groups like Severstal need to follow suit. Still, Oleg Deripaska’s recent travails imply little cause for complacency.
France’s $1.5 bln reason to put Renault over Ghosn 4 Apr 2019 That’s how much more the state’s stake in the carmarker could be worth if the discount at which the company is trading disappears. Mending Nissan relations is a precondition. Paris may only do the minimum to help former CEO Carlos Ghosn, who has called for the government’s help.
Hong Kong fumbles its China extradition fix 21 Mar 2019 The city may exclude white-collar crimes from a mooted deal to exchange suspects with the mainland, to assuage the business community’s concerns. Unfortunately, such an awkward compromise would only confirm the tension between the financial hub’s needs and Beijing’s ambitions.
Arrests give investors new reason to avoid Russia 26 Feb 2019 Sanctions imposed on some well-connected oligarchs have already spooked foreign money managers. The detention of Baring Vostok executives including founder Michael Calvey highlights domestic dangers. Less capital will be willing to navigate the risks.
EU banks keep stepping on old landmines 20 Feb 2019 A French court fined UBS a record $5.1 bln for helping clients evade taxes in the past, while Swedbank faces allegations about old dodgy transactions linked to Danske Bank’s money-laundering scandal. European lenders seem unable to avoid the damage from past compliance bungles.
Wirecard shows fintech stars share banking ills 4 Feb 2019 The payments group denied an FT report alleging false accounting. Yet shares are down 25 pct since last week. Soothing investors will mean bulking up in compliance and boosting transparency. They’re the kind of problems associated with rickety banks, not disruptors.
EU “golden visa” alarm is too little too late 23 Jan 2019 Brussels is right to worry that dodgy tycoons can buy their way into Europe. But national governments are the only ones with the power to close these back doors. Given the benefits that countries such as Cyprus and Malta reap from such schemes, the gates will swing shut slowly.
Oleg Deripaska’s En+ deal is more sour than sweet 23 Jan 2019 The settlement that distanced the Russian oligarch from his power company has favourable aspects, the New York Times says. Certain provisions could even limit the financial hit from U.S. sanctions still in place against him. The overall outcome is, however, still pretty painful.
U.S. Oleg Deripaska deal tougher than it looks 20 Dec 2018 Washington’s decision to lift sanctions on En+ and allow the Russian oligarch to keep a 45 pct stake sounds lenient. Yet it looks difficult for Deripaska to sell his stake for cash or exercise decisive influence. After a messy beginning, the U.S. raid seems a qualified success.
Renault-Nissan: Only merging makes financial sense 19 Dec 2018 The French and Japanese carmakers' lopsided stakes in each other are a poor use of capital. A full-blown marriage could boost their value by about 30 percent. That’s less likely after Carlos Ghosn’s ouster as Nissan chairman; the auto alliance is driving in the wrong direction.
Wall Street could use remedial lectures on culture 17 Dec 2018 The New York Fed’s push to improve industry behavior deserves top watchdog billing. Goldman’s 1MDB mess is only one reminder the message hasn’t totally sunk in. Slower economic growth in 2019 could expose more lapses. It’s a good time for boss John Williams to badger his charges.
Ericsson debacle exposes costs of anti-Huawei push 7 Dec 2018 The Swedish group’s glitchy software crashed some telecom networks. Yet it may grab market share, with its rival’s CFO under arrest and governments backing away from the Chinese company’s kit. A more concentrated market would mean higher prices and a risk of further big outages.
China trade-secrets case brings sanctions closer 1 Nov 2018 State-backed chipmaker Fujian Jinhua was indicted for allegedly stealing designs from U.S. rival Micron. It was already barred from buying U.S. parts, so this raises the stakes. Former President Obama mulled sanctions for industrial espionage. That idea could be in play again.
Goldman gets no closure from banker’s 1MDB plea 1 Nov 2018 Former star banker Tim Leissner pleaded guilty in the Malaysian money-laundering scheme. The firm can cite his lies and deception. But fat fees from bond offerings should’ve raised red flags. U.S. authorities have punished Wall Street for past examples of poor oversight.
Exclusive: FedEx drops NRA deal by snail-mail 30 Oct 2018 The shipping giant is ending discounts for the U.S. gun-lobby group’s members, eight months after other firms ditched similar schemes. FedEx says it’s an economic decision, not a response to mass shootings. Even so, it suggests offending the NRA is no longer bad for business.
In need of cool head, Brazil braces for opposite 25 Oct 2018 Far-right ex-army man Jair Bolsonaro looks set to win Sunday’s presidential runoff, riding voter anger over corruption, violence and economic stagnation. Prioritizing pension reform over strongman tactics would better address the nation’s ills. You can’t shoot fiscal deficits.
Saudi fail is fresh win for U.S. banks over Europe 16 Oct 2018 The bosses of HSBC, Credit Suisse and StanChart are quitting Riyadh’s investment conference next week. Belatedly following JPMorgan CEO Jamie Dimon’s lead cements their pre-existing status as also-rans. French banks may yet go – but any pickup in business will be tainted.
Wall Street shows Trump the way on Saudi Arabia 15 Oct 2018 BlackRock’s Larry Fink and Steve Schwarzman of Blackstone have joined other CEOs in skipping Riyadh’s “Davos in the Desert”. Private sector boycotts usually follow state sanctions. The U.S. government’s inaction reflects its reliance on Saudi Arabia, and fear of high oil prices.