Corona Capital: Saudi/Carnival, PG&E 6 Apr 2020 Concise views on the pandemic’s corporate and financial fallout: Today, Saudi Arabia’s Public Investment Fund takes an 8% stake in beleaguered cruise outfit Carnival, and the coronavirus may dislodge one of the moving parts in California utility PG&E’s plan to exit bankruptcy.
Corona Capital: Religious aid, Ad-spending slump 23 Mar 2020 Concise views on the pandemic’s corporate and financial fallout: U.S. Vice President Mike Pence wants Americans to donate to religious institutions to bolster community aid. But churches have their own fiscal problems. Plus: TV ad revenue look set for a pounding.
Barclays 2008 gamble has nuanced investor legacy 28 Feb 2020 A jury acquitted three ex-employees of fraud over a Qatari crisis cash call. The money forestalled a state bailout, allowing Barclays’ shares to beat RBS and Lloyds’. But the government may also have hacked back an investment bank which now drags down the lender’s valuation.
NMC mess implies London needs fiercer watchdogs 27 Feb 2020 The Gulf hospital operator fired its CEO after revealing undisclosed debts. Its poor governance and disclosure sit awkwardly with the UK’s aim to be the world’s top venue for foreign companies and capital. Keeping that reputation requires tougher penalties for bad behaviour.
Carlos Ghosn’s image rehab begins in wrong gear 8 Jan 2020 The ex-Renault boss used his first public statements since fleeing Japan to claim a plot involving Nissan and Tokyo prosecutors. The assertions were light on detail, though. That left too much time for missteps such as likening his arrest to Japan’s attack on Pearl Harbor.
Glencore’s new probe applies shove to succession 5 Dec 2019 British police are investigating possible bribery at the commodity giant. Two days ago 62-year-old boss Ivan Glasenberg, whose firm also faces a U.S. probe, said he could retire next year. Having to fight a legal war on two fronts may help him make up his mind.
Goldman faces drip-drip 1MDB pain like Jho Low 31 Oct 2019 The alleged mastermind of the Malaysian fund fraud will pay the U.S. $700 mln. The deal’s loose ends hint at future pain for others, including the Wall Street bank. CEO David Solomon wants to draw a clean line under the scandal. Instead Goldman could end up paying multiple times.
Wirecard is becoming uninvestable 15 Oct 2019 The $15 bln payments group’s share price fell 19% after the FT said it overstated sales. The company disputes the claims. Persistent volatility makes life hard for short-term traders. Long-term investors may be put off as the latest allegations involve a bigger chunk of revenue.
Goldman’s top brass become hostages in 1MDB fight 9 Aug 2019 Malaysia has filed criminal charges against current and former star bankers, including international boss Richard Gnodde. It’s a cunning way to ramp up pressure on the Wall Street firm for a mega settlement. Goldman could end up paying three times to end the sovereign scandal.
Review: Blaming big data is political diversion 19 Jul 2019 The documentary “The Great Hack” shows how Cambridge Analytica targeted voters in the 2016 U.S. election and Brexit referendum, partly using Facebook. It’s chilling but ignores how economic forces swayed those polls. Focusing on tech’s threat to democracy oversimplifies politics.
Holding: Investors ignore law of “stuff happens” 11 Apr 2019 Using fiascos like oil-well blowouts and tainted burritos to claim stock fraud is increasingly common in the United States, but misguided. Companies have a duty to disclose significant risks, not warn of unlikely mishaps. Arguing otherwise enriches lawyers at investors’ expense.
Review: Theranos story is both crazy and ordinary 29 Mar 2019 A new documentary depicts the blood-testing company’s founder Elizabeth Holmes as an unblinking, controlling CEO who believed she could defy science. Her $9 billion dreams ended in fraud charges. In some ways, though, it’s a painfully normal Silicon Valley story.
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.
Credit Suisse Mozambique mess is shameful at best 4 Jan 2019 Three of the Swiss lender’s former bankers have been arrested on charges of facilitating kickbacks on $2 bln of loans for the African country. Credit Suisse blames deceptive employees and says it has tightened controls. Even if the fallout ends there, it’s highly embarrassing.
Holding: Supreme Court due for a dose of activism 10 Dec 2018 Like a dozy board, the U.S. tribunal has left confusing financial-fraud laws largely untouched for years. Yet a case argued last week - and a new justice - offer the chance to set the rules and Wall Street watchdogs straight. Shaking up the status quo would add value in the law.
Fraud case reminds that bad M&A is a team effort 30 Nov 2018 U.S. prosecutors are trying to prove Autonomy CEO Mike Lynch deceived buyer HP in an $11 bln deal gone wrong. Such things tend to be a team effort. While fuzzy accounting rules that fostered this dispute are less of an issue now, the forces behind disastrous deals are evergreen.
Goldman has half a defense in 1MDB mess 14 Nov 2018 Two former executives accused in the Malaysian corruption scheme openly lied to the bank, U.S. authorities say. Rival firms have found leniency in similar cases. But an indictment also cites a culture that favored deals over compliance. That could warrant a deferred prosecution.
U.S. for once hits right note with Petrobras fine 27 Sep 2018 America’s foreign corruption laws often spark outrage about overreach. But penalizing the Brazilian state energy group $850 mln is a judicious result. It shows companies with ADSs will be held to account. And it mainly rewards Brazil’s authorities, which get 80 pct of the money.
Skilling could have earned stripes more usefully 31 Aug 2018 The former Enron CEO was released from prison into a halfway house. During his time behind bars, corporate malfeasance flourished but prosecutions dropped. Using high-profile arrests as a deterrent doesn’t work if prosecutors don’t catch criminals. Felons could help.
Holding: U.S. fraud prosecutors miss more than hit 9 Aug 2018 A likely skewering of Trump campaign chief Paul Manafort won’t erase flubs against ex-Jefferies and Cantor traders or sharp drops in white-collar cases. Watchdogs were rightly scolded for pursuing too few financial-crisis miscreants. They haven’t yet learned their lesson.