Law

Holding: U.S. judges could use CEO succession tips

19 April 2018

The Supreme Court’s Anthony Kennedy is expected to retire soon, taking advantage of a Republican president and Senate to ensure a like-minded heir. Yet his replacement probably won’t share his views, a new study suggests. Even when bosses have well-laid plans, they can go awry.

Review: Comey is flawed champion of civics revival

17 April 2018

In his blockbuster memoir, the ex-FBI director who prosecuted Martha Stewart and worked at Bridgewater calls Donald Trump an unethical liar and a threat to American institutions. His yarn is riveting, but reveals Comey’s mix of principled leadership and sanctimonious showboating.

Brazil’s anti-graft drive may hamper fiscal reform

12 April 2018

The jailing of the country's most popular politician, Lula, and voter disgust at corruption among the powerful will give outsiders with clean reputations a chance to shine in October elections. That's welcome, but could mean needed spending cutbacks are less likely to happen.

Lawmakers’ puzzlement is hazard for Facebook

11 April 2018

In Congress, Mark Zuckerberg mostly faced confused questioning about his company’s use of data, not a focused grilling. Rather than a let-off, that’s a risk. When the average politician is baffled by something new but suspects pernicious behavior, regulation may not be far away.

China’s financial market door only opens inward

11 April 2018

The People’s Republic pledged to raise ownership limits for foreign financiers by the end of the year, and quadrupled the daily stock trading quota with Hong Kong. The reforms are welcome. But the opening enables more money to flow into China, while keeping domestic cash at home.

Dodd-Frank sheds surprising light on Wall St pay

2 April 2018

The widest income disparities in finance don’t involve the biggest CEO paychecks. And median comp can say more about geography and sector than inequality. The law’s pay-ratio disclosures offer useful data for investors and job seekers, and could revive a debate about offshoring.

Holding: #MeToo is putting corporate law on trial

29 March 2018

Claims of sexual misconduct at the likes of Fox and Wynn Resorts have led to suits over board duties and disclosure. They’re long shots, largely because business governance is an awkward tool for social change. Yet investors and victims are giving it a new and useful purpose.

Barclays settlement fixes one of several headaches

29 March 2018

The UK lender is paying $2 billion to settle U.S. regulators’ claims of mortgage securities mis-selling. That’s less than peers paid and removes some uncertainty. But the outcome of a UK investigation is still pending and CEO Jes Staley has yet to turn the investment bank around.

FDIC risks memory loss with old-guard exit

28 March 2018

Thomas Hoenig, the U.S. watchdog’s No. 2, used his swan song to criticize recent moves to ease bank-capital standards. It’s a cry in the wind given the deregulatory bent of Jelena McWilliams, likely the next FDIC chair. Yet forgetting history can sow the seeds of future crises.

Guest View: Why the government will lose to AT&T

23 March 2018

The U.S. Department of Justice is tuning in to old channels in its case against the telephone company's Time Warner deal, argues a former Federal Communications Commission chief economist. The Trump administration has crocheted a quilt lacking awareness of historical pattern.

Self-driving cars may find legal lesson in pharma

22 March 2018

Autonomous vehicles should make road deaths like the one involving an Uber prototype a rarity. Paradoxically, as drugmakers found with vaccines, mishaps may raise legal costs and drive companies out of the market. Limits on suits and a compensation fund balanced risk and reward.

Holding: Courts may toss investors a crypto-curve

16 March 2018

To hear U.S. regulators tell it, initial offerings of many crypto-currencies are actually securities, and subject to strict rules. That’s far from clear, though, judging from cases moving through the legal system. With the jury still out, Congress needs to step in.

Curse of Libor belatedly strikes at SocGen

15 March 2018

Deputy CEO Didier Valet is leaving to preserve the French bank’s “general interests”. His role as CFO when SocGen staff submitted inaccurate interbank rates jarred with the bank’s efforts to minimise a U.S. fine. As peers have learned, not knowing is not an adequate defence.

U.S. bank mergers creep one step closer

6 March 2018

The Senate looks set to raise the $50 bln level at which a bank comes in for extra regulation. Received wisdom is that doing so will set off a wave of deals for small and mid-size lenders. But amid falling taxes and rising rates, comfortable CEOs may have other ideas.

Trump’s immigration aims undermine economic goals

5 March 2018

Court rulings are preventing the deportation of people who entered the U.S. illegally as minors even as protections were due to expire. Yet many remain in legal limbo, and the White House wants to reduce new arrivals. Faster growth, which depends on migrants, will be a casualty.

Holding: Shareholders may snag win from M&A defeat

1 March 2018

Delaware courts are cracking down on settlements and appraisal claims for higher payouts in mergers like HP’s $2.7 bln Aruba union. Many are rattled, but it’s too soon to panic. The rulings could cut abuse and uncertainty in the legal process, leading to more and better deals.

RBS is a step away from ending its lost decade

23 February 2018

The state-owned UK lender made its first after-tax profit in 10 years. A 4 pct rise in revenue and falling costs moves boss Ross McEwan closer to his return on tangible equity target. Settling U.S. charges over mortgage securities is the last hurdle to restarting dividends.

Holding: Privacy computes for Supreme Court 3.0

22 February 2018

High-tech snooping is back at the U.S. tribunal next week with Microsoft’s fight to shield users’ email from Uncle Sam. As in smartphone and GPS-tracking cases, the justices will probably focus on personal rights. The nine of them are remarkably attuned to technology’s risks.

Whistleblowers lose a shield, but so do employers

22 February 2018

Those who suspect U.S. securities breaches must tell regulators or lose some protection from vengeful employers, the Supreme Court says. Major misconduct should still get reported. But small stuff might fall through the cracks – depriving companies of a chance to tackle it early.

Uber’s Waymo deal recasts existential question

9 February 2018

The ride-hailing service is paying Alphabet’s self-driving unit $245 mln in equity, ending a legal fight over trade secrets. Uber says it didn’t use its rival’s know-how. But if driverless cars are its only road to profitability, it needs to be a technology leader, not a laggard.