Law

Goldman’s clawback is small but pointy

22 October 2020

CEO David Solomon and others will forfeit $174 mln of bonus payments to resolve the 1MDB bribery scandal. But there’s a question mark over former COO Gary Cohn, who cashed in when he went into politics in 2017. That career change shouldn't shield anyone from past sins.

Goldman fines are literally cost of doing business

22 October 2020

The Wall Street firm is drawing a line under the 1MDB scandal. A U.S. settlement worth under $3 bln looks trifling, but years of bad behavior cost it far more. The bank spent more on legal woes since 2012 than on rent or technology. Like those expenses, penalties are inevitable.

Big Tech broadside is bonanza for D.C. lobbyists

7 October 2020

A U.S. Congress report accuses Amazon, Apple, Facebook and Google of abusing market power. Trustbusting recommendations include breakups and a merger ban. Any actual reforms will surely be heavily diluted, but the four giants now have a 450-page guide for their counterattacks.

Corona Capital: Covid-19 tests, Bed Bath & Beyond

1 October 2020

Concise views on the pandemic’s corporate and financial fallout: Diagnostic company Quidel predicts a quarterly earnings bonanza; meanwhile the pandemic turns a struggling retailer into a winner, at least temporarily.

2020 is ideal year to hide Wall St trading scams

30 September 2020

JPMorgan is paying a $920 mln fine and admitting its traders manipulated metals and Treasury markets. It’s the latest of a long list of industry wrongdoing. Online chats helped snare the perpetrators. Remote work means there are more ways to conceal such shenanigans.

Supreme Court could use a Fed-style makeover

28 September 2020

America’s highest court and central bank have some things in common: both are unelected and enjoy vast power and independence. The fight to replace Ruth Bader Ginsburg shows lifetime appointments have politicized court nominations. Those dreaming of reform could look to the Fed.

Corona Capital: Shale merger, Logistics startup

28 September 2020

Concise views on the pandemic’s corporate and financial fallout: Two Permian Basin oil drillers agree to merge to share their coronavirus demand-shock woes; and delivery upstart ShipBob gets some SoftBank cash to help it compete with Amazon.

U.S. election dispute may demand months of hedging

25 September 2020

Investors are braced for an uncertain result in November's presidential vote. Bush v. Gore 20 years ago is a tame example. A confused, knife-edge battle in 1876 may be more relevant: The winner emerged only in March. Modern technology could even make things worse.

Corona Capital: LVMH and Macron, Eyewear deals

23 September 2020

Concise views on the pandemic’s corporate and financial fallout: LVMH has friends in high places; 1-800 Contacts has semi-disposable owners.

Money-laundering fight starts with transparency

21 September 2020

Bank shares fell after leaks suggested lenders moved allegedly dodgy funds despite red flags. They will keep doing so if they can plead ignorance about where cash ultimately comes from and ends up. Better visibility on company ownership, and cross-border data sharing, will help.

Trump judicial picks are lasting gift to business

18 September 2020

The death of Justice Ruth Bader Ginsburg hands Donald Trump his third U.S. Supreme Court pick. He’s already appointed 25% of active federal judges. The resulting anti-regulation bias could last a generation. That may be good for companies – less so their employees and customers.

Corona Capital: Davos delay, Political TV ratings

26 August 2020

Concise views on the pandemic’s corporate and financial fallout: The World Economic Forum’s annual winter meeting becomes a summer gathering; and in the U.S., the Democrats’ online spectacle leads TV ratings over the Republicans’ more traditional convention.

Uber may be in the driver’s seat in labor dispute

21 August 2020

A California court gave the ride-hailing firm some breathing room to comply with a new law that turns gig workers into employees. Voters will decide in November if that should hold. The protracted mess gives Uber, DoorDash and others a reason to compromise on labor policies.

Stock markets in China grow governance teeth

5 August 2020

The Supreme Court will allow class-action lawsuits similar to those that won big settlements for Enron and WorldCom shareholders. Liberalisations have unleashed massive rallies on domestic bourses, and restraint on executive abuse is overdue. China Inc had better lawyer up.

Goldman Sachs’ 1MDB scar is already fading

24 July 2020

It’s paying $2.5 bln to Malaysia over its role in the scandal, four times its fees. Next comes closure with U.S. regulators. The cost in cash and reputation no doubt stings, a bit. But it's too small to amount to more than one extra line on Wall Street’s mile-long rap sheet.

UK insolvency shakeup stops at Chapter 10.5

23 July 2020

A fast-tracked new bankruptcy code gives Covid-hit firms, like Virgin Atlantic, precious breathing space. As with the U.S. Chapter 11, directors can get protection from creditors as they try to restructure. It’s better than the systems used by EU peers, but can still be improved.

Wirecard’s red flags offer lessons for investors

20 July 2020

Shareholders couldn’t have known that $2 bln of the payments group’s cash was missing. But its seemingly unnecessary reliance on debt finance raised questions. A weak board and short-term executive pay packages were further warning signs. All three serve as a teachable moment.

Apple tax win flags EU problem of enemies within

15 July 2020

The tech giant won a legal case over $15 bln of back taxes. Ireland was fighting at its side against Europe’s antitrust czar Margrethe Vestager. The alliance shows the stiff resistance she faces, from governments as much as companies, to corporate tax reform or a digital levy.

Sweden chips away at fintech star’s foundations

13 July 2020

A new law by the Nordic state requires Klarna to reduce the prominence of so-called “buy now, pay later” options on e-commerce platforms. It could check a key growth area for the domestic financial group. That might be a problem if other governments decide to clip its wings too.

Trump case gives mogul presidential wannabes pause

9 July 2020

The U.S. Supreme Court ruled a prosecutor can obtain Donald Trump’s financial records. Congress had less luck in another case, but the decision clarifies what information White House candidates can keep under wraps. That sets a new bar for other business leaders who want the job.