Corruption

U.S. will find a way to make Danske Bank suffer

4 Jan 2019

Congress has made banks’ anti-money laundering a key concern. That bodes ill for Danske Bank, embroiled in a 200 billion euro suspicious funds scandal. The Danish lender is hardly a household name in the U.S. That gives politicians who wish to make an example of it free reign.

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.

Deutsche Bank’s new dark clouds have silver lining

29 Nov 2018

The lender has been hit by police raids linked to clients’ alleged tax evasion and speculation its investment bank head could leave. Yet Panama Papers issues have thus far not meaningfully hit European banks. And Deutsche’s traders should have a decent 2019 – whoever’s in charge.

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.

The Exchange: Goldfingers

2 Nov 2018

Oliver Bullough's book "Moneyland" delves into the parallel world of super-rich super-crooks, where rules are for the little people. He discusses wealth, corruption, tax havens and how to fix it all with Clara Ferreira Marques and Nicholas Shaxson, author of “The Finance Curse”.

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.

Viewsroom: The $230 bln scam rocking Nordic banks

25 Oct 2018

Danish lender Danske has already lost its chief executive on news that one of its Estonian branches was used to launder Russian money. Now Nordea and others are facing questions. Plus: investors drive car stocks into a ditch - and Daimler's and Ford's dividends look vulnerable.

Danske’s best-case scenario may be a painful fine

4 Oct 2018

The Danish bank said it faces a U.S. criminal probe over suspicious payments in Estonia. That raises the risk that it could be blacklisted in America, which sank Latvian peer ABLV, or be fined. Even a plausible $5 bln hit would send Danske’s capital ratio below its minimum level.

Danske can deflect pitchforks with bonus clawbacks

21 Sep 2018

CEO Thomas Borgen may have resigned after the Danish bank’s money-laundering scandal. But if he’s allowed to keep bonuses awarded during the time in question, Danske’s reputation will fall further. Its board has powers to claw back unjustified variable pay – it should use them.

Review: Malaysian heist hides deeper moral

21 Sep 2018

“Billion Dollar Whale” tells how a chubby twentysomething stole a fortune and partied his way around the planet, ultimately bringing down his country’s prime minister. Behind the exploits, however, lies a darker story of how global capitalism facilitates fraud and fuels excess.

Danske mea culpa will only partly calm U.S. wrath

19 Sep 2018

The Danish bank’s CEO has quit after an internal report said it ignored 200 bln euros in potentially suspect Estonian payments. With the threat of a hefty U.S. fine, pre-emptive head-rolling makes sense. Danske’s problem is it still doesn’t know how bad the problem really is.

Markets bet against U.S. leniency over Danske

14 Sep 2018

If the Danish bank’s fine for money laundering is in line with earlier transgressions by other banks, it would be manageable. But after a 28 percent drop in Danske shares this year, investors appear to be pricing in something worse.

Banks belatedly realise money laundering is bad

11 Sep 2018

ING’s finance director will leave after the bank’s illicit fund failings incurred a 775 million euro hit from Dutch prosecutors. In the past, miscreants have got away with paying fines. Now shareholders are pushing the issue as well as politicians, accountability is improving.

Review: A land of milk and (plenty of) money

7 Sep 2018

"Moneyland" takes a trip to the world of super-rich super-crooks, where borders are for wimps, taxes for little people and laws don't matter. Oliver Bullough's urgent polemic is deeply reported and engaging, even if it spends more time on the problem than on potential solutions.

EU banks’ dirty money cleanup means more red faces

4 Sep 2018

High-profile probes at ING and Danske Bank underscore that Europe’s money-laundering defences are not fit for purpose. EU reforms making it easier to see who benefits from suspect capital flows will help. But lenders will have fewer excuses for inaction.

U.S. creeps into EU’s money-laundering blind spot

30 Aug 2018

A new anti-money laundering directive seeks to plug holes in Europe’s leaky banks. But the rules don’t address the core problem of relying on local supervision. Until the EU can establish an independent AML authority, the U.S. will continue to act as the bloc’s de facto top cop.

Warren tries out for swamp drainer-in-chief

21 Aug 2018

The liberal U.S. senator wants to prohibit lawmakers and cabinet members from owning individual stocks and permanently ban them from lobbying. Some of the ideas are over the top but her targets are entirely valid. Laying them out also strengthens Warren’s 2020 presidential pitch.

Silk Road speed bumps show limit of yuan diplomacy

13 Jul 2018

There is trouble along Beijing's trillion-dollar trade route. From the Maldives to Malaysia, politicians are calling to review deals, fretting over debt and dependence. Domestic politics are driving the backlash, making it tough to turn economic might into lasting influence.

U.S. salvo at Glencore has unintended consequences

12 Jul 2018

A request for details on anti-corruption practices wiped more than $6 bln off the commodities giant's value in a week, raising questions over its future. Yet action is not without a sting for Washington too - if it leaves China even more dominant in resource-rich trouble spots.

1MDB trial is just start of Malaysian war on graft

4 Jul 2018

Former Premier Najib Razak has been charged in connection with the $6 bln scandal. The swift action is commendable. Deeper change is needed to reassure investors, though. That means measures like forcing politicians to declare assets, and regulating party funding.