Corruption

Messianic AMLO may give Mexico what it least needs

29 Jun 2018

Presidential front-runner López Obrador has pledged to root out corruption and dampen drug violence while boosting the economy and lifting up the poor. That may win him Sunday’s election, but such goals require strong institutions and fiscal nous. His rise may bring the opposite.

Simplicity fixes only some bank woes Down Under

27 Jun 2018

A back-to-core banking push by Australia’s top lenders aims to address both public anger over poor advice and unimpressive wealth management returns. CBA is the latest to outline spinoff plans. Such splits may deflect regulatory heat. It is less clear how they help with growth.

Wilbur Ross proves bad behavior is new norm

20 Jun 2018

Lawmakers hammered the U.S. commerce secretary about the effect of tariffs – but barely mentioned his sale of a company’s shares days ahead of a negative news story. Congress, occupied with trade battles, is growing numb to shady conduct. Calling it out, though, matters.

Malaysia’s 1MDB purges may hurt before they help

6 Jun 2018

The central bank is the latest institution caught in the backlash over the disgraced wealth fund, with the mooted departure of its governor. More heads will roll in the bureaucracy and beyond, creating extra uncertainty just as external pressures mount and fiscal plans shift.

1MDB scandal could yet bring some critical closure

4 Jun 2018

As Malaysia's new prime minister reexamines a case the top U.S. lawman called "kleptocracy at its worst", a Breakingviews e-book recounts the sovereign fund’s rise and fall. Lessons for banks, money managers and politicians will be even sharper if ringleaders are held to account.

E-book: 1MDB

4 Jun 2018

The Malaysian scandal once called “kleptocracy at its worst” is being freshly investigated following the country’s shock election outcome. Breakingviews chronicles the sovereign fund’s rise and fall, and the potential repercussions from Kuala Lumpur to Wall Street. Read online or download the book.  

Viewsroom: 1MDB rears head in Malaysian election

16 May 2018

The $5 bln sovereign-wealth fund’s scandal played a role in voters replacing Prime Minister Najib Razak with nonagenarian Mahathir Mohamad. Its resurgence could mean bad news for Goldman Sachs and Najib himself. Plus: Walmart nabs Flipkart in a big bet on e-commerce in India.

EU transparency purge may boost bitcoin legitimacy

14 May 2018

The European Union will force exchanges to identify users who trade in cryptocurrencies. That could make it harder for criminals to use them to hide ill-gotten gains. The clampdown might deter some traders, but should make virtual currencies more respectable.

Holding: A bribe is a bribe, abroad or at home

10 May 2018

AT&T and Novartis would risk criminal prosecution if they paid a foreign leader’s pal for political influence. Yet handing big bucks to Trump fixer Michael Cohen seems well within U.S. law. The double standard undermines America’s claim “to spread the gospel of anti-corruption.”

Malaysian political shock may hold sting for banks

10 May 2018

Wall Street fingerprints were all over the $4.5 bln 1MDB sovereign fund scandal. Malaysia’s new government, and others overseas, could reopen or step up enquiries – and come after lenders that raised and moved money. That poses renewed risk for Goldman and Deutsche Bank.

1MDB poses fresh threat to Najib – and Malaysia

10 May 2018

With a shock election defeat, the outgoing prime minister's top defence against the $4.5 bln fund scandal has gone. Old enquiries may reopen at home and overseas agencies have less reason to go easy on him. Najib could be tempted into the dangerous politics of mutual destruction.

Open-and-shut verdict leaves Anbang case unsolved

10 May 2018

Three months after authorities seized the insurer, a Chinese court has sentenced ex-Chairman Wu Xiaohui to 18 years in prison for fraud. The one-day trial provided only a glimpse into the opaque conglomerate. Swift justice means Anbang's rise and fall remains mostly a mystery.

AT&T’s quest for Trump insight is ham-fisted

9 May 2018

The telecom firm paid a company connected to one of the president’s lawyers to try and get a handle on the administration. It's embarrassing at best. It also muddies the water for AT&T as it fights watchdogs to keep its $85 bln deal for Time Warner alive.

UK raises global bar in tax secrecy fight

2 May 2018

Britain will force overseas territories like the Cayman Islands to reveal the owners of anonymous companies. Those looking to avoid tax and scrutiny can move their business, but the UK's action will throw the spotlight on other shelters like the United States and Hong Kong.

Elliott sends powerful signal with Seoul case

2 May 2018

The hedge fund wants payback from South Korea for a tie-up between two Samsung units. Fighting this under free-trade rules is highly unusual. But the scandal around the deal bolsters Elliott’s case and its determination puts other targets, like Hyundai, on notice.

Glencore can dig its way out of Kinshasa quagmire

30 Apr 2018

A former partner is threatening to freeze two of the $71 bln commodity giant's operations in Congo, demanding $3 bln. It's the latest in a list of woes in the African country, including a tough new mining code. But the 6 pct drop in the stock over the past week is overblown.

Faith in Bolloré brain trust resists Africa probe

25 Apr 2018

Shares in Vincent Bolloré’s group fell 9 percent after French police questioned the tycoon about dealings in Guinea and Togo. Yet Vivendi, chaired by his son Yannick, barely moved. Investors are trusting that the family’s dealmaking dynamism will survive the test.

Viewsroom: Fintech’s growing pains

19 Apr 2018

Upstarts like LendingClub and SoFi need to find ways to keep customers returning – just as traditional banks are fighting back and Goldman Sachs’ digital push into consumer lending takes off. Also: how Malaysia’s prime minister may be re-elected despite the 1MDB scandal.

China/Russia oil hug can dodge Huarong curveball

18 Apr 2018

Beijing is investigating the state-run asset manager’s chair for graft, in a copy of its probe into private group CEFC. That complicates Huarong’s support for CEFC’s acquisition of a stake in Rosneft. Yet given these are de facto state players, the deal should still survive.

Russia’s banks could once more be its airbag

16 Apr 2018

The Kremlin has already authorised short-term liquidity to metals group Rusal. If the U.S. sanctions net gets cast wider, Moscow could use its control of the big Russian banks to prop up stricken companies. After all, that’s what it did when things last got dicey in 2014.