Crime

Holding: Corporate America loves its bad Boies

10 Nov 2017

The lawyer David Boies may have helped disgraced mogul Harvey Weinstein try to hide his abuses, but don’t expect more than a shrug from the business world. In a realm that prizes results, the defender of the likes of ex-AIG boss Hank Greenberg will remain the go-to consigliere.

Equifax hack damage is only the start

10 Nov 2017

Revenue at the $13 bln credit arbiter’s U.S. data unit slipped in its last quarter, having previously grown at a 7 pct rate, even though a huge data breach was only revealed on Sept. 7. And that’s before the legal blows start to rain down. Investors are being too sanguine.

Yahoo ex-boss shows everyone’s in dark on hacks

8 Nov 2017

Marissa Mayer told senators she still doesn’t know who was behind a 2013 data theft affecting 3 bln users. Equifax’s CEO said the same of a breach involving 145 mln consumers. And Congress struggles to draft cyber rules. Amid such cluelessness, the epidemic can only get worse.

Ritz roundup is dark side of grand Saudi ambition

5 Nov 2017

The detention of elites including Prince Alwaleed in an anti-corruption drive may head off opposition to the crown prince's reforms. It could clear the way for initiatives like his $500 bln desert city. But it also makes needed underpinnings, like the rule of law, less credible.

Complacency is biggest risk for Facebook investors

31 Oct 2017

Mark Zuckerberg’s firm set new highs even as it said nearly half of American voters may have seen Russian propaganda on its site. The fallout from fake content could hit its runaway value, but investors can’t be bothered as long as advertisers keep flocking to the social network.

Mistimed writedowns lesser of mining M&A evils

18 Oct 2017

Rio Tinto has been accused by the SEC of hiding the plunging value of a coal mine it bought in 2011. The charges are serious, but at least accounting procedures are fairly clear. If only there were rules that could prevent mining bosses getting carried away during M&A upswings.

Fintech deal suggests everything old is new again

5 Oct 2017

Navient is buying student-loan refinancer Earnest for less than half its 2015 valuation. Even then, it'll eat into the buyer’s earnings and buybacks. Worse, Navient faces a fresh lawsuit over dodgy practices. Modern finance is feeling a lot like the kind it's supposed to replace.

Las Vegas tragedy strikes a U.S. inured to outrage

2 Oct 2017

Casino stocks fell and gunmakers’ jumped after the worst shooting in U.S. history left at least 50 dead. Horrific as it is, the incident is unlikely to impact gun laws, markets, political debate or voters’ minds. A deeply divided country will find it hard to mount a response.

College-sports fraud case obscures the real crime

26 Sep 2017

Federal prosecutors have charged 10 people, including four coaches, with using bribes to influence university basketball players. The government says the case exposes the dark underbelly of the sport. But fraud flourishes largely because the NCAA cartel refuses to pay athletes.

Botched SEC hack probe a warning for other agencies

26 Sep 2017

Chair Jay Clayton says he doesn’t know the exact timing of a 2016 breach and his predecessor may not have been notified. It’s troubling given the sensitive market data kept there, and a heads up for the CFTC and other watchdogs. Investor worry over their defenses is justified.

Equifax can’t even oust its failed CEO effectively

26 Sep 2017

Rick Smith is "retiring," as the euphemism goes, after a massive cyber attack and fumbled response - and with little financial penalty. The interim management plan makes clear the board hadn't planned succession adequately either. Equifax needs regime change at every level.

Carmakers need more collaboration, not less

24 Jul 2017

Germany’s VW, BMW and Daimler may have illegally colluded on emissions cleaning systems. The scale of potential misconduct is hard to judge. But if consumers don’t suffer, big technological change and bloated R&D budgets suggest more carmaker cooperation is nothing to be feared.

Amec probe pollutes tricky oil merger

12 Jul 2017

John Wood Group shares fell more than 6 percent after the company it is taking over, Amec Foster Wheeler, said it was under investigation for possible bribery. The probe was a known risk, but the bad timing, combined with a low oil price, makes the 2.2 bln pound deal look rash.

Ransomware reveals tech challenges past and future

28 Jun 2017

The Petya cyber attack spread from Ukraine to 65 countries, infecting software that could have been patched. Human error enables hacking of today's IT setups, making prank emails that deceived bank bosses alarming, too. The cloud reduces that danger – but introduces others.

Credit Suisse raid jabs at private bank model

3 Apr 2017

The Swiss bank has stressed zero tolerance for tax evasion after authorities swooped on three offices. Credit Suisse may be scrupulous, but managing money for the wealthy brings certain recurring risks – not least because of Swiss private banks' historic pledge of utter secrecy.

Crisis can make South Korea great again

30 Mar 2017

The country has ousted its president and put its top business leader, Samsung’s Jay Y. Lee, on trial. The frustration with crony capitalism suggests South Korea's "chaebol"-driven growth model has hit its limits. The turmoil provides a golden opportunity to reform.

Banks could do more in money laundering battle

22 Mar 2017

ING faces probes over links to a years-old graft case in central Asia, while UK lenders face questions over illicit Russian funds. The common theme is the difficulty of compliance in a world of faceless shell companies. The key is for banks to lobby harder for transparency.

Review: Libor revealed dark underbelly of trading

3 Mar 2017

Two new books show how the benchmark interest rate underpinning many of the world's financial products was rigged. Jailed trader Tom Hayes leads a cast of deceitful or inept bankers, brokers and regulators. Yet both tomes might have said more about how to stop future malfeasance.

Old crisis quick fix could be real Samsung reform

28 Feb 2017

The group said it dismantled its secretive strategy office as its heir was indicted for bribery. Samsung has dissolved its "control tower" before, only to rebuild it. But this time pressure to reform is far stronger. The move could be a step toward lasting change.

Takata’s future is full of moving parts

28 Feb 2017

The Japanese auto supplier has concluded a $1 bln U.S. plea deal over deadly airbag inflators. That opens the door to a sale, probably to a Chinese buyer. Yet unanswered questions span legal risks, deal structure, commercial prospects and the fate of existing shareholders.