Fraud

Crypto-currencies’ strength becomes their weakness

29 Sep 2017

Freedom from regulation was the big draw of bitcoin, ether and the like. But exchanges established to trade them often lack basic controls on identity, fraud, tech and even volume. Without fixes, digital currencies will stay on the financial fringe, prone to crime and bubbles.

Jes Staley’s share price misery is undeserved

18 Sep 2017

Though the Barclays CEO has delivered on his targets the bank’s shares are down 16 pct this year, making it the UK’s worst-performing major lender. Self-inflicted regulatory and litigation worries haven’t helped. But concerns about headwinds in the U.S. and Britain are overdone.

Wells Fargo dragged kicking again to start afresh

10 Aug 2017

As its fake-accounts scandal keeps turning up new problems, the mega-bank may appoint former Fed Governor Elizabeth Duke to run the board. It would be a welcome but overdue response. A more drastic cleanup is required and the CEO has been at Wells Fargo too long to do it himself.

Barclays fraud case serves justice lukewarm

20 Jun 2017

Britain’s graft watchdog charged the lender and four former executives over its 2008 Qatari capital raising. It’s significant as the first set of charges brought against a major UK bank for crisis-era activity. But in the intervening decade Barclays, and the world, have moved on.

U.S. for-profit colleges get presidential clemency

15 Jun 2017

The education secretary chosen by the founder of defunct Trump University is set to rework two Obama administration rules that targeted dodgy degrees. They could be improved, but more likely they'll be weakened. Students may need to be more vigilant and taxpayers could lose out.

Wells Fargo drives stagecoach further into mud

15 Jun 2017

The $270 bln lender is being sued for changing bankrupt borrowers’ mortgage terms without consent even as its fake-accounts scandal unfolded. Home loans should've been squeaky clean after earlier missteps, too. The bank now run by Tim Sloan is struggling to get the basics right.

Felda joins list of Malaysia’s money headaches

7 Jun 2017

The palm oil giant has suspended its chief after auditors raised a red flag. There are echoes of the 1MDB scandal: Felda is state-backed and investors have been burnt in a listing pushed by Prime Minister Najib Razak. It adds to the noise as Malaysia heads towards a key election.

French banks’ foreign strength cuts both ways

4 May 2017

Strong first-quarter growth in BNP Paribas and SocGen’s foreign markets offset weaker showings at home. Still, SocGen’s 963 mln euro Libyan settlement shows how overseas adventures can go awry. And if Sunday’s election delivers a surprise, French banks face redenomination risk.

Soccer attack weirdly converges risk factors

21 Apr 2017

A bombing of Borussia Dortmund's team bus was carried out by a man using leveraged options to bet against the club’s stock, prosecutors say. A similar unsuccessful plot recently involved U.S. retailer Target. The mix of financial weapons and real ones is a disturbing new trend.

Brazil’s Temer steers white-knuckle reform route

17 Apr 2017

The "Car Wash" corruption probe is increasingly denting the president's government as he tries to drive crucial changes to an unsustainable pension system through Congress. The nation's economic recovery may hinge on his ability to ease off the gas just enough to ensure passage.

South Africa’s slow burn cuts chances of quick fix

6 Apr 2017

President Jacob Zuma seems to be doing his best to get foreign investors to dump domestic assets. That may not lead to a sudden stop: only a small minority face being forced sellers. The bad news is that this could slow the process to replace him with a more responsible leader.

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.

Tesco has three issues, but only one matters

28 Mar 2017

Some investors think the UK grocer's merger with wholesaler Booker is distracting and expensive. Regulators are punishing it for an old accounting scandal. And customers just want ever-lower prices. This last challenge is the only one with the potential to knock Tesco off course.

Renault’s main risk is Ghosn exit – not emissions

16 Mar 2017

The carmaker’s shares lurched on reports of French authorities’ allegations of emissions cheating. Unless Renault’s protestations of innocence are bogus, the concerns look overblown. A far bigger problem for the group would come if boss Carlos Ghosn were to be shunted aside.

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.

Rodrigo Rato jailing is weak crisis coda

23 Feb 2017

The ex-IMF chief has been sentenced to over four years in prison for fiddling expenses while head of Spain's Bankia. It's a rare instance of severe banker punishment. For investors globally, though, this case will offer little satisfaction and even less deterrent value.

EU veto could do LSE and Deutsche Boerse a favour

23 Feb 2017

It's a year since the two exchanges proposed joining forces. The European Commission will soon decide if the tie-up is anti-competitive. A thumbs-down would spare both sides the need to navigate post-Brexit political waters, and force them to do the sensible thing: wait.

Korea fraud electrifies case for ABB spinoff

22 Feb 2017

The Swiss group suspects its South Korean treasurer helped steal $100 million. Fraud equivalent to a fifth of 2015 local sales was only uncovered after the executive absconded. This plays into the hands of activist investors who wanted ABB to become less complex.

Deutsche Boerse board makes a rod for its own back

2 Feb 2017

A bespoke pay package has led to insider trading allegations against the exchange’s CEO. Deutsche Boerse’s board didn’t have to incentivise Carsten Kengeter to buy shares worth 4.5 mln euros in 2015. It could have avoided the mess by structuring the award differently.