Law

White-collar crime gets crack at messy due process

27 Jun 2024

The US Supreme Court dealt a blow to securities regulators Thursday by requiring jury trials in cases of fraud. Neither courts nor regulators have resources for that. Plus the ruling opens the door for internal courts at other agencies – from the FTC to FERC – to be weakened.

Top US court prepares a deregulatory deluge

14 Jun 2024

A decision coming soon may curb the power of agencies to interpret federal law. Unleash the corporate lawyers. Decades of rules and guidelines would be up for debate, leading to logjams for overwhelmed judges. But it will be worth the wait for companies eager for laxer oversight.

Trump’s rich backers normalize criminal behavior

30 May 2024

In a historic verdict, the property mogul became the first US president convicted in court. His outlandish behavior hasn’t cost him support from billionaires such as Blackstone’s Steve Schwarzman, whose money may help Trump get re-elected. Their collective greed is now on trial.

China’s graft probe heightens food security worry

22 May 2024

A probe into the agricultural minister spotlights Beijing's self-sufficiency concerns. Worsening geopolitics and trade tensions are spurring China to diversify imports, boost crop output and increase stockpiles. All of these will reshape global supply chains.

UK watchdog name-and-shame plan is worth the risk

3 May 2024

City leaders hate a Financial Conduct Authority proposal to reveal the identity of firms it probes. In theory, it could taint a company that later gets cleared. But the FCA’s cautious track record offers comfort, and it needs tools to cut a 41-month average investigation period.

EU bank holdouts are playing with fire in Russia

1 May 2024

Two years after the invasion of Ukraine, lenders Raiffeisen and UniCredit still have sizable businesses based in Moscow. Fearing lack of scrutiny in a sanctions-hit nation, the ECB is ratcheting up pressure to leave. A costly exit looks suddenly preferable to penalties.

Sánchez’s psychodrama leaves Spain at loose end

29 Apr 2024

PM Pedro Sánchez is staying on after threatening to resign over a court probe into his wife’s dealings. He appears weakened before a series of elections, raising doubt on his ability to push for reforms and ensure the country remains the fastest-growing major European economy.

Silicon Valley models value of noncompete ban

24 Apr 2024

A new FTC rule forbids US companies from stopping employees joining a rival, or starting one. Freeing up opportunities for a fifth of the workforce should boost pay. California’s tech hub also showcases other benefits of labor mobility. Intel, for example, exists because of it.

How one firm made child’s play of tricky M&A games

24 Apr 2024

Imagine buying a company without tedious negotiations, rival bids or pricey premiums. A Saudi investor pulled it off by snapping up enough shares to gain control of US retailer The Children’s Place. The feat will be hard to replicate, but there’s now a model for deal masterminds.

Musk’s next big payday matters more than his last

17 Apr 2024

Tesla shareholders will soon vote on the CEO’s court-voided $40 bln pay package. It’s not a tough decision. Recent departures and strategy shifts make Tesla’s value highly dependent on keeping Elon Musk motivated. But a new pay plan is needed too, and the stakes are even higher.

Market forces knock ominously on US realtors’ door

12 Apr 2024

Home buyers will soon find it easier to negotiate fees they pay to 1.5 mln agents – a move that might have happened earlier in a less distorted market. Some brokers will earn more. But the reforms are likely to shrink the fee pool, which is tricky for ancillary firms like Zillow.

Hermès lawsuit attacks luxury’s FOMO premium

26 Mar 2024

A suit against the $274 bln fashion house claims it’s so hard to buy a Birkin, it’s illegal, alleging the handbag’s must-have aura lets the company force purchases of unwanted extras. If successful, it could crimp both Hermès’ top growth areas and ultra-luxe goods’ mystique.

Apple antitrust case is surprisingly simple

21 Mar 2024

The US legal swipe at the $2.7 trln iPhone maker is all about choice. Users choose its devices, but not always the services on them. That shows up in small ways, like payments or how to install apps. In a new cloud-dominated world, returning choice to users will matter much more.

US nudges EU banks toward clean break with Russia

20 Mar 2024

Austrian lender Raiffeisen dreamt up a $1.6 bln plan to salvage value from its Moscow-based unit. But Washington dislikes it, Reuters has reported. For European banks, upsetting the US could ultimately be more damaging than the write-offs from a speedy Russian exit.

Reckitt slump offers a cue to slim down

18 Mar 2024

The $41 bln Lysol maker’s shares fell sharply after it lost a US court case. One option for Reckitt Benckiser is to separate the nutrition arm, focus of the legal woes. That would ease the hit to the rest of the group, but also leave a new arm that may yet be worth something.

UK media muddle is fresh turn-off for foreign cash

14 Mar 2024

Hurried Westminster amendments are set to block an Abu Dhabi-backed bid to buy the Telegraph. It’s OK to stop foreign states owning domestic media, and it may not even upend UAE relations. But making policy on the hoof so flagrantly offers a new reason to swerve UK assets.

Time continues to be on TikTok’s side

12 Mar 2024

A US bill that would force the social media app’s parent ByteDance to sell the platform is gaining ground. Demands are like those made years ago, only the app is now more powerful, the relationship with China more complicated, and politicians less willing to compromise.

Apple’s Epic fail powers up EU tech oversight cred

11 Mar 2024

The $2.6 trln firm quickly reversed its decision to close ‘Fortnite’ maker Epic Games’ developer account. Frowns from the EU, which is going after Big Tech via fresh laws, look to have played a role. The episode is as much a victory for the bloc’s credibility as it is for Epic.

Musk vs. Altman is a battle everyone loses

5 Mar 2024

The Tesla boss's complaint that OpenAI ignored obligations to the human race distracts from a bigger problem. Existential issues are best overseen by democratic governments, because to leave them to techno-libertarians and private contracts is absurd. AI is no different.

EU’s $2 bln Apple bite is still more of a bark

4 Mar 2024

Brussels is fining the US giant more than expected for hurting streaming competition. That leaves $2.7 trln Apple open to similar cases. But as with other EU bids to rein in Big Tech, it hikes the cost of doing business more than it shakes up the sector.