Law

Audi arrest puts brakes on VW’s reform drive

18 Jun 2018

The head of Volkswagen’s luxury brand is being held over fears he may hinder an investigation into emissions cheating. The question is why the long-serving executive still had his job. The carmaker’s messy governance is still hindering new boss Herbert Diess’ cleanup operation.

Plumber ruling leaves blockage in UK gig economy

13 Jun 2018

A decision by the country’s Supreme Court ruled that a self-employed contractor is entitled to workers’ rights is ominous for companies like Uber which depend on casual labour. But it offers little new guidance for dealing with technology’s impact on work practices.

Volcker tweak reveals Powell Fed’s cautious streak

30 May 2018

Banks hoping for an overhaul of the prop-trading ban will be disappointed by the U.S. central bank’s modest revisions. Compliance costs may fall but Jerome Powell’s team doesn’t want Wall Street to go back to its freewheeling ways. It rightly retains distaste for big risk-taking.

Cox: Peter Thiel’s next target should be Infowars

30 May 2018

The tech billionaire financed a lawsuit that bankrupted Gawker and said he’d help others challenging similar sites flouting First Amendment freedoms. A complaint by Sandy Hook families against conspiracy king Alex Jones provides a test for Thiel’s democratic bona fides.

Nestlé would benefit from a sugar detox

28 May 2018

The Swiss food group’s CEO wants to spruce up a tired portfolio by buying and selling brands worth 10 percent of group sales, or about $9 bln. The recent Starbucks licensing deal gets him around halfway there. Offloading low-margin confectionery brands is the next logical step.

Holding: $1,745-an-hour lawyers due for disruption

25 May 2018

Kirkland & Ellis billed that lofty fee in the Toys R Us bankruptcy, and on Monday scored a Supreme Court win against workers’ right to save money by suing en masse. Even cheaper firms exceed most Americans’ means. Ending attorneys’ monopoly on law could bring affordable justice.

Rollback of Dodd-Frank won’t roll back time

23 May 2018

The first notable revision to post-crisis U.S. financial regulation is more symbol than substance. Minor tweaks aside, large banks will barely notice. Next in the crosshairs is the Volcker Rule, but even so, market changes mean the good old days aren’t coming back any time soon.

UK’s tough-guy act on Russia can only go so far

21 May 2018

Britain’s delay over the renewal of Roman Abramovich’s visa comes against the backdrop of a wider clampdown on Russian oligarchs. Its sanctions on Moscow, however, contain holes. Closing them requires EU support and a readiness for the City to lose out in the crossfire.

Breakdown: EU gains new powers for Big Tech fight

21 May 2018

Europe’s new privacy rule, the GDPR, prohibits covert data gathering and allows users to have information moved or deleted. The likes of Google and Facebook may initially find it easier to comply than smaller companies. But over time they’ll face a hostile EU with new weapons.

Review: Silicon Valley gets a reality transfusion

18 May 2018

“Bad Blood” tells how Theranos, a company with a single flawed idea, attained a $9 bln valuation. A combination of need, greed, ignorance and hubris made it possible for a seductive fairy tale to outpunch scientific skepticism. Companies can’t live on stories forever, though.

CBS, Shari Redstone litigate selves off M&A rails

17 May 2018

A judge denied the $20 bln media firm’s restraining-order request against its controlling shareholder. But CBS may be able to argue Redstone is breaching her fiduciary duty. It almost ensures a long legal drama that’ll shunt deals with Viacom or other companies onto the sidings.

Italian radical agenda is a recipe for chaos

16 May 2018

A leaked plan by likely coalition allies 5-Star Movement and League says states should be able to exit the euro zone and cancel debt. That, along with a soaring budget and proposals for a shadow government, promise conflict with the EU. Bond markets are too complacent on Italy.

Caps not breakups are best cure for Big Four woes

16 May 2018

UK lawmakers suggested forcing auditors to hive off their consulting units. That might prevent conflicts but could make the companies less profitable and competitive. Imposing limits on auditors’ market share is a better way to make the sector more efficient and avoid blowups.

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.

Holding: Lawyers can make even charity look sleazy

15 May 2018

The U.S. Supreme Court will decide whether Google can settle an $8.5 mln privacy lawsuit with nonprofit gifts. The tech giant says the public will benefit, but only attorneys win big while victims get zilch. As with M&A suits, legal eagles have soiled a potential good with greed.

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.

Barclays slap calls time on UK banker-bashing

11 May 2018

Regulators fined CEO Jes Staley 642,000 pounds for trying to identify a whistleblower. The relatively low penalty reflects lenience towards misbehaviour which doesn’t involve ill-gotten gains or investor losses. Bank chiefs can no longer complain they are being treated unfairly.

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.”

Wall Street Schneiderfreude would be misplaced

8 May 2018

New York’s attorney general levied hefty fines against JPMorgan, Barclays, RBS and others. Now he has resigned amid allegations of abuse. It’s no reason for banks to gloat. Any successor will have just as much incentive, and perhaps more credibility, to pursue financial misdeeds.

Hong Kong reveals capital imbalance in LGBT spat

4 May 2018

The city is fighting to stop a lesbian from obtaining a spousal visa. Morgan Stanley, Freshfields and others have backed the woman's case, recognising the value of human capital. Hong Kong favours the financial kind, evidenced by the relaxation of rules to attract more IPOs.