Law

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.

Xerox effort to go quietly is thwarted on all sides

2 May 2018

Carl Icahn and Darwin Deason have ousted the CEO and board members at the struggling copier company, and at least delayed any deal with Fujifilm. The outgoing CEO, directors and advisers all look bad. Yet Xerox needs a credible final act, and the activists don’t have one written.

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.

Mooch returns to place that’ll have him: Wall St

30 Apr 2018

Anthony Scaramucci is heading back to SkyBridge, the investment firm he founded, after HNA dropped its bid. The Chinese conglomerate’s rationale for buying it was more absurd than his chaotic turn as a White House flack. With HNA out and the Mooch back in, order is restored.

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.

Puerto Rico budget ignores the human element

27 Apr 2018

The bankrupt island’s federal oversight board certified plans that include cuts to pensions and other austerity measures. Some are in line with what Puerto Rico’s governor proposed. But they don’t adequately address the risk of yet more working-age people jumping ship.

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.

Holding: U.S. judges could use CEO succession tips

19 Apr 2018

The Supreme Court’s Anthony Kennedy is expected to retire soon, taking advantage of a Republican president and Senate to ensure a like-minded heir. Yet his replacement probably won’t share his views, a new study suggests. Even when bosses have well-laid plans, they can go awry.

Review: Comey is flawed champion of civics revival

17 Apr 2018

In his blockbuster memoir, the ex-FBI director who prosecuted Martha Stewart and worked at Bridgewater calls Donald Trump an unethical liar and a threat to American institutions. His yarn is riveting, but reveals Comey’s mix of principled leadership and sanctimonious showboating.

Brazil’s anti-graft drive may hamper fiscal reform

12 Apr 2018

The jailing of the country's most popular politician, Lula, and voter disgust at corruption among the powerful will give outsiders with clean reputations a chance to shine in October elections. That's welcome, but could mean needed spending cutbacks are less likely to happen.

Lawmakers’ puzzlement is hazard for Facebook

11 Apr 2018

In Congress, Mark Zuckerberg mostly faced confused questioning about his company’s use of data, not a focused grilling. Rather than a let-off, that’s a risk. When the average politician is baffled by something new but suspects pernicious behavior, regulation may not be far away.

China’s financial market door only opens inward

11 Apr 2018

The People’s Republic pledged to raise ownership limits for foreign financiers by the end of the year, and quadrupled the daily stock trading quota with Hong Kong. The reforms are welcome. But the opening enables more money to flow into China, while keeping domestic cash at home.

Dodd-Frank sheds surprising light on Wall St pay

2 Apr 2018

The widest income disparities in finance don’t involve the biggest CEO paychecks. And median comp can say more about geography and sector than inequality. The law’s pay-ratio disclosures offer useful data for investors and job seekers, and could revive a debate about offshoring.

Holding: #MeToo is putting corporate law on trial

29 Mar 2018

Claims of sexual misconduct at the likes of Fox and Wynn Resorts have led to suits over board duties and disclosure. They’re long shots, largely because business governance is an awkward tool for social change. Yet investors and victims are giving it a new and useful purpose.

Barclays settlement fixes one of several headaches

29 Mar 2018

The UK lender is paying $2 billion to settle U.S. regulators’ claims of mortgage securities mis-selling. That’s less than peers paid and removes some uncertainty. But the outcome of a UK investigation is still pending and CEO Jes Staley has yet to turn the investment bank around.

FDIC risks memory loss with old-guard exit

28 Mar 2018

Thomas Hoenig, the U.S. watchdog’s No. 2, used his swan song to criticize recent moves to ease bank-capital standards. It’s a cry in the wind given the deregulatory bent of Jelena McWilliams, likely the next FDIC chair. Yet forgetting history can sow the seeds of future crises.

Guest View: Why the government will lose to AT&T

23 Mar 2018

The U.S. Department of Justice is tuning in to old channels in its case against the telephone company's Time Warner deal, argues a former Federal Communications Commission chief economist. The Trump administration has crocheted a quilt lacking awareness of historical pattern.

Self-driving cars may find legal lesson in pharma

22 Mar 2018

Autonomous vehicles should make road deaths like the one involving an Uber prototype a rarity. Paradoxically, as drugmakers found with vaccines, mishaps may raise legal costs and drive companies out of the market. Limits on suits and a compensation fund balanced risk and reward.