Law

Holding: Facts may spoil board-elections brawl

1 Nov 2017

Shareholder advocates say subjecting all directors to annual votes keeps firms fit, while critics like lawyer Marty Lipton argue it rewards costly short-term moves. Now a compelling study pokes holes in both views. It’s welcome progress in a testy but needed governance debate.

Pragmatism could give bank deregulation new life

31 Oct 2017

U.S. House Financial Services Chair Jeb Hensarling will retire at the end of 2018. The Texan pushed innovative ideas for undoing Dodd-Frank but failed because of a dogmatic stance that alienated even some Republicans. His successor would do better to not follow his example.

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.

Russia mess sucks up U.S. economic bandwidth

30 Oct 2017

The first charges in the 2016 election-meddling investigation snagged President Donald Trump’s former campaign manager. That diverts White House resources better used elsewhere: namely reforming taxes, picking a new Fed chair and preparing for a high-stakes Asia trip.

Banks score hollow victory in class-action win

25 Oct 2017

The U.S. Senate killed a rule allowing groups of consumers to sue financial firms and card issuers. Forced arbitration clauses caused uproars in the Equifax hack and Wells Fargo fake-accounts mess. The shrinking political target on Wall Street’s back is set to grow again.

Italy’s new voting law gives illusion of stability

12 Oct 2017

Parliament is vetting new voting rules ahead of next year’s ballot. The system may encourage a coalition of left and right parties, and hurt the radical 5-Star Movement. Yet ideological strife is likely to weaken any future government, and the chance of meaningful reforms.

Telecom Italia has least to gain in mogul truce

11 Oct 2017

Vivendi, chaired by Vincent Bolloré, wants to end a dispute with Silvio Berlusconi’s Mediaset. That may involve uniting the broadcaster’s TV unit with Telecom Italia, controlled by the French firm. The telco may end up with an unprofitable asset, with uncertain prospects.

Holding: U.S. voters could use M&A conflicts rule

9 Oct 2017

If dodgy deals can be blessed by independent shareholders or directors, why not deem voting districts fair if neutral panels draw them? Biased lawmakers might exit the process and judges could duck political spats. It’s a boardroom fix for the latest Supreme Court elections case.

Vivendi needs to swallow bitter pill in Italy

9 Oct 2017

The French conglomerate is in talks with Silvio Berlusconi’s Mediaset, after falling out over a deal to buy the mogul’s pay-TV unit. Vivendi may not get a good price, but attacks by regulators and Berlusconi’s rising political clout could make a protracted dispute more painful.

Holding: Allergan exposes patent-reform quackery

2 Oct 2017

The $70 bln drugmaker's fishy deal with Native Americans may impede a U.S. tribunal from cracking down on such rights. Weak rules in the forum also face review in the new Supreme Court term. With luck, the pushback will lead to better remedies for flawed intellectual property.

Review: Ellen Pao cracked door for women in tech

29 Sep 2017

In "Reset," the venture capitalist recounts her decision to fight Kleiner Perkins in court over sexism, rather than settling. She lost, but several women have since publicly confronted the bro-culture of Silicon Valley at Uber, SoFi and beyond, yielding more promising results.

U.S. will pay for Puerto Rico one way or another

26 Sep 2017

The already-bankrupt commonwealth is reeling from the devastation wreaked by Hurricane Maria. Blackouts may persist for months even as a $72 bln debt bill looms. Without swift and generous aid from Washington, a mass exodus for the mainland will only increase the ultimate cost.

Cox: Donald Trump is failing America’s gun lobby

13 Sep 2017

The candidate's campaign messaging echoed the National Rifle Association's efforts to sow fear and sell weapons. Trump promised to "come through for" the NRA, which backed him. But a profit warning from Smith & Wesson’s parent and other signs suggest he’s not delivering.

Holding: GrubHub serves up a gig-employment pickle

11 Sep 2017

If the $5 bln food-takeout service wins a rare trial over the job status of workers, discontent could grow in a labor force demanding more benefits. A loss, though, may put the so-called sharing economy at risk. It’s time for a sector that shuns regulation to work with Uncle Sam.

Wells Fargo CEO exposed by supersized scandal

31 Aug 2017

The U.S. mega-bank uncovered another 1.4 mln potentially fake accounts. With the board and sales practices grudgingly refreshed, boss Tim Sloan, a 30-year Wells Fargo veteran, sticks out as a vestige of the old regime. New Chair Betsy Duke should rethink the case for keeping him.

India’s tax attack on Li Ka-shing is a bad call

30 Aug 2017

New Delhi wants to wring the same taxes out of buyer and seller in an old telco deal. Slapping a $5 bln demand on Hong Kong’s CK Hutchison, while also chasing Vodafone, is farcical. If India really wants to end “tax terrorism” it should change its law and rein in bureaucrats.

Holding: The law rides shotgun on Uber obfuscation

21 Aug 2017

Whether the ride-hailing app fixed prices may remain a secret after a court sent a case to arbitration. It’s the same deal on whether drivers were stiffed on expenses or female workers sexually harassed. It’s tough to make Uber fess up when it's allowed to operate in the shadows.

Short-selling fee bastion will be hard to topple

18 Aug 2017

Wall Street makes $9 bln helping pension funds lend stocks to fuel hedge-fund bets. Now three public retirement plans are accusing Goldman, JPMorgan and others of collusion. It’s a business ripe for disintermediation. But it’s too lucrative for banks to concede without a fight.

Bondholders can play hardball with Portugal’s Novo

18 Aug 2017

Bailed-out lender Novo Banco wants creditors to take a haircut, to smooth a sale to Lone Star. But creditors have numbers to block the swap, and could recapitalise the bank themselves. Novo has a history of scrapping with bondholders. This time creditors may have the upper hand.

Elliott finds part-victory in Akzo defeat

16 Aug 2017

The U.S. activist failed to arm-twist the Dulux paint maker into a merger with PPG. The Dutch group has, though, committed to a full breakup and put two solid new members on the board. It’s a decent result for Akzo’s investors – although less than Elliott’s might have wanted.