Law

Capital Calls: White-collar crime, Rusal rejig

7 Mar 2022

Concise views on global finance: The U.S. attorney general wants to go after more individuals as well as companies for corporate crimes. Even law firm Wachtell says top bosses should pay attention; a plan to separate Rusal’s non-Russian bits looks like a challenge.

Russia crisis is Big Crypto’s coming-of-age moment

3 Mar 2022

Major exchanges like Coinbase and Binance are still open to Russians despite the risk of sanctions evasion. If they fail to spot illicit transactions, regulators will crush the life out of them. If they pass the test – and they might – it may be their ticket to the mainstream.

Ericsson Iraq snafu dents already-shaky M&A logic

2 Mar 2022

The telecom kit maker’s shares fell 12% after U.S. authorities said it broke a deferred prosecution agreement over possible payments to Islamic State. A large fine would make the $6.2 bln acquisition of Vonage more risky. That puts pressure on CEO Börje Ekholm to find a way out.

Ukraine war is tectonic shift for global finance

1 Mar 2022

Investor turned anti-corruption campaigner Bill Browder joins Dasha Afanasieva on The Exchange podcast to explain why tougher sanctions from the West, including freezing oligarch assets, threaten Russian President Vladimir Putin’s grip, and cripple the country’s economy.

Capital Calls: Buffett, Sanctions, Defence, Canada

28 Feb 2022

Concise views on global finance: The Oracle of Omaha has seen value in his company’s own stock; Switzerland breaks with traditional neutrality over Ukraine; military-equipment stocks are surging; and Ottawa may let the Rogers-Shaw telecom merger follow a discouraging U.S. path.

Allianz’s U.S. fund misery is only half over

18 Feb 2022

Europe’s largest insurer has set aside $4.2 bln to compensate savers for complex derivative bets that went wrong. The figure, less than the $6 bln claimed, looks positive for shareholders. But with so much extra cash, U.S. regulators may impose a heftier fine to even things out.

Oligarch sanctions with teeth may yet lack bite

17 Feb 2022

Britain has widened the ways rich Russians can effectively be banned from its shores via sanctions. While less bad than the worst U.S. strictures, they would make life much harder for Russia’s top companies and their overlords. But only if the UK actually uses its new powers.

Ericsson’s ISIS fallout could go beyond big fines

16 Feb 2022

The Swedish telecoms group says it may have made indirect payments to Islamist militants in Iraq. That’s way worse than the brown envelopes it sent in places like Vietnam that cost $1 bln in fines. Besides harsher U.S. penalties, Ericsson may find life tougher in its key market.

Glencore is gaining ground on its trust issues

15 Feb 2022

The $77 bln commodity giant has set aside $1.5 bln to settle graft probes. That’s better than feared. And an improving valuation suggests investors are less bothered about its desire to stick with coal. But the mineral remains sufficiently controversial to check further upside.

Busted bank cartel case leaves pieces to pick up

11 Feb 2022

Australian prosecutors dropped criminal charges against Citi and Deutsche Bank over a 2015 share sale for lender ANZ. The lawsuit smacked of overreach and was dragging on too long. It also bared unsavoury investment-banking practices. There are lessons to learn for all involved.

The Exchange: Margrethe Vestager

8 Feb 2022

Europe’s antitrust tsar is responsible for keeping U.S. digital behemoths in check and making sure that the bloc doesn’t slip too far behind on technology. She joined Liam Proud to talk about a string of recent court losses and the future of competition policy.

Capital Calls: Antitrust game of chicken

31 Jan 2022

Concise views on global finance: President Joe Biden’s administration is hypersensitive to mergers that reduce competition. Sectors that have also experienced inflation may be top of the hit list – like poultry production.

Congress is out of excuses on insider trading

27 Jan 2022

U.S. lawmakers have long avoided constraints on their investments despite obvious conflicts of interest. It undermines their criticisms of trades by Fed officials and corporate leaders. There's momentum finally to impose rules. The latest proposals might even have real teeth.

Lululemon’s valuation makes it a target

21 Jan 2022

The yoga-pants maker is facing a fresh legal battle from Nike after already being hit by Peloton. Such lawsuits are common, but the athletic business is highly competitive, easily replicable and hard to differentiate. Success means rivals take notice and play defense.

EU greenwash laxity could see it build back worse

13 Jan 2022

Europe’s green taxonomy is meant to direct billions of euros towards clean energy so a post-virus continent can “build back better”. Yet political fudges mean gas and nuclear count as sustainable. Worse, the tool’s new draft contains loopholes that could make it dirtier still.

Viewsroom: A $3 trln Apple, Theranos boss busted

6 Jan 2022

The company led by Tim Cook hit another mega-milestone thanks to a lightning focus on the iPhone universe and investor willingness to accord it a market-beating multiple, Richard Beales explains. And Elizabeth Holmes draws bright lines between hype and fraud, Gina Chon says.

EU’s anti-greenwashing crusade takes a risky turn

5 Jan 2022

The bloc’s new draft of its green taxonomy includes gas and nuclear power. The risk is a tool intended to make sustainable financing less prone to greenwashing does the opposite. A lot hinges on whether investors properly differentiate between clean and “transition” activities.

Theranos jury draws a line between hype and lies

4 Jan 2022

Elizabeth Holmes, who touted non-existent capabilities for her now-defunct blood-testing startup, has been convicted of defrauding investors. If it stands, she faces jail time. Even in Silicon Valley, there's a limit to how flagrantly founders can fake it until they make it.

Canada’s weed lead is running out of puff

21 Dec 2021

The country’s homegrown outfits are angling for the U.S. market, which could be worth $40 bln a year by 2026. The high after Ottawa's early legalization of cannabis is fading, however. Canadian players in the pot sector need to act soon to make the most of the remaining buzz.

Capital Calls: 3M is a banker’s idea of no fun

15 Dec 2021

Concise views on global finance: The industrial giant has paid investment bankers 95% less in fees than General Electric. The company may have a hard time getting Wall Street’s best advice, even though deals might not help it.