corruption Tag

Goldman Sachs Group Inc. faces a probe by Venezuela’s opposition leaders after buying bonds issued in 2014 by the state oil company, a purchase some lawmakers said bolsters President Nicolas Maduro as he grapples with accusations of human-rights violations. The South American nation’s legislature vowed to launch an investigation into whether the investment by Goldman Sachs’s asset-management arm broke any laws, or whether paying back the debt is in the best interest of Venezuelans. The National Assembly also approved a motion late Tuesday to petition the U.S. Congress to probe theRead More
What may be the largest corruption case in modern history runs deep in Latin America’s largest country. In U.S. history, entire cities and states have been branded corrupt: Think Richard J. Daley’s Chicago or Huey Long’s Louisiana. But amid even the worst federal scandals, Watergate included, the country has never been nationally profiled as crooked—a venal society from coast to coast, from dogcatcher to commander-in-chief. Brazil feels that way right now, largely the result of a bribery scandal of Amazonian proportions known in Portuguese as Lava Jato, or Operation Car Wash, believedRead More
Just as China embarks on a massive Silk Road development funding initiative, a survey of business practices suggests corruption in Asia is only getting worse, adding potential potholes to new deals. Despite anti-graft initiatives under way from China to India, the survey by EY — formerly known as Ernst & Young — found that “ethical standards are not improving.” Some 63 percent of respondents said that bribery or corrupt practices “happen widely” in their country, up from 60 percent in 2015. And 35 percent cited bribery as “common practice” to win contractsRead More
JP Morgan Chase & Co, has some advice for regional banks: A deposit drain is coming, so merge while you can. The company’s investment bankers are warning depository clients that they may begin feeling the crunch in December, thanks to a by-product of how the U.S. Federal Reserve propped up the economy after the financial crisis, according to a copy of a confidential presentation obtained by Bloomberg News and confirmed by a JPMorgan spokesman. JPMorgan argues that some midsize U.S. banks — those with $50 billion in assets or less — couldRead More
As two big economies chart a new course, some fear “regulatory arbitrage.” This is how a race to the bottom can start. In Washington, President Donald Trump has vowed to roll back the financial regulations passed after the 2008 crisis. In London, Prime Minister Theresa May, facing a possible exodus of bankers as Britain quits the European Union, has said she might fight any “punitive” trade measures from the EU with tax cuts or policy changes to attract investors and companies. At the same time, some EU member states couldRead More
Call it Canada’s “New Century” moment. We first introduced readers to the company we said was the “tip of the iceberg in Canada’s magnificent housing bubble” nearly two years ago, in July 2015 when we exposed a major problem that we predicted would haunt Home Capital Group, Canada’s largest non-bank mortgage lender: liar loans in particular, and a generally overzealous lending business model with little regard for fundamentals. In the interim period, many other voices – most prominently noted short-seller Marc Cohodes – would constantly remind traders and investors about the threat posed byRead More
Last week the Internet was ablaze with disgust after a man was physically dragged off a United Airlines flight. What’s amazing, though, is that there are countless cases of another industry abusing its customers in far, far worse ways than the airlines. I’m talking, of course, about the banking industry. Banks treat you like criminal suspects too. Sure, United had a man dragged away like he was a rape suspect being hauled off to jail. But banks treat their customers like criminal suspects on a daily basis. If you think I’mRead More

Posted On April 4, 2017By HoudiniIn News

Venezuela’s Money Supply Soars By A Record 200%

Two weeks ago, Reuters reported that due to “unexplained” reasons, the Venezuela central bank had stopped publishing its M2, or money supply, data.  The M2 money supply was up by nearly 180% in mid-February from a year earlier, according to the central bank before it halted the release of the weekly data without explanation in February. “If they are not publishing, you know it must be skyrocketing,” Aurelio Concheso, director of the Caracas-based business consultancy Aspen Consulting, stated the obvious. The central bank and ministry of communications did not respond to aRead More

Posted On March 20, 2017By HoudiniIn News

Is the Golden Era of Banking Over?

KUALA LUMPUR: Do you remember a time when high-flying bankers were getting some RM10 million in annual bonuses or payouts that were at least three-to-five years’ worth? It seems those days are now a thing of the past, as the tables have turned for bankers and banks. Profits and revenue are still rising, but apparently not as fast as costs. And the ROEs — the returns on shareholders’ investments — are falling rapidly, wrote The Edge Malaysia’s associate editor Joyce Goh and senior writer Esther Lee in the publication’s cover story, ‘EndRead More

Posted On March 17, 2017By HoudiniIn Articles

Asia’s Five Most Corrupt Countries

From South Korea’s presidential scandal to Malaysia’s 1MDB fund, not many Asian countries have been able to avoid the smear of corruption. But just how pervasive is the problem across the continent? An 18-month long survey by Transparency International reveals there is much work to be done. After talking to more than 20,000 people in 16 countries, regions and territories in Asia Pacific, the report found more than one in four people have paid a bribe when using a public service. While that statistic looks at the entire region, the numbersRead More