Financial Regulatory Forum

New U.S. court rulings may add to costs, risks of finance industry regulatory enforcement

By Stuart Gittleman

NEW YORK, June 26 (Thomson Reuters Accelus) - Two court rulings last week may raise the enforcement burden for the financial services industry and its regulators.

A Brooklyn federal judge suggested that for regulatory targets of the Securities and Exchange Commission, forcing the agency to take them to court could end up costing less than settling before litigation is begun, depending on legal fees and other considerations, because its ability to seek compensation in court is limited. (more…)

Foreign bribery fines and settlements: who should get the money?

By Luke Balleny

NEW YORK, May 9 (Thomson Reuters Foundation) – ‘Share and share alike,’ some parents love to tell their offspring. But when it comes to fines or settlements from foreign bribery cases, the issue of sharing is a contentious one.

The U.S. government receives all proceeds from fines or settlements that companies pay it in connection with violations, or alleged violations, of U.S. anti-bribery laws. (more…)

Wal-Mart bribery scandal seen undermining effort to soften U.S. anti-corruption statute

By Brett Wolf

ST. LOUIS, May 2 (Thomson Reuters Accelus) – News that Wal-Mart may have tried to cover up bribes paid by its Mexico unit will make it difficult for Congress to weaken an anti-bribery statute loathed by the U.S. business community, at least in the short term, sources say.

“My conclusion is that the Wal-Mart article makes it impossible to change the Foreign Corrupt Practices Act at the moment,” said Peter Henning, a professor at Wayne State University Law School. (more…)

U.S. anti-corruption setbacks seen having little impact on company strategies

By Brett Wolf

NEW YORK, Feb. 23 (Thomson Reuters Accelus) - The U.S. Justice Department has suffered a string of setbacks in its efforts to enforce the Foreign Corrupt Practices Act, including two this week, but it retains sufficient leverage to persuade companies to settle bribery allegations without a legal fight, sources said.

“I think companies should be emboldened, but I doubt they will,” said Mike Koehler, an assistant professor of business law at Butler University. “After all, to challenge the Justice Department and to put it to its burden of proof requires a company to be criminally indicted.” Indictment would not only open up a long legal battle, it would also threaten a company’s reputation.  (more…)

ANALYSIS-Companies could get caught in Asia as corruption rules tighten

By Rachel Armstrong

SINGAPORE, Jan 20 (Reuters) – Multinational firms trying to get a bigger piece of the Asia growth story face a rising risk of becoming embroiled in corruption scandals unless they enforce stricter compliance norms and new regulations.

The region may have moved centre stage in many companies’ growth strategies as developed economies struggle but firms are also scrutinising investment projects even more and stepping up due diligence before jumping into new joint ventures and M&A. (more…)

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