New Senator from California can't explain why she didn't prosecute Trump's Treasury pick when she was AG

Kamala Harris was just sworn in as a senator from California, but her last gig was as California's Attorney General, and in that role, she decided not to prosecute Trump Treasury Secretary pick Steve Mnuchin, whom her office had identified as presiding over "widespread misconduct" in foreclosing on Californians -- that is, stealing their houses. Read the rest

China's anti-money-laundering rules could burst Canada's real-estate bubble

China has adopted stringent new anti-money-laundering rules that will make it nearly impossible for small investors -- for example, middle-class families who pool their savings -- to get their money out of the country in order to buy condos in Canada's superheated property market (not just Canada, of course!). Read the rest

€9m Russian loan to French far-right leader Marine Le Pen is called in

The Russian Bank Deposit Insurance Agency has demanded repayment by French National Front leader Marine Le Pen -- daughter of open neo-Nazi and party founder Jean-Marie Le Pen -- of €9m borrowed from the First Czech-Russian Bank, which is now defunct. Read the rest

The average FTSE 100 boss earns as much in 2.5 days as his (yes, his) median employee earns in a year

The great recession and austerity have been very good to the chief executives of Britain's biggest companies: according to the High Pay Center, the average compensation for FTSE 100 CEOs rose 10% in 2015, to £5.5m -- meanwhile, UK workers' wages have stagnated year on year, averaging £28,200. Read the rest

Bank fraud investigations assisted by bankers' emails saying 'Please don't talk about this illegal thing in email'

Morgan Stanley's pre-crisis fraudulent mortgage activity cost the firm $2.6B in federal fines, $550m in New York state fines, and $22.5M in Illiois state fines -- and part of the evidence against it is emails from high-ranking bankers telling their subordinates not to talk about the criminal stuff in email, because it could get them all in trouble. Read the rest

Hedge fund managers' sports car ownership predicts their unwise risk-taking

In "Sensation Seeking, Sports Cars, and Hedge Funds" Three business school researchers analyze a huge data-set of previous and current hedge-funds that have been hand-matched with the vehicle-ownership records of the funds' managers and analyze the data to see if the ownership of a "performance car" correlates with a hedge fund manager's willingness to take risks, and whether those risks pay off. Read the rest

Uber's VAT-avoidance means it owes millions to EU states and will face huge cuts to future EU profits

The 2015 UK Employment Tribunal case that determined that Uber drivers were employees means that Uber will have to give the UK government 16.67% of its drivers' earnings for Value-Added Tax, going back four or more years (that would be £20M for 2015 alone); and the ruling will likely apply to Uber's EU-wide rules (because VAT rules are harmonized across the EU) -- so not only does Uber owe hundreds of millions to EU governments for the past 4+ years' earnings, but it will face a 16.67% (or more) reduction to all future earnings. Read the rest

Companies' self-devouring buyback spree is finally slowing down

Stock buybacks are the preferred form of financial engineering in corporate America, through which companies borrow like crazy and give the money to their shareholders, artificially increasing their earnings-per-share ratio, massively reducing real economic growth, while enriching a tiny number of already-wealthy investors: but buybacks may finally be coming to an end. Read the rest

Feds charge hedge-fund managers with $1B embezzlement

According to a federal indictment, Platinum Partners founder Mark Nordlicht and four others faked the hedge fund's books for years to allow them to siphon off one billion dollars to their personal accounts, swindling 600 investors. Read the rest

Lawmakers' support for bank bailouts was correlated with their individual investment in banks

In The Personal Wealth Interests of Politicians and the Stabilization of Financial Markets, researchers from the London Business School and Tillburg University demonstrate the likelihood of US members of Congress voting in favor of bank bailouts was correlated with those politicians' individual investments in banking stocks. Read the rest

Apple's tax-dodging offshore billions are sunk into Treasury Bills that pay out using Americans' taxes

Apple -- which is one of the multinational poster children for tax dodging, along with Google, Amazon, Ikea and others -- has billions of dollars "offshore" and in theory they can't bring that money into the USA without paying tax on it; but thanks to some fancy accounting, much of that money is sunk into US Treasury Bills (floated by the government Apple is starving through tax evasion), and the US taxpayers pay Apple, about $600M so far. Read the rest

For two years, criminals stole sensitive information using malware hidden in individual pixels of ad banners

Eset's report on Stegano, a newly discovered exploit kit, reveals an insanely clever, paranoid, and devastatingly effective technique used by criminals to infect their victims' computers by hiding malicious code in plain sight on websites that accepted their innocuous-seeming banner ads. Read the rest

Crooks can guess Visa card details in six seconds by querying lots of websites at once

In Does The Online Card Payment Landscape Unwittingly Facilitate Fraud?, a new paper in IEEE Security & Privacy, researchers from the University of Newcastle demonstrate a technique for guessing secruity details for credit-card numbers in six seconds -- attackers spread their guesses out across many websites at once, so no website gets enough bad guesses to lock the card or trigger a fraud detection system. Read the rest

Children synthesize $2 version of Martin Shkreli's $750 malaria drug

The smirking, villainous pharma-hedge-douche-bro Martin Shkreli (previously) bought the rights to the anti-parasitic drug Daraprim -- used to treat malaria, a disease that disproportionately affects the poorest people in the world -- and jacked the price from $13.50/dose to $750/dose. Read the rest

Sanders and Warren issue joint statement slamming Trump's new finance industry alligator for his private DC swamp

Bernie Sanders and Elizabeth Warren: "During the campaign, Donald Trump told the American people that he was going to change Washington by taking on Wall Street. Donald Trump’s choice for Treasury scretary, Steve Mnuchin, is just another Wall Street insider. That is not the type of change that Donald Trump promised to bring to Washington – that is hypocrisy at its worst. After his bank pocketed billions in taxpayer dollars from the bailout, Mnuchin moved on to make a fortune running another bank that aggressively foreclosed on families still reeling from the crisis. This pick makes clear that Donald Trump wants to cater to the same Wall Street executives that have hurt working families time and again." (Images: Bernie Sanders, AFGE/CC-BY; Elizabeth Warren, Tim Pierce/CC-BY) Read the rest

Wells Fargo says that its customers gave up right to sue by having their signatures forged

Even though disgraced Wells Fargo CEO John Stumpf has left the building, his most outrageous legal theories live on: on Wednesday, the company filed a motion in a federal court in Utah seeking dismissal of a class action suit by the customers it defrauded -- the bank argues that since customers sign a binding arbitration "agreement" when they open new accounts, that the customers whose signatures were forged on fraudulent new accounts should be subject to this agreement and denied a day in court. Read the rest

Giving companies more money (loans, tax-breaks) only increases investor payouts, not expansion

Before the deregulation bonanza of the 1980s, corporations were expected to use debt and the public markets as the capital of last resort: they would pay "normal" dividends, then use the left over money to increase pay and fund expansion; but after the birth of "shareholder management," companies have acted like homeowners before the financial crisis: borrowing heavily to pay investors, at the expense of expansion and wages -- but unlike homeowners, corporate management gets to duck the bill when it comes due. Read the rest

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