Search

Editors

Harry Cassin Publisher and Editor

Andy Spalding Senior Editor

Jessica Tillipman Senior Editor

Richard L. Cassin Editor at Large

Elizabeth K. Spahn Editor Emeritus 

Cody Worthington Contributing Editor

Julie DiMauro Contributing Editor

Thomas Fox Contributing Editor

Marc Alain Bohn Contributing Editor

Bill Waite Contributing Editor

Shruti J. Shah Contributing Editor

Russell A. Stamets Contributing Editor

Richard Bistrong Contributing Editor 

Eric Carlson Contributing Editor

Bill Steinman Contributing Editor

Aarti Maharaj Contributing Editor


FCPA Blog Daily News

« 'We Lost A Great Soul' | Main | The Carnage Of Corruption »
Friday
Jan142011

Sovereign Wealth Funds And The FCPA

Dionne Searcey and Randall Smith at the Wall Street Journal are reporting today that the SEC is investigating whether banks and private-equity firms violated the FCPA in their dealings with sovereign wealth funds. The SEC, they said, has sent letters to around ten firms, including Citigroup and Blackstone.

"Though the letters didn't contain specific allegations of bribery," the WSJ reported, "they requested that firms retain documents and asked about the firms' dealings with sovereign-wealth funds . . . . One person familiar with a firm that received a letter said it was brief, indicating the investigation is at the early stages."

In October 2008, the FCPA Blog said:

We've never seen empirical studies on the subject, but we've noticed that FCPA cases generally spring from industries that deal in scarce commodities -- whatever those happen to be at any moment in history. It could be energy, telecommunications licenses, access to hospital patients, metals, food, cash and so on. . . .

These days, a commodity in short supply is cash. Sovereign wealth funds have it and banks need it. Will the financial institutions succumb to market pressures? Will they abandon FCPA compliance to save their balance sheets? Some might . . . And if that happens, pin-striped tragedies are sure to follow.

The letters to the firms, today's WSJ report said, "appear to be tied to a broad Foreign Corrupt Practices Act investigation of the banking industry." It noted that foreign employees who work on sovereign wealth funds would be considered government officials and covered by the FCPA.

Reader Comments (1)

"Though the letters didn't contain specific allegations of bribery," That says it all. Like the entire thing is a cover up so government and corporations can continue committing fraud against the American people. I wonder if we will ever wake up? Thanks for the article.
March 17, 2016 | Unregistered CommenterSovereign Citizen

PostPost a New Comment

Enter your information below to add a new comment.

My response is on my own website »
Author Email (optional):
Author URL (optional):
Post:
 
All HTML will be escaped. Hyperlinks will be created for URLs automatically.