The system of national banks and federal thrifts is returning to good condition, not perfect, but good.  Balance sheets are stronger, assets are more stable, and earnings are definitely on the rise, particularly in comparison to the depths of the financial crisis in 2009.  Bank lending is rising slowly and should improve.   While the general state of the industry has improved, the financial industry faces...

With the Second Circuit’s recent reversal of the insider trading convictions in the Squawk Box case, United States v. Mahaffey, et al, (copy here), the trade press is ringing once again with claims of continuing prosecutorial abuse.  Judging by press reports on this case and others, including the Senator Stevens case, the instances of prosecutorial misconduct appear to be on the rise.  The white collar...

I would like to welcome three new sponsors to Corruption Crime & Compliance.  Each has unique capabilities in the compliance industry. Berkeley Research Group is one of the fastest growing and dynamic new consulting firms which provides forensic accounting, forensic investigation, strategic advisory and corporate intelligence services.  BRG announced yesterday the addition of former SEC Inspector General David Kotz to its anti-corruption team.  Please check out...

“Never argue with stupid people, they will drag you down to their level and then beat you with experience.” – Mark Twain Mark Twain’s quotes are timeless – his keen observations apply today just as they did years ago.  A compliance program depends on rational decisions.  Stupid decisions will undermine compliance. The key to compliance is identifying and analyzing issues, weighing risks, and making rational...

Corporate governance is the most important predictor of compliance.  This may sound obvious but corporate boards move slowly.  In many cases, corporate boards move way too slowly.  Corporate failures usually rest on missteps and omissions by corporate leaders.  It is a rare case for a company to have a board that is forward-looking and in front of the curve. In the last ten years, there...

It would be interesting to study how companies respond to FCPA violations.  A study on when all the dust settles — after the company discloses FCPA violations, conducts an internal investigation, confirms improper payments, fires those employees responsible, settles with the government and pays a fine – would be particularly interesting. When all the dust settles, what changes, if any, occur at the corporate board...

The Justice Department always touts its FCPA, Criminal Antitrust and Health Care Fraud enforcement programs.  It is very proud of its record in these areas.  But quietly and methodically the Justice Department has ramped up, with little fanfare, its export control and sanctions enforcement program.  For the first half of this year, while attorneys, client alerts, and marketing pitches continue to focus on FCPA enforcement,...

I have had more than one corporate general counsel tell me that anti-corruption compliance is not very effective in protecting against foreign bribery.  Their argument is that a company’s compliance program boils down to the behavior of individual employees.  An employee will either decide to violate the law or comply with the law; the company’s compliance program has no influence on this decision.  According to...

The SEC is not a shrinking violet.  When it comes to FCPA enforcement, some focus more on the Justice Department – and given its criminal enforcement mission that is understandable.  But the SEC has a strong enforcement role to play, and in the last year or so, it has been flexing its enforcement muscle.  It is an important trend and one that is expected to...

A recent survey found that close to half of all responding companies had established or increased anti-corruption compliance.  That is a very positive response to increased FCPA enforcement.  It is time and money well spent.  Increased compliance reduces risk. Companies have to be realistic about the enforcement risks.  Most (if not all) major enforcement actions involve situations where there is a “systematic” breakdown in compliance. ...