Goldman, Law Firms Hire U.K. Lawyers to Prepare for Bribery Act

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jumblies's picture
jumblies
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Goldman, Law Firms Hire U.K. Lawyers to Prepare for Bribery Act

http://www.bloomberg.com/news/2011-03-18/goldman-law-firms-hire-u-k-lawyers-to-prepare-for-bribery-act.html

Goldman Sachs Group Inc. (GS) and U.S. law firms are luring lawyers away from the U.K. fraud prosecutor as companies prepare to comply with the world’s “most draconian” anti-bribery law.

The U.K. Ministry of Justice has said it will introduce new proposals as soon as next week, leaving companies scrambling to hire lawyers to help prepare compliance plans. Under the law, U.K. companies without adequate controls to prevent corruption may be prosecuted if a bribe is paid by third parties on their behalf anywhere in the world, even if officials didn’t know.

Is this not just a repeat of the revolving door like at the Fed, US Govt and the SEC? Take away the lawyers so there are no prosecutions (or any of worth), ensure these lawyers have a vested interest in these companies (bribe them) and then send them back to the MOJ so they can prevent those companies being prosecuted.

And if I sound overly skeptical or paranoid, my view is merely a product of seeing sustained corruption in the very machinery that is meant to prevent corruption.

The SFO, which prosecutes white-collar crime, is investigating allegations of overseas bribery at companies including Johnson & Johnson’s DePuy International unit and at Alstom SA’s U.K. division. Last month, KBR Inc.’s M.W. Kellogg Ltd. subsidiary agreed to pay 7 million pounds ($11 million) to the SFO to end a four-year probe into bribes paid to Nigerian officials.

Wow. $11m fine for KBR Inc (market cap $5.2B) subsidiary MW Kellogg. No mention of this on KBR's nor Kellogg's press releases pages. I'm sure that no admission of guilt is part of the deal.

docmims's picture
docmims
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Try as you might, you cannot

Try as you might, you cannot regulate PIRATES.  Even this law is a simulacrum to appear to the masses that you are doing something about the bankers while doing nothing at all.

Travlin's picture
Travlin
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Those nasty pirates

docmims wrote:

Try as you might, you cannot regulate PIRATES.  Even this law is a simulacrum to appear to the masses that you are doing something about the bankers while doing nothing at all.

I had thoughts along this line in another post.  Check out items 4 & 5.  There is more at this link if you are interested.    http://www.peakprosperity.com/forum/you-cant-regulate-pirates/43491 

Travlin wrote:

4 - You can’t regulate pirates  –  Some people have a consuming drive to acquire power through money.  When those with no scruples are the most successful, then corruption spreads throughout the system as others adopt these destructive ways out of self defense.   No amount of bureaucratic micro-management will contain them.  They must be driven from the system or broken into small units as was done with the anti-trust laws over 100 years ago.  This can’t be done when they can buy Congress.

5 - Sovereign control  –  Some people have a consuming drive to acquire power through politics.  Again, when those with no scruples are the most successful, corruption spreads throughout the system as others adopt the winning strategy of the political pirates.  The American constitution was designed to stop this, but it has been systematically subverted over the years to reward those with power.  Any economic or money system you can create is vulnerable to sovereign power.  “Who guards the guards?”

“The American Republic will endure until the day Congress discovers that it can bribe the public with the public's money.”  –  Alexis de Tocqueville, 1835

Travlin 

docmims's picture
docmims
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Thanks Travlin the you can't

Thanks Travlin the you can't regulate pirates quote is very useful when you are in a conversation about we need to do this or that about so and so in the power structure.  Most of the regulation I see on wall street is ostensibly to "control them" but only serves to control who gets in to play the lucrative game.

Travlin's picture
Travlin
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Posts: 1322
You've nailed it

docmims wrote:

Thanks Travlin the you can't regulate pirates quote is very useful when you are in a conversation about we need to do this or that about so and so in the power structure.  Most of the regulation I see on wall street is ostensibly to "control them" but only serves to control who gets in to play the lucrative game.

Yep, you've nailed it.  When corruption is tolerated we can only expect more corruption, because it pays better than playing fair.  When regulation is used to protect corruption, then the we are lost.  It's sad, because it didn’t use to be like this.  We’ve allowed it to happen.

Travlin

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