Barclays Under Scrutiny: Hiring Practices and the Foreign Corrupt Practices Act

Barclays recently disclosed that it is under investigation by U.S. authorities for its hiring practices in Asia. According to Bloomberg’s Matt Levine, the list of U.S. and European banks hiring family members of Asian officials to secure business has now grown to around 10 firms. While it is clear that bribes are strictly illegal under the U.S. Foreign Corrupt Practices Act (FCPA), the definition has expanded to include hiring family members of government officials.

The practice has become so widespread that it seems clear these corporations did not initially view these hires as bribery. In fact, companies outside the banking sector have been caught in similar practices. For example, last week Qualcomm agreed to pay $7.5 million to the SEC to settle charges related to hiring the relatives of Chinese officials. According to the SEC’s order, Qualcomm had initially decided not to hire the son of a telecom executive because he wasn’t a “skills match” and would likely have been a “drain on the team.” However, the company eventually hired him after being urged to do a “special favor,” despite acknowledging the difficulties this might bring.

While some may argue that hiring a family member as a “favor” doesn’t seem like bribery, it’s clear that this practice violates the spirit, if not the letter, of the FCPA. It raises questions about corporate ethics and the blurred lines between business relationships and personal favors.

Subway Lawsuit: Bread Length Now Subject to Litigation

Just when I thought we had reached peak absurdity in litigation, a class action lawsuit against Subway proves me wrong. The suit, which has now received final approval, mandates that Subway must ensure its footlong and six-inch sandwiches actually measure up to their names. Although critics argue that the length of the bread doesn’t affect the overall value or quantity of food, the courts have decided to move forward, awarding $520,000 to the plaintiff’s attorneys and $500 to each of the 10 named plaintiffs.

While it may seem frivolous, the case highlights a growing trend in which companies must be held accountable not only for the quality of their products but also for seemingly minor details like bread length. While I can’t say this is a win for consumers, it certainly sets an odd precedent for future lawsuits over the size and measurements of everyday products.

From Street Gangs to Financial Fraud: A Shift to High Finance

In an interesting turn of events, the Wall Street Journal reported that street gangs are increasingly shifting from traditional crimes like drugs and violence to financial fraud. These crimes, ranging from check fraud to more sophisticated activities like re-encoding credit cards, are becoming more appealing due to their reduced risk and higher potential profits.

From my perspective, legal financial services jobs offer even more safety and lucrative opportunities than illegal ones. This trend might eventually lead to an even more unusual evolution: gangs becoming hedge fund managers or private equity groups. Imagine a future where you could invest with the Outlaw Gangsta Crips Financial Advisors! It’s a strange thought, but one that underscores how the lure of easy money can shift even the most criminally inclined toward more sophisticated, yet still unethical, pursuits.

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