In an interesting test of the anonymity of the internet, Hedge fund manager David Einhorn first demanded to know the identity of a blogger that revealed his holdings early, and eventually dropped the case.
Einhorn, who runs Greenlight Capital, had been buying Micron Technology (NASDAQ: MU). But his holdings were not yet public. A blogger on Seeking Alpha, named “Valuable Insights” posted a note saying a Major Hedge Fund would be purchasing shares of MU. Someone in the comments asked if it was Einhorn. And the poster replied it was. That then pushed up the price of MU and it seems Greenlight had to pay a much higher amount to purchase shares.
Greenlight had then petitioned Seeking Alpha to reveal the name of the blogger, who is an anonymous independent contributor and not employed by Seeking Alpha. SA refused, obviously, because it would endanger its own future as a source of information.
Meanwhile Greenlight kept saying the information was revealed by someone who was legally not allowed to reveal it (either because he’s a broker or has a fiduciary role or has a non-disclosure agreement), so they wanted to follow up legally.
Eventually they found the name of the blogger and have found, in discussions with him, that the information was gleaned from the public domain and no transgressions were found. Greenlight dropped the case.
India has not fared well in Forbes’ list of the ‘Best Countries for Business’ this year, ranking 93rd out of 146 nations, behind countries like Mexico, Kazakhstan and Sri Lanka as it cited challenges like poverty and corruption that the country needs to address.
Denmark topped Forbes’ 9th annual ranking of the Best Countries for Business, followed by Hong Kong, New Zealand, Ireland and Sweden.
The US lags behind many other developed nations when it comes to its business climate, and the gap is growing, Forbes said.
The US ranks 18th in the Forbes list, down four spots from last year.
It marks the fifth straight year of declines since 2009, when the US ranked second.
Iran has executed a businessman who was involved in a high-profile fraud case linked to former president Mahmoud Ahmadi-Nejad. The hanging is being seen as a response to criticism about the regime’s commitment to fighting corruption.
Mah-Afarid Khosravi, who was allegedly linked to a $2.8bn fraud, was hanged early on Saturday.
His lawyer, Gholam-Ali Riyahi, said that nobody including the defendant’s family was aware of the execution, while they were in a judicial process appealing against the verdict.
“Mr Khosravi was executed . . . as a symbol of the fight against corruption,” Mr Riyahi told the Financial Times.
A little-known businessman who was accused of accumulating billions of dollars thanks to links with the previous government, Khosravi was sentenced to death along with two other businessmen and a banker in 2012.
He allegedly forged letters of credit from a partially state-owned bank and gave the fake documents to seven other banks in order to finance companies and factories that were involved in various businesses including steel production. Read More
The ‘India Risk Survey (IRS) 2014’ of FICCI-Pinkerton said the top five risks that affect Corporate India are ‘corruption, bribery and corporate frauds’, ‘strikes, closures & unrest’, ‘political & governance instability’, ‘crime’ and ‘information & cyber insecurity’.
However, there are some variations in perception of risks in some industries due to the typical nature of work.
‘Corruption, bribery and corporate frauds’ was ranked at No. 4 in 2013 survey. ‘Strikes, closures and unrest’ has been rated as No. 2 risk and continue to command serious concern from corporate India. In the 2013 survey, it was ranked as No. 1.
Political and governance instability ranks No. 3 as political uncertainty surrounds the forthcoming general elections.
Overall risk ranking: Read More
Bribery and corruption cases jumped 13 per cent globally since 2011 with engineering and construction sector topping the list, followed by government business, a PwC report said today.
According to the multinational accounting firm, the menace of bribery and corruption will continue to rule the economic crimes chart this year as well.
“Every region reported a significant number of incidences of bribery and corruption. Twenty-seven per cent of all respondents who reported economic crime experienced corruption during the survey period, making it the third-highest crime specified and a relative increase of 13 per cent from 24 per cent reported in 2011,” PwC said in its 2014 Global Economic Crime Survey.
This was third only to asset misappropriation (69 per cent) and procurement fraud (29 per cent), it added. Read More
India has been ranked 98th in the Forbes list of world’s best countries for doing business that has cited poverty, corruption and discrimination against girls among the challenges facing the country.
According to the list compiled by the US publication, among the BRIC economies, Brazil was placed higher at the 80th position on the list, followed by Russia (91st), China (94th) and India (98th). The best countries for business was determined by grading 145 nations on 11 different factors — property rights, innovation, taxes, technology, corruption, freedom (personal, trade and monetary), red tape, investor protection and stock market performance.
Ireland, which maintains an extremely pro-business environment that has attracted investments by some of the world’s biggest companies over the past decade, topped the list, followed by New Zealand which slipped to the second position. Hong Kong was third for the second straight year. Scandinavian kingdoms of Denmark (4th) and Sweden (5th) featured highly educated workforce with GDPs per capita among the highest in the world.
“India is developing into an open-market economy”, Forbes said, adding that “the outlook for India’s medium-term growth is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy”. The US business magazine noted, however, that “India has many long-term challenges that it has yet to fully address.” Read More
Denmark, New Zealand, Finland, and Sweden are the four least corrupt countries in the world, according to Transparency International’s 2013 Corruption Perceptions Index (CPI).
Somalia, Korea, and Afghanistan arethe most corrupt.
The CPI ranks countries and territoriesbased on how corrupt their administrative and political institutions are perceived to be on a scale from 0 (highly corrupt) and a 100 (very clean).
Denmark and New Zealand both scored a 91 while Finland and Sweden both scored 89.
Over the last 20 years, New Zealand hasdeveloped into a free market economy in which welfare is provided mostly on the basis of need.
The other three countries follow the general Nordic welfare model, whichsupports a “universalist” welfare stateaimed at enhancing individual autonomy and promoting social mobility by maximizing labor force participation, promoting gender equality, providing extensive benefits, and redistributing wealth.
Denmark foes as far as involving the private sector in welfare services and providing choice for users. Read More