Trump halts prosecution of firms accused of bribery abroad
Published On Feb 11, 2025, 12:02 PM
US President Donald Trump has issued an executive order halting the enforcement of the Foreign Corrupt Practices Act (FCPA), a 50-year-old law that prohibits US businesses from bribing foreign officials. Trump claims this move will foster increased business opportunities for American companies abroad, arguing that the law creates an uneven playing field in international commerce. Critics, including anti-corruption groups, warn that this undermines US efforts against global corruption. This decision could affect various large companies within sectors prone to corruption charges, such as finance and mining.
Stock Forecasts
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Positive
The cessation of FCPA enforcement could potentially make it easier for US companies, particularly within finance and mining, to operate abroad without fear of corruption-related penalties. This could lead to a short-term rise in stock prices for companies like Goldman Sachs and Glencore, which have faced past scrutiny under the law. However, there are risks involved if global counterparts or regulatory bodies respond negatively to perceived US leniency on corruption.
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