What to Know About the Anti-Bribery Law Trump Is Targeting
Published On Feb 11, 2025, 4:02 PM
President Trump has issued an executive order pausing the enforcement of the Foreign Corrupt Practices Act (FCPA) for 180 days, which prohibits U.S. companies from bribing foreign officials. This decision is grounded in the belief that the FCPA harms American businesses by creating an uneven playing field compared to international competitors. The implications of this pause could lead to reduced scrutiny of companies' foreign dealings, as existing investigations may also be reassessed. The FCPA is enforced by both the Department of Justice and the Securities and Exchange Commission (SEC), and its temporary suspension could create opportunities for certain sectors to navigate international markets with less regulatory hindrance.
Stock Forecasts
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Positive
With the pause on the enforcement of the FCPA, companies involved in international trade, especially those in sectors like energy and infrastructure that often engage with foreign governments, could see increased stock prices due to lowered legal risks and operational flexibility. However, this could also lead to renewed scrutiny from investors who may view this as increasing risks of unethical business practices.
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Negative
Conversely, companies with a strong track record of compliance may face stock volatility as investors react to potential reputational risks associated with less regulatory oversight. Those in highly regulated industries may find the new environment more challenging, potentially affecting their stock prices negatively.
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