Why Trump’s Takedown of an Anti-Bribery Law Could Backfire
Published On Feb 15, 2025, 8:00 AM
President Trump's recent directive to halt enforcement of the Foreign Corrupt Practices Act (FCPA) raises concerns among legal experts. While intended to boost international business opportunities for American companies, experts fear that weakening this law could actually increase costs and create a more dangerous environment for multinational corporations. The FCPA has been a key instrument in preventing corporate bribery, and its suspension could embolden corrupt practices, making it harder for companies to operate ethically abroad.
Stock Forecasts
IBM
Negative
The suspension of the FCPA could create uncertainty for multinational corporations, potentially leading to increased compliance costs and reputational risks. Companies operating in countries with high corruption levels may face higher scrutiny and thus costs. This might negatively impact the stock prices of companies that are heavily reliant on foreign markets.
GS
Negative
Legal uncertainties surrounding the enforcement of the FCPA may deter foreign investments and commercial activities, impacting firms like Goldman Sachs which have previously navigated complex international regulations. Investors may reassess positions in firms with significant exposure to international operations.
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