Juggling Dynamite

An undercover investigation by Channel 4 News reveals how Cambridge Analytica secretly campaigns in elections across the world. Bosses were filmed talking about using bribes, ex-spies, fake IDs and sex workers. Here is a direct video link.

White-collar criminologist Bill Black discusses these revelations in this interview.

Here is a direct video link.

Also read #deletefacebook here, for some further thoughts on this topic.

And this Channel 4 News report interviewing former Research Director turned whistle blower at Cambridge Analytica, Chris Wylie on the ‘data grab’ of Facebook profiles “pivotal” in Donald Trump’s presidential victory.

Here is a direct video link.

An initial public offering of 5% of oil giant Saudi Aramco, is how the Saudi government had hoped to ‘get liquid’ by some $2 trillion this year.  After meeting with salivating bankers in New York for months, the Wall Street Journal reported yesterday that the plan is now in flux for no small part because of concern that 9/11 lawsuits against the Saudis could attach to the funds.  This is dark, here’s WSJ:

Crown Prince Mohammed bin Salman has become increasingly wary of exposing the company to 9/11 related lawsuits following a New York listing, Saudi officials say.

Evidently they’re now scouting out other IPO options in less attractive markets like Hong Kong maybe for 2019.  Trouble is they are running down their cash reserves faster than they had anticipated, oil prices are still in the low 60’s, and US shale supplies keep gushing to fill demand in the US and increasingly China.  See Economic crisis continues to haunt Saudi Arabia:

Riyadh is banking its future on raising funds from the Aramco sale. Its $2 trillion estimated of the value of the oil company is said to be over optimistic especially during uncertainty over oil price. Bin Salman’s vision requires oil price to recover in order to increase the valuation of the initial public offering of state oil company Saudi Aramco. But higher prices, industry experts point out, can bring shale supplies back even stronger.

It’s a dilemma which the Saudi’s may be unable to resolve especially since they have cut production and gone down the pecking order in key markets like China. Beijing is now the second largest destination for US crude oil exports; a trend that is set to increase. The US is likely to cover most of the world’s demand growth over the next three years while the forecast for OPEC is said to fall below current production rates in 2019 and 2020.

All this proving yet again, that it’s not about how much you make in the boom times, it’s about how much cash savings you keep and what your burn rate from expenses looks like.  Liquidity is everything.  Lesson for life.

The Financial Consumer Agency of Canada (FCAC) released its findings today after a year long review of business practices across Canada’s Big Six banks after media reports last year of inappropriate sales tactics and incentives.  No surprise they found evidence of a sales driven financial danger zone for bank customers.  See: Canada’s financial watchdog slams’ banks attempts to mitigate sales risks:

“there are insufficient controls in place at the country’s biggest banks to prevent sales of financial products that are misrepresented or unsuitable for consumers, and the banks’ sales-focused culture elevates the risk that employees may flout consumer protection rules.

The FCAC added it is investigating alleged breaches of rules of conduct designed to protect consumers, and which banks are required to follow that may have been identified during its review and will take action where appropriate.

‘Banks are in the business of making money. We know that. But the way they sell financial products and manage employee performance, combined with how they set up their governance frameworks can lead to sales cultures that are not always aligned with consumers’ interests,’  FCAC commissioner Lucie Tedesco said in a statement.”

The question remains how can we summon the public ire and political will enough to separate deposit taking banks from product sales conglomerates once more.  Scolding and fines are wholly inadequate, clearly.