The Panama Papers controversy, the leaking of nearly 11 million documents from a Panamanian law firm, shows how the world’s economic political elite break the law to evade taxes. This is likely to increase “tail risks” for global banks, a Nomura report predicts. But in the end, institutions “most vulnerable to adverse outcomes” are those that oddly “have proven resilient” to any criminal prosecution or even investigation. Nonetheless, investors should be cautious of additional big bank fines where shareholders pay for executive’s illegal behavior. The Panama Papers report comes as Phil Angelides, former head of the U.S. Financial Crisis Commission,…
Global Bank Stocks Tail Risk Rises On Panama Papers’ Dump
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.
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