Glencore, DOJ, Canada discussed on


To talk to you so glencore was already facing legal and regulatory problems around the world now this us probe into corruption and money laundering allegations may be widening what happens next well this has been a really huge year for glenn call because we're now aware of three different probes into glenn close activities one being this new one from the doj another one in canada and a third one which is very much in its early early stages in the uk these could be very very big investigations and they could have a broad ramifications for glencore it's not just multiple countries right it's also multiple commodities tell us why that combination is so important the news from the the doj is incredibly important because there are three different countries that are being looked at one venezuela the other night cheerier both of those are oil trading businesses for glencoe and the third one is the congo which is a copper and cobalt play cobalt in particular is a very very hot commodity if it's being investigated glencore could come under pressure to divest and what makes this all the more interesting is that top managers will have to think about their own involvement all of this investigators going to find something that implicates them in any wrongdoing and if they do then they're gonna have to get out of their positions at gain call because otherwise glencore isn't really sustainable it'd be interesting as well to see if glencore is head ivan burg if this is going to affect his risk tolerance in the past certainly he has not seemed phase by difficult jurisdictions and the congo is when a lot of companies have pulled out of the drc yeah i'm in the car in the congress really fascinating case study glencore and we've just seen again i mean glazing bug seems to be willing to take on the us government in december the us government put sanctions on that business partner in the congo and israeli guy by the name of dan gertler who's very close to the president of congo and instead of stopping doing business with dan what glencoe has done is they've found a workaround by paying him in euros instead of us dollars so basically saying to the us government we're just going to carry on doing business we're just gonna slightly fudge the rules friends thank you very much that's.

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