Criminal enterprises a good investment, say analysts

Don’t let charges of fraud, corruption and global criminal conspiracy stop you from investing in the gangsters at SNC-Lavalin! Buy SNC-Lavalin, says a report covered in the Financial Post:

It’s only a matter of time before SNC-Lavalin Group Inc. faces criminal charges under Canada’s corruption laws, an analyst at Canaccord Genuity says, arguing the engineering giant has sufficient cash on hand to handle any subsequent penalty and lawsuit damages, and that risk-tolerant investors should buy in because its business fundamentals remain strong.

It appears that record cash-on-hand from corrupt public contracts and radically slashed corporate tax rates means organized criminality barely impacts a firm’s position.

The HSBC drug cartel and terrorism banking settlement or Wall Street’s Mafia-style bid-rigging scams point to a new organized crime wave working at the intersection of the public, private, and criminal economy. Not only do we need to make criminal firms a bad investment, more executives need to be charged and jailed.