Tax evasion, insider transactions, Oil, Senate committees, potential corruption. Could be a prime-time dramatization of the Tim Geithner story (true, we haven’t found the Turbo Tax angle yet, but give the story some time to germinate), or just another bit of BRIC background noise.
Petroleo Brasileiro SA, struggling to meet output targets and finance a $174 billion spending plan, faces a new challenge today as Brazil’s Senate probes claims it evaded taxes and funneled cash to government allies.
Shocking. Of course, in jurisdictions with large extraction economies, political power and scandal, natural resources and opposition parties all roll into one big slime pool. Of course, that seems to be the case in jurisdictions with large financial services economies as well.
The investigation, prompted by opponents of Brazilian President Luiz Inacio Lula da Silva, focuses on allegations Rio de Janeiro-based Petrobras evaded 4.4 billion reais ($2.4 billion) of taxes, overpaid for goods and may have favored the president’s supporters when it made charitable donations. Chief Executive Officer Jose Sergio Gabrielli denies the claims.
When the largest oil company in a commodity driven economy finds itself in the crosshairs of the Brazilian President, it doesn’t take much to wonder after the BRIC perma-bulls.
Petrobras Probe Starts as Gabrielli Faces ‘Crisis’ [Bloomberg]
Probably about 98-99% of those with Hispanic origins are not to be trusted.
The problem with Brazilian women is that as they get older (>22) their asses keep expanding.
“Of course, in jurisdictions with large extraction economies, political power and scandal, natural resources and opposition parties all roll into one big slime pool.”
Louisiana
does anyone at DB cover the actual equity market anymore?
check out the premiums on AIG’s out of the money puts…someone thinking this is very short lived
I throw rotting fruit at day laborers everyday on my way to work. It is the way I recycle.
Dyl Rat
is he tweaking his nipples?
@seaman – everyone I talk to is calling this rally a headfake. but they are afraid to sell for fear of missing more upside. to protect themselves, they are buying puts. as a result, prices are getting bid up and people are willing to pay them. aig isn’t alone…
this rally is a butterface
EP, aren’t the Brazilians setting up a second nationalized energy firm? I remember there being an article in the Economist about it (last week?)
when is bess back?
Thanks for this EP. I woulda missed this story otherwise because I was reading the “Berlusconi joins South Stream signing” article.
Do all Brazilian women have Brazilians?
@12
yes they do! obrigado.
@1, while you’re there, you forgot to mention a few other other generalizations:
Probably about 98-99% of those with Jewish origins are not to be trusted.
Probably about 98-99% of those with Black skin are not to be trusted.
Probably about 98-99% of those with Homosexual tendencies are not to be trusted.
Probably about 98-99% of those with Catholic/ Italian/ Irish origins are not to be trusted.
Did I forget anyone? See you at the Klan picnic this Saturday! Don’t forget to bring a side dish for the potluck!
Equity Private my ass.
I don’t trust people who look funny, such as @14.
@16, me too.
Time for my afternoon nap. See you in 90 minutes.