Sunak Vows to Set London Free as EU Equivalence Hopes Die [Bloomberg]
“We are moving forward, continuing to cooperate on questions of global finance, but each as a sovereign jurisdiction with our own priorities,” Sunak told an audience of executives and young business leaders at his first annual Mansion House speech. “We now have the freedom to do things differently and better, and we intend to use it fully….”
Sunak said the “ambition” to reach those equivalence deals “has not happened.” He told his audience that even as the U.K. makes changes, “I can equally reassure you, the EU will never have cause to deny the U.K. access because of poor regulatory standards.”
Financial services sector set for carve-out from new global tax rules [FT]
The talks at the Paris-based OECD, which are due to conclude on Thursday, have accepted Britain’s case that the financial services industry be carved out of the proposed new global tax system…. But UK chancellor Rishi Sunak’s victory in haggling over the details of new corporate levies came at a cost, said these people. He had to make concessions to the US on dismantling Britain’s digital services tax that is focused on American technology companies….
“This was a pure game between the US and the UK and France,” said one person close to the negotiations…. Without the exemption, the UK Treasury risked seeing City banks paying less tax to it and more to other countries.
Hertz Leaves Bankruptcy, Taps Directors for New Board [WSJ]
The directors of the reorganized Hertz will include at least two representatives each from Certares Management LLC and Knighthead Capital Management LLC, which prevailed in May in a bidding war for the rental-car company. Apollo Global Management Inc., which joined the winning bid, is getting one board seat…. After the bankruptcy exit, Hertz shares will continue to trade over the counter, though the controlling investors are considering relisting on a stock exchange eventually, people familiar with the matter said.
Activist Investor Elliott Pushes Shake-Up at GlaxoSmithKline [WSJ]
The hedge fund… on Thursday said Glaxo had a poor record of execution, that its share price had underperformed for years and that its management lacked credibility….
Elliott made several recommendations including that the company undertake a “robust process” to select the best leadership after Glaxo’s planned split into a pharmaceuticals and vaccines business, and one focused on consumer healthcare.
It said this process needed to be undertaken by a refreshed board of directors….
Corruption, Cybercrime Top List of U.S. Anti-Money-Laundering Concerns [WSJ]
The list released by FinCEN on Wednesday leaves few, if any, areas of transnational crime unmentioned, leaving some compliance experts concerned the new process could simply increase the sector’s overall regulatory burden. In addition to corruption and cybercrime, the list also names domestic and international terrorism, drug and human trafficking, and a wide range of frauds and organized crimes.
“This was a real opportunity to focus financial intelligence in the U.S. in a way that could create better outcomes for everybody,” said Jeremy Kuester, a former FinCEN official and a counsel at law firm White & Case LLP. “Prioritization is the way to do it, but these aren’t priorities, they are just general topics.”
Trump Organization CFO Surrenders to Authorities in New York [Bloomberg]
Allen Weisselberg, 73, went through a freight entrance to avoid cameras awaiting his arrival at District Attorney Cyrus Vance Jr.’s lower Manhattan office Thursday, one day after a grand jury indicted him and the company in an extraordinary challenge to the former president.
The exact charges he’s facing will be unsealed later in the day, but are expected to involve unpaid taxes on benefits extended to Weisselberg….