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FRANKFURT (Reuters) - DaimlerChrysler could face a $640 million fine as a result of a bribery probe by the U.S. justice department and the U.S. stock market regulator, German weekly Der Spiegel said on Saturday.

The Securities and Exchange Commission (SEC) and the U.S. Department of Justice (DOJ) began their investigations in 2004 after a whistle-blower complaint filed by a former employee of the world's fifth-biggest carmaker.

The employee, who Daimler has said was sacked for falsifying financial information, alleged the company had kept secret bank accounts to bribe foreign government officials.

The carmaker said in March that an internal investigation, running parallel to the SEC and DOJ probe, found irregular payments had been made in Africa, Asia and eastern Europe.



Citing information from within the company, Der Spiegel said the carmaker and U.S. authorities were in talks about a settlement under which DaimlerChrysler would pay the fine.

Der Spiegel also said DaimlerChrysler would be forced to change its internal accounting system to ensure it would no longer be possible to make bribes.

A DaimlerChrysler spokesman declined to comment on the report, saying only: "The investigation continues."

In its 2005 annual report, the carmaker warned it could face fines if the SEC or DOJ finds it has violated U.S. law banning foreign bribes.

"If the DOJ or the SEC determines that violations of U.S. law have occurred, it could seek criminal or civil sanctions, including monetary penalties, against DaimlerChrysler and certain of its employees," the carmaker said in the report.
 

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Rumour has it the REAL reason they're in so much trouble is because they made some posts on another forum...
 

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Fines?

So the US is going to fine a company for bribry in another country?
I hope England does not fine me for speeding in America.
When I was in England could the US fine me for speeding?

I think we should make it illegal to accept a bribe. . . . . . . . Oh wait!
 

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When it comes to doing business in certain parts of the world, a company has the choice to either do what everyone else does, or not to do any business. To criminalize and fine U.S. companies is ludicrous. What about all the Washington lobbyists in the pay of foreign goverments or large corporations. Teutone (aka Horst K)
 

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Discussion Starter · #5 ·
Teutone said:
When it comes to doing business in certain parts of the world, a company has the choice to either do what everyone else does, or not to do any business. To criminalize and fine U.S. companies is ludicrous. What about all the Washington lobbyists in the pay of foreign goverments or large corporations. Teutone (aka Horst K)
.....and not to mention William J. Jefferson, and his $100,000! and Jefferson called the search "an intrusion into the seperation of powers" yeah, and after he took the cash from the F.B.I. in a sting, and the F.B.I. found all the cash (except for 10K) wraped in foil in Jefferson's freezer!!! Jefferson, Jackson and O.J. should all get together and "find the real guilty" people!! What a farce!!
 

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how much money does the company have?

would a $640 million fine be of any significance to the firm or have they got billions?
 

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im asking a serious question here!!!!

will a fine be that much of a problem to the Daimler company?

cheers
Ben
 

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Discussion Starter · #8 ·
conleycrew3 said:
im asking a serious question here!!!!

will a fine be that much of a problem to the Daimler company?

cheers
Ben
IF, MB does end up paying a fine, No, I don't think that would cause a serious problem.
 

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conleycrew3 said:
im asking a serious question here!!!!

will a fine be that much of a problem to the Daimler company?

cheers
Ben
The DaimlerChrysler Group anticipates a slight increase in revenues in the year 2006 (2005: €149.8 billion). That was from their website.
 

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B-McD said:
The DaimlerChrysler Group anticipates a slight increase in revenues in the year 2006 (2005: €149.8 billion). That was from their website.

your joking!!! thats a lot of money!

so no, a fine wont really do any harm!
 

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Condemning U.S. businesses to compete on an uneven international playing field is the hight of hypocrisy. Teutone
 

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while gross revenue is interesting....

some more details...

Daimler group market capitalization: ~49 billion
Gross Revenues: 149 billion (all in EU please)

Now for the interesting details:

Cash provided by operations: 12.3b (EU)
Net Income: 2.8b (EU)
Operating Profit: 5.2b (EU)
Total dividend: 2.8b (EU)

so, I guess it's all how you look at it. .63b EU of 149b EU (gross revenue) does not seem like much....

But if your talking hitting the bottom line (net income).... that .63b is significantly more important (2.8b net income)....

Given their cash flow last year (12.3b) it's ez to pay the fine.... it's just where are they gonna put all the $$ on the bottom line?

Chances are they have had visibility toward the fine for some time, and have been funding it... so...

I guess the short answer is YES, it's ez, but it's still a lotta monies !! (for me anyway) I drive a Benz not a Mybach (or however you spell that)...
 
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