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When the tide goes out: Fraud & corporate wrongdoing in the wake of a predicted economic crisis

27 October 2020 / Simon Farrell KC , Joe Edwards
Issue: 7908 / Categories: Features , Covid-19 , Commercial , Fraud
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Simon Farrell QC & Joe Edwards discuss fraud & corporate wrongdoing in the wake of a predicted economic crisis

In brief

  • Debt bubbles.
  • A wave of both civil and criminal litigation.
  • Statutory powers and cans of litigious worms.

As Warren Buffet once famously said ‘you only discover who has been swimming naked when the tide goes out’. This was a reference to those exposed in the face of an economic crash. The phrase has often also been used more precisely to refer to those caught out and brought to book either in the criminal and/or the civil courts after a severe economic downturn.

World debt levels have risen inexorably since the 2008 crisis and rose across all sectors by over $10trn in 2019 to $255trn. This was before the COVID crisis. Global debt now stands at 322% of global GDP and is $87trn higher than at the onset of the 2008 financial crisis.

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Weightmans—Emma Eccles & Mark Woodall

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Private client division announces five new partners

NEWS
The landmark Supreme Court’s decision in Johnson v FirstRand Bank Ltd—along with Rukhadze v Recovery Partners—redefine fiduciary duties in commercial fraud. Writing in NLJ this week, Mary Young of Kingsley Napley analyses the implications of the rulings
Barristers Ben Keith of 5 St Andrew’s Hill and Rhys Davies of Temple Garden Chambers use the arrest of Simon Leviev—the so-called Tinder Swindler—to explore the realities of Interpol red notices, in this week's NLJ
Mazur v Charles Russell Speechlys [2025] has upended assumptions about who may conduct litigation, warn Kevin Latham and Fraser Barnstaple of Kings Chambers in this week's NLJ. But is it as catastrophic as first feared?
Lord Sales has been appointed to become the Deputy President of the Supreme Court after Lord Hodge retires at the end of the year
Limited liability partnerships (LLPs) are reportedly in the firing line in Chancellor Rachel Reeves upcoming Autumn budget
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