• And that may be only part of his alleged fraud: The WSJ reports that prosecutors aired new suspicions that Mr. Ghosn also underreported his income from 2015 to 2018. (The new suspicions allow authorities to detain him for 22 more days without allowing him to post bail.)
What happens next: Bloomberg notes that in Japan a trial would typically take place about 40 to 50 days after indictment was issued, and that “fewer than 1 percent of cases in Japan’s district and county courts resulted in a not-guilty verdict or the defendant being released in 2017.” Prosecutors have said Mr. Ghosn could face up to 10 years in prison if he is found guilty.
China’s Huawei balancing act
China’s leaders are trying to maintain a delicate balance between outrage and necessity amid the unfolding drama over the arrest in Canada of a top executive from the tech giant Huawei, write Keith Bradsher and Raymond Zhong of the NYT.
• On the one hand, Beijing wants to lash out at the U.S. over its role in the case against Meng Wanzhou, Huawei’s chief financial officer, involving charges of fraud. The Chinese government summoned the American ambassador to China, Terry Branstad, to protest the arrest. Beijing has also threatened Canada with “‘grave consequences.”
• “Ms. Meng’s arrest has reinforced the feeling among many people in China that Washington is using every means at its disposal to hold back their nation’s economic ascent,” Mr. Bradsher and Mr. Zhong write. “That feeling makes it harder for economic reformers in China to support trade compromises with the United States.”
• On the other hand, the Chinese government doesn’t want to upset a recent truce with the U.S. over trade issues. Beijing, Mr. Bradsher and Mr. Zhong write, is “trying to compartmentalize the Huawei issue, while still taking an assertive enough stance to satisfy nationalistic anger in China.”
More Huawei news: Japan has barred the company from obtaining government contracts.
How much could the 1MDB scandal cost Goldman Sachs?
A vast fraud at a Malaysian investment fund has cast a harsh light on Goldman Sachs, which served as an underwriter for 1MDB’s funds. How much might the scandal wind up costing the firm? DealBook’s Peter Eavis takes a closer look:
• “Several analysts expect the government to force Goldman to disgorge the roughly $600 million it earned arranging the bond deals. The question is whether Goldman will also have to pay that amount, or twice the sum, to the government as a penalty.”