Banks’ Emerging-Market Boom Leaves a Grim Legacy

Emerging markets were a boon for bankers after the 2008 crisis, when resource-rich Africa and Asia seemed to have definitively decoupled from the debt-laden economies of the U.S. and Europe. Yet as lawsuits over alleged corruption and bribery pile up, an uglier side of those glory days is emerging — and taxpayers and investors will be left to pick up the tab, a Bloomberg View reported. Credit Suisse Group AG’s dealings in Mozambique, where about half the population lives in poverty, are the latest to be thrust in the spotlight by U.S. prosecutors. Three former employees were charged in New York this week with defrauding investors over $2 billion of state-backed loans that prosecutors say generated at least $200 million in bribes and kickbacks. Mozambique’s former finance minister has also been charged and faces extradition — something he has said he will fight. Read more