How this will affect the bottom line is very much up in the air. While FCPA fines have been growing in recent years, there seems to be little consistency to how they are applied.Last year Smith & Nephew paid $22m for $9.4m in bribes. In 2008, Siemens paid $800m on $1.4 billion in bribes, but the DOJ said it could have been as high as $2.7 billion if the company hadn't cooperated.I think the bigger threat to WMT is the disruption in the management team. I think everyone implicated should be gone. I know everyone is innocent until proven guilty, but if you are accused of covering up bribery, but remain in the top ranks of a publicly traded company, how will that company ever be seen as legitimate?I've said I am pretty confident WMT could find replacements for those ousted - of course the company's entire culture has been called into question by these revelations. That aside, the transition would be troublesome to say the least and WMT isn't exactly firing on all cylinders right now.Additionally, if we see shareholders pressure for a retrenchment and slowdown in international expansion, that would seriously threaten our thesis.As it is, there are great headlines (especially for those that already feel WMT is the devil), but shareholders need to determine if they are comfortable with WMT's management going forward. A clean sweep would help, but these are the things I am pondering.
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