It was only a week ago that President Donald Trump was praising Caterpillar Co. for producing such great bulldozers, as he met with company Chairman Doug Oberhelman at the White House. Less than a week later, officials from the Commerce Department, Internal Revenue Service, Federal Deposit Insurance Corp. and Illinois State Police moved in and raided the company’s corporate headquarters in Peoria, Illinois, seeking evidence related to exports and a Swiss subsidiary as part of a criminal probe.
1. What type of information did warrants to search the company seek?
2. What happened to Caterpillar shares in the stock market after the raid?
3. What is the speculation as to why the FDIC was involved in the warrant and raid?
Deaux, J., M. Parker, and D. Voreacos. (2017). Caterpillar Goes From White House Kudos to Multi-Agency Raid. Bloomberg, Mar. 3 (Retrievable online at https://www.bloomberg.com/news/articles/2017-03-02/caterpillar-falls-most-in-eight-months-as-facilities-raided)