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I don’t understand how that would work, do you mean liquidate the company? If you mean actually take the shares from shareholders, wouldn’t the value of the sto
by mattnewton 9y ago
I don’t understand how that would work, do you mean liquidate the company? If you mean actually take the shares from shareholders, wouldn’t the value of the stock go to near zero? Who would buy stock that could do that? But I agree with the general idea: they should go out of buisiness and whatever they have should be sold to reemburse people affected.
- leggomylibro 9y agoI wonder if the Feds could simply seize the company and issue treasury bonds to shareholders to cover the costs of their stake at the market's price. Eminent domain, or whatever legal term is latin for "we have the guns." Then, yeah, liquidate everything and distribute the proceeds amongst the victims. It would be expensive, but...so what? The budget is $2T, and if the fine vastly outweighs the value of the company, then it is clearly a grave situation that demands an unusual response. Maybe they could actually issue a realistic fine, and let the company deal with it. But the company would probably just distribute any remaining assets amongst their executives, fire everyone, and declare bankruptcy or something.
- idbehold 9y ago> issue treasury bonds to shareholders who aren't members of the board
- leggomylibro 9y agoYeah, they'd obviously have to issue a different sort of bonds for the board.
- Spivak 9y agoThere's really no reason to exclude board members other than spite. If you're going to fine them then just fine them.
- idbehold 9y agoOkay, their fine is the value of their stock/options in the company. I think companies would care more about security if the board members were the ones we make examples of in cases like this.
- paulddraper 9y agoThe situation would be massive liability, so you'd probably go into bankruptcy proceedings.