It degrades the rule of law when lawbreakers not only don't even get a slap on the wrist, but in fact get rewarded for their lawbreaking. Since the confidence

It degrades the rule of law when lawbreakers not only don't even get a slap on the wrist, but in fact get rewarded for their lawbreaking. Since the confidence in the markets only exists because people believe the laws governing it will be enforced, not punishing anyone degrades the confidence in the market.