In the context of insolvency, a less culpable state, needless asset and job wastage was addressed for railroads by barring liquidation while displacing manageme

In the context of insolvency, a less culpable state, needless asset and job wastage was addressed for railroads by barring liquidation while displacing management with a board of trustees and stripping owners of their equity and voting power. I'm not sure why equity holders of malfeasant corporations having criminal culpability should fare better than equity holders of corporations that suffer misfortune. The distinction creates a moral hazard.