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Exactly. The fraud is on the part of BMW, but also on the SEC for "slapping the wrists" of the OEMs, and not providing serious repercussions for this behavior.
by zachshefska 6y ago
Exactly. The fraud is on the part of BMW, but also on the SEC for "slapping the wrists" of the OEMs, and not providing serious repercussions for this behavior.
- geodel 6y agoYeah bazillion dollar fine would be about right. People died because BMW lied.
- bostonpete 6y agoIsn't fining a company for misleading investors a kind of strange remedy anyways? Ultimately, a big fine would end up hurting the company's investors anyways...
- cma 6y agoThe deterrence effect could help protect future investors. The alternative is going after all the decision makers involved I guess?
- smabie 6y agoOkay, what kind of fine would you want? People on HN seem to want to lock up every CEO in existence and fine every company into bankruptcy, despite not even deeply understanding what kind of law breaking actually went on.
- jmholla 6y agoMore than they made.
- smabie 6y agoThey probably didn't make any extra money from this
- iratewizard 6y agoBMW should never be allowed to sell a car again. Within 3 years, drivers will start using their blinkers again.
- 542354234235 6y ago> Okay, what kind of fine would you want? Well, it is a financial crime for the purpose of profit by a corporation. Since you can’t jail a corporation, you have to disincentivize the law breaking. The only way you can do that is, at minimum, making the fine larger than the money profited from the crime. Otherwise that is not a disincentive, as it is a net positive to commit said crime. But since exposing these crimes is difficult, it is likely that the discovery of one crime is likely part of a pattern. So fining multiples of the profit would disincentivize even if the risk of discovery was low. As for CEOs, they are both in a position extreme power, and profit massively from company profits. So even through inaction or apathy to criminal activity, they can profit while not holding any liability. I personally think that if you want to be in that position, you should be held “strictly liable” for what goes on under your watch. If you don’t want to take responsibility for what is done under your watch as a CEO making 10s of millions of dollars, don’t take the job.
- xwdv 6y agoThe answer to this is usually some form of “until we’re satisfied” and the answer to when that will be is usually “never”.