2 ms·
This is the not-quite-last (there's a deferred prosecution agreement that is part of this) in a series of consequences in a case that goes way back in time. I'
by cbsmith 6y ago
This is the not-quite-last (there's a deferred prosecution agreement that is part of this) in a series of consequences in a case that goes way back in time.
I'm not sure I follow the logic of looking at the net worth of a conglomerate when assessing a fine. If someone parks the corporate car in a no-parking zone, or spits out chewing gum on the sidewalk, you're not going to fine them x% of net worth. At least in terms of consequences for the corporation, you'd they would be (punitively) proportional to the economic impact of the criminal activity.
What was the impact of this conduct? It's not mentioned in the story. If they paid a $10 million fine on criminal activity that gleaned them a $1 billion advantage, then yeah this is a slap on the wrist. If it's a $10 million fine on something that gave them a $10 advantage, it's arguably overly punitive.
- confidantlake 6y agoSome countries actually do this, charge variable fines depending on net worth. The fine in this case is to de-incentivize bad behavior like reckless driving.
- cbsmith 6y agoIt makes sense for penalties on people that aren't motivated by profit.