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Certainly should not be a criminal offense if bad biz decisions are made in good faith. But there ought to be severe, lasting civil consequences for grossly irr
by jaydub 13y ago
Certainly should not be a criminal offense if bad biz decisions are made in good faith. But there ought to be severe, lasting civil consequences for grossly irresponsible risk taking in breach of fiduciary responsibilities. (More than an SEC settlement that just gets written down)
- aetherson 13y agoCould you explain what you have in mind? $67 million doesn't sound like a slap on the wrist (it's to a person, not the company, mind), and I'm curious what kind of "lasting" consequences you think are appropriate for civil penalties if not fines.
- jaydub 13y agoMy response is probably more emotional than logical and I think you raise good points but let me try to respond. How much did he actually pay out himself in the end? Mozilo's worth ~$600M according to some quick googling. $67M represents ~10% of his net worth (some of which was gained illicitly). From a risk perspective this looks like a great deal! Cheat yourself up to a big fortune and if you get caught so what? You've made it! So I do think the fine should be on the same order of magnitude as the net worth of the individual to really send a message -- and it should not be tax deductible (if it is for individuals, I believe companies can). I also think there should be a more serve and general ban from the securities industry.
- rjsw 13y agoThe risks should match the rewards.