Regulators and politicians have written so many corporate laws and regulations that it becomes impossible not to break them, and enforcement essentially becomes discretionary. This enables them to threaten management of just about any large, wealthy company with commercial ruin, preferably with criminal charges. The managers are then forced to pay an enormous fine, using shareholder money, to drop the charges in a secret settlement (so nobody can determine whether the charges were legit). This then repeats with another large company. So far, this year alone, politicians have extracted nearly $100 billion from shareholders using this system. In addition to the damage to Americans pocketbooks, the Economist identifies many other ways this is harming us.
Posted on: Sat, 30 Aug 2014 16:24:15 +0000
Trending Topics
Recently Viewed Topics
© 2015