The Latest Punishment for Large Companies – Government Fines
Two headlines today of Con-Agra and five global banks being fined over $5b. In these cases and others, a pattern develops; the company is found guilty of gross negligence but no specific person is ever charged. The company pays a hefty fine (which of course is paid by consumers – a hidden tax) and the revenue goes to the federal treasury. None of the money is ever paid directly to those that were affected by the ‘crimes’ to compensate them. This smells of a bribe/payoff to make the charges go away. Of course, the unintended consequence is that the executives will do it again just like my five year old did when there was no personal accountability.