During the Lay-Skilling trial, the questionable governmental policy of criminalizing corporate agency costs is on full display.
In this TCS Daily column, Clear Thinkers favorite Stephen Bainbridge lucidly explains corporate agency costs and why shareholders deserve protection from theft, but not from risk-taking.
Given the government’s overwhelming prosecutorial power and the real presumption in cases involving failed business decisions, the criminalization of corporate agency costs is a serious threat to justice and to creation of wealth and jobs. Professor Bainbridge is an expert at the top of his game on this key business law issue, so don’t miss his analysis.
OK, like when I was a teenager and I would always get pulled over for DWB. I must’ve been up to something, right? But for the sake of argument, let’s say a corporate manager did lie to intentionally influence the markets. And for some strange reason said officer left a paper trail. What is a better way to prosecute the corporate officer? Should civil courts be used exclusively?
Policing the police can be a difficult task, huh?
BTW, any news of Fuhs or Olis?
Kenneth, unequivocal evidence of lying to manipulate markets would constitute fraud, which should be punishable under either the criminal or civil justice systems. The problem with criminalizing such statements, however, is that rarely is the evidence of the alleged lie unequivocal. That’s part of the reason why it is best left to the civil justice system to sort out.
On the Fuhs case, he is out of prison and with his family. I doubt we will hear much more on his particular case until the Fifth Circuit rules on the merits of his appeal, which will probably be several months from now. However, after Fuhs was released, Fuhs’ Merrill co-defendants filed their own motions for release pending the Fifth Circuit’s decision, so the Fifth Circuit will probably issue a ruling on those motions shortly.
No word yet on the scheduling of the new sentencing hearing for Jamie Olis. Unfortunately, Judge Lake has a rather crowded docket at this point. ;^)