It is hard to argue that the current amount of fines is sufficiently “punitive” to deter corporate misconduct given the overall size of the companies engaging in misconduct. Some argue that the answer is just to raise the amount of fines and penalties against companies to draconian levels. I guess the thinking is that if devastating fines are imposed, shareholders may rebel and throw out members of the board and management. Unfortunately, corporate democracy does not work as quickly, or effectively, as national elections. Management can be entrenched and use a variety of techniques to preserve their positions within company structures.
From Michael Volkov this week on the Corruption, Crime & Compliance Blog.