Comment by brookst
8 hours ago
That’s one reason, but also just the impracticality of jailing everyone who was a shareholder at the time. Diffuse responsibility is also a very strong insulator.
8 hours ago
That’s one reason, but also just the impracticality of jailing everyone who was a shareholder at the time. Diffuse responsibility is also a very strong insulator.
I'll settle for the executives and the board serving time.
Maybe how much time you serve correlates to how much money/stock/etc you have made?
Why would you jail every shareholder? You jail everyone who took part in the deception.
"Took part" should include those who knew about the deception and did nothing.
Maybe it will yeet out all the "investors" who are just parking their money and aren't interested in what their investment is doing. Maybe that will help return the capital markets to serve their original purpose again.
The idea that you can just magically park your money somewhere and it automagically generates numbers, zero risk (because the government always bails you out, directly or indirectly) and zero knowledge requirement has turned out to be incredibly corrosive to society.
Reaping the benefits of the deception is taking part.
No it’s not.
A 401k that market weights is not the same as an executive actively lying.
This is a good way to diffuse responsibility away from the people whose choice it was to condemn the planet to 2-3C warming and onto the people whose choice was made for them by the first group. i.e. this is a good way to put me on trial and keep them out of the court.
I know this because BP coined the term "personal carbon footprint" in order to tell well-meaning liberals like me that we were personally responsible for global warming, and not the oil companies spending to make sure the only practical mode of transportation was individual vehicles burning petrochemicals for energy. Or, prior to that, the oil companies giving Greenpeace money to go heckle nuclear energy and set back the development of clean energy by decades[0].
Likewise, when we do eventually Nuremberg these oil fucks, they are going to throw this exact same argument back at us. They are going to argue that they were just responding to shareholder demand, that fiduciary duty in a for-profit corporation mandates CEOs and board members commit crimes against humanity if it would maximize profits. It doesn't, of course. It'd be insane to argue that corporations are legally obligated to break the law if it makes them a buck. Which, of course, means that there's already a historical record of Nazi-collaborating business owners who used the shareholder value argument specifically to get out of a hanging at Nuremberg. So let's not use that argument. The moral and legal culpability must be concentrated primarily in the people who had the power and made the decisions at the time, and not laundered through the mechanism of the market to an accountability sink.
Besides, are you really going to put everyone in America with a 401k on trial? That would actually be a really good pretext to putting America under martial law and stripping Americans of their rights[1].
[0] To be clear, PV solar is so cheap now it makes any other form of energy look expensive and useless - nuclear included. The point is specifically that we emitted 40 more years of carbon than we needed to because of this.
[1] Which, to be clear, is already happening, has been happening for decades, and is always happening unless you make continuous efforts to revalidate your rights through democratic means outside of merely voting.
The shareholders are literally the ones that paid for the deception and who benefitted from the deception. Why in the world would you punish the hit man but not the one who paid for the hit?
The shareholders did not pay for the deception, even though they benefitted from it. There is no legal precedence for this kind of action because we have an SEC that is meant to root out deception in public companies, that was gutted as a result of the current US administration.
If the law was "you need to hire your own private investigators and external auditors to find deception in all the companies you invest in", then yes, shareholder liability would be reasonable.
3 replies →
Who is suggesting that every shareholder be jailed?