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I'll stand these companies paying fines for something they claim they never dead -- just have to stop that's on the company saying that that could be.
The new head of the Securities and Exchange Commission strongly suggesting that.
Mary Jo White who is reviewing this practice it's almost cemented in corporate governance policy.
Companies that admit no wrong doing but still riding a big check to the government to simply move on.
The former SEC attorney -- goody says.
She wouldn't change this policy it doesn't think the new essence as he -- -- well -- there.
To -- what what what is the advantage -- the companies though or the government.
If they admitted no wrongdoing but still pay a fine whether -- substantial or not limit to what end.
If they paid a fine then that money can either go to the investors -- still.
Treasury and you know not a lot of people know this but.
-- it does the treasury the government he used that money anyway that it wants and some of the money does also go to.
Investors and it can go to.
Any investor doesn't matter the case it doesn't have to be at the specific case.
And when I was at the SEC millions for troops.
So -- can go to the money from the fines can either go to the treasury or.
To the injured investors.
-- -- I would worry about the president and that's just a big old pit and I could see what you're saying about -- -- Mark Gordon have been popular phrase ought.
Good to investors make sure they get some of their best live there.
Some of that back I guess but there but it's a Byzantine route to get some and so I always think that if -- company has in -- done something wrong to this and and and admitted -- -- then it should pay.
But without admitting to any wrongdoing.
I guess it days just to get the government off -- back and -- and then I wonder what's the purpose at all.
Right well it is important because.
People are more likely to settle yes there is -- -- admit for tonight policy they don't have to admit any wrong doing so.
Once people have to say I'm guilty.
Then that people are less apt to -- especially particularly for individuals because that didn't mean jail time for them.
If a if a person.
Admits to a fraud just to settle an SEC case for example the Department of Justice can then come after the that individual and -- Criminal case.
-- -- -- -- but by dropping that part of that then it and -- exacting more painful retribution would be tough.
That's -- and I -- and then also for company is there is some reputation damage that could come into play true selves.
You know if that if a company actually has to say I am guilty of this then there's the chance of reputation will damaged but on the flip side -- then you have all the company is.
Saying oh I'm guilty and there are so many people saying oh I did all a strong and it's really not gonna make much of a difference a kind of minimize the effects.
Of any reputation -- -- -- if everybody's doing it you know you have -- was already often mean it.
So many companies do this sort of thing papers sort of thing that I think whatever scarlet letter used to be attached to disorder and is long gone.
I'm Teresa thank you very very much could happen.
Thank you in the.
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