> In this case, the financial penalties imposed on the companies themselves seem like a more effective tool.
I disagree with this part. Fining the company just pushes prices up to compensate for the loss. It might cause the company to not be competitive and go out of business but that's mostly punishing people who didn't do anything. We need to hold the individuals responsible for their behavior. I agree with you that prison doesn't seem effective but if we use financial penalties they should be harsh and targetting the individual. I suspect someone who has been very rich for decades suddenly being lower middle class or poor would be much scarier than going to a country club with an ancle bracelet for a few years.
In a sane world the fines which would the bottom line of the company get the attention of the shareholders who challenge the million+-dollar salaries of the executives who oversaw all this and boot them out. I would hope there's stuff in their contracts to prevent these executives from receiving a golden parachute or receiving compensation for unvested options etc in this situation (i.e I think normal firing rules don't apply when you're fired for "gross misconduct" and this sounds pretty much like that to me).
But then that is in a sane world. You're right that most companies would just either eat the losses, or hike up prices to compensate - leaving the executives with another jolly story to tell at the country club.
I disagree with this part. Fining the company just pushes prices up to compensate for the loss. It might cause the company to not be competitive and go out of business but that's mostly punishing people who didn't do anything. We need to hold the individuals responsible for their behavior. I agree with you that prison doesn't seem effective but if we use financial penalties they should be harsh and targetting the individual. I suspect someone who has been very rich for decades suddenly being lower middle class or poor would be much scarier than going to a country club with an ancle bracelet for a few years.