SEC - SECURITIES AND EXCHANGE COMMISSION: New guidelines drafted for fraud fines - The SEC announced new guidelines for fining companies for fraudulent conduct. The guidelines take into account the seriousness of the alleged corporate misconduct, how cooperative the company was in the investigation, and the deterrent effect of the punishment.
It is true that fraud should be punished to ensure the common welfare, but it also true that in times of need, punishing companies without regard to the items mentioned in the article (alleged misconduct, cooperation, and deterrent effect of punishment), which could result in the company's deterioration, may harm the economy. The country's wartime spending is approaching half a trillion dollars, according to the St. Pete Times, and if profitable companies went under, the economic state would surely worsen. Thus, company misconduct should be punished, but in unsure economic times, the punishment should be reasonable.