Has Corruption Killed the Corporate Reputation?
It’s been a rough season for corporations on Wall Street. On Sunday, JPMorgan Chase reached a tentative $4.5 billion settlement over mortgage-backed securities they sold, leading up to the financial crisis. This, on top of a $13 billion settlement with the Justice Department. These big financial hits are happening along with questions about the company’s relationship with the daughter of the former Chinese prime minister.
Then there's hedge fund SAC Capital. FBI Agent April Brooks said at a press conference in early November, "SAC didn't just break the law; their illegal activity resulted in insider trading that was substantial, pervasive, and on a scale without known precedent, according to the July indictment. It was nothing short of institutional failure."
This hour, Yale Law Professor Jonathan Macey talks about his book Death of the Corporate Reputation. Is there any hope for the return of integrity and reputation to the financial industry? How do we better regulate?
- Jonathan Macey, Professor of Corporate Law, Corporate Finance, and Securities Law at Yale University, Author of The Death of the Corporate Reputation
- Luigi Zingales, Professor of Entrepreneurship and Finance at the University of Chicago Booth School of Business