Tuesday, November 09, 2010

Paying for Corporate Crime

Collusion in the airline industry led today to fines of over US$1 billion. Airlines have already been fined more than US$1.5 billion by the USA for fixing fuel surcharges.

This problem has many dimensions, but a key facet is who should pay. Corporate bonuses and salaries have been "earned" (and paid) based on fraud & illegal activity.

Governments can shake down corporations: fishing for revenues, overcharging for licenses, reinterpreting rules & changing laws to bolster treasuries or aggrandize crusading individuals. Arrogant corporations & government both can gouge consumer-citizens. We little people seem pawns in a bigger game.

Corporate executives & bankers enjoy a system where "white collar crime" brings great personal reward at little personal risk. This stinking system must change.