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Author: notehound Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 468762  
Subject: Re: British banking giant HSBC will pay Date: 12/14/2012 9:54 AM
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...stockholders are the ones paying the fines, but neither the law, nor the stockholders (or their "representatives" the Board of Directors) holds individuals responsible.

Most executives' and board members' contracts have an "exception" to corporate defense/indemnification clauses that relieve the corporation from liability for criminal acts of the officer/director.

Perhaps it's time for corporations stuck paying fines for crimes committed by their executives and directors to file indemnification suits against the officers/directors who committed the crimes that cost the corporation cash.

Shareholders could push for the corporation to sue the officers and directors who committed the crimes to recover for the cost of the fines.

That would cut down on malfeasance pretty quickly.

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