Regulators and law enforcement extracted a hefty fine for fraud at one of America’s most respected financial institutions. Have sovereign wealth funds learned their lesson?
Others take the position that a lack of regulatory aggressiveness renders such suits useless. “The travesty of these seemingly large settlements is that they do nothing to deter the actions,” says Dennis Kelleher, president of Better Markets, a Washington, D.C.-based advocacy group. “They use today’s shareholders’ money to buy a get out of jail free card. Prosecutors seem allergic to holding executives responsible.”
Read the full Institutional Investor’s Sovereign Wealth Center article by Richard Teitelbaum here.