We have received some serious and original judicial thinking from U.S. District Judge, Jed S. Rakoff, of the Southern District of New York. This ought to alert all business men and women as well as the general public.
In the matter of a fine imposed on Bank of America by the Securities and Exchange Commission, the Judge said: Hold it. The executives of the bank had consented to a proposed judgment by the SEC to pay a fine of $33 million.
The judge, however, held that bank executives had acted on the advice of their lawyers. Why then penalize the bank and its stockholders? Would you penalize the bank executives for taking legal advice in good faith? Why not penalize the lawyers for the advice?
This opens up the whole matter for discussion in the court proceeding being scheduled.
No comments:
Post a Comment