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Recent incidences of corporate or banking scandals - Essay Example
Finance & Accounting
Pages 3 (753 words)
The societal implications are that the Country Financial lost its entire business acumen in a single fault. It was now associated with many fraud and corruption on a large scale. Mozilo compensation had earlier come under scrutiny…
This has gone on to be a major problem since the level of control by politicians on leaders and presidents of large companies is overwhelming. This in the end of the day makes the managers, CEOs and the chief executives like Angelo seem weaker and puppet to these politicians. This makes them to go cahoots with them since they do not have a choice or the deals are very sweet. This should be limited thoroughly by the use of legislation and policies that are relevant and applicable with this particular matter.
The degree of this fraud crime was very colossal. Angelo Mozilo was charged fines that amounted to $67.5 million and was forced to accept a lifetime ban. This ban was implemented so that he will never serve as a director or officer of any public or private company. This is a meager settlement with the Securities and Exchange Commission since he is one of the people responsible directly for the 2008 financial crisis. He should have been jailed without any chances of parole so as to teach the rest of the CEOs and the directors of public companies not to repeat the same mistake again. Civil settlements should not have been applied in this scenario. This is because the event of the $67.5 million settlement saw to it that $20 million was paid by Countrywide Financial. This is because there was an indemnification agreement that existed between Countrywide Financial and Angelo’s employment contract.
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