Editorial Board
Fines Alone Won’t Deter Corporate Crime
The public needs to know more about the deals prosecutors strike.
How should you punish companies that break the law? Granted, it's a difficult question -- but U.S. prosecutors need a better answer.
When the U.S. Justice Department said it wanted $14 billion from Deutsche Bank AG for mortgage-related transgressions -- an amount that has threatened to do grievous harm to one of the world's largest financial institutions, deprive people around the world of important financial services, and cost thousands of jobs -- markets tumbled and German politicians cried foul. Some central bankers are worried that fines amounting to more than $175 billion since 2010 for financial institutions alone could be holding back an already weak global economy.