In a statement, the watchdog said the "manipulation of the repo rate benchmark in order to reduce the firms' SLS fees" was misconduct of a type "not seen in previous Libor cases".
But because of the type of misconduct by the companies that caused the spill, there is a possibility that the litigation might find these companies liable for far more than $20 billion, the amount BP set aside to pay claims, only a fraction of which has been distributed to families and businesses so far.
Misprision, in law, criminal misconduct of various types.
Therefore, the misconduct of the output cell will be avoided.
Nor is this the type of misconduct that would normally lead to criminal charges against the bank because – at least if the "too big to jail" approach persists – the harm was largely self-inflicted.
As I discussed last year in a piece on Mr. Farkas's sentencing, that is a message likely to be lost on other corporate executives because they do not view themselves as engaging in the type of misconduct that can lead to convictions, or life sentences.
You name the type of misconduct, it all happened here".
Table 3 summarises the type of alleged misconduct as classified by the GMC, together with an indication of the sanction imposed, as defined by them as the "case closure reason".
So if the S.E.C. is only going to pursue cases that involve this type of egregious misconduct, then other companies involved in management buyouts can breath a sigh of relief as long as they do not engage in the type of "ring-fencing" Revlon tried.
In a sense, these types of errors are more difficult to correct than the types of misconduct cases recently discovered in Boston and New York, insofar as they are a natural byproduct of the way people think and cannot simply be 'willed away.' Is there a way to prevent the problem?
