As any regulator or corporate officer will tell you, there’s nothing like a “perp walk” of an alleged white-collar criminal from abode to waiting police vehicle for sending a message about the personal cost of nefarious individual conduct.
Regulators in the U.S. and U.K. are looking for ways to send that message. Mary Jo White at the Securities and Exchange Commission said Tuesday the agency would sometimes require individuals to admit wrongdoing when settling civil charges. The U.K. Parliamentary Commission on Banking Standards, responding to a string of scandals in the local banking industry, called in a report published yesterday for criminal sanctions on bankers engaging in “reckless misconduct.” This all continues a theme from the Sarbanes-Oxley Act of 2002, which required top managers to certify the accuracy of their company’s financial reports.