Think back to Enron. Many investors made large sums of money off Enron stock in the late 90’s, gains that in retrospect were at least partly due to fraud being committed by executives at Enron. Many investors (and employees) lost large sums of money on the same Enron stock in 2001 as the aforementioned fraud unraveled. Should those investors who sold at the peak in 2000 have to give part of their gains to investors and employees who were either unwilling or unable to sell their shares? Continue reading
The Danger of Madoff style “Clawbacks”
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