The
fact that the business community fought ferociously against doing
anything to encourage whistle-blowers is an example of what we call
“revealed preferences” in economics. Honest CEOs should encourage
whistle-blowers. CEOs often say that they encourage whistle-blowers.
Their SEC filings reveal their true beliefs.
When the I-O police have a right win bias then the crime waves can boom and bust, more Iv self policing is allowed so the contagion can grow. Random audits from the Bi side of I are done less. In this environment Iv whistle blowers make less commissions from exposing this contagion as well as having less leverage to plea bargain their own crimes. Police are supposed to use Iv-Oy whistle blowers to moderate crimes by Y-V because Iv-Oy agents are supposed to use secrecy and deception on behalf of Y-V teams. When I-O has been weak then Y-V becomes strong, this takes time to rebalance because even when I-O police become strong they still have few Iv-Oy whistle blowers to help them find the Y-V crimes.
When the I-O police have a right win bias then the crime waves can boom and bust, more Iv self policing is allowed so the contagion can grow. Random audits from the Bi side of I are done less. In this environment Iv whistle blowers make less commissions from exposing this contagion as well as having less leverage to plea bargain their own crimes. Police are supposed to use Iv-Oy whistle blowers to moderate crimes by Y-V because Iv-Oy agents are supposed to use secrecy and deception on behalf of Y-V teams. When I-O has been weak then Y-V becomes strong, this takes time to rebalance because even when I-O police become strong they still have few Iv-Oy whistle blowers to help them find the Y-V crimes.
We
have far too few whistle-blowers and because of the worst epidemic of
accounting control fraud in history and the death of criminal referrals
by the banking regulatory agencies our need for whistle-blowers has
never been greater. Indeed, our federal prosecutors are the people who
most desperately need to encourage whistle-blowers to come forward who
worked at the financial control frauds.
Given
that desperate need how would a rational administration respond? The
President and the Attorney General would hold a press conference with a
group of whistle-blowers. He would praise their performance, give a few
specifics of how valuable the information they provided was to the
nation, urge the tens of thousands of Americans who have information
about other frauds to come forward, provide a web site for future
whistle-blowers to use, and help arrange a publicity tour in which the
select group of whistle-blowers appeared on a series of major television
and radio programs where their efforts could be extolled and they could
ask others to follow their lead.
The
DOJ web site would extoll whistle-blowing and give examples of how
their actions helped the nation. It would showcase video interviews
with whistle-blowers that could be picked up by You Tube.
The
DOJ would hold rallies outside buildings that had (or do) house the
worst frauds featuring the whistle-blowers who had come forward and
asking others to follow their lead. The President would host a White
House dinner for the whistle-blowers and bestow a medal on some of the
most praiseworthy. That is what an administration devoted to holding
the elite frauds accountable would do.
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