My question is related to this story. In Spring 2020 Boeing asked for a $60 Billions bailout, then they rejected the bailout because it had too many strings attached, the government gave in and agreed to let the Fed buy corporate bonds which coupled with $25 Billions coming from private investors saved the company with no strings attached. Last week part of that money was used to stop a legal prosecution for fraud, a comment pointed out that it wasn't any longer public money, however it belongs to the shareholders, not to the managers even if this didn't prevent them from using it for their own interest, the company under the deal admits guilt, but the managers themselves are not required to.
This is not the first time that a corporation buys their way out of a legal prosecution, and every time those who committed fraud or other crimes were not required to put their own money, they used the money of the company which formally belongs to the shareholders, most of whom have no voice on the way the company is managed.
So, my questions are:
- Is this capitalism?
- In my country the prosecutor in cases like this is obliged to carry on, why in the US the prosecutor is allowed to settle for a fine? Isn't there too much discretionary power in the hands of a public official?
- On the news I saw absolutely no reaction to the story. What is the position of the various parties?