As I've said, one of the problems with criminalizing agency costs is that it diverts attention from the important task of finding out what actually happened. Criminal trials are about fastening guilt on particular people. While tremendous resources are being spent for and against this end, we lose the bigger picture – what really went wrong. The defendants have very strong incentives not to lay it all out. The prosecutors are lasered in on what they need to convince the jury of. Meanwhile our obsession with throwing a couple of people in jail obscures important potential lessons for the future like what was the legitimate part of Enron’s business and what, exactly, went wrong.
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