Where do all the monies go?

Today, the NY Times has another story about a possible corporated settlement with the prosecutors. In this case, it's A.I.G. which is expected to pay $1.6 billion to the SEC to settle its case, which involves allegations of improper accounting, bid rigging, and other matters. Once again, I ask, where will this money go? Somehow, I doubt it will be restored to those who lost as a consequence of the illegal activities.

In the case of improper accounting, I would assume that would be the stockholders and, perhaps the lenders to AIG who lost, though I haven't heard that the company has defaulted on any of its loans. In the case of bid rigging, I would assume it was the customers who lost.


The SEC is, of course, grossly underfunded, and could probably make good use of the $1.6 billion, but I just wonder. Somehow, I doubt that's what it will be used for either.

It seems to me this is a problem with treating corporations as though they were individuals under our law. You fine a corporation to punish it for stealing from its shareholdlers. That just steals from the shareholders twice. It seems to me you should go after the REAL PEOPLE who were responsible for the crime.