Saturday, December 30, 2006
Professor Peter Margulies (Roger Williams) has an article online in the Business Law Journal of U-California-Davis. He summarizes the five parts of the article as follows:
" The article is in five parts. Part I discusses the catalysts for corporate insider misconduct: agency costs, moral hazard, cognitive bias, the race to the bottom, and lax government enforcement. Part II argues that a corporation's subsidy of legal fees and indemnification agreements clashes with legal ethics as the corporation may require attorneys to contest charges even though the defendant may benefit from a plea deal. Part III discusses the government's attempt to strengthen enforcement through the Thompson Memorandum. Part IV describes the response to the government's enforcement initiatives, in particular the Stein Court's view on fee subsidies. Part V discusses the interaction between civic and corporate governance on fee subsidies, and the appropriate stance of federal courts.