BIGGER CARROTS AND BIGGER STICKS: ISSUES AND DEVELOPMENTS IN CORPORATE SENTENCING[dagger]

WELCOME

Jill E Fisch

Fordham University Law institute

MODERATOR

Hon. John s Martin, Jr.

Debevoise & Plimpton LLP

PANELISTS

Richard C Breeden

Richard C Breeden & Co

Timothy Coleman

Senior interchange of opinion to Deputy Attorney General James Comey

Stephen M Cutler

Securities and Exchange Commission

Celeste Koeleveld

U Attorney's Office, Southern District of novel York

Richard H. Walker

Deutsche Bank AG

WELCOME

PROF FISCH: beneficial evening. My name is Jill Fisch.1 I am the Director of the Fordham Center for Corporate, Securities & Financial Law. upon behalf of the Center and the entire Law seminary community, I want to welcome you to tonight's program.

For more [i]or[/i] less of you, this is the first time that you are attending a Corporate Center program. give permission to me take just a brace of minutes to tell you about the Corporate Center

John Feerick2 established the Center four years ago to be subservient to as a focal point for business-law issues at the Law seminary Since that time, we have race a variety of programs, public incidents policy roundtables, academic conferences, and student-oriented programs. The list of our circumstances is too extensive to overspread in full, but let me give you just a pair of highlights.

The Center entertainers two annual public lectures, the A.A. Sommer Jr discourse which is sponsored by the firm of Morgan Lewis & Bockius, and the Albert A. DeStefano discourse sponsored by the firm of Becker Ros Stone DeStefano & Klein. Past Sommer lecturer have been an incredibly distinguished assemblage This past fall, Richard Ketchum Chief Regulatory Officer of the of recent origin York Stock Exchange, delivered the Sommer Lecture3 The DeStefano discourse has been a variety of different prelections as well as some panel discussions, upon market regulation and the time to come of the self-regulatory organizations. Just last week, this year's DeStefano prelection was delivered by New York State Attorney General Eliot Spitzer.4 I understand that Fordham made The Wall public way Journal as a result,5 which isn't a bad thing.

The Center has entertainered a number of other programs. In January, we held a roundtable upon mutual and hedge-fund regulation, which followed prior programs upon the evolving duty of advantageous faith in corporate directors and the part of lawyers as gatekeepers. nearest Fall we are scheduled to entertainer an academic conference, the Eugene P and Delia s Murphy Conference on Corporate Law, which will be part of the Fordham Centennial Celebration.

We have introduced pupils to business-law issues through specialized business-law courses, many of which are taught by means of leaders in the field who, after hours, consecrate time to serving on our adjunct faculty. We also present students informal career guidance and insight into practice issues [i]or[/i] part of to the other our Business Law Practitioner Series. The Center boasts single of the first clinical programs in securities arbitration in the land and a specialized business-law journal, the Journal of Corporate and Financial Law. You have met more [i]or[/i] less of our student editors who are here tonight.

The Corporate Center is l by means of a distinguished Board of Advisors. sum of two units of the advisors have gone above and beyond the call of what one ought to do in doing virtually all the work in putting together tonight's program. I want to publicly acknowledge and thank Pamela Chepiga6 and justice Loretta Preska7 for all their hard work.

I also want to thank Professors Beth Young8 and Caroline Gentile,9 who have also worked tremendously hard upon tonight's program.

Tonight's program is entitled "Bigger Carrots and Bigger Sticks: Issues and unravellings in Corporate Sentencing."

The series of corporate scandals revealed above the past few years, coupl with a entertainer of new regulations aimed at identifying, redressing, and preventing corporate misconduct,10 have dramatically increased the horizontal of enforcement attention directed to U companies. Prosecutors have fresh powers, both in their investigatory tools and in the stamps of sanctions they can seek11 At the same time, corporations have become more proactive in instituting internal commands and initiating internal investigations of potential wrongdoing.

At times, the emphasis upon enforcement can create tension. Today's corporations face substantial crushing to report potential problems to regulators at an early stage. Regulators are increasingly demanding access to corporate information. Sentencing authoritys impose substantial penalties for corporate failure to cooperate with regulators.12 still concern about cooperation may impede corporate efforts to investigate and answer to potential wrongdoing, particularly if the price of cooperation is a compell waiver of the attorney-client privilege.

Increased remedial authority also raises issues about the greatest in quantity appropriate way to address corporate misconduct. Regulators are facing public demands that individual wrongdoers be held personally accountable. At the same time, currency penalties are reaching unprecedented horizontals Sometimes the penalties seem disproportionate to the public harm, and a certain quantity of have questioned whether corporate-level penalties, penalties that are typically borne through the issuer's current stockholders, are an appropriate reply to misconduct by corporate officials.