If you analyze the background of various companies, you will come to know that some of these companies have faced financial penalties in one form of the other. Despite this reality, these companies did not refrain from irregularities. Once a company becomes strong, it gets involved in wrongdoings. The company tries to doge the regulators and dominate the market and its competitors through illicit practices. For instance, before the 2008 recession, several banks encouraged home and personal loans at lower interest rates. At the time of the recession, these banks got bankrupt because people were unable to pay back and the banks failed to collect the pending payments. This was the time when several popular banks in America closed due to bankruptcy. Despite imposing fines on these entities, the government approved loans for these companies to bring about a boost in the economy. This move on part of the government was widely condemned. So, this is the problem with the global financial system. The wrongdoers are not taken to task which encourages them to keep dogging the regulator. This article covers Top 10 Global Corporate Fines. The information is shared by Insider Monkey on one of its articles on Yahoo.
One of the high-profile cases is that of BNP Paribas. It is a US-based bank and made headlines for laundering money from Iran, Cuba, and Sudan. The US government had already sanctioned these countries but still the bank was involved in the transaction worth of $100 billion. The US Department of Justice took notice about this scam. In the end, the bank has to pay $8.9 billion to get a clean chit. Another company to face fine is Volkswagen. It was a German car manufacturer until Toyota, the Japanese car maker, acquired Volkswagen last year. This company came into limelight when the US Environmental Protection Agency launched an investigation during 2015 and it was disclosed that the company manipulated the emission tests to show that it meets the standards of US regulators. The emission of this automaker was several times higher as compared to pre-defined criteria. A fine was imposed on the company and it ended up paying $14.7 billion. Do you think this information is something that you are interested to read about? You can check out the history of various other companies at 15 Biggest Corporate Fines in History on Yahoo.