I didn't say it was negligence on the part of the shareholder. They are putting their money under the control of someone else, they should be thinking about risk when they do so. Is it so clear that a series of closer looks at Enron's books would have missed the fraud?
It's also the case that I was thinking more about the companies that are fined and keep operating with all the same officers in place than I was thinking about companies that implode. For example, shareholders of JP Morgan apparently aren't real sad with Jamie Dimon.
The reason why the government has to take action on this is because as a matter of policy, the government coerces people to invest in corporate America. If people were freer to not participate in the stock market casino, then there would be no need to regulate it.
It's also the case that I was thinking more about the companies that are fined and keep operating with all the same officers in place than I was thinking about companies that implode. For example, shareholders of JP Morgan apparently aren't real sad with Jamie Dimon.