Question
2. Consider the way in which Anderson would measure the costs of the recent French (Societe General) bank fraud case in which a trader 7.14
2. Consider the way in which Anderson would measure the costs of the recent French (Societe General) bank fraud case in which a trader 7.14 billion euros in unauthorized trading. The trader is to be charged, tried, and may well be convicted and sentenced to serve some time in jail.For each of the costs listed below indicate whether Anderson would include them as economic costs of this crime?
2a. the 7.14 billion euro loss
2b. the cost of prosecuting the trader
2c. costs to other banks due to lost reputation
2d. lost earnings by the trader while in jail
2e. the costs of incarcerating the trader
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