I was looking for help with an exercise. I'm currently solving a case centered around a firm's very controversial and unethical involvement in a mortgage-backed securities deal in 2006. After the reveal of such an incident, the market value of the company's common stock fell overnight by $10 billion which was far more severe than any fine that might have been imposed. How do I explain this? Is it simply because of investors' overreaction to bad news or are there any other factors in the mix? Thanks in advance