Humility and self-awareness can prevent white-collar crimes by promoting mindful decision-making and consideration of consequences.
Unbiased evaluation of organizations and individuals is crucial in identifying potential risks and preventing white-collar crimes.
Deep dives
The Evolution of White Collar Crime
The podcast discusses the historical perspective of white collar crime in America and explores whether leniency or toughness has prevailed over the years. Eugene Soltas, a professor at Harvard Business School, shares insights from his book 'Why They Do It: Inside the Mind of the White Collar Criminal' and his interviews with convicted white collar criminals. He highlights the complexities of white collar crime, the lack of awareness around its consequences, and the challenges in prosecuting such crimes.
Root Causes and Prevention
Soltas emphasizes the importance of humility and self-awareness in preventing individuals from becoming white collar criminals. He highlights the dangers of mindlessness and lack of consideration for the broader ramifications of one's actions. Soltas also points out the need for unbiased evaluation of organizations and individuals to identify potential risks and prevent unethical behavior. He suggests that teaching these principles in business schools can help future leaders make wiser decisions and prevent white collar crimes.
The Impact of White Collar Crime
The podcast explores the aftermath of white collar crime on individuals and their families. Soltas discusses how convictions can lead to divorces and the challenges faced by individuals in reintegrating into society after serving their sentences. He highlights the long-lasting impact of a criminal record and the limited opportunities available to former white collar criminals. The podcast also examines the societal perception of white collar crime and the need for accountability and prevention.
The Case of Sam Bankman-Fried and FTX
The podcast delves into the case of Sam Bankman-Fried, the founder of FTX, and his potential legal troubles. Soltas highlights the existence of two narratives: one suggesting a deliberate fraud from the start, and another pointing to a lack of internal controls and compliances resulting in recklessness. The podcast discusses the challenges Bankman-Fried may face in court and the potential verdict and sentence he might receive.
Why do people commit white-collar crimes? And how has the way we think about — and prosecute — white-collar criminals changed over time? As part of the background research for his next book, which is about Sam Bankman-Fried and FTX, Michael Lewis wants the historical view of financial fraudsters, embezzlers and Ponzi schemers. So he speaks with Eugene Soltes, professor at the Harvard Business School and author of Why They Do It: Inside the Mind of the White-Collar Criminal.
If you have a question for Michael Lewis about his writing process, head to atrpodcast.com.