Corporate Monitors Need Better Regulation

When a corporation engages in misconduct, courts, regulators, or prosecutors often arrange for the appointment of a monitor—an independent, private outsider—to oversee remediation efforts at the firm.  As I’ve described previously, the expansive use of monitors has become common, with some private companies even appointing them voluntarily.  Monitors oversee an array of remediation efforts, from ending collusive activity, to compensating foreclosure victims, to ensuring that healthcare providers adhere to legal and regulatory mandates.

The variety of situations involving monitors has made regulating them a challenge.  Creating a single regulatory or statutory scheme would be difficult, given that so many … Read more