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It seems that if you don't punish them for the bad things the companies they acquired did then companies will just do bad things and then get acquired, even by another subsidiary or holding company just to evade the laws and regulations. Isn't that a huge loophole you'd be opening?

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Makes sense to me. Unpunished crimes could be seen as an existing liability, and something the parent company acquires when they buy the violating company.

I would argue that they in fact are definitely a liability, but one which has been calculated to be worth it if you continue with the acquisition. Just because you buy a company doesn't mean their previous crimes should now magic-wanded away. It would be far too easy to take advantage of that. (If it wasn't clear, I'm agreeing with you 100%)

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