This article examines the moral judgment and the economic consequences of corporate debt settlements ("haircuts"), particularly the effect of the debtor's identity. Debt settlements can be attributed to either the corporations that issued the bonds or the individual heading these corporations. People tend to judge individuals more harshly than companies for morally questionable financial behaviors, leading to attitudes that favor greater economic punishment. At the same time, people express more compassion and lower demands on individual than on companies in case of distress. In four studies, we find that people hold firms more accountable for their financial behavior when the identity of either the person responsible for the behavior or the person harmed by it is emphasized. The present research contributes to understanding person-organization discontinuity in ethical judgments, as well as managing public impressions of questionable corporate financial actions.