Current Ethical Issue In Business

Current Ethical Issue in Business a few(prenominal) heap have been left unaffected by the contemporary financial crisis. Problems in the subprime owe market have caused a ripple affect, which has torn through the economy. As a egress of the economic downturn, the ethics of top executives at financial firms and amends companies are now in question. Home foreclosures, lack of acquirable credit, and enormous loss to retirement savings accounts are in force(p) a few of the consequences of this unethical behavior. In addition, the bailout provisions provided by the establishment have left American taxpayers facing a raise in taxes. Recently, the ethical conduct of employees at American International Group, Inc. (AIG) has been brought into question. The subprime mortgage crisis that America is now facing has been grammatic construction for several years. The unethical behavior of financial firms and insurance policy companies has lately been bounteousy realized. The subp rime mortgage crisis was caused primarily by avariciousness and forgetful judgment of the leaders in the financial industry. Loans were creation issued to people who could not afford to pay them back. The loans that were being issued were hence repackaged as collateralized debt obligations, a type of derivative, and resold to investment banks. Since the profound mortgages that make up these derivatives were provided at a subprime rate, the profit margin was rattling proud for lenders. Financial firms were unable to resist these profits, even though they knew the encounter they were taking. In order for the financial firms to protect themselves from the underlying risks of these subprime mortgage products they hired insurance companies to protect them. AIG was the largest insurer of the collateralized debt obligations, which were created from the subprime mortgages. When the subprime mortgage credit line collapsed AIG was unable to meet their financial obligations. The gov ernment was forced to shade in and provide ! the company with the heavy(p) needed to anticipate bankruptcy....If you want to get a full essay, order it on our website: OrderCustomPaper.com

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