A substantial portion (if not a large majority) of new home purchases during that time period involved a fraudulent practice of dishonestly inflating the income and financial health of prospective purchasers. In many instances, the real estate brokers and mortgage brokers precipitated this type of falsification of credit worthiness to facilitate high-commission-generating transactions. They stood to profit without any corresponding risk by virtue of the fact that any risk of default on the initial mortgage obligation would be shifted to other lenders and to investors in stocks connected to the value of mortgage securities on Wall Street (Lowenstein 2007). Even worse, during the process of loan negotiation, many homeowners were encouraged to inflate the appraised value of the property for the purposes of maximizing the long-term equity value they represented.
Partly as a result of the financial strain in the form of the protracted war in Iraq, the increase in national security spending after the attacks of September 11, 2001 and the increase in homeland security spending, as well as the weaker value of the dollar worldwide, and the high price of OPEC oil, the U.S. economy suffered tremendously in the first few years of the 21st century. Housing markets that had represented great potential dried up almost overnight, resulting in a drop in value of those properties.
By 2006, millions of American homeowners found themselves stuck with real estate whose value had diminished substantially. Compounding that problem, many of them had already borrowed additional money against the original value of their homes, leaving them with monthly payments that far exceeded their ability to repay responsibly.
Faced with the prospect of continuing to repay a loan that was based on the artificially high appraisal value of their homes at the time of purchase, many of those homeowners opted to simply walk away from their obligations, leaving their homes, losing any equity already invested, and destabilizing the mortgage securities that had repackaged their mortgage obligations into traded commodities on Wall Street (Markels 2007). This precipitated the collapse of several large lending institutions as well as the demise of Wall Street firms such as Bear Sterns in early 2008. This only compounded the instability of the American dollar worldwide and of Wall Street-traded stocks...
social corporate responsibility? The source of conflict CSR with profitability Opposing Friedman: The view of others In the article "the social responsibility of business is to increase its profits" by Milton Friedman, he takes the position that various corporations can never be socially responsible. He believes that it's only the people in the company who have responsibilities. Friedman (1970) suggests that the concept of social responsibility should be taken by corporate executives of
Other measures can include sanctions against foreign companies that are engaged in bribery. This many motivate the governments of those countries to take stronger measures towards eliminating bribery. 3) There are a couple of reasons I think Starbucks has been so concerned about its corporate social responsibility. One is that it helps cultivate a positive image of the company, which can help to both attract and retain customers. Another reason
Business Ethics Every company has corporate governance initiatives in place. Consider that corporate governance simply refers to how the company is run and controlled. The current usage of the buzzword derives from the issues that a few companies had where executives or managers were not subject to appropriate levels of governance. Thus, the guidelines issued recently by the OECD, the ASX, the Combined Code and in Sarbanes-Oxley serve to institutionalize stronger
It should not be treated as a separate exercise undertaken to meet regulatory requirements." (ICA, 29) Here is expressed a philosophical impetus that drives the focus of this research, that such compliance which will generally concern matters such as corporate accounting, the practice of internal oversight and the practice of financial transaction must be considered inextricable from other aspects of practical, procedural and legal operation in terms of its
However, as Nick is unqualified for the position, the medical question is moot -- Nick would not be hired because he has no experience. Michelle has some past experience and would be under consideration. Under the terms of the Pregnancy Discrimination Act prohibits discrimination on the basis of pregnancy in employment. The Act does not explicitly prohibit Mei-Lin from inquiring about the pregnancy, but it is recommended that she refrain
Accepting Client Assignments Outstanding client service begins with a full understanding of the client organization, its business needs and the position to be filled. An AESC member should: Accept only those assignments that a member is qualified to undertake on the basis of the member's knowledge of the client's needs and the member's ability to perform the specific assignment. Disclose promptly conflicts of interest known to the AESC member and accept assignments only
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now