¶ … company through ethical problem years. Read article summarize key points: company involved; problem hand; steps company; outcry public/government; final outcome. Then analyze issue involved: How event avoided; what company; what charge; long -term effects issue.
Goldman Sachs' Greek tragedy
Companies' misbehavior usually has a deleterious effect upon their customers, employees, and shareholders. However, in the case of the investment banking firm Goldman Sachs, the unethical behavior of Goldman caused the downfall of an entire country and has impeded the economic growth of the European Union. "One deal created by Goldman Sachs helped obscure billions in debt from the budget overseers in Brussels," enabling the nation of Greece to conceal its debt from the EU when it first made a bid for membership, and to continue to "skirt European debt limits" mandatory for continued membership in the EU (Story, Thomas & Schwartz 2010: 1).
In 2001, Greece was admitted to the European Union, an economic agreement in which all member countries agree to observe certain economic standards, in exchange for benefits such as the free trade of goods and labor between their borders and the use of the Euro as a currency. "Goldman helped the [Greek] government quietly borrow billions" by making the deal look like a currency trade "rather than a loan, [which] helped Athens to meet Europe's deficit rules while continuing to spend beyond its means" (Story, Thomas & Schwartz 2010: 1). Such financial chicanery would have been extraordinary even on an individual organizational level, but Goldman enabled the fraud to be perpetrated by an entire country.
Goldman specifically created new financial instruments for Greece...
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