Banking Industry Meltdown: The Ethical and Financial Risks
The 2008 financial meltdown has been rated as the worst global economic crisis after the Great Depression of 1930. It shook the financial fabric of all the nations regardless of their economic status. It also led to the closure of most of the world's renowned banks and other financial institutions. Analysts have related the problems and the causes of this meltdown to the failure of the banks in their use of derivatives (Will, Handelman, Brotherton, 2013). Derivatives are defined as the financial arrangements that financial institutions formulate in order to hedge out against a future loss. The nature if these financial assets are that they are highly profitable and at the same time perilous (Beder & Marshall, 2011). The allure of profits is what baits the managers to adopt and use them in their institutions. This study focuses on the ethical dimensions of the 2008 Global Financial Crisis and the role of corporate culture in its occurrence.
Ethical practices as the moral philosophy
The dominant moral philosophy that appears to be the underlying cause and reason for the 2008 financial crisis is the ethical practices of the managers of the financial institutions of that time. Although the derivatives are themselves perilous, the managers also contributed to the occurrence of the crisis. The...
Hence, the likelihood of having to repurchase a large amount of repurchases would result. This was increasingly risky as the company spiralled into much lower reserves than it would admit publicly. The increasing risks were recognized by New Century employees. Despite efforts by these employees to suggest changes, the response by Senior Management was generally to reject or ignore these suggestions. Senior Management was therefore fully aware of the increase
Ethics and Derivatives Ethical and Financial Risks of Derivatives This paper examines the ethical and financial risks of derivatives. The paper discusses moral philosophies, how white collar crime differs from blue collar crime, and reviews the role of corporate culture and banking industry leaders in the banking industry meltdown that contributed to the worst recession in U.S. history. The moral philosophy most applicable to understanding the banking industry meltdown is teleology. Teleological ethics
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Capital Requirement and Risk Behavior Arab African International Bank Midan ElSaray El Koubra, Garden City Caoro The research will mainly dwell on the capital requirements and risk behavior of banks, more in particular the credit risk. The purpose of this research is to identify and analyze the relationship between capital requirements and the risk behavior of banks in Egypt more in particular the Arab African International Bank, which is the case study for this
Economic Globalization Has the 2008 financial meltdown in the U.S. And the ongoing economic crisis in Europe have practically ended the era of economic globalization? Following the financial crisis that marred the U.S. economy along with other global economies as well as the ongoing Eurozone debt crisis, there have been projected concerns that this predicament would end economic globalization. The purpose of this paper is to assess this claim. Going by Immanuel
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