Further, many home owners lost their homes due to foreclosure and this impacted the society in a negative way. The stock markets were no exception to this problem and most companies saw their stock prices dive down. This prevented them from accessing the required capital for expansion and at the same time, many individual investors lost heavily. A good percentage of Americans saw the erosion of their 401K and this placed further financial difficulties in their personal lives.

Conclusion

In short, the unethical practices used by the banks in a wide array of activities including lending had a big impact on the economy. They used many tactics such as shadow banking, creating complex instruments, predatory lending, fraudulent mortgage contracts and sub-prime lending to bring the financial industry on the brink of disaster. It is hoped that regulators, financial executives...

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