Banking industry meltdown essay

Utilitarians have the belief that the decsiiosn should be made that will benefit or result in the greatest total utility and that will result in the greatest benefit for all individuals affected.

When confronted with an ethical issue or decision, the egoist is most likely to choose the option that best benefits them. The high-social class of the executives at the United Bank of Switzerland, the Bear Stearns Bank and the Lehman Brothers could have accorded them a hearing with other industry players involved in the potential profitability and legality of the bank transactional decisions and investments they made.

There is a distinction between moral philosophies and business Banking industry meltdown essay. According to the Federal Bureau of Investigations, white collar crime costs the United States approximately three hundred billion dollars a year.

Armed robbery is an example. This is in contrast to blue-collar crimes that are more common in lower social classes and include such acts as Rape and Shoplifting. Support your response with specific examples. Leeson eventually quit his job in after the Kobe earthquake hit, which caused the Japanese stock market to crash.

C Banking industry meltdown essay Fraedrich, John. Determine and discuss the role that corporate culture played in the banking industy scenario.

Moral philosophies also guide businesspeople in formulating business strategies as well as offering guidelines for resolving ethical issues. Egoism determines that right or acceptable behavior is defined by the consequences for the individual.

All the cases involve hurried decisions by the decision makers, mainly the CEOs and bank managers that involved a lack of comprehensive education and information for the investors, shareholders and customers concerning their money invested in the banks. Determine which moral philosophies as discussed in chapter 6 is most applicable to an understanding of the banking industry meltdown.

In the Barings Bank, Nick Leeson had so much autonomy and authority within the bank. Blue collar crime does not cost nearly as much to prevent or prosecute as white collar crimes.

The corporate culture of an organization is very crucial to how employees conduct themselves. That factor alone is what separates white collar crime from blue collar crime. In all the case studies, the financial crimes committed by the bank executives involved a lack of transparencies in the use of derivatives as financial instruments, whic should have generated profit for the banks.

Organizations can also be fined when any of its employees are charged and found guilty of a white collar crime. Deontology can be separated into two groups: Unfortunately for Lehman Brothers, their shares had lost seventy three percent of their value. The relativist perspective is based on the belief that ethical behavior is defined from the experiences of people.

The second moral philosophy, deontology, derives from the Greek term for ethics. They did not have to undertake dubious deals involving client money. Leeson caused the firm billions of dollars as a result of his risky behavior. The United Bank of Switzerland was also marked with dubious deals.

Lehman Brothers was the fourth-largest investment bank in the United States, but in filed for bankruptcy. In the case, the actions of the indviduals were a direct correlation to egoism, which is a teleological philosophy.

Thus, a comprehensive knowledge of all consequences is needed to justify how appropriate that action is. Leeson had the advantage because the managers at Barings Bank had very little knowledge in trading.

These practices were perpetrated by the banks executives and involved use of off shore accounts in USA as well as tax evasion.

White collar crime is also difficult to prosecute because the offenders use sophisticated ways to hide their activities. As the company fell, the executives continually received millions of dollars in bonuses, and eventually the firm became bankrupt.

His efforts to mitigate the effects of his previous decisions regarding the banks futures ended up in more failure because of several factors. This is because all the case studies of the banks mentioned in the bank meltdown featured unprofitable results. Blue collar crimininals are charged as individuals whereas white collar criminals involve indivudials as well as the organizations that employ them.

No one at Barings Bank had access to see that account and as a result, Leeson was recognized widely as a brilliant trader. If the firm had any form of corporate culture with a strong ethical background, those executives would not have accepted bonus pay while the organization suffered financially.

Banking Industry Meltdown Essay Sample

More essays like this: Leeson was concerned with making money and making himself look good, no matter the risk. The moral philosophy of virtue ethics is an approach that places the focus on the kind of person who is doing the act.

The moral philosophy that is most applicable to the banking industry meltdown would be teleology. Nick Leeson, former chief trader for Barings Bank is a prime example of egoism.Open Document. Below is an essay on "Banking Industry Meltdown" from Anti Essays, your source for research papers, essays, and term paper examples.

The banking industries near complete collapse can be closely linked to the mortgage crisis that has hit the United States but there are deeper issues that have lead to the banking industry meltdown.

The banks acted with an egoism moral philosophy which has sometimes been described like a loan sharking operation, just legal. Banking Industry Meltdown Essay Sample. 1. Determine which moral philosophies (as discussed in chapter 6) is most applicable to an understanding of.

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Banking Industry Meltdown: The Ethical Financial Risk Derivatives Words Jan 31st, 6 Pages The case study will be analyzed and white-collar crimes considered as to whether they are different in any substantive manner from other more blue-collar crimes.

Nexity And The U.S Banking Industry Essay - 1. The chief economic characteristics of the online banking industry for those using only Internet banking the leading factors that affect their decision of banking online are security, convenience and rates. Essay on Ethics and Financial Industry meltdown - Introduction Financial organizations.

How much can we blame deregulation for the meltdown in the investment banking industry, and how could the government have foreseen and/or stopped the domino effect before the crisis of ?s The gov could have decided to not back up what they were not regulating.

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Banking industry meltdown essay
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