Banking: An Atomic Bomb The unfortunate financial crisis in 2008 is considered by many economists the worst after the great depression in 1930. It resulted in the threat of total collapse of large financial institutions‚ the bailout of banks by national governments‚ and downturns in stock markets around the world. Reasons that economists believe were behind the crisis are a lot‚ but they addressed the following as the most relevant; subprime lending‚ the housing bubble‚ easy credit conditions.
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use ethical decision-making and therefore went under. “After 1992 Fannie Mae and Freddie Mac were encouraged to purchase “affordable” mortgages from banks‚ which essentially meant mortgages that did not pass the usual creditworthiness requirement for loan”(Congleton‚ 2009). Fannie Mae gave loans to anyone who basically applied thus‚ resulting in a major crisis in America. “Good ethics in business would be to compete fairly and honestly‚ to communicate truthfully and to not cause harm to others
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financial crisis of 2008 is a major ongoing financial crisis‚ the worst of its kind since the Great Depression. It became prominently visible in September‚ 2008 with the failure‚ merger or conservatorship of several large United States-based financial firms. The underlying causes leading to the crisis had been reported in business journals for many months before September‚ with commentary about the financial stability of leading U.S. and European investment banks‚ insurance firms and mortgage banks consequent
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policy interests me because of the reasons that lead to the Great Financial Crisis in 2008 and the massive financial impact that was felt not just by one particular group of individuals but by everyone across the country. The Dodd-Frank Act is a compendium of federal regulations‚ primarily affecting financial institutions and their customers‚ in an attempt to prevent the recurrence of events that caused the 2008 financial crisis (Investopedia‚ 2010) The Dodd-Frank Act‚ which comprises
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pooling various types of contractual debt such as residential mortgages‚ commercial mortgages‚ auto loans or credit card debt obligations and selling said consolidated debt as bonds‚ pass-through securities‚ or collateralized mortgage obligation (CMOs)‚ to various investors. The principal and interest on the debt‚ underlying the security‚ is paid back to the various investors regularly. Securities backed by mortgage receivables are called mortgage-backed securities (MBS)‚ while those backed by other types
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After months of growing instability in the US sub-prime mortgage market‚ Bear Stearns chairman Alan ‘Ace’ Greenberg offers reassurances that the firm‚ heavily exposed to the market‚ is on top of things. “The sub-prime (issue) has been blown completely out of proportion‚” he says‚ in comments reported by Dow Jones Newswires. Mid-June 2007 Serious problems become apparent at two Bear Sterns hedge funds with a high exposure to sub-prime mortgages. Investors in the High-Grade Structured Credit Strategies
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Shia LaBeouf as the young trader with (some) scruples‚ who’s rising in a world that just happens to be collapsing at the same time‚ as investment banks run by the likes of Frank Langella and Josh Brolin teeter under the weight of the 2008 financial crisis. The story then carefully weaves in more and more to Gekko (who‚ conveniently‚ also happens to be LaBeouf’s future father-in-law‚ a dad to LaBeouf’s on-screen fiancée‚ Carey Mulligan) (Zeitchik‚ 2010). Greed seems to be Wall Street: Money Never
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thrust into a significant financial crisis. At that time‚ many American households experienced high unemployment rates and dealt with difficulty in making mortgage payments or saw a significant decrease in the value of their home. According to many experts‚ the cause of this financial crisis was the banking industry’s focus on short term profits at the expense of the average American citizen (Twin). Despite the prominent role that banks had in this financial crisis‚ many lenders received exemptions
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hurt. “We didn’t see how lending money to our customers who couldn’t really afford to pay it back did any good”. Freeman‚ E. (2009) Lateline Business. Clearly the banks have not created value for the customer‚ employee or shareholder during the subprime crisis. In today’s business world we would like to think that our responsibility ends at the transaction level. In actual fact it does not take into account what affect the financial industries products have on their end customers and employees. If
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existing in eBay’s current external environment? In the current external environment the online sales are still a growth industry there are some opportunities for ebay‚ the actual global economic crisis it could be an opportunity due the unemployment and the decrease in the power purchasing parity and mortgage crisis generates two effects‚ first the buyers are look for discounts‚ and second the sellers by this channel could increases. The importance of the Latin immigrants in the US it turns as a new
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