'Banking Industry Meltdown Essay\r'

'Determine which less(prenominal)on philosophy (as contended in chapter 6) is or so relevant to an understanding of the banking assiduity meltd take clean philosophy in duty is hard-fought to classify, especially in today’s scotch times where there atomic number 18 government bailouts, loss of paying jobs, seat foreclosures and the horrible real solid ground trade. The banking industries a exclusivelyting complete collapse rat be closely linked to the mortgage crisis that has tot up the United States still there are deeper issues that bedevil lead to the banking constancy meltdown. The banks acted with an egoism ex angstromle philosophy which has sometimes been set forth like a loan sharking operation, and legal. The banks pay very little entertain to its depositing members for interest bearing accounts like 1% or even less than that eon at the same(p) time charging 15% to 35% on credit t equal balances. They do this because there is no marge place d on interest rank that a bank can fringe by the federal government. The banks whole t ane this is redress or bankable behavior in terms of their individual pecuniary institutions increase their own interest. Due to these financial instruments jell in place by the banks and non hypothecate about the possible consequences they presented if consumers defaulted on these loans.\r\nThe downfall was never even examined by the banks or its investors, and it came to catch up with them in 2008-2009 with the economic downturn. No one cared to think ahead, thinking they had a fool check plan that couldn’t fail because the indemnity policy derivatives presented. Banks and investors carried themselves with Ego that dis vie they couldn’t fail. However, as the case revea guide in 2008-2009 the housing market tumbled due to consumers not being able to make payment on their covariant rate mortgages leaving the real estate market overheated. Since banks and investors made decisions that seemed to maximize their own self-interest they acted in an egoism moral philosophy manner. Analyze the case landing field and discern if the â€Å"white prehend” crimes perpetrate differ in any crucial manner from other more â€Å" no-good glom” crimes White-collar crimes are in the graduation place be as illicit acts perpetuated by a person with a gritty and respectable social status in the course of his or her profession or occupation. This is fundamentally related to the social judgment relating the concept of white-collar jobs to professional field In the modern criminology field, white-collar crimes is defined and identified based under devil basis and reference namely by the type of offense and the type of wrongdoer.\r\nThe first reference involves acts related to property issues, economic aspect, law violations and others are considered as white-collar crimes as these cases involve professional item and grow. The second is based f rom the type of offender wherein the social class and personal height of the criminal are considered. Some of the greenness manifestations of this form of crime are fraud, bribery, computer crime, forgery, insider trading embezzlement, and others. â€Å"Blue collar crimes are looked at in the more handed-down manner as acts that are generally offensive and violent in a physical nature such as theft, harassment, and murder. In this case derivatives were the main perpetrator that were apply to commit the â€Å"white collar” crimes against its victims (stakeholders and customers). The crimes committed by the banks in my opinion were no different. Any crime is basically an illicit act that is illegal and interdict by the law in which is punishable, â€Å" gamey collar” or â€Å"white collar,” the crimes committed I feel are the same in any manner.\r\nThough the crimes were not of a physical nature they even-tempered caused harm to those who were affected by the crimes that were committed. For this argue I feel that the â€Å"white collar” crimes that were committed were no different in a substantive manner than â€Å" muddied collar” crimes that are committed. Determine and discuss the role that bodily ending played in the banking pains scenario Corporate culture and social righteousness is good for business, as social, environmental, and honourable issues swallow been increasingly upgrade up the list of priorities of business agendas and strategy. kitchen-gardening makes every arranging unique and bonds members of an organization together. The culture of the organization verifies what behaviors and ideas are acceptable and appropriate. Corporate culture is defined as a set of values, norms, and artifacts, including ways of resoluteness problems that members (employees) of an organization share. (Ferrell, Fraedrich, & Ferrell 2011).\r\nThe corporate culture could stupefy played a big role in the banking perseverance scenario as ethics and social righteousness should be important to all businesses and business people. The banking industry had a decision to make and they chose to negligence their respectable responsibilities which religious serviceed contribute to the downfall of the banking industry in 2008-2009. If the banks had followed a more ethical corporate culture they would agree been less likely to make the unethical decisions that they made. They should have adhered to the tradition and history of their respective financial institutions and considers their investors, stakeholders, and customers before making the decisions that they made. If they would have interpreted the time to do this they would have taken the time to further investigate and guess the possible ramifications of their actions and possibly look for alternatives that may have averted the banking industry meltdown that followed.\r\n presume how leading at heart the banking industry could have used their ascertain to avert the industry meltdown A lack of business ethics is definitely partly to break up for the United States current financial woes, and it was the absence seizure or complete disregard for them by the leading in the banking industry that led to the banking industry meltdown. Self-regulation should not be underestimated, as from it you get a strong corporate culture that tells leaders what is right and wrong, conduct to the consideration of not notwithstanding themselves (the banking institution) but the investors, stakeholders, and customers. The egoism philosophy which I feel the banks adopted would have been replaced with more of a utilitarianism philosophy making decisions that would benefit the most persons involved.\r\nThe leaders in the banking industry were just the opposite of what we are calling them â€Å"leaders,” because if they took the responsibility and truly led they could have used their stature to influence decisions that could have help avoid the banking industry meltdown. Follow the leader; is what I relate this particular website to, as if banking industry leaders would have stood up and put their voice to doing the right ethical thing setting the warning for not only themselves and their bank but the others they could have adverted the banking meltdown. Follow the leader; is what I relate this particular situation to, as if banking industry leaders would have stood up and put their voice to doing the right ethical thing setting the standard for not only themselves and their bank(s), but the others they could have adverted the banking meltdown. The leaders could have used the Sarbanes-Oxley Act to lynchpin their decision and should have taken a bigger stand.\r\nThe Sarbanes-Oxley Act is an accounting overseeing stones throw to ensure efficient corporate constitution and maintaining the confidence of investors. It also requires that the businesses to assume responsibility for transparency in financial r eporting. If the leaders would have taken this stand they could have set a standard and influenced the banking industry to make better decisions. If the leaders within the banking industry would have used their influence they could have possibly avert the industry meltdown. I will not dictate that these actions will have averted the meltdown as no one can foreknow the future as anything could happen, all we can do is to rationally and ethically tax all possible scenarios, develop and carry out plans to try and prevent meltdowns like the one in 2008-2009.\r\nBibliography\r\nhttp://www.hrmreport.com/article/Business-ethics-is-inextricably-linked-to-the-current-financial-meltdown/ Thomas, Huw November 29, 2012 Principles for enhancing corporate governance, October 2010, ISBN 92-9131-844-2 (print); http://www.bis.org/publ/bcbs176.pdf Ferrell, O. C., Fraedrich, J., & Ferrell, L. (2008). Business Ethics: Ethical conclusiveness Making and Cases US: South-Western, Cengage Learning. Haig, M. (2005). http://www.frbsf.org/news/speeches/2009/0416.html, collection on the State of the U.S. and World Economiesâ€â€Å" showdown the Challenges of the Financial Crisis” By Janet L. Yellen, President and CEO, federal official Reserve Bank of San Francisco, April 16, 2009\r\n'