1 / 0

Was the 2008 financial crisis caused by a lack of corporate ethics?

Was the 2008 financial crisis caused by a lack of corporate ethics?. Sub-prim mortgages. Sub-prime mortgages. Feature: extremely high risk and most of them violated Traditional underwriting standards for the industry.

blaise
Download Presentation

Was the 2008 financial crisis caused by a lack of corporate ethics?

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Was the 2008 financial crisis caused by a lack of corporate ethics?

  2. Sub-prim mortgages
  3. Sub-prime mortgages Feature: extremely high risk and most of them violated Traditional underwriting standards for the industry. Companies leveraged these bad loans, and sold them to unsuspecting buyers as bundled investments in the secondary markets. bad sub-prime loans made to questionable borrowers, not only did the real estate markets collapse but it resulted in a domino effect causing the collapse of major …..
  4. Outline Introduction 1. discusses the events leading up to the mortgage and stock market meltdown. 2. discusses the main causes of the bank failures and subsequent bailouts 3. discusses now the congressionally approved auto company bailouts 4. discusses possible suggested remedies 5. conclusion presents a summary of the paper and answers the hypothesis of whether the 2008 financial crisis was indeed causes by a lack of corporate ethics.
  5. Laissez-faire philosophy Allowed financial institutions to wrongfully innovate and spread almost unchecked without any proper controls. Thus, created a complex, interdependent system prone to conflicts of interest, fraudulent practices, and the eventual sale of sub-prime mortgages backed by unqualified mortgagors.
  6. Why did the AIG bailout get bigger? American international group(AIG) The U.S government threw the tottering insurance giant, expanding an aid package
  7. AIG problem American International Group was the largest insurance company in the United States before it suddenly collapsed in September 2008 under the weight of bad bets it made insuring mortgage-backed securities. The company was bailed out by the Federal Reserve, but even after an initial infusion of $85 billion, losses continued to grow. The later rescue packages brought the total to $182 billion, making it the biggest federal bailout in United States history.
  8. Conclusion It is the new administration's goal to restore faith in government and in the financial markets by immediately who many believe are responsible for the current financial crisis that led to the mortgage and stock market meltdown.
More Related