Global Economic Meltdown Of 2008 - 1477 Words

To establish effective policies in order to enhance ethics in corporate America and prevent significant catastrophes such as the global economic meltdown of 2008 we need to propose new ethical policies and standards in our corporate system. Ethical issues must be on the strategic agenda! Integrity management should be a priority not only because it is legally required, but because it is the right thing to do. This memorandum will analyze the proposed ethical policies such as strengthening auditors’ independence and strengthening audit committee to make reforms in existing corporate sector. Strengthening business ethics by improving audit quality One of the most important factors that plays a huge role in the success of a company – is ethics, which can have long-term impact on the company. It does not matter how high the company’s profitability level is, if there is unethical behavior or a lack of corporate social responsibility it will eventually damage company’s reputation and make it less appealing to stakeholders. The last global economic crisis that cost the world trillions of dollars, a continued recession, millions of lost jobs, a huge loss of confidence in financial markets and a reversal in our efforts to cure global poverty was result of the combination of several leading factors; and the failure of business ethics was one of these factors that strongly contributed to this global financial turmoil. It is proven that during economic recession many companiesShow MoreRelatedThe Financial Meltdown Crisis : Luis A. Santiago Gaetan1387 Words   |  6 PagesThe Financial Meltdown Crisis Luis A. Santiago-Gaetan University of Massachusetts-Amherst Introduction In March 2008, the government of the United States was abruptly confronted with the first signals of what later became the greatest financial crisis in U. S. history since the Great Depression. The beginnings of the financial crisis began with the government intervention or bailout of Bear Sterns, the smallest of the five giant Wall Street investment banks, but the first one known to be in financialRead MoreThe Wall Street Meltdown1627 Words   |  6 PagesThe Wall Street Meltdown The Meltdown is a PBS special on the events of the financial crisis of 2008, in a timeline format, revealing the thinking behind decisions made during the fateful months before the stock market crash in August of that year. Some financial gurus on Wall Street devised a plan to bundle several mortgages together into a group, and then selling that bundle to another group of investors looking to invest in securities. The lender did not need to earn money from the loans heRead MoreEssay on The Subprime Mortgage Crisis1374 Words   |  6 Pagessituation. The main focus now is to preventing a continuous meltdown. The first step to cure the situation is taking immediate and corrective action. Kevin Alexander Gray states â€Å"We‘ve got to do more to stem the tide of foreclosures and stabilize communities throughout the country,† (Gary, 2009). In order to thoroughly understand the impact this crisis has had on the economy, it will be important to look at what has really promp ted this housing meltdown. The immediate cause or trigger of the crisis was theRead MoreFinancial Crises And Its Effects On Global Economic Crisis1068 Words   |  5 PagesThe 2007-2008 Financial Crisis- Its Causes and the Involvement of the FED The financial crises that occurred in 2007-2008 had such a big impact on the world that it is now considered a global financial crisis (GFC) or global economic crisis. It is commonly believed that it began in July 2007 with the credit crunch; U.S. investors lost trust in the value of subprime mortgages which caused a liquidity crisis. This had the effect that the U.S. Federal Bank injected a large amount of capital into theRead MoreThe Success Of Canadian Banks Essay821 Words   |  4 Pagesattracted that much of attention of the whole world until the subprime meltdown in 2007/2008. Canada was the only G7 country that did not have a government bank bailout. Canadian banks remained profitable through the crisis. A World Economic Forum report ranked Canada first among 134 countries on the soundness of its banks. This paper aims to analyze persuasive reasons for the remarkable success of Canadian Banks in the subprime meltdown. Regulations have been set before the crisis. However, differentRead MoreBanking Industry Meltdown: The Ethical Financial Risk Derivatives1485 Words   |  6 Pagesï » ¿Banking Industry Meltdown: The Ethical Financial Risk Derivatives Objective This work will examine the case Banking Industry Meltdown: The Ethical Financial Risk Derivatives and determine which moral philosophy is most applicable to an understanding of the banking industry meltdown and explain the rationale. 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. This study will determineRead MoreSpain s Participation Of The European Union1671 Words   |  7 Pages Europe sits in the wake of the worst economic crisis the world has seen in years. After an economic boom fueled by loose credit lending, many countries are left with massive amounts of sovereign debt following the financial meltdown of 2008. The contagion sent waves of economic turbulence across the European Union. Spain was dealing with a housing-market bubble which burst while the EU dealt with a widespread financial meltdown. With the economy in shambles and thousands of Spanish citizens u nemployedRead MoreReit Case Study846 Words   |  4 Pagesthe harsh economic times, which culminated in the last global economic meltdown. The harsh global financial meltdown, which swept across the world during the new millennium, came with more dramatic volatility in prices of the REIT than with the commercial real estate. The economic downturn proceeded for long, and by the time the crisis had passed, it took quite long for the organization to return to normalcy. The share prices of REITs plummeted by a high rate of 67% by the end of 2008 and the beginningRead MoreEconomic Meltdown2698 Words   |  11 Pagesmarket and the worldwide economic damage that followed in 2008 and 2009 made people know the term economic meltdown (ehow.com, 2011). And the year 2011 proved to be a epic one in world history and brought dramatic change to many parts of the world - change that require cautious and serious analysis. International developments since World War II have drawn the nations of the world closer together in a global economy in which labour and capital move across borders. When an economic crisis in one area spreadsRead Mo reThe Subprime Mortgage Crisis in the U.S Essay1586 Words   |  7 PagesThe argument over who should be at fault for the subprime mortgage crisis and housing market collapse in the United States has been a heated debate. Even though home foreclosure keeps rising, there should be some accountability for the economic meltdown resulting from the subprime mortgage situation. Should we blame banking institutions, mortgage lenders, brokers, and investors for this crisis? Should minorities be blamed for recklessly accepting loans and defaulting on them after realizing they