Request writer: AMBER111
The most frequently occurring ethical violations in finance relate to insider trading, stakeholder interest versus stockholder interest, investment management, and campaign financing. Businesses in general and financial markets in particular are replete with examples of violations of trust and loyalty in both public and private dealings. Fraudulent financial dealings, influence peddling and corruption in governments, brokers not maintaining proper records of customer trading, cheating customers of their trading profits, unauthorized transactions, insider trading, misuse of customer funds for personal gain, mispricing customer trades, and corruption and larceny in banking have become common occurrences. The idea that human beings can be honest and altruistic is an empirically valid assumption; it is not hard to find examples of honesty and altruism in both private and public dealings. There is no reason this idea should not be embraced and nurtured.
Required Reading:
Jennings, M. (7th Edition 2012). Unit 7 – Business Ethics: Case Studies and Selected Readings
Assignment 6 Paper- Case study: Subprime Loans: The Under-the-Radar Loans that Felled a Market
Subprime Loans
Subprime loans are loans that were offered to borrowers whose credit scores were below the acceptable rating of 570. The mortgage lenders made significant earnings by lending to this type of borrower. However, as recent as 2007, these borrowers began to not pay their mortage payments and thus the mortgage market dropped significantly.
This activity relates to Subprime loans and risks they pose to the lender and ambiguity of various aspects to the borrower.
Using Case 7.4, answer all of the questions. After reading the document and before answering the questions, initiate your paper with the problem statement;
The problem to be investigated is ________________________.
Your answers should not simply be your opinion. For each answer to each question, include at least two outside, peer-reviewed articles that you can cite as academic research resources that validate your answer.
Length: 5-7 pages (app. 350 words per page)
Your paper should demonstrate thoughtful consideration of the ideas and concepts that are presented in the course and provide new thoughts and insights relating directly to this topic. Your response should reflect scholarly writing and current APA standards. Be sure to adhere to Northcentral University’s Academic Integrity Policy.
Submit your document in the Course Work area below the Activity screen.
Learning Outcomes: 1, 2, 3, 4, 5
Assignment Outcomes
Compare and contrast the approaches of the parties who influence business decision making as it relates to ethics and of those who are influenced by their decisions.
Analyze the conflicting objectives of business leaders who influence business decisions.
Evaluate the actions that a company may take to meet ethical considerations relative to social performance, financial performance, and reputation.
Assess the extent to which social, ethical and public issues must be considered in internal and external stakeholder relationships.
Evaluate ethics in an academic setting, especially in regard to academic integrity and the code of conduct.
