Research online to find and watch videos on the Corruption at Fannie Mae and Freddie Mac, Countrywide Financial Investigated for Securities Fraud, and Countrywide Financial- Friends of Angelo. What were the results of the banking industry’s ethical decisions? Do you feel that if the banking industry would have made different ethical decisions that the Great Recession could have been avoided? (Please include your video links)
After watching the video, we can draw the inference that banks were well aware of what ethical and financial misconduct were committed by all the three firms. They have been lending money to just everyone irrespective of their credit scoring who would mortgage a house from these firms. Then came the time when people didn’t have money to pay back their mortgage and this cause a major recession. It cause many to lose their job and many firms had to be closed. Banks went bankrupt resulting in a job loss for many.
I do believe that if the banks had followed the ethical guidelines, the recession would have been avoided. Yes, it is a fact that the recession was not the cause of unethical decision over a shorter period of time which points to the governmental negligence of the bad practices.
Governments needs to have strict rules in place for all financial institutions as what these institutions do is make money with money. They may or may not follow even their own ethical codes. Governments should show some responsibilities and should punish the real culprits instead of giving bailouts.