Case 4 Countrywide.doc - Yi Zhang Business Ethics Q1...

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Yi Zhang 06/16/2013 Business Ethics Q1 Although subprime mortgage has a high risk,the subprime mortgage was being mature before the crises.Therefore,as a huge potential finance market instrument,subprime mortgage should not be denied due to its high risk and cause of crises. So,I suggest that ethical issue in the subprime crises is not because subprime mortgage itself,is because human. First,e thics issues emerged early in subprime lending . Liar loans were developed to create more sales and higher personal compensation for lenders. company would encourage borrowers to provide false information on their loan applications in order to qualify for and secure the loan. In other instances , consumers were asked to falsify their incomes to make the loan more attractive to the lending institution. Second,financial misconduct is another unethical factor in subprime crises.M anagers are complacent about good profits and overlook effective risk management. In the case,it is also mentioned that
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern