The person responsible for the fraud was the CEO, Hank Greenberg. It was not exactly known how SEC found out, but possibly a whistleblower hinted it to SEC. The CEO was fired and AIG had to pay $10 million to SEC in the year 2003 and $1.64 billion in the year 2006. 8 # Scandal of Lehman Brothers It happened in the year 2008. It was another most cited scandal in the history of accounting frauds.
This is evident in that ADM did not comply with the framework set out for the business, therefore issues such as accountability, fairness and transparency have been misused and unethical actions were carried out .For example we see Mark Whitacre forging signatures and being able to make unauthorised payments. Therefore the primary characteristic of good corporate governance which is accountability has been violated. This action is immoral and amounts to unethical behavior. Furthermore, employees in ADM were expected to accept kickbacks via cheques. Kickbacks of any form is immoral, unethical, criminal and is a form of bad corporate governance.
He argued that the bank made the rich richer and didn 't benefit the poor. Jackson believed that the Bank of the United States had too much power over people’s lives. The Bank was dangerous to the common people because their money and lives were controlled by rich bankers that were not elected. (PBS: Jackson). Additionally, the bank only favored the businessmen and rich people of the North, which was where the major industries and manufacturing were.
Tolstedt’s knowledge unless there was a drastic lack of leadership, which in either case should prevent her from taking her riches and running. The author believes the new rules which were created after the banking crisis would allow Wells Fargo to take back the stock options and possible some of her wages, due to her inadequate supervision and subsequent fraudulent activities of her employees. Would it be ethically responsible for Wells Fargo to pull back the monies, due to the fraudulent activities, from the author’s point of view it definitely would be ethical and
They also lay off unhealthy employees due to the very same reason. But this move directly affects basic ethics of an employer. First and foremost, it shows the selfish nature of the companies who only want work out of an employee but doesn’t want to care for their health and well-being. They overlook the contribution of those workers and increase in productivity they can lead to, just because they don’t want to take responsibility of them. What if a worker gets ill due to the working conditions of the firm, then it’s totally a firm’s responsibility to take care of said worker.
The integrity of Enron was contaminated as a result end up if anyone did mistakes and no one finds out, keep quiet. This is one of the reasons why Enron will collapse. As the small losses accumulate day by day, it will become a huge debt for the company. Enron seemed to be more profitable than it really was by keep hiding the losses ("Enron Scandal: The Fall of a Wall Street Darling",
He influenced his followers into defiant behaviors: - loaning top executives without putting these loans into writing. This is a sign of favoritism and normally brings resentment among workers especially those at lower level. Another defiant behavior is shunting other executive members who joined the company through mergers and acquisitions. He also influenced the fabrication of profitable numbers and incorrect classification of money. 2.
Many things were done to help combat the Depression such as abandonment of the gold standard, FDR's New Deal programs and and increased size of the Federal government. Events that led to the Great Depression The main event people think of is the Stock Market crash of 1929. The stock market crash was one of the major causes of the Depression. Within two months of the crash stockholders lost more than $40 billion dollars. During the 1930s over 9,000 banks failed.
On April 27th, 2010 SEC filed a civil suit against it with a fine of $550 million. The following midmorning there was a fall of 13% in its shares along with a wipe-out of $12 billion of shareholder value. Goldman very well deserves this for its unethical behaviour. The CDOs that landed Goldman Sachs in hot water had reaped them revenue of $13.39 billion. The fee of $ 550 million was as meagre as letting go of a two week profit for them.
The AIG Scandal 2005 started when AIG management was issuing a press release describing its third quarter earnings in 2000 to the public. The report showed that the premium of AIG was significantly increasing, while its loss reserves was decreasing by $59 million. However, according to many industry analysts, along with the positive earnings, AIG in fact should show an increase in its loss reserves as well. This caused the investors of AIG suspected that AIG was drawing down its loss reserves to boost its profits. The suspicious of the investors has unfortunately led to the falling of AIG stock price from $99.60 to $93.30 on New York Stock Exchange (NYSE).