Citron began gambling county funds on risky investments, which paid off until 1994 when those risky investments did not pan out handing the county a one-in-a-half-billion-dollar bill owed. When the citizens of Orange County refused to agree to raise taxes, the state legislator had to step in and bailout the Orange County. The debt Orange County has accumulated and defaulted make the county and the surrounding counties undesirable for business and economic growth. Citron plead “guilty to six felony counts,” served a year under house arrest, and was fined 100,000 dollars; and the county and surrounding countries suffered financially and status (Shafritz and Borick 2011, 99). The county also
This tragic event sent Wall Street into a complete frenzy and took out millions of investors. Over the next few years, consumer investment and spending decreased. This caused sharp declines in manufacturing production and rising levels of unemployment. By 1933, 13 plus million Americans were unemployed and nearly half of the country’s banks failed (Coker, 2005). Thanks to the reform and relief measures placed by President Franklin D. Roosevelt helped diminish the most horrible effects of the Great Depression.
The Great Depression was triggered by a collapse in U.S share prices in 1929, after a decade-long economic prosperity. Even though this event’s main cause was in the U.S, the effects were felt all over the world. In Germany, the depression caused a great number of businesses to close, mass unemployment and caused public dissatisfaction towards the Weimar Republic, which then led to a dramatic increase in popularity for the extreme left and right wing parties. However, even though the Great Depression was a significant event on German history, this event is still one of many. The War guilt clause, article 231 states that Germany had to pay a sum of ￡6.6 billion as war reparations, Weimar Germany was allowed to pay in the form of raw materials as opposed to actual money.
One of the most suspicious activities before the attacks were the actions of people in the stock market. A large number of ‘put’ options were placed on American Airlines and United Airlines’ stocks. For the financially illiterate, a put option is when a trader obtains the right to sell a stock or asset, at a specific price on a predetermined date to a seller. In this case, selling shares of A.A. and U.A. at its price before the 911 attacks, after the 911 attacks, which would be a significant amount of money.
One thing that stood out most rather than most businessman of this time was that John took so much risk at the ripe old rage of 16. So many businessmen of his time were dependent of investors but that’s where Mr. Rockefeller differed. He believed to invest in yourself in order to really profit. Here in lies the beginning of the end in Rockefeller’s empire was when he invested his entire fortune into the Standard Oil Company, a company that would ultimately lead to his empire crumbling beneath his
Hoover V. Roosevelt Starting in October of 1929, lasting a decade, The Great Depression striked. This was a global economic crisis that originated in the United States. This caused many Americans to lose their jobs, houses, and hope. The President of the United States hoped they could fix this crisis that was caused by greedy people and greedy banks. The two presidents that were in office throughout the Great Depression was President Herbert Hoover and President Franklin Roosevelt.
Martin Shkreli, When I think of unethical leadership, the first person that comes to my mind is Martin Shkreli. He is a founder and former chief executive of Turing Pharmaceuticals. According to BBC, Shkreli was the most hated man in America judging by social media in August. The story behind his unethical behavior lays in rising price of a lifesaving drug overnight by 5000%. The drug is used to treat parasitic infection, which can affect pregnant women, people with HIV and others with weekend immune systems.
To explain, since capitalism is based on monopoly once a company gets to the top and something happens such as political regulation, or there is a market crash, a lot of people can lose their jobs, rich or poor. For example, by simply looking at America, there were several stock market crashes, inflation and deflation of the economy since the 1900’s until the present day, starting with the depression. There was the crash of 2000 and the “dotcom” crash of 2008 and at the current moment, America is on its way to another
Suddenly, investors realised that the companies they were investing in were hollow promises, and this loss of confidence led to all of the investors to start liquidating their shares, and this led to the crash. Now, when an investor has made money in the stock market, they tend to feel wealthier, and with the advent of a crash, they tend to tighten their purse strings. This led to a lot of people spending lesser money, which further perpetuated the misery of the crash. The people started referring to dot coms as dot bombs. As a result of the crash inquiries were made into matters by the securities exchange commission and findings shed light on the gross misuse of shareholders’ fund and this led to many CEOs and managers of companies being charged with fraud and tried in
Wells Fargo executives were notable mainly in their inertia although there existed years of evidence that a policy coming from the top level was driving abusive/illegal practices & irregularities at the Bank. In 2013, when the Los Angeles Times reported that fake accounts were opened by the employees to fulfill unrealistic sales objectives; and in 2016 (September), when the Bank admitted that its employees has created more than 2 million phony accounts and then agreed to pay a fine of $185 million, none of the senior executives went into an action. They decided to take back some of CEO Stumpf’s compensation only after he was reprehended in congressional hearings. Still, they never fired him - he resigned on his own.3 Wells Fargo board acted as if it were asleep in the early fall and had been too trusting of management. Corporate boards are failing at their job of overseeing management.