Monday, July 29, 2019

Goldman Sachs unethical behaviour Essay Example | Topics and Well Written Essays - 1000 words

Goldman Sachs unethical behaviour - Essay Example This implies that the responsible players at the helm of its management should operate its functions devoid of the slightest mistake that could cause a multiplier effect of unpleasant results across the board. Flouting basic business ethics in such a sensitive system could perhaps amount to the worst ethical bleach of this age. Informed from such a global perspective, this section of this discourse assesses the conduct of one of the players at the helm Wall Street to find its credibility from a business ethics perspective (US Senate, 3). Operations of the Wall Street are largely accused of the downfall of the US economy from 2008, due to unprecedented departure from safety lending regulations particularly in the financial services sector. The most affected were mortgage, debt and stock markets whose effect spilled over into the other financial institutions in such a rate that almost paralyzed the entire economy. Sooner than later, the global economy were feeling a pinch of the spiraling impact. A leader in the mortgage business was perhaps more responsible than many more players in the market. Goldman Sachs happened to be one of the main two players in the infamous mortgage market immediately before the collapse of the Wall Street in 2008, alongside Deutsche Bank. The conduct of Goldman Sachs in terms of ethical responsibility it had to observe demonstrates incompetence due to a number of abuses. Firstly, the manner in which mortgage and other related securities were handled in the unstable market left a lot to be desired (Griffin, 94). Goldman Sachs participated in the design of a risky complex securities system whose failure orchestrated the downfall of several aspects of the market. The mortgage instruments designed by Goldman Sachs and other players were complicated in such a manner that the derived securities became more valuable than the original instruments of trade in the market. Goldman Sachs was aware of

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