Complete the required readings and answer the following questions (10 points):
- How much and in which ways did unbridled self-interest contribute to the subprime lending crisis?
- How could increased regulation improve the exercise of unbridled self-interest in decision making?
- How could ethical considerations improve unbridled self-interest in ethical decision making?
- Identify and explain five examples where executives or directors faced moral hazards and did not deal with them ethically.
- Given that the marketplace for securities is global, and that the risks involved can affect people worldwide, should there be a global regulatory regime to protect investors? If so, should it be based on the regulations of one country?
- Should members and executives in investment firms be forced to be members of a profession with entrance exams and with adherence to a professional code such as is the case for professional accountants or lawyers?
- Identify and explain three important ethical failures that contributed to the subprime lending fiasco