investment bank loan
银行贷款论文代写 When the bubble burst in the US economy. The primary reason was that loans were provided to any and everybody without proper
The case that I have selected to analyze and comment upon is that of the Lehman Brothers. The case identifies the reasons why Lehman Brothers, being one of the best investment banks, became victim to the subprime mortgage issue, and eventually had to file for bankruptcy. It is also very importance to note the various factors why this happened.
When the bubble burst in the US economy. The primary reason was that loans were provided to any and everybody without proper documentation. Many people defaulted on making their payments, and due to this, the company went into immense debt.
Even though the government could have bailed the bank out of its debt, before it filed for bankruptcy, however, it did not. The economy at that time started declining, many companies faced similar issues that of Lehman Brothers, and the main reason that banks failed was because there was no proper check and balance before loans were given to the borrowers.
Lehman’s operations were subject to supervision by a number of governmental and industry organizations. Including its primary regulator, the SEC, the Chicago Mercantile Exchange (CME), which regulated certain derivatives, the Office of Thrift Supervision, which supervised Lehman’s thrift subsidiary, and the New York Federal Reserve Bank (NYFED) (Wiggins, Pointec, Metrick, 2014).
Once the company files for bankruptcy, many questions were raised regarding the efficiency of the oversight by the aforementioned agencies.
Even though the NYFED and SEC stepped up the investigation of other banks after the collapse of Bear Stearns, and they received reports regarding Lehman Brothers liquidity, liabilities, and leverage, neither of them took actions that could have prevented this outcome. Perhaps, they never expected this to happen, however, many preventive measures could have been taken, yet they weren’t. 银行贷款论文代写
In my opinion, the aforementioned agencies should have raised the alarm much in advance so that this outcome could have been prevented. I would be applying virtue ethics in this scenario, which states that an action is right if and only if it is what a virtuous agent would, characteristically, do in the circumstances (Virtue Ethics).
The right action should have been taken, and it was unethical for both the companies involved in assessing the performance of the bank to refrain from taking the right actions. Even the government could have intervened and prevented things from turning out the way they did. Yet, there wasn’t any action taken, until it was too late, and even then, there was no proactive support for Lehman Brothers from the involved parties.
Case Study: The Collapse of Lehman Brothers, retrieved 2-2-2018 from;
Rosalind Hurthouse, Virtue Ethics and Human Nature, retrieved 2-2-2018 from;
Rosalind Z. Wiggins, Thomas Piontek, Andrew Metrick, 2014, The Lehman Brothers Bankruptcy, retrieved 2-2-2018 from;