Ethical Problems Faced By The Wells Fargo Case Essay

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A. Explain whether you have an ethical problem Numerals ethical problems arise from the Wells Fargo case. Most of its employees engaged in illegal practices. Some of the problem include: I. Saying things you know are not true: Goldman’s analysts said many things that were not true to investors including saying that a security was a good investment when indeed it was not. II. Giving or allowing false impressions: Goldman’s layering strategy allowed the false impression that the stock price of the investment firms had increased or that the stock was very popular and wanted, but in fact, Goldman bought 90 percent of the stock to give this false impression. III. Buying influence or engaging in conflicts of interest: Goldman engaged in activities were the companies and their customers’ interest conflicted. Still they moved forward in making money off them. Also, although not specifically stated on the case, the fact many formers Goldman executives held government positions proved to be a conflict of interest itself. Some of those people still had strong relations within Goldman and it can be said that one way or the other Goldman took advantage of that. IV. Hiding or divulging information: Goldman bet against their clients several times. They knew material information on certain investment; however, they never communicated that to their clients because they were making money off them. V. Taking unfair advantage: Goldman took unfair advantages of their clients in many

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