Financial Crisis of 2008

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The Financial Crisis of 2008 was the worst financial crisis since the Great Depression, however a lot of American’s want tougher law of be enforced against executives and companies they think started the mess (Jost/Misconduct). Civil charges have been brought up against major banks for misleading investors, but a federal judge rejected a proposed settlement saying it was too lenient (Jost/Misconduct). The flood of subprime mortgages roiling the housing market in the U.S. is also causing the worldwide credit crisis (Jost/Crisis). Investment banks everywhere are taking billion-dollar losses, forcing them to revalue their belongings (Jost/crisis). This crisis started under the surface for many years then emerged into the public in March 2008…show more content…
These realities require outstanding moral integrity, political independence with their heads, and top-level technical expertise (Lagos). One way the government looks at this financial crisis is just a symptom of a deeper crisis which is a crisis of its own. • The growing executive compensation • Manager’s capitalism has replaced owner’s capitalism • The failure of gatekeepers , this includes boards of directors, career politicians, auditors, and Wall Street analysts • The management of earnings These are the Bogle cities particular issues that caused the financial crisis. Mark Roeder, a former executive at the UBS, conducted an analysis that suggested that large-scaled momentum “played a pivotal role” in the global financial crisis, also known as the financial crisis of 2008 (Lagos). Involvement of Private Sector The Reserve Bank has been verbal that they are uncomfortable about wealthy Asian governments using savings when they use the savings to shop around for assets (Saulwick). High levels of public sector involvement could hurt financial markets and the returns countries are earning on their foreign investments (Saulwick). Dr. Lowe, the person that said this, argued that the private sector in Asian countries needs to take on a greater role when it comes to overseas investment. He also said the world was moving unavoidably towards financial institutions in

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