Sox Pros And Cons

The bank at some point received negative attention for issuing credit to arms companies, including companies like Boeing, Lockheed Martin, General Dynamics, Textron, Colbun, BAE Systems and EADS. Some companies within the bank’s portfolio have also been involved in environmental and labor rights violations scandals, for instance Wal-Mart and Total USA. This negative attention may lead to loss of investor confidence in the bank.

With the market full of DOT-coms it was only a matter of time before the supply outweighed demand and many of them did not have a positive cash flow to support themselves. The DOT-coms could only stay in business as long as the investors supported them. With no profit in sight the investors pulled out and the stock market dropped. With this drop a panic in sued and investors and stockholders jumped ship causing the bubble to burst. Only the strongest

The opportunity for power and competition seems to also be one of the largest intersecting parts of this whole debacle. In the film, I heard and saw that these bankers placed bets on the crash of all the loans. These bankers knowingly put countless families and individuals in

History of SOX - the Sarbanes-Oxley Act of 2002 is legislation in response to the high profile financial scandals, such as seen with Enron and WorldCom. The purpose of this act is to protect shareholders and the general

The Sarbanes-Oxley Act was introduced by Senator Paul Sarbanes, a Democrat from Maryland and Congressman Michael Oxley, a Republican from Ohio. President George W. Bush signed the bill into law in July 30, 2002.

Through the history of the United States and the history of corporate fraud, many infamous people and entities have taken advantage and abused the corporate system while finding loop holes or discrepancies to use in their favor. Corporate Fraud consists of activities undertaken by an individual or company that are done in a dishonest or in an illegal manner, and are designed to give an advantage to the perpetuating individual or company (Ivestopedia,1). Investors have been known to throw money around if its meaningless as seen on Wolf of Wall Street and other movies. In such large public firms, its rather difficult to keep track of every dollar, so cutting corners here and there in everyday transactions, is something that becomes a

Investing in the Stock Market was extremely popular in the “Roaring 20’s,” but no one actually knew the devastating impact the stock market would have on the economy. The Stock Market was purely a “speculative bubble”, where people would take risks in buying and stock markets hoped that prices

The collapse has been recorded as the single greatest loss in the history of the Internet stock market, with a groundbreaking two-thirds deficit. Surprisingly, the cause of the crash was because of the companies themselves. Companies began to report major losses in revenue because of the "Get Big Fast" mentality. This caused doubt to set in, and people quickly stopped investing. Market value dropped by five trillion dollars, and most companies had to close shop. Andrew Beattie stated that from March 11th, 2000 to October 9th, 2002 the NASDAQ loss compiled to a whopping 78% of value. Soon after the initial fall of NASDAQ came September 11th. People had already lost a lot of their faith in the industry, and the national crisis of 9/11 only added to the crash. People were focused on the catastrophe of 9/11, and it proved to be the last nail in the coffin for the stock market. People were no longer investing.

In this case of Enron the corporate culture played a vital role of its collapse. It was culture of full of moneymaking strategies and greed, in the firm Greed was good and money was God. There was no or very little regards for ethics or the law, they operated as there was no law and ethics in the world (Enron Ethics, 2010). Such culture affected all the employees of the firm from top to down. Organizational culture supported unethical behaviour and practises, corruption, cheating and those were all widespread. Many executives and managers knew that the firm is following illegal and unethical practises, but the executives and the board of directors did not knew how to change this unethical culture, the firm used creative accounting and were making showing misleading profits every day. Reputation management enabled them carry on their illegal and unethical operations. Moreover if the company made huge Revenue in the unethical way then the new individual who joined the firm would also have to practise all those unethical practises to survive in the company. All of the management was filled by greed and ambition, their decisions became seriously imperfect, thus the firm fell back and managers had to pay in the price in the form imprisonment and fines. Greed is the main key factors that brought the Enron “the most innovative company” to downfall. Enron was looking into the ways of

Business Industry has witnessed the outcomes of bad moral decisions taken by business leaders. Enron’s story is only one example of corporate scandals and cases of bad moral decisions, which has not only shaken the public trust in corporations, but also affected the bank accounts of investors and employees. Before the bankruptcy of Enron; it was included in one of the fortune 500 companies after its fraudulent accounting case the share went down to $1 (Enron scandal, 2010; PBS, 2002; Godwin, 2006; Godwin, 2008).

Financial regulation is necessary and without an efficient set of regulations a country could see rises in unemployment, interest rates, and the deterioration of financial intermediaries. With the globalization of the financial industry, it becomes more and more common for businesses to seek financing outside of their county 's boarders. These innovations in the financial industry stress why it is so important for regulations to be created and changed to reduce risk and asymmetric information in financial systems.

Wall Street can have a heavy influence on a company such as Enron's ethical standings. During the Enron debacle, Wall Street played a key role in the decision-making process for the leadership team of Enron. Wall Street roles in determining Enron's overall value as the company influenced Enron to push the boundaries of ethical standards. During the trial of Enron's executive's former Internet division chief of Enron Ken Rice testified: "That he and his co-conspirators chose to lie about their network's capabilities to gain credibility on Wall Street and boost Enron's stock value." (Flood, 2005) Enron's decision to inflate their values to Wall Street did exactly what the company executives wanted and the company's stock value skyrocketed. "Wall Street obediently obliged, inflating Enron's share value by as much as 75% from the time the company started bragging about its prospects." (Lashinsky, 2001) When Enron's bubble finally burst and

Most of the world has heard of Enron, the American, mega-energy company that “cooked their books” ( ) and cost their investors billions of dollars in lost earnings and retirement funds. While much of the controversy surrounding the Enron scandal focused on the losses of investors, unethical practices of executives and questionable accounting tactics, there were many others within close proximity to the turmoil. It begs the question- who was really at fault and what has been done to prevent it from happening again?

Unfortunately, scandals like Enron are not isolated incidents and the last decade has offered Americans a disheartening perspective with comparable scandals like that of WorldCom and Tyco, Sunbeam, Global Crossing and many more. Companies have a concrete responsibility not just to their investors but to society as a whole to have practices which deter corporate greed and looting and which actively and effectively work to prevent such things from happening. This

This work will examine the case 'Banking Industry Meltdown: The Ethical Financial Risk Derivatives" and determine which moral philosophy is most applicable to an understanding of the banking industry meltdown and explain the rationale. The case study will be analyzed and white-collar crimes considered as to whether they are different in any substantive manner from other more blue-collar crimes. This study will determine and discuss the role that corporate culture played in banking industry scenario and the response will be supported with specific examples. This work will postulate how leaders within the banking industry could have used their influence to avert the industry meltdown.