Countrywide Financial: The Subprime Meltdown Briarcliffe Online Live Chat 1 Unit Three Ramon Geronimo BA-338-2-SUM1-BRI12 Business Ethics Prof. Raymond Manginell June 1‚ 2012 Abstract 1. Are subprime loans an unethical financial instrument‚ or are they ethical but misused in a way that created ethical issues? 2. Discuss the ethical issues that caused the downfall of Countrywide Financial. 3. How should Bank of America
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Countrywide Financial: Subprime Meltdown Ethics Countrywide Financial: Subprime Meltdown Ethics Mandi Hash Acct 430 81E – Krupka‚ Joseph Abstract “Not long ago‚ Countrywide Financial seemed to have everything going for it. Cofounded by Angelo Mozilo in 1969‚ by the early 2000s it had become the largest provider of home loans in the United States. At that time one in six U.S. loans originated with Countrywide. In 1993 its loan transactions reached the $1 trillion mark. Additionally‚ it was
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Countrywide Financial: The Subprime Meltdown Course: | MAN3065 | | Team or Group #: | 8 | Date submitted: | 02/27/13 | Reference#: | 726077 | | Term: | 2012-2 | | Days: | M & W | | Time: | 7:05pm – 8:20pm | | Prof: | Hoa N. Burrows‚ CPA | Countrywide Financial: The Subprime Meltdown Questions: 1. Are subprime loans an unethical financial instrument‚ or are they ethical tools that were misused? We believed subprime loans are ethical tools that were misused
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Introduction Countrywide Financial Corporation projected being the largest real estate mortgage company in the United States. In 1969‚ Angelo Mozilo and his partner David Loeb‚ founded Countrywide in New York with the vision of providing a diversified real estate lending service. The company’s intentions were phenomenal as well as the initial profitability; however‚ unethical behavior took place within the company causing a huge loss. The predatory lending actions relied on fraudulent and misconduct
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Strategic Management: The Quest for Competitive Advantage‚ Second Edition II. Cases in Crafting and Executing Strategy 15. Countrywide Financial Corporation and the Subprime Mortgage Debacle © The McGraw−Hill Companies‚ 2011 Case 15 Countrywide Financial Corporation and the Subprime Mortgage Debacle Ronald W. Eastburn Case Western Reserve University Angelo Mozilo‚ founder and Chairman of Countrywide Financial Corporation‚ was the driving force behind the company’s efforts to become
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Countrywide Financial: Failure of Corporate Governance‚ Incentive Compensation‚ & the Sub-Prime Crisis Executive Summary: Countrywide Financial was a mortgage-banking firm. They had one of the largest market shares in the early 2000s‚ when the mortgage market was booming. “No company pursued growth in home loans more aggressively than Countrywide” (NY Times 12/10). They were the leader of their industry‚ with 500 billion in home loans‚ 62‚000 employees‚ 900 offices‚ and
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In a narrative format‚ discuss the key facts and critical issues presented in the case. Word count: 158 Countrywide Financial began in 1969 and by 2000 was one of the nation’s largest lenders (Ferrell‚ 2010). In the late 1990’s and early 2000’s‚ Countrywide Financial offered subprime mortgage loans. Subprime mortgage loans were loans that were offered to people who would not ordinarily be able to qualify for conventional loans because of income‚ lack of credit or low credit score. Because
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Executive Summary Even though Countrywide stopped offering subprime loans 4 months ago‚ the company is still in the forefront of the subprime mortgage lending and foreclosure crisis. Lawsuits seem to be coming from all directions‚ federal and state investigative probes are launched against them‚ stock price tumbled to 1/5 of its value‚ even desperate lenders demonstrated outside their offices. 2007 has definitely not been Countrywide ’s year. The company has lost its place as America ’s Home Lender
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Leir Center Financial Bubble Research Working Paper #7 2007-2009 Financial Meltdown William Rapp New Jersey Institute Of Technology In the Fall of 2007 the Dow Jones Industrial index reached an all time high over 14‚000. By November 2008 it had fallen under 8000. Other stock market indices worldwide including the high growth emerging economies of India and China saw similar or greater drops. Those predicting these economies had developed an Asian regional economy that would prove relatively
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Case#8 Countrywide Financial: The Subprime Meltdown Questions: 1. Are subprime loans an unethical financial instrument‚ or are they ethical but misused in a way that created ethical issues? The Countrywide Financial case showed subprime loans easily contribute to unethical behavior. I think the idea of the loan isn’t unethical in itself‚ but the way it was packaged. If you take away the fraudulent behavior‚ the idea of a subprime mortgage isn’t too corrupt. Subprime borrowers generally have bad
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