In Fed We Trust demonstrates the challenges the American Society were faced with in dealing with this economic crisis different from any other, how monetary policy was transformed, and how the Fed converted from Greenspan to un-Greenspan. Throughout the Great Panic the Federal Reserve tried to bail out big companies that were going under, and the Fed became known as the "lender of last resort." The Lehman Brothers were going under and the fed had a difficult time trying to help them out. The Fed and Paulson tried to find a company to buy out the Lehman Brothers and found a bank in Britain called Barclays. The British Financial Services Authority wouldn't allow Barclay to purchase Lehman which resulted in the company failing because the Fed didn't have a backup plan if this deal didn't go
Forensic Accounting is important because they help dig deep and are able to assist law enforcement with catching criminals. Forensic accountants play important roles in embezzlement and accounting fraud cases. The accountants look into the books and transactions made by a corporation or individual to find discrepancies and things that just do not belong. Forensic accounts provide law enforcement with evidence for a case that isn’t readily seen by the naked eye. Forensic accountants have played major roles in cases such as Orinda-Moraga Disposal Services, and Sunbeam.
This also includes establishing a private-sector regulator to oversee the auditing profession to combat accounting fraud, and enhancing financial disclosures. Companies are under more pressure to comply with SEC and Sarbanes-Oxley Act after recent and growing concerns about their ethical behaviors. Role of Ethics and Compliance in the Financial Environment Starbuck’s role of Ethics and Compliance in the financial environment applies to the Chief Executive Officer (CEO), Chief Financial Officer (CFO), comptroller, and other financial leaders. The company’s code of ethics encompasses
Lehman Brothers and its collapse was at the center of a political debate during the Financial Crisis which was based on theories of conspiracy, lessons being taught, and public pressure that was tied to political motives on the part of the Fed. There is no doubt that the downfall of investment bank Lehman Brothers was a major contributing factor to the Financial Crisis. There is however doubt regarding exactly why this financial institution was allowed to collapse and what specifically the ramifications were for the financial system as a whole. In the middle of March, 2008, the Federal government working with J. P. Morgan Chase bailed out Bear Sterns, however only several months later in September of the same year, Lehman Brothers was left to file for bankruptcy after the Federal government declined to rescue them. This inconsistency on the part of the government and the Federal Reserve contributed to the uncertainty which the Financial Crisis fostered.
I have chosen to analyze Branch Banking & Trusts financial ratios and compare them to industry averages. It is extremely important to analyze the financial statements of a banking institution. Financial ratios for banks are analyzed in order to determine a bank’s unique risks. There are many different classifications of financial ratios. They are classified according to the information that they provide.
One point of view that can be explored when assessing ethics is Immanuel Kant’s Categorical Imperative. The investigation of WorldCom brought various ethical problems to light. Ethical Problems Raised As WorldCom filed for bankruptcy protection in July 2002, their mistakes and actions became very public. Many discussions were generated surrounding what brought about the downfall of this telecommunications giant. The ethical or unethical decisions and actions of the WorldCom executives became a topic of great discussion.
Many times companies break accounting procedures and falsify their financial statements in order to please both internal and external users. Even though this is a violation of the SOX act of 2002, corporations still chose to engage in these activities. The final thing we learned about is the ethical decisions made behind financial reporting. The AICPA Code of Professional Conduct was put in place to make sure companies have a standard to follow when creating financial statements. Legality Financial reporting activities and standards Earnings management has been used as the manipulation of the current standard of financial reporting established by G.A.A.P.
Despite these guidelines, the corporate world was rocked by the Enron and WorldCom scandals leading to more government intervention in the form of the Sarbanes Oxley Act of 2002 (SOX). In this paper ethical challenges and agency issues facing today’s businesses will be discussed and analyzed. Also discussed will be the Securities Acts of 1933, 1934, and SOX and how these legislative acts were reactions to similar challenges that still face today’s businesses. Ethical Challenges Notwithstanding the legislation, the greatest challenge is how to design an ethics program that prevents unethical behavior—an ethics program that works. Trevino, Weaver, Gibson, and Toffler (1999) in their investigation of ethical programs found two primary ways to answering this challenge.
Companies rely on trusting relationships with accountants to help them to meet their financial goals and maintain a competitive edge in their respective industries. The Sarbanes-Oxley Act (SOX) is a securities legislation enacted in 2002 by then President George W. Bush in direct response to the public business and financial scandals of that time, most notably Enron, Arthur Andersen and WorldCom. SOX was implemented to protect the public and stock market investors from major scandals via corporate accounting. This significant and mandatory piece of legislation introduced major changes for all organizations in financial practice regulations and corporate governance compliance. Businesses became tasked with adopting and even developing the ever-evolving role of ethical leadership and exhibitors of best practices of corporate governance as it relates to the efficiency and success of businesses, their shareholders, stakeholders and the United States economy.
Case Analysis for “Communicating a Difficult Message: AT&T Restructuring and Downsizing” by Julius Datinguinoo A Case Analysis for “Communicating a Difficult Message: AT&T Restructuring and Downsizing” Assignment 3, Unit 2, Organizational Behavior Robert Kennedy College Presented by Julius Datinguinoo on 4 June 2009 I. Analysis AT&T’s Chairman & CEO Robert Allen, and Director of Public Relations Adele Ambrose are ‘change agents’. They are both ‘responsible for managing change activities’ (Robbins & Judge, 2009:621) during the company’s restructuring and downsizing which started in 1995. ‘More than a decade after breaking up the Bell System to settle a Federal antitrust suit’ (Lander, 1995), Robert Allen aggressively sought to undertake a turnaround of the organization by, among other things, leading the strategic restructuring of AT&T that would see the giant company split into three separate publicly traded, global companies. He proposed that the new companies would focus on different core businesses – network communication, communication equipment, and transaction-intensive computing.