Banking Industry Meltdown

318 Words2 Pages
Determine which moral philosophy (as discussed in Chapter 6) is most applicable to an understanding of the banking industry meltdown. Explain your rationale. There are different types of moral philosophy that were discussed in chapter 6 that are applicable to an understanding of the banking industry meltdown. To start off, according to… “Moral philosophy is the branch of philosophy dealing with both arguments about the content of morality and meta-ethical discussion of the nature of moral judgment, language, argument, and value”. The moral philosophies that were discussed in chapter 6 are the following: teleology, egoism, utilitarianism, deontology, relativist, virtue ethics, and justice. I would say after reading Banking Industry Meltdown: The Ethical and Financial Risks of Derivatives, that the moral that was most applicable would be egoism. Egoism is the ethical doctrine that morality has its foundations in self-interests. When banks introduce the customers to various avenues in offering different investments of numerous loans or savings, majority of the time bankers are very confident that their offerings are perfect for the customers. On the other hand banks could not have predicted that there would be a global recession in 2008-2009 so of course they may have not prepared for the turnaround outcome or the “what ifs”. That’s where the egoism comes in this matter. In most cases, many banks are interested in not so much of the reward that the customer receives, but how much rewarding it will be for the bank itself, the more they get their customers to make investments the better the payoff is for the bank. Egoism involves self-interest and because of the greed that was shown as well as self-interest of many of the banks, it had led to the results of many banks being unsuccessful. Egoism is a negative trait to have in a business and will always lead to a

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