Martha Stewart Ethical Issues

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Introduction Many organizations and heads of organizations have faced ethics issues in the past few years. Kenneth Lay with Enron, Martha Stewart, Michael Sears of Boeing, Stan O’Neal with Merrill Lynch and many people in Congress and the House have been or are under investigation for violations of ethics. Kenneth Lay was convicted of fraud while Martha Stewart was convicted of conspiracy, lying to the government, and obstruction of justice. Both Lay and Stewart received time in prison for their actions. Many others in violation of ethics codes receive a slap on the wrist. Where, then, are the people who should be blamed for the subprime loans that resulted and are still resulting in many people losing their homes? This paper will investigate what subprime loans are, what happened to cause this scandal,…show more content…
These lenders did not take into consideration the income, indebtedness, or economic knowledge of the borrower before making the loan. This makes subprime lending an ethics issue.   References Maremont, M. (2008, July). FDIC faces mortgage mess after running failed bank; subprime lender made problem loans on regulators’ watch. Wall Street Journal, pg. A.1, Retrieved August 16, 2008, from University of Phoenix Online Library, ProQuest Database, (Document ID: 1513933231). Nelson, T. P. (2008, Jul/Aug). Trends in subprime lending: Legislation, litigation, and enforcement on the rise. Business Law Today (17)6, 27. Retrieved August 16, 2008, from University of Phoenix Online Library, ProQuest Database, (Document ID: 1527868671). Tomkies, M. C. (2008, Jul/Aug). Regulating the subprime market: Finding the right balance. Business Law Today (17) 6, 21. Retrieved August 16, 2008, from University of Phoenix Online Library ProQuest Database, (Document ID:
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