Real-World Case Study

1727 Words7 Pages
Abstract This essay is mainly analyze the contention raised by the corporate law professor Justin O’Brien, which is, changes to the regulation of financial system participants will not mitigate a future global financial crisis, but rather a change in ethical standards is required. Moreover, follow by the discussion of O’Brien’s statement, there is a judgment that whether it is possible to devise a global regime of ethical behavior that will adequately address the problems exposed in the global financial market. 1. Introduction Along with the development of globalization, everything in this world is connected more closely especially the economy, such as the global financial crisis is evolving from the American financial crisis in 2008. Most of the economists considered that, it is the worst financial crisis after the Great Depression in 1930s. This is because the 2008 financial crisis had worsened as the stock markets around the globe crashed, lots of the large financial institutions have collapsed and governments in even the wealthiest nations have had to come up with rescue packages to bail out their financial system (Shah, 2010). It is commonly believed that the primary cause is the US subprime crisis and housing bubble, or also known as credit crunch. Further up, the ethics issue is the root reason that leads to the subprime crisis. Ethical issue already becomes one of the most important topics at the top of agenda. 2. Real–world Case Study The case is mainly presenting the viewpoint raised by the law professor Justin O’Brien. He conclude that the ethical behavior needs to be defined, encouraged and enforced by the professions that combine to create the global markets, not by external regulators (Maiden 2010, p2). 3.1 Change in ethical standards O’Brien contends that the changes to the regulation of financial system participants such as
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