Recent incidences of corporate or banking scandals

Recent incidences of corporate or banking scandals Essay example
College
Essay
Finance & Accounting
Pages 3 (753 words)
Download 0
The societal implications are that the Country Financial lost its entire business acumen in a single fault. It was now associated with many fraud and corruption on a large scale. Mozilo compensation had earlier come under scrutiny…

Introduction

This has gone on to be a major problem since the level of control by politicians on leaders and presidents of large companies is overwhelming. This in the end of the day makes the managers, CEOs and the chief executives like Angelo seem weaker and puppet to these politicians. This makes them to go cahoots with them since they do not have a choice or the deals are very sweet. This should be limited thoroughly by the use of legislation and policies that are relevant and applicable with this particular matter.
The degree of this fraud crime was very colossal. Angelo Mozilo was charged fines that amounted to $67.5 million and was forced to accept a lifetime ban. This ban was implemented so that he will never serve as a director or officer of any public or private company. This is a meager settlement with the Securities and Exchange Commission since he is one of the people responsible directly for the 2008 financial crisis. He should have been jailed without any chances of parole so as to teach the rest of the CEOs and the directors of public companies not to repeat the same mistake again. Civil settlements should not have been applied in this scenario. This is because the event of the $67.5 million settlement saw to it that $20 million was paid by Countrywide Financial. This is because there was an indemnification agreement that existed between Countrywide Financial and Angelo’s employment contract.
...
Download paper
Not exactly what you need?

Related papers

Finance and Accounting Research Paper: Corporate Financial Scandals
At a point Enron was one of the seventh largest corporations in The United States. Enron was a shining star on Wall Street, and from 1996 to the early 2000’s it was named America’s “Best Managed and Most Innovative Company” by Fortune Magazine. The scandal was revealed in October 2001 and lead to the bankruptcy of Enron Corporation; which sent.

You may also…
Discussion of the various issues related to corporate governance and its impact on financial performance of companies
The analysis includes a comprehensive literature review on corporate governance, its various mechanisms and the impact on financial performance of firms; as well as P.E.S.T analysis of the four companies. Impact of corporate governance mechanisms on modern companies Contents Sr.# Topic Pg. # 1. Introduction 4 1.1. Purpose of the study 5 2. Brief Background 10 2.1. Meaning and definition 10 2.2.…
American Accounting Scandals
55, 2009). Interestingly, this is not the first time in the history of United States that its accounting practices, approaches and system has received criticism and strict scrutiny from its stakeholders. After the bankruptcy of Enron and WorldCom in 2001 and 2003, respectively that was also the biggest accounting scandals of their time, the US accounting practices made the headlines all over the…
corporate/banking scandel
But there are doubts if all his investors could ever fully recover their investments. Explanations why the scandal happened: how it is related to separation of ownership and management. The discovery of Maddoffs’s scheme was only accidental, as Harry Markopolis, a portfolio manager for an equity derivatives asset firm in Boston was asked to analyze Maddoff’s money making methods. Thereupon, he…
Ethics in Accounting and Corporate Accounting Scandals
The suggested course of action by the companies is also recommended in order to prevent unethical practices that lead to corporate scandals and eventual bankruptcy of the organizations. Introduction The accounting practices are based on the Generally Accepted Accounting Principles. Apart from the rule base practices, the importance of principle based practices have emerged in the field of…
Auditing. The series of scandals caused a general crisis of confidence in the integrity of the entire system of corporate accoun
Thereafter the author described financial scandals as those corporate scandals that involve misappropriation and misuse of money or economic resources. The chronicles of business history are filled with errors related to accounting, judgements, financial management and financial skulduggery. Over the last few decades unscrupulous entrepreneurs have been heavily involved in financial scandals where…
Recent incidences of corporate or banking scandals happened in U.S companies or financial insitutions
At the same time, the Lehman Brothers reduced assets on the left side of the company’s statement of financial position. The Lehman Brothers also systematically used the repos to finance some projects. Instead of reporting that the repos were used for financing reasons, the Lehman Brothers disclosed the repos as asset sales to mislead investors (Elliott and Treanor 5). This allowed the Lehman…