Sammrize Essay Example | Topics and Well Written Essays - 500 words

Sammrize - Essay Example The role of homeowners as participants and victims of the financial crisis was proffered in terms of being appraised and evaluated wrongfully posing inability to pay for mortgages of overvalued homes. The ethical issues identified were dishonestly, fraud, and scam, as mortgage brokers’ interests over the homeowners took precedence to gain financial profits at the disadvantage of unsuspecting public. The presentation, likewise, pinpointed mortgage banks, brokers and the two government sponsored entities, Fannie Mae and Freddie Mac, that were supposed to regulate and monitor the credit worthiness and validity of all mortgage instruments of private banks, but failed due to greed, corruption and excessive bonuses accorded to senior management officers, despite the impending financial meltdown. In the end, the financial crisis was instigated by the financial system that is expected to apply due diligence and adhere to ethical standards and codes of discipline to ensure the safety a nd security of the funds invested by the public.