Unethical Behavior And The Financial Industry Essay
Research Paper 2
Professor Wendy Achilles
University Of Bridgeport
December 6, 2015
Unethical Behaviors In The Financial Industry
Research Paper 2 Unethical behaviors of financial professionals both old, and young still seem to affect the financial industry despite the new policies, and regulations surrounding the financial industry. Enron was an example of how unethical behaviors of employees will not only affect employees, but also stakeholders, and the economy in general. According to an article on Investopidia, and written by Chris Seabury, “CEO Jeffrey Skilling had a way of hiding the financial losses of the trading business and other operations of the company; it was market to market accounting. This is used in the trading of securities, when you determine what the actual value of the security is at the moment. This can work well for securities, but it can be disastrous for other businesses.” (Seabury, 2011).
Trends, Challenges and Best Practices After the financial crises of 2008, which almost halted the economy as a whole, the government created stricter policies regarding financial markets and financial institutions. According to the Federalreserve.org website, the Federal Reserve has establish regulations which require banks to keep a reserve balance which would suffice for unexpected waves of depository withdrawals and financial emergencies (Federal Reserve. Org…