Essay On Freddie Mac Ethics

Essay on Freddie Mac Ethics
Freddie Mac is in the home mortgage business. It is their jobs to help low income families find
affordable housing. Freddie Mac has been in business since 1970. They were created in order to get
more American families in to their own homes. Their mission statement says, "Our statutory mission
is to provide liquidity, stability and affordability to the U.S. housing market" (FreddieMac.com,
2014). Despite this honorable mission statement, Freddie Mac was involved in a case of accounting
fraud that went on from 1998 to 2002. The lack of ethics at this company started with top brass
setting the tone, and the rest of the company following suit.
Rather than being sticklers for following GAAP accounting principles and internal controls, this ...
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According to HUD Freddie Mac and Fannie May are both GSE's, government sponsored
enterprises, and in the U.S. they are the two largest providers of home mortgages. They were created
primarily to provide loans to underprivileged and lower economic areas. They are not subject to
taxes. They do not fall under the jurisdiction of the Securities Exchange Commission. They have
direct access to a 2.25 billion line of credit, and their rates are significantly lower than their
competitors, because of their government backing, (Housing and Urban Developement, 2001).
The reason the company bought these risky loans was because they have a much higher interest rate.
Rather than paying 3.53 or 4% interest on a home loan these people were forced to pay almost
double that, between 6 and 7%. The conflict of interest arose from the fact that Freddie Mac was the
one whom the recipients of these loans had to try to get refinancing from. They did not want to
refinance the high interest mortgages into lower interest ones. This caused them to have a conflict of
interest. They were not interested in helping people to save their homes because they were making
money off the interest. Many people were in need of refinancing, which would effectively pay off
the higher interest rate loan and create a new loan with more affordable prices. Freddie Mac refused
to help these people out of their mortgages, effectively because they
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bear stearns
SArajevo School of science and technology Bear Stearns Collapse 2007 A short analysis ISMAR
HOTA Table of Contents Introduction 3 Literature Review 3 Methodology 4 Analysis 5 Introduction
5 About Bear Stearns 6 The Culture at Bear Stearns 6 The Collapse of Bear Sterns 7 The Ethical
Issues behind the Bear Stearns Collapse 8 What are subprime mortgages and its Ethical Failures? 8
The Lack of Corporate Governance at Bear Sterns 9 Moral Hazard at Bear Stearns 10 Non Ethical
Conduct of the Regulators 11 Conclusion 11 Work Cited 13 Introduction This paper will presents the
demise of Bear Stearns, the fifth biggest US investment bank at the time. It is broken down into two
parts, analysis and conclusion. The analysis of this paper ... Show more content on Helpwriting.net
...
This matter is subject to a deeper analysis. It can be looked at from a number of perspectives
including anthropological, cultural and psychological. The paper design is presented in a form of a
case study which aims to present to the reader the case and has a goal to teach the reader with key
issues which were responsible for the financial crisis of 2008 i.e., over landing subprime mortgages,
speculations which led to inflated prices and eventually burst the housing bubble causing the banks
to be stuck with large amounts of toxic worthless assets etc. The case study gives a concise
explanation and the analysis of the ethical/unethical conduct at Bear Stearns which brought it to its
demise. It uses this company example to present the key learning objectives to the reader. The
strategy used this besides presenting the findings in the case study form also uses narrative research
technique which gives an insight of the Bear Stearns' culture and its business. This case study by no
means gives the opinion of the author and solely bases its conclusions on the materials used to
design the paper. Therefore, the conclusions are built upon deductive reasoning based on the
information available about the financial markets and bout Bear Stearns. Analysis The analysis is
going to briefly introduce Bear Stearns by presenting its business activities and its culture. It will
then talk about the collapse of Bear Stearns and then

Immigration: Undocumented Immigrants
Inherency: The current state of immigration policy in the United States is characterized by a reliance
on surveillance technologies to track and deport undocumented immigrants. The federal government
has been spending vast amounts of money on surveillance programs that lack any oversight or
accountability. [Kalyan 2014] Federal expenditures on border and immigration control have grown
fifteen – fold since 1986. These initiatives have yielded a staggering increase in the number of non
citizens formally removed from the United States. Much less widely noted, however, has been that
immigration control has rapidly become an information – centered and technology – driven
enterprise. Both non citizens and U.S. citizens are now subject to collection ... Show more content
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As even the Obama administration recently acknowledged, foreigners immigrants have a right to
privacy too, and not all foreigners immigrants are criminals, as some Americans believe. Using
surveillance in itself destroys basic human right #12, that states everybody has a right to privacy, let
alone against innocent people who just want a new, better life for themselves and their children in
the land of the free; The united states, a country built on immigration itself!
[http://www.un.org/en/documents/udhr/] Our deportation programs are inneffective because the
primary targets of deportation are innocent indaviduals, with no criminal record, who have already
lived in the United States for years. [Ewing 2014] Most of the immigrants now being deported are
long–term legal permanent residents of the United States. Many have strong ties to the US, such as
family members (especially children), not to mention jobs and homes. Families containing a
member who is undocumented live in constant fear of separation, especially children. Moreover, the
federal government's policy of mass deportation overburdens our immigration courts as thousands
attempt to get in the United States each year. [Costa 2014] The immigration court system is severely
underfunded and there are too few judges. Tens of thousands of unaccompanied migrant children
fleeing from central america and arriving at the southwest border will

Duke University Medical Center Essay
Introduction
Duke University Medical Center (DUMC) is a world–renowned 1000–bed academic non profit
medical center located in Durham, North Carolina. DUMC was established 85 years ago and serves
as one of three Level I referral centers for the Raleigh–Durham metropolitan area. DUMC is widely
considered a world–class health care system by participation in cutting–edge research, education of
future medical leaders, and practice of evidence–based medicine.
Duke University Hospital is honored to be ranked among the nation's top 15 hospitals by U.S. News
& World Report, and no. 1 in North Carolina and the Triangle Duke Facebook account
link
Building on this heritage, Duke Medicine has grown and expanded over the years and now ranks as
one of the world's outstanding health care centers. It operates one of the ... Show more content on
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Lyon Park Clinic, a neighborhood clinic providing primary care to low–income Durham patients in
a community center in Durham's West End, operated in conjunction with Lincoln Community
Health Center.
Walltown Neighborhood Clinic, providing primary care to low–income patients at 815 Broad Street
in Durham's Walltown neighborhood, operated in conjunction with Lincoln Community Health
Center.
Local Access to Coordinated Healthcare (LATCH), providing bilingual in–home health education on
chronic disease, patient support, and advocacy for uninsured Durham residents; since 2002, more
than 18,000 uninsured residents have enrolled in LATCH.
Learning Together, providing health education in selected public schools, assistance to patients to
apply for public benefits, and support to Duke's partner agencies through Duke staff and trained
health

Emergency Management Essay
CHAPTER 1
INTRODUCTION TO EMERGENCY MANAGEMENT
This chapter provides an overview that describes the basic types of hazards threatening the United
States and provides definitions for some basic terms such as hazards, emergencies, and disasters.
The chapter also provides a brief history of emergency management in the federal government and a
general description of the current emergency management system–including the basic functions
performed by local emergency managers. The chapter concludes with a discussion of the all–hazards
approach and its implications for local emergency management.
Introduction There are many ways to describe emergency management and the importance of the
tasks emergency managers perform. Indeed, in ... Show more content on Helpwriting.net ...
The natural environment is, of course, not "getting its revenge". Geophysical, meteorological, and
hydrologic processes are unfolding as they have for millennia, beginning long before humans
occupied the earth and continuing to the present. Given the eons–long perspective of the natural
environment, it would be very difficult to identify meaningful changes in event frequency for the
short time period in which scientific records are available on geological, meteorological, and
hydrological phenomena. Event frequency, from an emergency management perspective, is not
really the issue. It is certainly true that, over the years, more people have been affected by natural
disasters and losses are becoming progressively greater. The significant feature driving these
observations, however, is the extent of human encroachment into hazard prone areas. With
increasing population density and changing land use patterns, more people are exposed to natural
hazards and consequently our accumulated human and economic losses are increasing. Much of this
exposure is a matter of choice. Sometimes people choose hazardous places, building houses on
picturesque cliffs, on mountain slopes, in floodplains, near beautiful volcanoes, or along seismic
faults. Sometimes people choose hazardous building materials that fail under extreme environmental
stresses–for example, unreinforced masonry construction in seismically active areas. Some exposure
results from constrained choices; the cheap land or

Essay about Fannie Mae Case
Fannie Mae case.
Federal regulators noted a growing string of high profile scandals at major U.S. corporations in
recent years. The number of fraud cases investigated by the Securities and Exchange Commission
jumped 41 percent in the last three years (112 cases in 2001 compare to 79 cases investigated in
1998), resulting in tens of millions of dollars in fines to settle the charges.
I have decided to take a closer look at Fannie May. This company operates in the residential
mortgage finance industry. It facilitates the flow of mortgage capital to increase the availability of
homeownership for low, moderate, and middle–income Americans. Its lender customers are part of
the primary mortgage market, where mortgages are originated and ... Show more content on
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The effects on Fannie Mae, a highly politically connected company, could be enormous. The
company holds over $1 trillion in assets, and purchases more mortgage loans than any other lender
in the U.S.
When the accounting errors first emerged Fannie Mae estimated that there would be an adjustment
of about $9 billion in its reported earnings over the contested period. That number has since
increased to over $11 billion but may increase again as further irregularities discovered with
insurance related issues. No estimate of these additional potential revisions is currently available.
On December 21, 2004, Franklin D. Raines stepped down as Chairman and Chief Executive Officer
and J. Timothy Howard resigned as Chief Financial Officer. Raines' departure, at age 55, was
structured as an early retirement. Under his employment agreement and the terms of the Executive
Pension Plan, Raines is entitled to receive 60 percent of his "High–Three Total Compensation",
which is his highest total compensation for three consecutive years during the last 10 years. Upon
early retirement, this number is slightly reduced leaving him with estimated annual benefits of
$1,085,462. Furthermore, the company's Stock Compensation Plan of 1993 allows all options to
become immediately exercisable and fully vested upon early retirement. The 2003

Brian Montgomery Case Study
Brian Montgomery, the Federal Housing Administration commissioner, understood the significance.
His agency insures home loans, traditionally for the same low–income minority borrowers Mr. Bush
wanted to help. When he arrived in June 2005, he was shocked to find those customers had been
lured away by the "fool's gold" of subprime loans. The Ameriquest settlement, he said, reinforced
his concern that the industry was exploiting borrowers. In December 2005, Mr. Montgomery drafted
a memo and brought it to the White House. "I don't think this is what the president had in mind
here," he recalled telling Ryan Streeter, then the president's chief housing policy analyst. It was an
opportunity to address the risky subprime lending practices head on. ... Show more content on
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Falcon ran the Office of Federal Housing Enterprise Oversight, a tiny government agency that
oversaw Fannie Mae and Freddie Mac, two pillars of the American housing industry. In February
2003, he was finishing a blockbuster report that warned the pillars could crumble. Created by
Congress, Fannie and Freddie –– called G.S.E.'s, for government–sponsored entities –– bought
trillions of dollars' worth of mortgages to hold or sell to investors as guaranteed securities. The
companies were also Washington powerhouses, stuffing lawmakers' campaign coffers and hiring
bare–knuckled lobbyists. Mr. Falcon's report outlined a worst–case situation in which Fannie and
Freddie could default on debt, setting off "contagious illiquidity in the market" –– in other words, a
financial meltdown. He also raised red flags about the companies' soaring use of derivatives, the
complex financial instruments that economic experts now blame for spreading the housing collapse.
Today, the White House cites that report –– and its subsequent effort to better regulate Fannie and
Freddie –– as evidence that it foresaw the crisis and tried to avert it. Bush officials recently wrote up
a talking points memo headlined "G.S.E.'s –– We Told You

Causing The 2008 Crisis
Causing the 2008 Crisis As the financial system moved forward after the S&L Crisis, what later
became known as the parallel banking system began to bloom. In this system, commercial banks
began to act like large investment banks and quickly the financial system as a whole became much
larger, more complex and much more active in securitization. Some industry analysts say that it was
advances in data processing and telecommunication that created economies of scale and scope in
finance, and fostered the need for larger and more diversified financial institutions. As these banks
became larger and much more powerful, they pressured regulators to strip away all barriers to
competition and growth. This began to take hold with the Riegle–Neal Interstate Banking and
Branching Efficiency Act in 1994 (RNIBBEA). This allowed bank holding companies to practice
nationwide branching and acquire companies in other states. This led to mass consolidation that
resulted in the top ten commercial and investment banks owning a combined 10.8 trillion dollars by
2007, and a 25% increase in all industry assets. The argument behind this mass deregulation was
that the larger then ever institutions would have strong incentive to protect shareholders and would
carefully regulate themselves. The push to deregulate strengthened when the largest institutions
began to openly attack the Glass–Steagall Act that separated commercial and investment banks, by
using recent deregulation to gather beachheads

Inside the Meltdown
SHEILA BAIR ... FDIC [Federal Deposit Insurance Corp.], established 75 years ago in the Great
Depression. ... How does it feel being head of FDIC during another grand crisis? It 's a very
important place to be right now. We 're getting a lot of media attention, and I think that 's positive
because I think the FDIC is all about public confidence. That 's how we maintain the stability with
people having confidence in our brand and our insurance guarantee, and I think we 've done that
fairly successfully. We have seen a lot of stability. People are keeping their money in banks, which is
good. ... I think we 'll be judged by how history judges us, whether we continue to be effective in
trying to stabilize the banking sector and ... Show more content on Helpwriting.net ...
But they didn 't really look at the underlying mortgages, either. They relied on rating agencies, and
they didn 't really look at the underlying mortgages. They just relied on mathematical models and
say: "Oh, well, it 's overcollateralized by 30 percent. My gosh, we couldn 't have 30 percent of the
mortgages going bad here, so we 're going to give it a AAA rating." So nobody really looked at the
human faces behind these mortgages to see if they were actually affordable and sustainable. How
could this happen? It was a breakdown at every step of the way, and regulators included. The
majority of it was done outside of insured depository institutions. But there were some banks that
were doing it, too. And I think that was more in response as they were losing market share to third–
party originators who were the shadow banking system –– pretty much completely outside the
regulatory system. They could get funding from Wall Street securitizations, and again, the risk was
being passed on to investors who also weren 't looking at the underlying mortgages. And borrowers,
... it was still working for them so long as the housing market was going up. Everybody 's
compensation incentives, financial incentives, were short–term, not long–term. There are a lot of
lessons to be learned to this, but if there 's one, it 's that the compensation structures, especially for
the originators, needs to be

Credit Crunch Impact in Bank of England Essay examples
3. Using one specific multinational enterprise with which you are familiar, examine the ways in
which 'credit crunch' has impacted its operations. Evaluate the strategic responses it has made, and
might make going forward, to respond to the impacts of the credit crunch on its operations.
Introduction; This work will focus on the broader economic impact of the crisis in credit markets,
which began over three years ago with the downturn in United States (US) sub–prime housing
market. While the epicenter has remained in the US, it has already had a major impact on the
structure of Bank of England. In the year 2008 we have seen a significant consolidation within the
UK banking sector. (George ... Show more content on Helpwriting.net ...
Financial Stability
The area seeks to detect risks to the structure and functioning of the UK financial system and to
develop measures to strengthen regulatory systems and infrastructure at home and abroad to reduce
those risks. This includes its statutory responsibilities for overseeing UK payments systems. In
addition it undertakes work with HM Treasury and the FSA to improve the arrangements for
managing a financial crisis. The area also contributes to the monetary policy process, and promotes
public understanding of issues relating to financial stability through, for instance, the regular
Financial Stability Report.
Banking Services
Customer Banking Division provides banking services to the Government and other customers,
principally financial institutions and other central banks. This includes the provision of custody
services, including for gold.
Central services
The Central Services Divisions encompass a range of support functions that underpin the Bank's
activities and help to ensure that the Bank's reputation is maintained. These include IT, business
continuity, the Governors' private offices, and legal services.

The Aig Bailout
The AIG Bailout William K. Sjostrom, Jr.∗ Abstract On February 28, 2008, American International
Group, Inc., the then largest insurance company in the United States, announced 2007 earnings of
$6.20 billion or $2.39 per share. Its stock closed that day at $50.15 per share. Less than seven
months later, however, AIG was on the verge of bankruptcy and had to be rescued by the United
States government through an $85 billion loan. Government aid has since grown to $182.5 billion,
and AIG's stock recently traded at less than $1.00 per share. The Article explains why AIG, a
company with $1 trillion in assets and $95.8 billion in shareholders' equity, suddenly collapsed. It
then details the terms of the government bailout, explores why it was ... Show more content on
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Comm. on Banking, Housing & Urban Affairs, 111th Cong. 1–2 (2009) (statement of Donald L.
Kohn, Vice Chairman, Board of Governors of the Federal Reserve System) [hereinafter Kohn
Statement], available at http://banking.senate.gov/ public/_files/KohnStmtMarch52009.pdf. 2. Press
Release, American International Group, Inc., AIG Reports Full Year and Fourth Quarter 2007
Results (Feb. 28, 2008), available at http://idea.sec.gov/Archives/edgar/data/5272
/000095012308002282/y50505exv99w1.htm. 3. Yahoo! Finance, AIG: Historical Prices for
American International Group, Inc., http://finance.yahoo.com/q/hp?s=AIG (last visited Sept. 29,
2009) (on file with the Washington and Lee Law Review). THE AIG BAILOUT 945 loan.4
Government aid has since grown to $182.5 billion,5 and as recently as June 2009 AIG's stock traded
at less than $1.00 per share.6 AIG's collapse was caused largely by its $526 billion portfolio of
credit default swaps (CDSs), a type of credit derivative widely used by financial institutions but, up
until recently, largely unknown by the general public.7 AIG's troubles have been covered
extensively by the media but are difficult to comprehend fully because of the esoteric financial
instruments involved. Thus, this Article weaves explanations of CDSs, asset–backed securities,
securitization, tranching, and collateralized debt obligations into a detailed and systematic account
and analysis of

Inflation and Costco
PART I COMPANY OVERVIEW–ANALYSIS Perspectives MISSION 1.1. General introduction of
Costco Group: 1.1.1. An overview of Costco Group: Costco Wholesale is a global corporation
trading in wholesale and retail. This group acts as a chain store includes many members in many
parts of the world, under the name Costco Wholesale. It offers customers a firm belief expressed by
the provision of a range of products with the brand has been confirmed. With hundreds of locations
worldwide, Costco provides customers more choices of goods, in addition to working with a
professional attitude, all have created a variety of shopping space and rich. In particular, the Costco
warehouse layout and design is a reasonable way to help businesses save costs to ... Show more
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1998: Costco opened five locations in Detroit, Michigan on the same day. On e–commerce site
Costco.com offers products, services, and its price. 1999: In Japan, Costco warehouses located in the
City of Hisayama. Costco has issued a credit card membership Costco–branded American Express.
Sales at an average annual per store reached $ 100 million. August 30, the company officially
changed its name to Costco Wholesale Corporation (Costco Wholesale Corporation). 2000: 2%
reward program has been adopted and this has added value to the operators. Costco began
participating in smokeless industry – tourism market. Costco continues to open two locations in
Texas – USA. 2001: Costco has consolidated operations in Canada into a new office in Ottawa,
Ontario. 2002: Costco began entering Kansas and India, the entry of Costco This will increase the
total number of countries engaged to 7 countries. In Puerto Rico, established two warehouses
Costco, opened in November 2001. Costco has summarized the last fiscal year with about 40.5
million cardholders and 98,000 employees worldwide. 2003: – In December 2002, the home of
Costco opened in Kirkland, WA. – E–Commerce Page Costco.com has created revenue of up to
226,000,000 USD. – Average annual sales per warehouse is 105,000,000 USD. – Added 24 new
locations were opened. 2004: Costco became the 5th largest retailer in the U.S. and ranked 11th in
the world. Fortune magazine has selected Costco with position 29

The American Financial Industry
The American financial industry is a very active industry in the world. Although the history for
American financial industry is shorter than other old capitalist counties, such as English, France ,
Netherland, due to the industry 's potentiality, creativity and successful supervision comes from
government ,the American financial industry has been growing fast since it was established
hundreds year ago. Overall ,at present ,from the aspects of industry scale and structure ,monetary
policy and the freedom of transaction ,those are more mature and perfect than any other countries, as
al result ,the US financial industry has become the world 's most advanced financial industry . As
most of people know, the premise of financial development is ... Show more content on
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Consequently, the great depression was happened at that period. It is worth to mention that such
cause is still occurring in recent crises. The introduction of US financial regulatory system What is
the meaning of financial regulation? Specifically, the financial regulation means there are sets of
regulation or supervision, which let the financial organizations comply to requirements, restrictions
formulated by government or any other institution. The aim for financial regulation is keep the
integrity of financial system, and this objective composing four parts ,the first parts is the regulation
should maintain the confidence in financial system, the second part is enhancing the stability of
financial system ,the third part is it should protect the consumer rights and the last one is reduce or
prevent the financial crime( Kushmeider, Rose Marie,2005). The relaxation on financial regulation,
it is always a problem or challenge for authority to confront. Because at initial time ,when reducing
the financial regulation ,it usually can

Arguments of Today's Society
I. Benefits of Legalization
Currently most everywhere in the United States, our legal system penalizes prostitutes and their
customers for what they do as consenting adults. Money is still spent on law enforcement efforts to
catch prostitutes and their customers. Once caught, justice departments have to process these people
through very expensive systems.
What are the end results? Police personnel and courtrooms are overburdened with these cases,
having little or no impact on prostitution. The prostitutes and their customers pay their fines and are
back to the streets in no time in a revolving door process. Catch and release may work for
recreational fishing but it has no deterring affect on prostitution.
Making prostitution legal will ... Show more content on Helpwriting.net ...
safety, of the product. In attempts to prohibit alcohol consumption through the Volstead Act,
spending by the Bureau of Prohibition went from $4.4 million to $13.4 million annually. Spending
by the Coast Guard was an average $13 million per year in the 1920s for prohibition alone [Mark
Thornton]. In fact when per capita costs are analyzed, spending more to curb behavior did literally
nothing against consumption, making a total mockery of law enforcement efforts.
Social irresponsibility of this magnitude during the depression was horrific when considering how
these monies could have been spent to do good for society. Programs could have been developed to
help the unemployed. Healthcare could have been expanded to include social programs to drive
down high suicide rates.
It was thought prohibition would put an end to many social problems but it actually created many
more. Increasing the number of laws runs a risk of creating more criminals, and that is exactly what
had happened. Jails became filled. Government spending to pay for the housing and maintenance of
these criminals went up [Mark Thornton]. Compounded by the lack of intake from alcohol tax, it
placed huge dents on public coffers.
Prohibition caused many problems related to criminal activity. There was a causal link between
prohibition and an increase in homicides. During prohibition, homicide rates increased over 66%.
After prohibition was repealed on Dec. 5, 1933, the homicide rate immediately

Privatization of American Prisons: a System for Profit Essay
Abstract
The subject of this paper will be a compilation of research on the privatization of American prisons.
This will include the reasons for, the historical aspects of, and the ethical and legal problems that it
can and has caused. The research methods that will be used to develop this research paper will be
done through both classical use of books and use of internet–based sources. This topic is important
for analysis because the privatization of American prisons is a subject that raises many ethical and
legal questions on its legitimacy and effectiveness as a means of correction. One believes that the
findings of this paper will show that privatization of American prisons is for the most part an
ineffective means to run prisons ... Show more content on Helpwriting.net ...
This type of ownership and management of prisons, though not new, only began again in recent
history in the 1980's. The reasons for this development of private prisons are threefold and these
three trends converged in the 1980's: the ideological imperatives of the free market, the huge
increase in the number of prisoners, and the increase in imprisonment costs (Smith, 1993). In this
Reaganite era it seemed that private enterprise could do any job the government had been doing
cheaper and more efficiently, including running prisons.
The first trend of ideological imperatives began in the late 1950's and continued to grow into the late
1970's as the public lost trust in the government. It is estimated that public trust of the government
in this era declined from 80 percent in the 1950's to 33 percent by the late 1970's (Logan, 1990).
This lack of trust in the government allowed for the ideological movement toward privatization. The
problem with this ideological desire to take prisons away from the government and turn them over
to private corporations is the basic fact that the government is the one that sentences people to
prison and should be the one responsible for taking care of these inmates. By turning this care over
to private corporations an ethical and legal nightmare can and has developed.
The second trend of increasing numbers of inmates was rooted in a new toughness on criminal

Financial Reporting Council: the Use of a Sector Neutral...
Financial Reporting Council: The Use of a Sector Neutral Framework for the Making of Australian
Accounting Standards Introduction The Australian Financial Reporting Council (FRC) was
established on 1 January 2000 under section 225 of the Australian Securities and Investments
Commission Act 19891 (ASIC Act) for the purpose of overseeing Australia's accounting standard
setting process. One of the key functions of the Financial Reporting Council (FRC) is to provide
broad oversight of the processes for setting accounting standards in Australia. Specifically, the FRC
is responsible for determining the broad strategic direction for the setting of standards to be
followed by the Australian Accounting Standards Board (AASB). The AASB has ... Show more
Mr Simpkins' report was tabled at the FRC meeting held in Sydney on 22 June 2006. The FRC
agreed to make the report publicly available via the FRC web site. Matters for consideration The
FRC is seeking public comment on the following matters related to standard–setting, especially in
relation to the public sector and the other not–for–profit sector. Respondents are particularly
requested to provide the reasons for their views, whether supportive or critical of the identified
issues. The matters on which the FRC is seeking comment, which are reproduced in Part 8 of Mr
Simpkins' report, are: 1. In your view, how well are the needs of all users of general purpose
financial reports, including users of public sector and other not–for–profit entities in Australia, being
met? 2. Will the current approach of the AASB enable the standard–setter to respond to the more
challenging environment of the future and ensure the needs of public sector and other not–for–profit
users are appropriately met? 3. Do you consider that having a conceptual framework that is
applicable and appropriate to all entities is a necessary element in Australian standard–setting for all
sectors? What approach to establishing a conceptual framework(s) do you consider appropriate? 4.
Different approaches could be used to set standards in Australia. Which approach do you

Mortgage Fraud, Fraud And Fraud
Mortgage fraud is one of the fastest growing crimes in the United States. (Freddie Mac, 2015) There
are three categories of mortgage fraud, fraud for housing, fraud for profit and fraud for criminal
enterprise. Fraud for profit schemes are conducted by a group of people who play multiple roles in
the fraud. The masterminds or initiators receive the largest percentage of the profit while others in
the scheme may receive a few thousand dollars for their part in the misrepresentation. Mortgage
brokers and loan processors create fictitious credit profiles and conspire with real estate appraisers
to inflate property values. For–profit schemes often involve multiple industry professionals/insiders
and multiple transactions. The ... Show more content on Helpwriting.net ...
Measuring these fluctuations is difficult and often leads to risk underestimated with growth and
overestimated in recessions. In an economic boom, this contributes to rapid credit growth, to
inflated collateral values. In recessions, when risk and loan defaults are accessed to be high the
reverse tends to be the case. Many banks will take on more risks knowing that they could always
transfer a large part of them. This may lead to 'Collusion Fraud' or 'Fraud–or profit' which is the
most costly type of fraud.
Background Established in 1825, Liberty Bank is Connecticut's oldest mutual bank, with more than
$3.5 billion in assets and over $500 million in capital. Throughout the central, eastern, and shoreline
areas of the Connecticut, Liberty Bank has grown to 49 banking offices. Liberty Bank is a full–
service financial institution that offers home mortgages, insurance, investment services as well as
consumer and commercial banking finance products. Liberty Bank has been rated outstanding for
commitment providing superior personal service and unmatched community involvement. For the
first time, Liberty Bank also introduced itself in Fairfield County with a brand–new adjustable–rate
mortgage product suited to home buyers in this market, generating over $100 million in closed
loans. Overall, Liberty Bank picked up a record–breaking 10,926 new households in 2013. Liberty
Bank will also be partnering with Fannie Mae's and their new

Current Strategy Essay
CURRENT STRATEGY SUMMARY FOR INFRASTRUCTURE OPERATIONS SUPPORT
SERVICES (IOSS) JOINT BASE POWELL, CA This document was compiled by the IOSS project
office and summarizes how many of the Joint Base Powell Infrastructure, Operations, and Support
Services (IOSS) requirements listed in the draft PWS were acquired in the past. Each service area is
briefly covered by providing information about any current initiatives/contracts, current
performance problems, and stakeholder comments about any changes in projected requirements.
This document is intended to help the integrated acquisition project team 1) understand and consider
the implications of how the various IOSS services requirements were procured in the past and/or are
currently ... Show more content on Helpwriting.net ...
is a large business known for their extensive work with the federal government, including working
as service/capability integrators. They are one of the few companies large enough to pull together
and manage the various teaming partners and subcontractors required to fulfill the various
requirements for an IOSS contract. Current Performance Housing Among other performance
requirements, the current contract specifies that the contractor will: * Place 98% of personnel in
appropriate housing within the threshold time period * Process 95% of housing applications within
the threshold time period * Complete all housing design and renovation projects no more than 8%
over the established baseline cost or schedule * Respond to 100% of customer service requests
within the threshold time period * Complete 95% of all required inspections on schedule Though
performing well overall under these requirements, SIP has had trouble meeting the application
processing (threshold time) and customer service

Financial Report: Washington Mutual Bank Big Dreams
Washington Mutual Bank Big Dreams.... Poor Implementation
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Financial Risk Management
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Prepared By:
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Rafia Hanif Butt
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Syeda Saba Zaidi
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Submitted to:
Acknowledgement:
All the thanks to Allah for giving us the courage to complete this report. We would like to express
our special ... Show more content on Helpwriting.net ...
The majority of growth resulted from acquisitions between 1996 and 2002.
On October 1, 2005, the Bank entered the credit card lending business by acquiring Providian
Financial Corporation. These acquisitions enabled Washington Mutual Bank to expand across the
country, to build its customer base, and to become the largest savings and loan association in the
country. The Bank had four business segments 1. the Retail Banking Group 2. the Card Services
Group 3. the Commercial Group 4. the Home Loans Group
Washington Mutual Bank is a leading originator and servicer of both single and multi–family
mortgages and a major issuer of credit cards.
By mid of September 2008, under the fear of credit crunch and financial crisis of AIG, Fannie Mae,
and Freddie Mac, American consumers rushed to withdraw their deposit from Washington Mutual
Bank that created a massive deposit outflow with a total of $16.7 billion in eight consecutive days.
The incident pushed the company into an extremely critical situation to have enough time to react

through increasing the capital, improving the liquidity, or finding equity partner.
Given the Bank's limited sources of funds and significant negative deposit, government regulatory

Case Study Of Fredy Mac
Freddie Mac Scandal
About the Company
Federal Home Loan Mortgage Corporation (Freddie Mac) a Government–Sponsored Enterprise
(GSE) was chartered by Congress in 1970 with a public mission to stabilize the nation's residential
mortgage markets and expand opportunities for homeownership and affordable rental housing.
Freddie Mac (and its sister institution Federal National Mortgage Association –Fannie Mae) was set
up based on the idea that neither government nor private banking interests could address the nation's
housing finance needs. The company's charter established a board comprising 18 members – thirteen
elected by shareholders and five appointed by the President of the United States. Their main mission
was to provide liquidity, stability and affordability to the U.S. housing market.
The company buys mortgages from mortgage lenders, such as commercial banks and other financial
... Show more content on Helpwriting.net ...
Also senior management and the board failed to establish and maintain adequate internal control
systems.
The Securities and Exchange Commission charged the company with securities fraud for which the
company had to pay $50 million penalty which was expected to be distributed to the investors
through a Fair Fund. The four former executives who were charged with negligent conduct agreed to
settle the case without admitting or denying the allegations:
David W.Glenn( president, Chief operating officer and vice chairman of the board)– agreed to pay
$250,000 civil penalty and $150,000 in disgorgement
Vaughn A. Clarke(chief financial officer)– agreed to pay $125,000 civil penalty and $29,227 in
disgorgement
Robert C. Dean( former senior vice president)– agreed to pay $65,000 civil penalty and $34,658 in
disgorgement
Nazir G. Dossani (former senior vice president) – agreed to pay $75,000 civil penalty and $61,663
in

Frank Wall Street Reform And Consumer Protection Act
The Dodd–Frank Frank Wall Street Reform and Consumer Protection Act became Federal Law on
July 21, 2010, instituting major financial regulatory reforms designed to improve the financial
stability of the United States. It is a legislative response to the financial system trauma resulting
from the "Great Recession" and a further regulation of the Financial Institution activities that led in
part to the Great Recession. The Act, which was named after two key lawmakers involved in the
congressional passing of the law, Congressman Barney Frank, House of Representatives Financial
Services Committee Chairman, and Senator Chris Todd, former Senate Banking Committee
Chairman, affects nearly all aspects of the oversight and supervision of the ... Show more content on
Helpwriting.net ...
The relative successes and failures of that Act are becoming more apparent with time, and the
shortcomings are subject to intense partisan criticism. As discussed below, Dodd–Frank seeks to
address the highly sensitive and controversial notion that Wall Street banks have been designated by
the Federal Reserve as too–big–to–fail. In fact, during the most severe moments of the crisis, the
voices of free market proponents could be heard advocating that these troubled big banks, suffering
massive losses due to their own bad bets, and if weakened to the point of failure, should be allowed
to fail. Hindsight shows that allowing just one to fail, Lehman Brothers, had serious and lasting
detrimental effect on the US and global financial system and markets. Had Lehman been saved, it
would have been the most effective agent to unwind all of the transactions and trades to which it
was a party, and likely in a rapid manner. However, being thrust into bankruptcy, and thereafter
receivers were appointed to unwind the business, took months upon months and vast resources to
settle Lehman accounts. Had Citibank, Bank of America, Bear Stearns, or AIG been allowed to fail,
it may have been possible that the US financial system would have melted down completely. So
these super banks, and non–banks, cannot be allowed to fail in crisis, due to the system–wide risk.
Notwithstanding, such an implicit assurance, that they will always get a bailout, no matter how toxic

12345678
Heisenberg's Uncertainty Principle and its Implications for Financial Institutions
Submitted in Partial Fulfilment of Master of Business Administration
By
KARTIK CHANDRA CHATURVEDI
Batch (2013–2015) University Roll No: S133F0010 December 2014
Under the guidance of
NIDHI KAICKER
SCHOOL OF BUSINESS, PUBLIC POLICY AND SOCIAL ENTREPRENEURSHIP
AMBEDKAR UNIVERSITY DELH
PAGE 1
CERTIFICATE
This is to certify that I have successfully completed the project titled Heisenberg's Uncertainty
Principle and its Implications for Financial Institutions submitted in partial fulfilment of the
requirements for the Degree of Master of Business Administration at the School of Business, Public
Policy and Social Entrepreneurship, ... Show more content on Helpwriting.net ...
The study draws economic analogies for Heisenberg's Uncertainty principle and concentrates on the
17 largest Investment Banks and the 10 largest Mutual Funds. It tries to quantify the uncertainty and
lists the economic mass of every institution from among the two groups and the average economic
masses of each group as well. The study was restricted to publically listed Investment Banks and
Mutual Funds and the model was not applicable to privately held and boutique banks and also
wasn't applicable to hedge funds and other private funds which did not report their Net Asset Value
Returns. According to the findings, the economic mass was highest for Goldman Sachs while
Toronto Domino Bank shows the least economic mass. When it comes to Mutual Funds, Pimco the
world's largest mutual fund had the lowest economic mass; the exposure to the crisis could be the
reason behind this. The American Funds Growth Fund of America has the highest economic mass.
This study has been able to show that the Heisenberg's Uncertainty Principle has implications for
financial institutions. For future research, one could look into applying the model for privately held

Financial Institutions and those funds which do not report their returns like Hedge Funds.
PAGE 5
LIST OF TABLES
TABLE NUMBER 1). 2). 3). 4). 5). 6). 7). 8). 9). TITLE LIST OF INVESTMENT BANKS LIST
OF MUTUAL FUNDS LIST OF TIME SERIES TESTS CARRIED

Government Spending of Tax Dollars Essay
Government Spending of Tax Dollars
Taxes are the dollars that we pay to government to supply the services that are not or can not be
provided through the free enterprise system. Taxes have been around since the beginning of
organized societies. They come in various forms. Most common are income taxes both federal and
local government. These taxes are assessed on the amount of income a person earns. Other taxes
come in the form of user taxes; these taxes are imposed on the people that are using the goods being
taxed, such as gas tax, alcohol tax, sales tax, and luxury taxes. Property taxes make up the major
revenues for local and city governments. Furthering the burden of taxation are taxes that are
attached to such bills as utility ... Show more content on Helpwriting.net ...
In order for these governments to function there was a need for revenue to meet the expenses
incurred by these governments. This need for revenue was met by levying taxes on individuals and
businesses. It has always been a question to the population being taxed as to whether or not the
government was doing a good job in assessing and managing the money it collected from taxes.
Taxes 4
The purpose of this report is to determine if the government is acting fairly in its taxation of the
American population, and to point out the waste in government spending. In an article published
November 1995, an unknown author explained the need for government "revenue" by defending
what the revenue supplies for the people. In America we live within a free enterprise society. A free
enterprise system is based on the idea of competition is good and that only the most efficient
businesses will survive. The free enterprise system works with the idea that the consumer is
somewhat knowledgeable about the products they buy. However, in today's modern world the
consumer cannot be always be expected to make an informed decision about something. This is
where federal laws are put in place to protect the interest of the public. Examples of such laws are
regulations covering quality and safety of home

Czech Republic
International Business Project: The Czech Republic
International Business Project: The Czech Republic
Introduction
The Czech Republic is a small, landlocked country located in Central Europe, southeast of
Germany, bordered by Austria, Germany, Poland, and Slovakia. Slightly smaller than South
Carolina, the Czech Republic covers 78.866 square kilometers (sq km): 77,276 sq km of land and
1,590 sq km of water.
Following the First World War, the closely related Czechs and Slovaks of the former Austro–
Hungarian Empire merged cultures to form Czechoslovakia. During the interwar years, the country's
leaders were frequently preoccupied with meeting the demands of other ethnic minorities within the
republic, most notably the Sudeten Germans ... Show more content on Helpwriting.net ...
The Czech Republic became a member of the European Union (EU) on May 1, 2004. Through the
course of the accession process, most barriers to trade in industrial goods with the EU have been
eliminated. The process of accession had a positive impact on reform in the Czech Republic, and
implementation of EU directives and regulations continues. The U.S. Department of Commerce
Country Commercial Guide for the Czech Republic summarizes the economic trends and outlook
this way:
The principal industries are motor vehicles, machine building, iron and steel production,
metalworking, chemicals, electronics, transportation equipment, textiles, glass, brewing, china,
ceramics, and pharmaceuticals. The main agricultural products are sugar beets, fodder roots,
potatoes, wheat, and hops. As a small, open economy in the heart of Europe, economic growth is
strongly influenced by demand for Czech exports and flows of foreign direct investment.
Heavy industry received major economic support during the 1950s, but central planning resulted in
waste and inefficient use of industrial resources. Although the labor force was traditionally skilled
and efficient, inadequate incentives for labor and management contributed to high labor turnover,
low productivity, and poor product quality.
The Czech koruna (crown) became fully convertible for most business purposes in

Global Effects Of Global Effects On The World Economy
Global Effects
The 2008 financial crisis consequences strongly affected the world, from strong economies in
Europe to slow growth developing countries. The world's economy suffered a downfall that took
around 2 years to recover.
Europe was one of the most affected regions in the world. Government interventions, capital
injections and bailouts surged in the region after the US financial market crash. The European
market has affected so hard that the impact of the US financial crisis developed into a Eurozone
crisis.
One of the reasons the Eurozone was crushed is that the European banking system failed. Mainly
because the European banks recklessly borrowed money in American markets to buy risky
securities, those risky securities defaulted ... Show more content on Helpwriting.net ...
Being oil producing countries, the Middle East region had a strong currency and a stable economy
due to strong oil prices. Also, helped by direct foreign investment and aid from other Arab countries,
the Arab region was able to maintain strong during the crisis.
Asian countries economies suffered a slow economic growth during 2008 and 2009 mainly because
being export economies, and the United States netting almost 1/3 of world's consumption. East Asia
was the most affected part of Asia, specifically Singapore and Japan. Singapore GDP's dropped from
a 14% annual growth rate in 2008 to a 1.1% in 2009 and Japan annual growth rate declined an
astonishing 15.2% during the first quarter of 2009. As in the USA, Asia economy have had a strong
recovering road but has been positively affected by the USA uprising economy. (Adbi.org)
United States
The USA financial system suffered one if it's hardest crisis in 2008. According to specialists the
average house hold in USA lost an average of 5,800$ in income during the recession peak. The cost
to the Federal government to stop the crisis was around 2,000$ on average for every household in
America, and the combined of the decreasing costs of stock values and housing values was around
100,000$ average for every household in America. (pewtrusts.org)
Gross Domestic Product: The USA gross domestic product suffered it highest decrease during the
recession in the 4 quarter of

Non Profit Organization
1. Introduction The nonprofit corporation exists solely to provide programs and services that are of
public benefit. Often these programs and services are not otherwise provided by local, state, or
federal entities. While they are able to earn a profit, more accurately called a surplus; such earnings
must be retained by the organization for its future provision of programs and services. Earnings may
not benefit individuals or stake–holders. Underlying many effective nonprofit endeavors is a
commitment to management. Twenty years ago, the term "management" was distasteful to many of
those involved in nonprofit organizations because of its connotations of "business." Non–profits
prided themselves on being free of the taint of ... Show more content on Helpwriting.net ...
Board Chair – A board chair's role is central to coordinating the work of the board, executive
director and committees. The chair's role may have appointive power for committees, depending on
what is specified about this role in the bylaws. The power of the board chair is usually through
persuasion and general leadership. See the topic Board Chair for an overview of the board chair role.
Committees – Typically, the board chooses to carry out its operations using a variety of board
committees. The topic Description of Typical Committees for a description of typical board
committees. Executive Director – The board typically chooses to have this one person who is
ultimately responsible to carry out the wishes of the board. The executive director is directly
accountable for the work of the staff and supports the work of the board committees. Staff – Staff
report to the executive director and may support the work of the committees. Volunteers –
Volunteers are unpaid personnel who assist staff, serve on committees and generally work under the
direction of the executive director. Three Major Aspects of Nonprofit Structure Typically, the
nonprofit operations are organized into major functions. These functions usually include central
administration and programs. Governance – The governance function of a nonprofit is

Value Chain Analysis: VA Strengths And SWOT Analysis
VA's strengths and weaknesses are built based on the value chain assessment and SWOT analysis
from the VA's internal and external environment and the previous strategies. The environmental
scanning was conducted and discussed relative to VA's competition, as well as its strengths and
weaknesses. In doing so, this analysis starts with the identified the strengths and weaknesses in the
following graphs. VA strengths: Service Delivery – VA provides a broad range of the quality and
accessibility of primary care, specialized care, related medical and social benefits through a
nationwide network for Veterans and their eligible beneficiaries, such as vocational rehabilitation,
service members' group life insurance, traumatic injury protection, the Post–9/11 GI–Bill, the VA
home loan programs, and ... Show more content on Helpwriting.net ...
I CARE – the acronym of VA's five core values: Integrity, Commitment, Advocacy, Respect, and
Excellence including its characteristics as Trustworthy, Accessible, Quality, Agile, Innovative, and
Integrate, defines VA's culture and how VA cares for Veterans and eligible beneficiaries. VA's core
competencies affect the outcomes in daily interactions with Veterans and eligible beneficiaries and
reminds VA employees of the importance of their role in Department. VA's core values guide how
VA performs its mission, align its strategy, and support the execution of VA's missions and decisions
made within VA. With the sporting of three guideline principles: people–centric, results–driven, and
forward–looking, VA is able to adapt the cultural change, to achieve problem solving and decision–
making

The Use of Funds in Government Accounting
Chapter 2: The Use of Funds in Governmental Accounting
Multiple Choice
1. To what does basis of accounting refer? a. whether an entity is trying to measure the excess of
inflows over outflows b. how much cash an entity received in a particular reporting period c. the
timing of recognition of assets, liabilities, revenues, and expenditures/expenses in financial
statements d. the ownership of the assets, liabilities, and equities reported in a balance sheet
Answer: c
2. Governmental accounting normally does not a. use separate funds to account for various activities
b. incorporate budgetary accounts into the accounting system c. measure the amount of profit earned
during a fiscal year d. focus ... Show more content on Helpwriting.net ...
a. business–type activities of government that are financed by user charges b. sales taxes collected
by a state on behalf of counties within the state c. property taxes to be used to provide basic
government services d. donations that must be kept intact, but whose income must be used to
beautify parks
Answer: c
13. Which of the following terms best describes the types of assets accounted for in governmental–
type funds? a. any resource that can be used to provide service to the citizenry b. current financial
resources and capital resources c. current assets and movable fixed assets d. current financial
resources
Answer: d
14. Which of the following activities is the most likely to be accounted for in a General Fund? a.
payment of salaries of police and firefighters b. construction of a new school building c.
accumulation of resources to pay pension benefits to employees d. accumulation of resources
required by law to be used only to beautify parks
Answer: a

15. Which of the following types of liabilities is least likely to appear in the balance sheet of a
governmental–type fund? a. amounts owed to suppliers of goods and services b. amounts owed to
bondholders over the entire 20–year life of a debt c. amounts owed to other funds d. amounts owed
to employees for services performed before an

Capstone Project Finance (Final Project)
CAPSTONE PROJECT
Project Title: APPLICABLE FINANCIAL POLICIES CHANGES THAT CAN BE USED TO
ENCOURAGING HOUSE AND HOME OWNERSHIP IN MICHIGAN
Submitted by:
Submitted to University MBA/MS Program [list one]
Capstone Mentor: [name]
For University Use Date Received: ______________________________________________
Reviewed by: _______________________________________________
Approved/Disapproved: ______________________________________________ Signature:
______________________________________________ Date:
______________________________________________ Comments:
______________________________________________ ... Show more content on Helpwriting.net
...
ws in the Housing Finance System 22 2.4 The Federal Housing Finance Agency (FHFA) 23 History
of FHFA 24 Conservatorship of Freddie Mac and Fannie Mae 24 Chapter 3: Description of the
Research Design Used 26 3.1 Research Method and Design Appropriateness 26 3.1 Population 26
3.2 Informed Consent 26 3.3 Confidentiality 27 3.4 Data Collection 27 3.5 Instrumentation 28 Open
and Closed Ended Questionnaires 28 Interviews 29 Reading 29 3.6 Validity and Reliability 30
Internal validity 30 External validity 30 Reliability 30 3.7 Data Analysis 31 Chapter 4: The Results
and Findings of the Project 32 Chapter 5: Discussion of Results and Findings 33 Chapter 6:
Conclusion and Recommendations 37 Chapter 7: References 38 Chapter 8: Appendices 41 Appendix
1: CFED Assets & Opportunity Scorecard 2012, Michigan State: Profile 41 Appendix 2:
Housing Financial Policy Changes in Michigan Questionnaire 42 Appendix 3: Housing Financial
Policy Changes in Michigan Interview Questions 44
List of Abbreviations
CFED – Corporation for Enterprise Development
FHA – The Federal Housing Administration
FHFA – Federal Housing Finance Agency FHFB – Federal Housing Finance Board
GSEs –Government Sponsored Enterprises

HUD – Department of Housing and Urban Development
IRS – The Internal Revenue Service
LTV – Loan–to–Value Ratios
MBS – Mortgage–Backed Securities
MCC – Michigan Chamber of Commerce
MMI – Annual Mutual Mortgage Insurance

Jumbo Loan Limit Analysis
The Office of Federal Housing Enterprise Oversight (OFHEO) establishes limits for conforming
loans on homes. Any home that falls outside of the guidelines cannot be securitized, purchased or
guaranteed by Freddie Mac or Fannie Mae, therefore they are referred to as Houston jumbo loans.
The loan limits established by the OFHEO change annually, thus potential home buyers need to be
aware of current conforming loan limits before purchasing a home. Individuals wishing to purchase
a home that exceeds the conforming loan limit need to looking into non–conforming jumbo loans.
Jumbo Loan Limits
Currently, the Office of Federal Housing Enterprise Oversight has set the conforming loan limit at
$417,000 for all states within the continental United States. Homes in Alaska and Hawaii may be
purchased at amounts up to $625,500 and still be purchased, securitized or guaranteed by Fannie
Mae or Freddie Mac. In addition, in areas where homes fall into a high–priced market, such as in
Los Angeles, the limit is higher, allowing home buyers to purchase a residence as high as $625,500
with a secured loan. this does vary by area, however, thus home buyers need to learn the limits in
their region to determine how much they may obtain without turning to jumbo home loans. At this
time, jumbo loans in Houston Texas must conform to the existing federal guidelines. ... Show more
Thankfully, certain institutions do offer this option. There is a higher credit risk associated with
these securities. As a result, the securities require slightly higher interest rates, simply because they
trade at a yield premium.
Purchases That Qualify For A Jumbo

Fannie Mae Case Study
The congress has determined that the executive compensation system is unreasonable during the
crisis in 2000s. Fannie Mae's compensation committee was equally in effective. The committee
allowed the company's CEO, Franklin Raines, to select the consultant employed to design the
mortgage firm's executive compensation plan and agreed to a tiered bonus plan that would permit
Raines and other senior managers to receive maximum bonuses without great difficulty. Raines
receives $52 million in performance–based bonuses and $90 million in total compensation during
1999 and 2004. The Office of Federal Housing Enterprise Oversight found that Fannie Mae had
cautiously overstated earnings to obtains bonus linked to financial performance. Securities and
Exchange Commission also found evidence which indicates that Fannie Mae is involve in improper
accounting and required it to restate its earnings between 2002 and 2004 by $6.3 billion. Moreover,
Freddie Mac was also involved in manipulative accounting to receive bonuses. Freddie Mac's CEO
Richard Syron received $19.8 million in compensation while the mortgage company's share decline
from a high $70 in 2005 to $25 in the end of the year 2007. Fannie Mae's compensation philosophy
is that it should attract, retain, and reward the skilled talent needed to successfully manage a leading
financial services company.
Compensation must be consistent with its charter, which require compensation plan to be realistic
and comparable to the

Lowering The Liquidity Of The Federal Reserve
To combat the liquidity issues in the market, the Federal Reserve stepped in and lowered the
discount window interest rate with the intent of putting liquidity back into financial markets. These
lowered rates had a positive short term affect with some improvements in market liquidity.
However, credit markets were still not providing the level of market liquidity that was required by
businesses. The first stage of the Federal Reserve's response was only a short term fix and did not
adequately address the market liquidity needs, so the Federal Reserve continued with additional
action to supplement market liquidity through the use of non–monetary tools (Sarker, 2009).
The non–monetary, second and third stage tools established by the Federal ... Show more content on
Helpwriting.net ...
The bank investment programs helped stabilize the banking system by alleviating some of the
liquidity pressure on large financial institutions whose failure would have had devastating impacts
on the entire economy. The initial authorized TARP budget of $700 billion was later reduced to $475
billion as part of the Dodd–Frank Wall Street Reform and Consumer Protection Act, referred to as
the Dodd–Frank Act and authority to make new financial commitments under TARP ended in 2010
(Department of Treasury, n.d.).
Of the five program areas, the majority of the TARP money was spent stabilizing banking
institutions, with a total of $250 billion. $27 billion was committed to efforts in restarting credit
markets, and another $47 billion committed to help families avoid foreclosure. The other two
program areas were efforts to provide stability to the U.S. auto industry in the amount of $82 billion,
and approximately $70 billion was committed to stabilize American International Group (AIG). In
addition, the U.S. Treasury implemented standards of executive compensation for financial
institutions that were rescued by the TARP program (Department of Treasury, n.d.).
The U.S. Department of Treasury publishes TARP reports with details of where TARP funds have
been committed, disbursed and recovered. The largest obligations were made to the banking
industry in an amount exceeding $250 billion, over half of the total $455 billion obligated funds.
Other

Deregulation Created the Subprime Mortgage Crisis
Deregulation Created the Subprime Mortgage Crisis The mid–1990s saw an economic revival. What
incited this activity was a technology boom like no other. It created a new era of electronics and
computing. There were cell phones, desktop and laptop computers, the Internet, electronic games,
flat panel TVs and major advances in business software and efficiencies. The housing industry was a
big benefactor of this new economy. Home prices began to rise again by 1996. The rate of home
ownership during the 1970s, 1980s and the first half of the 1990s averaged 64.4 percent. The rate
began to rise in 1995, peaking at 69.2 percent in 2004. New housing rebounded. The economic
turnaround brought California –– hit especially hard by the last ... Show more content on
Helpwriting.net ...
As reported by the Washington Post's Robert O 'Harrow Jr. and Brady Dennis in an article titled,
'The Beautiful Machine', "Financial Products unleashed techniques that others on Wall Street rushed
to emulate, creating vast, interlocking deals that bound together financial institutions in ways that no
one fully understood and contributed to the demise of its parent company (AIG) as a private
enterprise...many of the most compelling aspects of the economic cataclysm can be seen through the
story of AIG and its Financial Products unit: the failure of credit–rating firms, the absence of
meaningful federal regulation, the mistaken belief that private contracts did not pose systemic risk,
the veneration of computer models and quantitative analysis." However, a November 13, 2009
column by Edward Pinto in the Wall Street Journal blames Congress and affordable housing
programs, "Congress 's goal was to force these two government–sponsored enterprises (GSEs
Fannie Mae and Freddie Mac) to purchase loans that had been originated by banks –– loans that
were made under the pressure of another federal law, the 1977 Community Reinvestment Act
(CRA), to increase lending in low– and moderate–income communities...from 1977 to 1991, $9
billion in local CRA lending commitments had

Essay on Justly Solving the Foreclosure Crisis
For millions of people in the United States, the property boom of the 2000's ended without much
warning. All over the country, tent cities are emerging as the abode of those most unprepared for the
collapse of housing prices and the resulting decrease in employment opportunities. The housing
crisis' effect on national economies threatens to plunge the global economy into a malaise unseen
since the 1930s, according to Alan Greenspan (former Federal Reserve Chairman), the International
Monetary Fund, Warren Buffet, and a host of economists around the world. In the United States,
financial and real estate sectors' unethical behavior has done much to produce the crisis, and must be
addressed for prosperity to be reestablished. In the spirit of ... Show more content on
Helpwriting.net ...
For example, a collateralized debt obligation is a bond that is issued on the performance of a debt
obligation, such as an automobile loan, commercial or residential mortgage, credit card loan, or
student loan. CDOs, backed by real estate, create a number of ethical quandaries: 1) they are
contingent upon the performance of the buyer to fulfill their responsibilities of the contract; 2) they
are contingent upon the value of the property; 3) market appetite for these assets can affect the
health of the company, possibly triggering a recall of the very loans the bonds are based upon; 4)
they are not subjected to rigorous regulation by the SEC or other government agency. Some of these
bonds were underwritten, or protected from default, by private banks, while government–sponsored
enterprises such as Fannie May and Freddie Mac underwrote the remainder of them.
Banks profit from the joy of rising prices when the value of CDOs rise. The operation of buying and
selling these assets yields tremendous profits for banks and encourages a continuation of the cycle.
When times are good, the property owners are ecstatic about the equity gained by rising prices.
Some even choose to take out a second mortgage, creating another opportunity for issuance of a
CDO, or similar financial instrument. However, all good things come to

Case Study Of Freddie Mac
3. Freddie Mac was one of the government–sponsored enterprises, it delay to report its earnings
report because of an accounting scandal that conduct it to restate earnings in November covering the
years 2000 through 2002 which had understated them by $5billion. The company delayed making
financial reports after 2002 and promised to release the 2003 earnings report by 30 June so it had
time to rebuild its accounting systems. It promised to release 2003 earnings by June 30. Freddie Mac
reported the earnings report had earned $4.89 billion last year down from $10.09 billion in 2002 and
expected 2003 profit of $5.90 a share. Reflecting the consequences of the $5 billion restatement due
to the management had ignored accounting rules to hide earnings ... Show more content on
Helpwriting.net ...
The first fundamental principles of ethics in MIA by– Law are Integrity. The company does not
follow the integrity. Compliance with Legal and Ethical Requirements is under integrity. The
company complies with all applicable laws and conducts its business with integrity and employees
must do the same in carrying out their responsibilities as a Director. They should honest and sincere
in the approach of their professional work. In the accounting scandal, the reason of understated the
$5 billion of earning is because the management had ignored accounting rules to hide earnings and
volatility. They did not be honest and sincere in the approach to their own professional work.
The second fundamental ethic in MIA By–Law is due care and skill. In accounting scandal, David
Glenn as Chief Operating Officer, Leland Brendsel, Vaugh Clarke, Robert Dean and Nazir Dossani
those who had a higher position in the company but they do not carry out professional work in
accordance with the technical and professional standards relevant to their work. So it causes the
Freddie Mac company misstated and understated $5billion of earning over 4 years period. The third
fundamental ethic in MIA By–Law is independence. The Freddie Mac's management should be and
appear to be free of any interest and their behaviour must always be independence. But the Freddie
Mac's management did not independence because they hide earnings and volatility for their own

The Looming Of A Miracle Worker Essay
The Looming Shadow If life could be solved on "good" intentions alone then the government would
be revered as a miracle worker, unfortunately in reality good intentions are often followed by those
who would seek to profit from them Across American history this trait is a pattern that has repeated
itself numerous of times, from the past century alone good intentions created the great depression
and the savings and Loans collapse. Most recently the new good intention became low–income
families, and from it blossomed a thorny rose of a new standard of business ethics. The intention of
assisting low–income families started becoming more prevalent under Bill Clinton's administration,
and can traced to 1992 with the creation of the Office of Federal Housing Enterprise Oversight
(OFHEO). In time, from administration to administration while people either looked away or got
paid under the table the remaining ethics of every the American industry vanished, leaving in its
wake a crisis which even today remains as a shadow on the minds of all Americans. A shadow
greater than the one created by the explosion of the USS Maine in the harbor of Havana, or even the
darkness on the day of Pearl Harbor. The reason the shadow remains is because of that very
vanishing ethics, which had created it under the guise of good intentions starting with OFHEO. In
1992 the Federal Housing Enterprises Financial Safety and Soundness Act was passed, which was
responsible for the creation of the OFHEO

The American Financial Industry
The American financial industry is a very active industry in the world. Although the history for
American financial industry is shorter than other old capitalist counties, such as English, France ,
Netherland, due to the industry 's potentiality, creativity and successful supervision comes from
government ,the American financial industry has been growing fast since it was established
hundreds year ago. Overall ,at present ,from the aspects of industry scale and structure ,monetary
policy and the freedom of transaction ,those are more mature and perfect than any other countries, as
al result ,the US financial industry has become the world 's most advanced financial industry . As
most of people know, the premise of financial development ... Show more content on
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Consequently, the great depression was happened at that period. It is worth to mention that such
cause is still occurring in recent crises. The introduction of US financial regulatory system What is
the meaning of financial regulation? Specifically, the financial regulation means there are sets of
regulation or supervision, which let the financial organizations comply to requirements, restrictions
formulated by government or any other institution. The aim for financial regulation is keep the
integrity of financial system, and this objective composing four parts ,the first parts is the regulation
should maintain the confidence in financial system, the second part is enhancing the stability of
financial system ,the third part is it should protect the consumer rights and the last one is reduce or
prevent the financial crime( Kushmeider, Rose Marie,2005). The relaxation on financial regulation,
it is always a problem or challenge for authority to confront. Because at initial time ,when reducing
the financial regulation ,it usually

JPMORGAN CHASE Essay
JPMorgan Chase is one of the oldest financial services company dating back over 200 years. It has
$2 trillion in assets and operations in more than 60 countries. JPMC's corporate strategy is it
provides services and products in major capital markets. JPMorgan Chase, well known nationally
and globally, is leading in investment banking, financial services for consumers, small business and
commercial banking, financial transaction processing, asset management, and private equity.
According to JPMorgan Chase website, from the beginning, they have contributed to business,
society and world affairs. They pride themselves on their reputation and employees. They consider
their employees "most valuable assets". JPMC's mission are to ... Show more content on
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Chase Manhattan owned Robert Fleming & Co., the London–based asset manager that had a big
presence in Asia. Some Fleming investment teams now oversee several JP Morgan equity funds.
Bank One's fixed–income offerings based in Columbus, Ohio, are a large anchor of JP Morgan's
bond shop. When JP Morgan bought asset–management firm Highbridge Capital Management in
2009, it helped the fund family move into alternatives such as commodities and market neutral
strategies.
They have been able to generate different sources of revenues through commercial banking, credit
card and retail financial services, which separates them from competing with some investment
banking companies. The accounts, products and features the company offers sometimes have fees
which it is willing to waive. Since the company wants the "share of wallet" of high balanced
customers, it will take such actions. This action of course has the potential to deepen relationships.
In the article by author Charles Keenen he states, "According to Bancography, a consulting firm in
Birmingham, Ala., a customer who has just one product with a bank will stick with that bank for
about 18 months, but add even one product – a savings account, perhaps – and the average jumps to
four years. Customers with three products will stay with the bank for about 6.8 years." JPMorgan
Chase has a unique software which the company utilizes to maintain its relationship

Subprime Meltdown: American Housing and Global Financial...
Subprime Meltdown: American Housing and Global Financial Turmoil In early 2008, policy–
makers in the United States needed to deal with the frightening after–effects of what had appeared to
be a glorious housing boom. The most immediate problem was a wave of foreclosures, which a
Senate report predicted could reach 2 million by the end of 2009. Lawmakers sought to relieve the
resulting pain and to preserve the longstanding dream of raising the US homeownership rate. Amidst
a sea of lawsuits and recrimination, they needed to figure out where the US system for financing
home purchases had gone wrong and how it could be fixed. To do this, lawmakers needed to
understand what had happened, particularly because housing had until then seemed ... Show more
New houses in these areas were often snapped up by eager investors and newspapers relished
reporting on individuals who managed to resell houses at a gain even before they took possession of
them. According to Loan Performance Inc, more than 12% of Phoenix–area mortgages were
obtained by investors in 2004, as compared to just 5.8% nationwide in 2000.
Home finance before the 1990's
In the United States, it was common to talk about the "Traditional" fixed 30 year mortgage. This
instrument required the borrower to make a constant stream of monthly payments during the 30 year
term of the loan. These payments were specified in advance; so the interest rate on this loan was
fixed. Many of these traditional loans allowed borrowers to 'pre–pay" their mortgages without
penalty. When interest rates declined, borrowers often took advantage of this feature and refinanced
their homes at lower rates.
Savings and Loan Associations (S&Ls) already offered mortgages with constant payments
before the Great Depression, though they were typically less than 12 years long. At the time, other
lenders mostly offered short–term mortgages that needed to be refinanced because they had
"balloon" payments at the end. During the Great Depression, many households went into default in
part because this refinancing became difficult. One government response was to create the Home
Owners Loan Corporation

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