Ethical Dilemmas Paper

Ethical Dilemma Paper

Derek Funderburk

ETH/321

8/10/2015

John Pierce

Ethical Dilemma Paper

        In this paper I will discuss the ethical dilemma to save the banking system, the bailout of the system and the effects the banking system has on the economy and the working class, mainly the middle class of the world.

Bailout of the Banking System

During the economic downturn from 2005 to 2009 the international banking system began to crumble due to greed and rigging of interest rate pricing, the cost of borrowing money, to insure that the largest banks and the bank owners continued to be profitable and line their own pockets with profits and raises until they were forced to come to congress and ask for billions in bailout funds.  The rigging of the LIBOR short for “London Interbank Offered Rate” affected trillions of dollars in trades around the globe and as close to home as our rates on mortgages, student loans and credit cards.

Ethical Theories

        The bankers and stockholders during this time of economic decline exhibited the theory of utilitarianism.  Utilitarianism is choosing the right way to behave in a given situation is to choose the alternative that is likely to produce the greatest overall good which in this case was making sure the banks and the shareholders maintain as much wealth as possible.  But by keeping the banking system afloat with the bailouts, companies and a lot of private citizens were and are able regain customers, employment and lines of credit that both companies and individuals need to get back to a sense of normalcy.

        Based on the economic downturn of the mid 2000’s, mismanagement of funds, bailouts and the corruption of the governmental corruption regulation of the banking system is slow and still not very regulated.  Americans are still not trusting of the banks or the government agencies that are supposed to hold them accountable for their transactions and methods of funding.  Oversight of financial institutions is a must but weeding out the lobbyist and other capitalist will be difficult if not impossible.  Financial institutions will remain a must because the government and its people require credit to operate but the slow movement of regulatory measures will allow these institutions to operate as business as usual.