Countrywide Financial was a mortgage-banking firm. They had one of the largest market shares in the early 2000s, when the mortgage market was booming. “No company pursued growth in home loans more aggressively than Countrywide” (NY Times 12/10). They were the leader of their industry, with 500 billion in home loans, 62,000 employees, 900 offices, and $200 billion in assets. Everything had been going well for the company and its employees, until the mortgage crisis began to unfold at the end of 2006. In June 2009, the SEC filed a civil suit against the founder of the business and some of his top management for fraud and insider trading. This came at the height of the mortgage crisis in the US. The founder of Countrywide, Angelo Mozilo, finally agreed to pay $45million in profits and $22.5 million in civil penalties, in which he still admits no wrongdoing.…
Indeed, the PBS documentary titled, “The Untouchables” clearly validated the fact that the criminal justice system stance against large corporations seemed too lenient despite the reckless activities these institutions pioneered to destabilize the global economy. Furthermore, Lanny Breuer, the Assistant Attorney General for the Criminal Division of the U.S. Department of Justice, during his interview with the PBS Frontline producer, remained all the time defensive even when presented with the facts implicating the powerful American banks about promoting wrongdoings. Paradoxically, Breuer in his defense kept arguing that his investigation could not find sufficient evidence to indict the financial institutions.…
The primary issues in this case are: why did the Wall Street bankers blindly trust that the risky mortgages were good assets to invest into? And why did everyone involved allow the whole thing to go this far?…
Some investors that are misled lost chunk if not all of their investments. The public, investors, employees, pension holders and politicians were so outraged and wanted to why Enron's failings were not spotted earlier. Enron did not do these all alone, they have accomplice in the name of another giant accounting/auditing company called Arthur Andersen where they helped the firm overlooked significant debts that are not the Enron’s financial statement. They knew that Enron was over its head but they let the company conceal its debt over a long period of that which eventually led to the downfall of the company. The highlight of this section is that Enron’s top managements self interest, greed led to presenting the investors and board of directors misleading financial statements. Because of their greed and self interest, a crime was committed that led to prosecution of some of the Enron’s top managers. For example, Former Enron executive Michael Kopper pleads guilty to conspiracy to commit wire fraud and money laundering conspiracy. While Andrew Fastow Former CFO was charged with securities fraud, wire fraud, mail fraud, money laundering and conspiracy. To avoid another Enron, the US Congress passed a law called Sarbanes-Oxley Act 2002…
One of Dodd-Franks primary goals was to regulate “too big to fail” banks such as J.P. Morgan, Goldman Sachs, Citibank, and Morgan Stanley, in order to prevent further recessions at the hands of the financial industry. Unfortunately, this meant the act paved the way to future bail-outs, instead of preventing them. Dodd-Frank seeks only to regulate, and its only provision to ensure cooperation is a financial reward for whistleblowers. This incentive is not enough to outweigh the costs for most industry insiders, so the government ends up giving bailouts anyways…
In the documentary 13th it explains how post-slavery and mass incarceration are connected. According to the documentary 13th, after slavery ended, African Americans were arrested for minor crimes and forced to do hard labor. Mostly because they needed someone to do free labor without going against the 13th amendment. For example, they were forced to pick cotton and help build the south after the Civil war. Also, through the media African American men were perceived as rapists and were pictured unsophisticated.…
The essay “The Untouchables” written by Tomas L. Friedman is an excerpt from his book The World is Flat: A Brief History of the Twenty-First Century. Friedman is a New York Times investigative reporter and columnist who has won three Pulitzer Prizes during his career. Other works he has written include Hot, Flat, and Crowded and The Lexus and the Olive Tree. In this book Friedman argues that the world as we know it is becoming figuratively smaller as people are forced to collaborate and compete with others around the world.…
The United States prison system is notorious for the way it treats its inmates. There are so many theories, and facts to back up the claim that the prison system is not working the way it was intended to be, and it continues to be a growing issue that the government is not addressing. Further, within the already complicated prison system, there is another issue. Solitary confinement, which was originally supposed to be used as a short term punishment within prisons, or jails, has now become an integrated part of prison life (Edge, 2014). Solitary Nation, is 2014 documentary highlights the damages that solitary confinement is doing to people (Edge, 2014). Individuals whom have not shown any signs of degrading mental health come out of segregation, or as the inmates call it, “seg,” disturbed (Edge, 2014).…
While proposition 47 reduces many drug related felonies to misdemeanors this may help whites being released from prison as incarceration even for a misdemeanor can have long reaching stratifying effects for Blacks and Hispanics when it comes to jobs, housing and other resources. Which leads to higher recidivism rates for blacks and Latino as the stigma of incarceration adversely impact their life chances chance as they find it hard to rebuild relationships with loved one or find support services once released from prison. Studies have shown black and white felons sent on the interviews with the same, resume information and Felony convictions yielded better results for receive call backs for or a job, while blacks with the no call back s our job.…
The Jim Crow laws were created as a way to segregate black people. Way back in our history, blacks were discriminated against and segregated from public spaces, public vehicles, and even employment. The documentary the Central Park Five points out to us what the newer and more hidden form of what may be called the new Jim Crow looks like today. Sure we no longer tell blacks to sit in the back of the bus, but we deny jobs to those who have a criminal records; we incarcerate innocent people because they are seen as easy targets; we give little to no media attention to victims who are black; we allow racism to occur right in front of our eyes and do close to nothing to stop it or argue it. These are only a few ways our society has collectively…
The Movie, Crips and Bloods: Made in America, is a documentary that informs people outside of the projects of LA, just what life looks like from an insider’s perspective. Many people don’t understand gangs and what it is that started the huge uprising of them. Growing up in the projects and being turned away from many youth groups took a large psychological toll on many of the kids growing up in LA in the 60’s. Instead of Boy Scouts, and other youth groups, the youth turned to making groups that eventually resulted in gangs. Not only were they turned away from youth groups but also unfairly treated by authority, which triggered African Americans to search for more of a sense of belonging. Gangs started small and seemingly…
Prior to this activity, I was skeptical that I would not learn anything beneficial or enlightening. After a little debate, I decided to move forward in watching the documentary Poor America. Although this was a short documentary, I felt that every second was impactful. This documentary was the perfect introduction to allow myself to develop within this series of multicultural activities. I felt engaged during the documentary because it showed several different people going through something similar that I have thankfully not had to experience in my life. Prior to this documentary, I do not believe I was aware of true poverty. A lot of the things that I had growing up I did not realize they were such a privilege. Although small, this experience as help me develop a better understanding.…
Sen. Paul Sarbanes (D–MD) and Rep. Michael G. Oxley (R–OH-4), the co-sponsors of the Sarbanes–Oxley Act.…
The Commodity Futures Trading Commission recently filed a complaint against Jon Corzine, CEO of MF Global, charging him with directing one of his mid-level managers, Edith O 'Brien, to transfer millions of dollars of customer assets to cover a bank overdraft that threatened to sink the firm. If he did so, the former head of Goldman Sachs, U.S. Senator, and governor of New Jersey broke the law. However, Corzine 's lawyer claims his client is not guilty as charged because "it never dawned on" him that when he, the boss, approached his subordinate with a subtle request to "find" $175 million that that call would cause her to "violate the golden rule" of protecting customer assets.…
Inside Job is an exemplary recount of how administrator’s role when exploited to form risky administrative strategies by means of faulty processes lead to a crisis of the stature of the recession of 2008. It is a comprehensive documentary which narrates the history of the collapse, not only going into great, informative depth about the risk-based strategies that put the global economy on the line, but looks back to the rise of the financial industry. The biggest question which the documentary arouses is that knowing what happened, why are the miscreants not being punished? As the director, Charles Ferguson, himself stated while receiving the Oscar, “Forgive me, I must start by pointing out that three years after our horrific financial crisis caused by massive fraud, not a single financial executive has gone to jail, and that's wrong.”1 Lets us first look at the prelude (context) of this financial crisis:…