Explain how Citigroup was ethically wrong with the subprime mortgage and where do they stand now. Please include the key players.© BrainMass Inc. brainmass.com June 4, 2020, 12:54 am ad1c9bdddf
"Citigroup was involved in a subprime mortgage crisis that entailed heavy exposure to toxic mortgages accompanied by poor risk management." "The company used mathematical risk models which looked at mortgages in particular geographical areas, but did not include the possibility of a housing downturn, or the prospect that millions of mortgage holders would default on their mortgages, creating a disaster." The company was ethically wrong because it gave people with bad credit the opportunity to take out a mortgage loan that they could not afford. Simply relying on these individuals to make a judgment about how much money they ...
This solution explains how Citigroup was ethically wrong with the subprime mortage and where they stand now.