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Ethics Surrounding the Lehman Brothers' Downfall

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I need help with questions that are related about Lehman Brothers down fall!

Did the Lehman Brothers engaged in illegal or unethical behavior? Did Lehman Brother's allowed or encouraged malfeasance or questionable acts?
What's the difference between "illegal behavior" and unethical behavior?
How unethical behavior impacts work performances today?
Who usually initiates the unethical behaviors?

Thank you.

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Lehman Brothers engaged in both illegal and unethical behavior. The company had indulged in massive accounting fraud this is illegal. At the same time the company had used short term deposits for making long term loans/investments. This is unethical. Also the use of Repo 105 transactions to boost the banks financial position is unethical and illegal. Lehman Brothers encouraged malfeasance and questionable acts. Way back in 2003 and 2004, Lehman Brothers acquired subprime lenders BNC Mortgage and Aurora Loan Services. These companies gave loans to borrowers without full papers. The company encouraged malfeasance and questionable acts.
The difference between illegal behavior and unethical behavior is that illegal behavior is one that violates the law. On the ...

Solution Summary

Immoral business at Lehman Brothers is explained in a structured manner in this response. The answer includes references used.

See Also This Related BrainMass Solution

Australian Financial Regulation

Read the attached article about the 2008 financial crisis and calls for better regulation in "Leaders: What next?"

The article refers to corporate and regulatory failure. It poses the proposition that better regulation is needed but it must be the right regulation. Further, it suggests that too much regulation may inhibit the market and make it less effective.

Consider whether there is a need for any reform of the law relating to the supervision of financial services in Australia and whether too much reliance on regulation is naive?
By following this guideline you will be successful in this task:

Use relevant legal principles, case law and legislation and their application to provide an answer to the problem. Present arguments in a clear, concise and logical manner and that conclusions shall be reached.

Have excellent, concise understanding of the key regulatory issues and laws

Have excellent research that is thoughtfully and logically integrated within the essay. Extensive use of a range of resources.

Demonstrate an excellent understanding and analysis of key policy issues and provided comprehensive and sophisticated critical insights

Have an excellent conclusion which clearly and succinctly explained the chosen outcome

Have an argument that is consistently clear and the essay is well-structured

I have only assigned this task to you and also attached a 'Helpful links' document as well as 3 other documents to assist you.

Thank you, Deepshikha.

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