The Subprime Lending Fiasco
Ethics in Accounting
Lisa Drake
December 5, 2014
The top three ethical failures that contributed to the subprime lending
fiasco were handing out loans to people who could not afford them, the behavior
of the mortgage brokers, and banks charging a higher interest rate.
Giving loans to people who the banks knew could not afford to pay them
back was just plain greedy and downright cruel. They knew they could basically
scam people into it and make money off of hurting people this way and ruin their
lives and financial standing. This is how our banking system works? You might
ask. Why would our government even allow this to happen to people? Well, our
government played their hand in this fiasco too. They are just as much to blame
for allowing it to happen. The government has control over the banking system
and could have put a stop to this but they did not care. The banks also don’t care
