Economic Exchanges and the Need for Trust.
The term "ponzi schemes" originated in the 1920's when Italian immigrant Charles Ponzi was arrested for managing to conn more than 30,000 people out of 10,000 million dollars through a postage selling pyramid scam (Robb, 2012). Ponzi, despite the fact that he served several years behind bars, upon being released, managed to scam again by selling the swampland that belonged to the state of Florida. Schemes like these of old ago and current ones have given a bad name to investing. When it comes to trades, stock exchange, and investment opportunities, there must be trust between the client and the trade company. Therefore, it is in the best interest of a wealth management corporation to behave ethically. According to Olsen, "investors' trust in the expertise and intentions of corporate managers, financial advisors and regulators is the 'will of the wisp' that creates and animates what we call the financial marketplace" (Olsen, 2008). .
Decisions made in financial marketplaces are based on sources of trust. Investors trust investing companies and believe that every business decision that they make with their assets will be of their best interest, even though not all information is presented antecedently. For example, an investor may choose not to learn all of the historical information of a firm before deciding to partner up with it based on an associate's recommendation or the investing company's reputation. Also, an investor may choose to do business with a firm based on the list of prestigious clienteles that it serves without knowing the company's business model or how it became prominent and lucrative. Zucker (1986) divided the sources of trust into three categories, process-based trust, characteristic-based trust, and institution-based trust. In process-based trust, trust is established based on previous interactions with a person or institution.
In December of 2008, Bernard L. ... In 1960, Madoff started his own company called Bernard L. ... The Bernie Madoff scandal poses many concerns on the topic of business ethics, as well as posing an impact on the accounting community. ... Bernard L. ... The third sign that Bernard L. ...
One famous scandal was the Madoff case, a huge Ponzi scheme that resulted in billions of dollars of losses. ... Bernard L. ... He founded the security trading company "Bernard L. ... Under the great pressure of the liquidity, Bernard confessed to his sons that his business was a giant Ponzi scheme, which means the investment was never really existed. ... Therefore, It's surprising to see that the auditors didn't catch the billions of dollar Madoff scandal with no underlying asset were there. ...
Bernard Madoff was definitely America's modern day Ponzi. ... At some point Bernard Madoff became motivated by greed and felt the need to keep up appearances. ... Two years ago you couldn't turn on the television without seeing a report on the Bernard Madoff story. ... Bernard Madoff refused to talk and many believed he did not act alone. ... In June 2009 Bernard Madoff was later sentenced to one hundred and fifty years in prison. ...
Bernard Madoff, also known as "Bernie Madoff", was an individual who did not have no regards for ethics or be just was an individual whom had no care for ethics at all. ... Because of the growth of the competition in the brokerage business Madoff formed his investment advisory company. ... In the 1990's Madoffs Company, Bernard L. Madoff Investment Securities LLC (BMIS), was doing ten percent of the trading on NASDAQ (National Association of Securities Dealers Automated Quotations) some days (Ferrell, Ferrell & Fraedrich, 2011). ... Four definite areas that are affected by the...
On December 08, 2008, outside his Manhattan apartment, Bernie Madoff was arrested for the biggest financial scandal in history. ... Soon after graduation at the age of 22, Bernard L. Madoff Investment Securities was born. ... Although Madoff claims he ran a legitimate business until the early ˜90s, Shapiro's investment to Madoff was what started the gears to turn in Madoff's head. ... Madoff's investors' world came crashing down in 2008, when Madoff's scandal was revealed. ...
This definition applies to the analysis by focusing on the effects that ethical and unethical behaviors can have in the business environment. ... In the analysis of the Bernie Madoff case, it appears that Madoff's primary internal motivator was greed and self-interest. ... In light of the Bernie Madoff case and other business scandals, the business industry has developed a reputation for being unethical. ... With the Bernie Madoff case and other scandals in the business world, there is realization that ethics have to be a part of all business dealings. Ethics programs have come a long way...
According to WorldCom's internal audit had revealed that Sullivan (WorldCom's former CFO) had improperly accounted for network maintenance as a capital investment, allowing WorldCom to sweep expenses off its balance sheets. ... Since June 28, three civil enforcement actions against WorldCom, former CEO Bernard J. ... WorldCom has made several key ethical decisions that have put them under fire. ... If it is determined that the officers know about the poor accounting practices, it could be argued that while these decisions do not support the Idealism ethical theory or the Natural R...
The scandal, known as the Monica Lewinsky Scandal, became extremely involved and included many people. ... Her parents Bernard and Marcia Kaye Vilensky married in February 1969 and then divorced in 1988; the couple shared custody of the children where Bernard continued to reject his daughter. The family became extremely dysfunctional; during the divorce hearing Marcia claimed Bernard had "a violent temper." ... The scandal began when Lewinsky was subpoenaed in the Paula Jones case. ... The deceitful ways of Linda Tripp led to the eventual Scandal. ...
EXECUTIVE SUMMARY We chose to do our analysis on the investment industry. ... We will be discussing at length the Industry Analysis, a Financial Analysis and Porters Five Forces to give a comparison of these four companies and to help with a better understanding of the Investment Industry. INDUSTRY ANALYSIS Bank of America Merrill Lynch, Goldman Sachs Group, J.P. ... FINANCIAL ANALYSIS We chose to compare the last five years of revenue for our four companies. ... We are dedicated to complying fully with the letter and spirit of the laws, rules and ethical principles that govern us. ...
