Weightlessness are often individuals who don’t always look at their own behaviors or maybe they do, but focus their attention on the things they observe to be unethical within the company, firm or organization to which they are employed. They find themselves at the point of making the life changing decision: “Do I expose this situation? ” When they answer that questions “yes”, it starts the process of not only their lives being changed, but the lives of every person implicated in unethical issue they’ve discovered.
In the case of the very popular financial company JP Morgan, one of its former employees, Keith Edwards was one such whistler’s. The difference between Mr.. Edwards and some other weightlessness in the past, he was genuinely concerned about the state of this country’s financial situation and how the American tax-payers were affected by the unethical behavior of the company in which he served. JP Morgan was, and possibly still is one of the country’s leading mortgage companies.
They have financed home-buyers’ purchases helping them to obtain the “American Dream” of home ownership. Unfortunately or them, their desire to per say, help purchasers were obviously motivated by greed. It was reported that they defrauded the government for over 10 years when they submitted thousands of mortgages for guaranteed financing, knowing these loans were not eligible for the financing being request through the Federal Housing Administration and the Department of Veterans Affairs. This type of unethical behavior cost this country millions of dollars and cost families, in some cases to lose their homes to foreclosures because they were approved for home loans that they really did not qualify for.
In addition to the fraudulent loan qualifying processes, they neglected to tell their shareholders of things they themselves found wrong in their internal investigating of their process. As a result of Mr.. Edwards exposing the fraud of JP Morgan, he was awarded $63. Million. In addition, JP Morgan Chase & Company agreed to pay $MOM as well as doing better with oversight of their approval processes that guaranteed government financing of home loans. 2. Decide whether or not the whistler’s was justified in reporting the company’s actions. Provide a rationale for your espouse. Mr.. Edwards was obligated to report this fraud because of its nature, the affect it had on this country’s economy and the effect it had on the American family/taxpayers.
There are families currently trying to recover from losing their homes to foreclosures or having to short-sale their home for some sense of possibly being able to buy a home in the future. All this because they were falsely qualified for the home, on paper, but in reality could not afford the home and all the expenses that come with home ownership. Mr.. Edwards’ decision to report he fraud cost JP Morgan a lot of money, however from a long-term perspective, it may have saved this country billions of dollars in future fraudulent activities.
Had he not exposed the deception going within the company, as the economy continued to spiral after 2009, the loss would have been so much greater. Not just a monetary loss either! There were individuals who loss their lives as result of the economic crisis experienced in this country. Fathers who could no longer afford to pay their mortgages did tragic things like take the lives of their wives and children and then themselves. Yes, the message was sent to JP Morgan Chase & Company by the hefty fine they were required to pay, but not hefty enough when you look at the real loss. . Examine the extent to which the whistler’s would be protected under the Serbians-Cooley Act. Justify your response. The Serbians-Cooley Act of 2002 (SOX) was established as a result of the unethical behavior and business practices being exposed in various companies and organizations. This Act has done a major overhaul in corporate governance and requires financial accountability through audits and reformed.
Wall Street raciest to ensure the Security Exchange Commissions is as transparent as possible to the public eye. Mr..Edward would be protected under because the Act has specific guidance for weightlessness that states, “Serbians-Cooley not only directs audit committees to install procedures for ensuring that weightlessness’ complaints are properly directed, but it also creates a civil cause of action for some weightlessness who are punished and establishes a new federal crime to punish those who wrongfully retaliate against weightlessness. ” JP Morgan Chase & Company used its position in the mortgage world to abuse the financing process in place to assist those who legitimately qualify for the programs available to them.
As a result of the company’s greed and deception, they not only affected the lives of the mortgage holders, but the cost to their company has to have affected shareholders, profit margin, employee salary, employee performance, and even their credibility. There are different opinions on weightlessness. Some feel there is a lack of loyalty to the individual’s employer when they whistle-blow. Others take the opinion that when a business practices unethical behavior, an employee that discovers the act is has a responsibility to the American people, especially the tax payers, to expose the behavior. The exposure is not simply to correct the wrong, but it is also to hold them accountable to the behaviors with hopes that it causes those powers-that-be to make better decisions when faced with an opportunity to defraud the company as well as society!
