Resisting corporate corruption : cases in practical ethics from enron through the financial crisis / Stephen V. Arbogast.

Format:

Book

Author/Creator:

Arbogast, Stephen V., 1948- author.

Series:

THEi Wiley ebooks.

THEi Wiley ebooks

Language:

English

Subjects (All):

Enron Corp--Corrupt practices--Case studies.

Enron Corp.

Business ethics.

Industrial management--Moral and ethical aspects.

Industrial management.

Global Financial Crisis, 2008-2009--Case studies.

Global Financial Crisis, 2008-2009.

Physical Description:

1 online resource (567 pages)

Edition:

Third edition.

Place of Publication:

Beverly, Massachusetts : Scrivener Publishing, 2017.

System Details:

Access using campus network via VPN at home (THEi Users Only).

Summary:

"Resisting Corporate Corruption teaches business ethics in a manner very different from the philosophical and legal frameworks that dominate graduate schools. The book offers twenty-eight case studies and nine essays that cover a full range of business practice, controls and ethics issues. The essays discuss the nature of sound financial controls, root causes of the Financial Crisis, and the evolving nature of whistleblower protections. The cases are framed to instruct students in early identification of ethics problems and how to work such issues within corporate organizations. They also provide would-be whistleblowers with instruction on the challenges they face, plus information on the legal protections, and outside supports available should they embark on that course. Some of the cases illustrate how 'The Young are the Most Vulnerable,' i.e. short service employees are most at risk of being sacrificed by an unethical firm. Other cases show the ethical dilemmas facing well-known CEOs and the alternatives they can employ to better combine ethical conduct and sound business strategy. Through these case studies, students should emerge with a practical toolkit that better enables them to follow their moral compass. Finally, the cases provide an in depth look at how a corporation becomes progressively corrupted (Enron), how the Financial Crisis was rooted in ethical decay at institutions as diverse as Countrywide, Goldman Sacks, Citigroup, Fannie Mae and Moody's, and at the ethical challenges that persist in the post-Crisis, post-Dodd-Frank environment"-- Provided by publisher.

"This book teaches business ethics in a manner very different from the philosophical and legal frameworks that dominate graduate schools. The book offers twenty-eight case studies and nine essays that cover a full range of business practice, controls and ethics issues. The essays discuss the nature of sound financial controls, root causes of the Financial Crisis, and the evolving nature of whistleblower protections. The cases are framed to instruct students in early identification of ethics problems and how to work such issues within corporate organizations"-- Provided by publisher.

Contents:

Cover

Title Page

Copyright Page

Contents

Foreword

Preface

Note to Faculty: How to Use this Book

Acknowledgements

Section 1 The Enron Cases

Part 1 Demolishing Financial Control, Neutering the Gatekeepers

Case 1 Enron Oil Trading (A): Untimely Problems in Valhalla

Natural Gas Pipelines in Crisis

Considering the Options

The Meeting with Internal Audit

Author's Note

Notes

Essay 1 How to Do an Ethics Case Study

The Solution Framework: Defining the Ethics Issue

Tactical Planning and Alternative Business Plans

Personal Considerations

A Final Word About Financial Control

Case 2 Enron Oil Trading (B): An Opening for Enron Audit?

Essay 2 How a Corporation Becomes Corrupt

Case 3 Enter Mark-to-Market: Exit Accounting Integrity?

Jeff Skilling's Association with Enron

Serge Goldman Prepares to Meet Jeff Skilling

Essay 3 Necessary Ammunition: Economic Rationales for Financial Control

Financial Control at the Heart of Business Success: Personal Experience

Summarizing the Controls/Business Success Intangibles

The Economic Consequences of Sound Financial Control

Part 2 Business Struggles, Accounting Manipulations

Case 4 Adjusting the Forward Curve in the Backroom

Conversation with T.J. Malva

Ethics Assessment and Tactical Options

Case 5 Enron's SPEs: A Vehicle too Far?

Enron and Special Purpose Entity (SPE) Vehicles

Chewco Investments

Case 6 Court Date Coming in California?

California Decontrols Electricity

Enron's 'Star Wars' Gambits

Political Fallout in California

Enron Legal Investigates

SR Produces a Legal Opinion

Part 3 Resisting Corruption at Enron

Case 7 New Counsel for Andy Fastow.

Determining a Course of Action

Case 8 Nowhere to Go with the 'Probability of Ruin'

The Enron Companywide Risk Management Report

Kaminski and LJM

Meeting with Ben Glisan

Elsewhere in Enron

Case 9 Lay Back … and Say What?

Problems Deciding What to Say

Skilling Decides to Call it Quits

Assessing the Broader State of Enron

Focusing on the Task at Hand

Case 10 Whistleblowing Before Imploding in Accounting Scandals

Welcome Back

Now Meet the Raptors

Pondering an Approach to Ken Lay

A Decision to Go Forward

Essay 4 Resisting Corporate Corruption: The Enron Legacy

Tactical Lessons for Internal Resistance

Tactical Lessons for Taking Ethics Issues Outside the Firm

Implications for the Financial Crisis Cases

Essay 5 Underappreciated Origins of the Financial Crisis - A Personal Memoir

Jack Bennett Shakes Up Wall Street

Wall Street Restructures, Consolidates, and Innovates

Trading Dominates Banking and Client Relations Change

Prelude to Financial Crisis

Section 2 The Financial Crisis Cases

Part 1 New Business Models Undermine Standards and Controls

Case 1 Seeking a Sustainable Business Model at Goldman Sachs

Banking vs. Trading at Goldman Sachs

Competitive Pressures Change Wall Street's Business Models

Embarrassment and Unprecedented Losses

Hank Paulson Decides on a 'Counter to Corzine'

Case 2 Juggling Public Policy, Politics and Profits at Fannie Mae

Origins of a Conflicted Government Entity

New Law, Politics and the 'Housers' Complicate Fannie Mae's Mission

Reconciling Wall Street Performance and 'Affordable Housing'

Beating Back the Privatizers

Wall Street Mounts an End Run, and Fannie Lowers its Standards

The Year 1998.

Guidance for Franklin Raines

Case 3 Should Countrywide Join the Subprime 'Race to the Bottom'?

Nature and Structure of the U.S. Mortgage Business, 1940-85

Wall Street Develops Collateralized Mortgage Obligations (CMOs)

'Subprime 1.0' Temporarily Sobers the Market

Countrywide's Strategy in the 1990s

AmeriQuest Launches a Subprime 'Race to the Bottom'

Mozilo Reconsiders Countrywide's Subprime Strategy

Case 4 Subprime Heading South at Bear Stearns Asset Management

Hedge Funds Develop on Wall Street

Bear Stearns Forms its Own Hedge Funds

Mortgage Market Trends and HGF Disclosure

Financial Control Issues at HGF

Cioffi and Tannin Respond to Growing Pressures

February 2007: ELF Performance Turns Negative

Matthew Tannin Considers His Response to Barclays Bank

Part 2 Consequences for Gatekeepers and Firms

Case 5 Ratings Integrity vs. Revenues at Moody's Investors Services

RMBS/CDO Ratings: Kolchinsky Protests and is Transferred

Moody's Becomes a NRSRO

Moody's Culture Changes, and the Firm Goes Public

Subprime Mortgage Debt: The Ratings Methodology Challenge

The Subprime Market Begins to Unravel

Summer 2008 - Moody's Prepares to Resume Ratings

Case 6 Admission of Material Omission? Citigroup's SIVs and Subprime Exposure

Citibank's Subprime Product Flow and its SIVs

Citibank Structures and Launches Subprime SIVs

Citibank's SIVs Finesse the VIE Rules

Conditions Worsen in the Mortgage and RMBS/CDO Markets

Citibank Reports Second Quarter Results

Third Quarter Events Hammer Citi's Results

Considering Citi's 3Q Results and IR's Proposed Pre-Announcement

Case 7 Facing Reputational Risk on Goldman's ABACUS 2007-AC1.

From Subprime RMBS to CDOs to SCDOs

Goldman's Trading and its Clients, 2006-07

Fabrice Tourre Constructs ABACUS 2007-AC1

Tourre Prepares for the MCC ABACUS Review

Case 8 Time to Drop the Hammer on AIG's Controls?

Innovation and Controls on Wall Street

Management and Controls at AIG

Greenberg Takes a Fall for AIG's 'Cooked Books'

AIG-FP Confronts a Subprime Market Decline

FP Faces Collateral Calls on Subprime CDS

Ryan and PWC Approach a Decision

Part 3 Financial Firms and Resisters

Case 9 Write to Rubin? - Pressure on Underwriting Standards at Citigroup

National City Bank Becomes a Giant Financial Conglomerate

Citi Demolishes Glass-Steagall

Organizational Challenges at Citigroup

Growth and Controls within Citigroup's Mortgage Operations

Bowen Considers His Next Step - Write to Rubin?

Case 10 Lehman Brothers Repo 105

Lehman Gets in Trouble

Repo 105 to the Rescue

Weighing Ethics, Career and Courses of Action

Essay 6 Wall Street and the Crisis - Causes, Contributions and Problems to Fix

Section 3 The Post-Crisis Cases - Reforms, Resistance, Continuing Realities

Part 1 The Dodd-Frank Act: A Primer

Case 1 Morgan Stanley Seeks a Sustainable Business Model after the Financial Crisis

John Mack Returns, Big Trading Comes to Morgan Stanley

Mack Guides Morgan Stanley into and Through the Financial Crisis

Mack Analyzes the Financial Crisis and Revamps MS Compensation

Mack Weighs Strategic Alternatives for Morgan Stanley

Case 2 Back to the Future on Goldman Sachs Reputational Risk

KMI Moves on El Paso

El Paso Reacts and Goldman Faces its Conflicts

The Business Standards Committee on Client Conflicts.

Blankfein Considers Goldman's Options to Manage its El Paso-KMI Conflicts

Case 3 Take Customer Cash to Survive? Compliance and Chaos at MF Global

Client Protections and Segregated Accounts

MF Global Courts an Illiquidity Crisis

Corzine 'Bets the House' on Euro Sovereign Debt

The Euro Sovereign Debt Crisis Hits

Markets Begin to Close in on MFGI

MFGI's Final Week and a Decision on Segregated Accounts

Case 4 Fix the LIBOR Fix?

LIBOR, its Fix Procedures, and Growth as a Global Benchmark

LIBOR Fixing Flaws and Incentives to Manipulate

London Banks Begin to Manipulate LIBOR Fixings

The Bank of England Learns LIBOR is Being Manipulated

The Financial Crisis Hits Barclays and LIBOR

Tucker Considers His Messages for Barclays

Case 5 Too Big to Know What's Going on at Banamex?

Oceanografía Defrauds Banamex

Managing the Global Financial Supermarket

Corbat Confronts the Banamex Scandal in a Post-Financial Crisis World

Case 6 Take CitiMortgage to the Feds?

CitiMortgage Ignores FHA Procedures

Citi Fails to Fix its FHA Noncompliance Issues

Hunt Meets Her Attorney

Case 7 Chipping Away at Dodd-Frank's Volcker Rule?

Proprietary Trading, Market-Making and the Volcker Rule

What Happened in the Market?

Considering an SEC Response

Essay 7 'And the Young Shall be Thrown Under the Bus' - Lessons in Resisting Unethical Conduct from Enron Through the Financial Crisis

Essay 8 Resisting Corporate Corruption, 2017 - Improved Conditions, Unresolved Issues

Are the Reforms Enough? What Risks Remain Unaddressed?

Resisting Corporate Corruption - 2016

To Resist Corporate Corruption - One Thing Remains

A Note on Blogs and Law Firms.

A Note on Sources.

Notes:

Includes index.

Description based on print version record.

ISBN:

1-119-32367-3

1-119-32374-6

OCLC:

981509161