Case Assignment

Normative Ethics: Utilitarianism and Deontology

Introduction

Recently, the pace of writedowns major money center bank has increased. UBS announced today he wrote a $ 19 billion. Deutsche Bank announced today he wrote a $ 4 billion. Lehman Brothers was forced to raise more than $ 4 billion in equity capital. Merrill Lynch and Citigroup, is expected to write down tens of billions as well. These are massive amounts (Li Shin 816-30). The question becomes, when investors will stop propping these banks and refuse to buy a new capital, they were after the issuance of the housing bubble started this horrendous writedowns? One may assume that these banks can not continue to go to the market to receive infusions of capital in an attempt to strengthen their balance sheets. At some point, investors will say "enough." (67-69 Schiller)

Bankruptcy or Bailout

This is where the investment community as a whole, refusing to take more losses, because these companies to write off more and more to the losses that we begin to see the big banks have failed, or jumped. To date, there have been four major financial firm failures and bailouts: Bear Stearns in the United States, IKB and West LB in Germany and Northern Rock in Britain. All these events were linked to the crisis in the global mortgage market to a certain degree of (Rosas 175-91).

Corporate bailouts manifestly unfair to the taxpayers, but also unfair to the successful companies in any industry, which are indirect taxes and charges, when the competition of subsidized (Laeven, Valencia, 1-2). In a normally functioning market economy, the better companies, those that are more innovative, more effective and more popular among consumers to obtain market share and increase profit, while smaller firms contract. This process ensures that limited resources are used most effectively.

Engaging in business is not necessary. In the end, that is why there is the bankruptcy process. If a company in Chapter 11, you can save, the bankruptcy judge will help them find their way. It is an outrage that taxpayers are asked to pay for the bad behavior of people who should have known better about taking risks in their work (Lee Shin 816-30). Bailing out the Big Three

Considering the case of the Big Three. These three characters automakers in the United States are currently in difficulty, but in the automotive industry is not in crisis. Even if one or all three Grand fail, there will continue to be a lot of strong companies operating throughout the Auto in the United States. More than three in currently accounts for slightly more than half of all passenger cars and the production of slightly less than half of all sales of passenger cars in the United States. The rest of the U.S. auto industry includes Honda, Toyota, Nissan, Kia, Hyundai, BMW, and other foreign manufacturers, which, the production of cars here. These companies are using American workers, pay taxes, United States, to support local businesses contribute to local charities, have a ...