Ethical Issues Faced by Bank of America

Abstract

Bank of America is one of the leading financial institutions of not only the United States but the whole world. However, in the recent decades, the Bank has been accused of abusing its customers, shareholders, investors, the government and even its own employees. The brand name and reputation of BOA is considered to be plagued by these ethical issues. However, the Bank is striving to get its reputation back by settling the lawsuits against it. It is, though, believed by many people that Bank is not showing commitment to transparency as it should be.

Table of Contents

Introduction4

Body: Discussion and Analysis4

Bank of America4

Ethical Issues Faced by Bank of America4

AIG Sues Bank of America for $10 Million5

Settlements Made By BofA6

Conclusion7

References8



Ethical Issues Faced by Bank of America

Introduction

Business ethics is based on the acts that effect the company's profits and operations. Commercial and financial success is also based on these ethics. In the financial services industry, ethical issues affect everyone ranging from individual investors to large businesses. In this paper, the ethical issues faced by Bank of America are discussed along with the measures taken by BofA.

Body: Discussion and Analysis

Bank of America

Bank of America Corporation is one of the largest financial institutions of the world and one of the top two banks in the US. It serves large corporations and governments, institutional investors, small- and middle-market businesses and individual consumers with a complete range of banking, asset management, investing, and other financial and risk management products and services. Headquartered in Charlotte, North Carolina, the company operates in the Americas, Europe, Asia Pacific, the Middle East, and Africa. Around 282,000 people are employed by it. During the financial year 2011, revenues of $93,454 million were recorded by the company- a decrease of 15.2% over FY2010.

Ethical Issues Faced by Bank of America

In recent years, BofA has been forced to settle some of the more notable lawsuits. According to Tully Shawn (2011), the biggest bank of America was saddled by ill-famed acquisition of mortgage giant Countrywide in 2008, with the largest, most toxic portfolio of home loans in the business, in addition to a continuing public relations nightmare. Payable in large fraction to its mortgage sufferings, stock of Bank of America remains some 80% off its pre-crisis high of $55. The pitiful condition of the entire damaged U.S. economy is epitomized by BofA.

AIG Sues Bank of America for $10 Million

Bank of ...