In 2008 the world suffered a major economic crash due to poor business practices and unethical decisions. One of the key components of this major market crash was the unethical practice of securities fraud. Securities fraud is “A type of serious white-collar crime in which a person or company, such as a stockbroker, brokerage firm, corporation or investment bank, misrepresents information that investors use to make decisions … The types of misrepresentation involved in this crime include providing false information, withholding key information, offering bad advice, and offering or acting on inside information.” This is what major investment banks like, JP Morgan Chase, Morgan Stanley and Goldman Sachs were taking part in. They were selling subprime mortgages to people and betting against them and the collapse of the subprime mortgage bubble in the mid 2000’s. I find this extremely unethical for the fact that they are selling something to someone one minute and next they are betting against the failure of it. The example my teacher always gave was, a car salesman selling a car and cutting the brake lines. Then taking out an insurance policy against it for they know it is going to crash. They were betting against something they knew was going to fail and that is extremely unethical.

http://www.guardian.co.uk/business/2012/may/20/wall-street-role-financial-crisis