Do the ends justify the means in given case

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Do the ends justify the means?

Let's consider Case 10, Goldman Sachs and its role in the subprime mortgage crisis that escalated a downward financial spiral. In particular, focus on question 4 (page 250) at the end of the case; "Do the ends justify the means in this case, as it turns out? Explain and offer evidence." You have the benefit of hindsight, a rare commodity.

The answer is from a classmate from last semester, for reference only, not plagiarism:

No, the ends don't justify the means. Goldman Sachs knew that there would be destruction beyond repair for the whole country. Despite their settlement and being made an example, there were too many people within the company who knew about ABACUS and betting on residential mortgages to fail. Some investors may not have been information, but this was a huge deal that most likely would have crossed the attention of a Board or investors that were directly involved. "Goldman Sachs knew of the potential harmful consequences in selling the ABACUS product but chose to ignore the risks in favor of profits" (Weiss, 2014).

Goldman Sachs did not acknowledged wrongdoing and instead entered into a settlement with SEC (Weis, 2014). The company did not admit any wrongdoing that would blatantly attract attention or elude to criminal activity. However, the SEC also timed the settlement announcement to make an example out of Goldman Sachs.

Looking at this case, in hindsight, it seems that Goldman Saks and the SEC were not ethically trying to right and wrongdoings. The financial settlement of $550M appeased the SEC instead of the $1B. It also sent a message to other financial firms to avoid this in the future. In hopes of avoiding a situation like this again, Goldman Sachs was also tasked with adding more training and education to their employee base. For years, people in the United States, lost their homes, jobs and more. Lives were changed due to financial and personal loss. It was an example in history that the financial companies on Wall Street do not want to repeat, but it was such a risky and greed-driven means - that it can't be justified.

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Reference no: EM133198352

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