Case Study: What Is Up with Wall Street? the Goldman Standard and Shades of Gray

1914 Words Nov 12th, 2012 8 Pages
NORTHCENTRAL UNIVERSITY
ASSIGNMENT COVER SHEET

Learner: Demetrice S. Campbell

| | MGT7019-8 | Douglas Buck | | | Ethics in Business | #3 Paper- Case study: What is Up With Wall Street? The Goldman Standard and Shades of Gray | | |

Academic Integrity: All work submitted in each course must be the Learner’s own. This includes all assignments, exams, term papers, and other projects required by the faculty mentor. The known submission of another person’s work represented as that of the Learner’s without properly citing the source of the work will be considered plagiarism and will result in an unsatisfactory grade for the work submitted or for the entire course, and may result in academic dismissal.
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This practice made the public want in on the deal not knowing they were being misled. This allowed him to sell the shares he bought for more money; while he buys more shares on the secondary market and causes the share prices to increase. He then turned around and used his money to create another corporation. (Jennings, 2012) Goldman was also engaged in laddering, which is an agreement between Goldman and its best clients for the distribution of a portion of the IPO at a reestablished price. However, under a laddering arrangement, those clients also had to agree to purchase a certain number of shares later during the IPO rollout at a price of $10 to $15 higher. (Jennings, 2012) Goldman also participated in auction-rate markets.
He gave loans to executive members in exchange for shares.
Many of the issues included the nondisclosure of facts that an investor would have deemed very important in making their investment decisions. Goldman and Sachs were guilty of false impression, simply because the investors were not aware of their position in the market. There is also the point of moral vulnerability and how allowing AIG to be bailed out provided a cover for Mr. Goldman and his sneaky business practices. Then there is the “too big to fail” issue, this is important because the investors were the one who lost money, not Goldman. He was protected. The front page of the newspaper test was a winner in this case because the headlines did not prove to

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