Legal Issues
Power Abuse
CFPB activities on credit cards arise concerning, first, the CFPB CEO made them “more difficult to use.” Once an individual becomes a client of CFPB the alternative access to “hard cash” becomes fairly possible. As banks are already expensive for the customers of CFPB due to their profit margins, the other “illegal loan sources” become even more unreachable (Murray, 2017). So, certain monopolizing tendencies can be traced.
СFPB behaves as a fully independent agency within the governmental structure that allows certain privileges. To some extent, if any fraudulent activities are performed, the governmental structures will definitely receive no information on them (Zywicki, 2013, p. 1). The outcome is that the numerous lawsuits against CFPB were legit and based on the actual unethical and possibly questionable businesses. Though to profiteer overall is not illegal, the aspiration to receive the additional income from the disadvantaged population might be perceived unlawful if the pressure and monopolization are proved. Accordingly, CFPB has several proofs of power abuse not only due to Murray’s overview of the recent company’s activities (2017).
The power abuse leads to the
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The outsourced administrative support company accused CFPB of the alleged accountability absence that violated the US Constitution. The Congress “interfered” with the consumer finance protection regulation that stirred additional legal charges against the CFPB. However, the specialty of CFPB as the only existing remedy against the financial crisis made it possible for the company to overrule the congressional interference and retain “accountability deficits” (Block-Lieb, 2012, p. 28). The present position shows the dubiousness of the CFPB that goes against the governmental regulations while secures the ability of the population to loan and be
In the midst of the current economic downturn, dubbed the “Great Recession”, it is natural to look for one, singular entity or person to blame. Managers of large banks, professional investors and federal regulators have all been named as potential creators of the recession, with varying degrees of guilt. No matter who is to blame, the fallout from the mistakes that were made that led to the current crisis is clear. According to the Bureau of Labor Statistics, the current unemployment rate is 9.7%, with 9.3 million Americans out of work (Bureau of Labor Statistics). Compared to a normal economic rate of two or three percent, it is clear that the decisions of one group of people have had a profound affect on the lives of millions of Americans. The real blame for this crisis rests on the heads of the managers that attempted to play the financial system through securitization, and forced the American government to “bail out” their companies with taxpayer money. These managers, specifically the managers of AIG and Citigroup, should be subject to extreme pay caps for the length of time that the American taxpayer holds majority holdings in their companies, as a punitive punishment for causing the Great Recession.
CCIB received an Emergency Response Referral (0939-8157-9070-9073930) from the RP reporting that Logan reported that Renata restrained when he attempted to leave the foster home. RP reported Logan stated that Renata grabbed both his forearms with her hands, which resulted in bruises to his both his forearms. RP reported that he observed bruises on both his left and right forearms. RP reported that the bruises appeared to be turning green and looked as if they were in the healing stages. RP reported that Ms. Marshall denied causing the bruises and grabbing Logan by his forearms. Ms. Marshall also stated that Logan sustained the bruises from banging his forearms on the front screen door and bars on her front window. RP reported that Ms. Marshall
The Dodd-Frank Wall Street Reform and Consumer Protection Act’s policies haven’t really been implemented to the extent that regulators would have liked. Although the legislation takes many steps in addressing systematic risks in the United States financial system and improving coordination among regulators, some critics believe that alternative options might have been more effective. The coming years will give us a better understanding of how well the Dodd-Frank Act addressed these concerns.
Besides those who are given power within a company, others who claim this power may be those “attempting” to create their own business. For these people, as well as those who take advantage of consumers of corporate America, a program should be made to catalog the names, faces, and descriptions of these people and their crimes. This database should include not only the private sector bans/convictions, but also individuals. Any...
One of the major unintended impacts of the Dodd-Frank Act has been on credit unions and community banks. These banks weathered the credit crisis and lost only 6% of their share of banking assets between 2006 and mid-2010. A recent Harvard study indicates that this decline accelerated to 12% since the passage of the Dodd-Frank in July 2010. [a] While the community banks’ earnings increased by 12% to $5.3 billion by mid 2015 the number of these banks had declined according to Federal Deposit Insurance Corporation. The number of banks with assets under $1 billion has declined from around 7500 in 2010 to less than 6000 since Dodd-Frank came into effect. [b] Increased compliance costs due hiring of new personnel to interpret the new regulations compelled these banks to cut down on customer service amongst other things. The law hurt them disproportionately and forced them to consolidate. Regulatory economies of scale drive the process of consolidation. A larger bank is often more equipped at handling increased regulatory burdens
Even though monopolies are illegal, public corruption allows companies to form and continues to be a problem today. In an article published by the Los Angeles, Anh Do
At the heart of the bailout outrage was a sense of injustice. Even before the bonus issue erupted, public support for the bailout was hesitant and conflicted. Americans were torn between the need to prevent an economic meltdown that would hurt everyone and their belief that funneling massive sums to failed banks and investment companies was deeply unfair. To avoid economic disaster, Congress and the public agreed. But morally speaking, it had felt all along like a kind of extortion. The two possible reasons the public thought the executives receiving the bonuses didn’t deserve them are — greed & failure.
This class discusses unethical conduct in business. The Better Business Bureau or BBB is a nonprofit organization that is focused on protecting consumers from deceptive and fraudulent dealings in the marketplace and earning buyers trust (Ferrell, Fraedrich, & Ferrell, 2018). Prior to the BBB, Coca Cola had a law suite filed against then claiming false advertisement. One of Coca Cola’s managers, Samuel Dobbs, made it his mission to create truthful standards for all advertising claims, and the BBB was founded. In recent years, the BBB has faced some ethical issues within the company.
The cons to the argument for saying the Foreign Corrupt Practices Act is obsolete is discussed in the article With Wal-Mart Claims, Greater Attention on a Law by Charlie Savage. In this article Charlie Savage argues that the FCPA has always been a useful tool in stopping corruption but in recent years with companies becoming more globalized other countries gradually adopted similar laws, the United States has started to enforce it more strictly. The dollar amount of fines imposed by the Justice Department and the Securities and Exchange Commission has increased even more, including a record-setting $800 million paid by Siemens in 2008. Enforcement under the act has soared, from just two enforcement actions in 2004 to 48 in 2010. There are currently at least 100 open investigations, specialists estimate.
H-E-B is the largest grocery store chain in south Texas. With over 340 stores, and considered in top grocery stores in America, the company is highly successful and only continues to grow through the mobile programs it has established in the community (Blumberg). Furthermore, H-E-B is a prime example of how public relations interact with the community and is a shining example of what a company should provide for the environment, and world it serves.
In February of 2010 a new law was passed in the House and Senate. It was signed by Barrack Obama, affecting many things having to do with many credit card issues. The regulation states that anyone under 21 cannot get a card unless they have a co-signer, or can prove that they are reliable enough to have one. A few of the people responsible for signing off on this new law are accepting this change because th...
The core issue in this case is about how Wal-Mart de Mexico covered a vast bribery orchestrated by government officials, authorities, and executives from Mexico. Wal-mart de Mexico perfected the art of bribery by using fraudulent accounting and building stores so fast by getting zoning maps changed and making environmental objections disappear. Wal-mart de Mexico’s executives bribed government officials to aid in getting permits faster, since this is a process that typically takes months to complete. However, the company’s executives managed to get them materialized in days. Bribes were also
... middle of paper ... ... The forced liquidation of some $3 trillion in private label structured assets has been deprived from the financial markets and the U.S. economy has obtained a vast amount of liquidity that the banking system simply cannot restore. It is not as easy to just assign blame within these cases, however it is noted that the credit rating agencies unethical decisions practices helped add onto the financial crisis of 2008 and took into account the company’s well-being before any other stakeholders.
In previous years the big financial institutions that are “too big to fail” have come to realize that they can “cheat” the system and make big money on it by making poor decisions and knowing that they will be bailed out without having any responsibly for their actions. And when they do it they also escape jail time for such action because of the fear that if a criminal case was filed against any one of the so called “too big to fail” financial institutions it...
Almost three decades ago, credit cards were a basic part of banking until a large company changed everything. Providian Financial was one of the first companies to profit billions off the credit card game. They went after people who couldn’t