Essay Freddie Mac Ethics

Essay Freddie Mac Ethics

Length: 1115 words (3.2 double-spaced pages)

Rating: Strong Essays

Open Document

Essay Preview

Freddie Mac is in the home mortgage business. It is their jobs to help low income families find affordable housing. Freddie Mac has been in business since 1970. They were created in order to get more American families in to their own homes. Their mission statement says, “Our statutory mission is to provide liquidity, stability and affordability to the U.S. housing market” (FreddieMac.com, 2014). Despite this honorable mission statement, Freddie Mac was involved in a case of accounting fraud that went on from 1998 to 2002. The lack of ethics at this company started with top brass setting the tone, and the rest of the company following suit.
Rather than being sticklers for following GAAP accounting principles and internal controls, this company took unethical behavior to a whole new level. They lied when the truth would have been easier to tell. It is almost as if they had no comprehension that the meaning of the word ethics is “the principles of conduct governing an individual or a group (professional ethics); the discipline dealing with what is good and bad and with moral duty and obligation”, (Mirriam-Webster, 2011). To be ethical all one has to do is follow laws, rules, regulations and your own internal moral compass, all things this company seemed to know nothing about.
Freddie Mac was accused of either lying or misrepresenting the facts in order to make the amount of risk they were taking appear smaller. Investigators believed that this was done in order to comfort investors. The mortgages they were talking about, the ones that were considered risky were sub-prime loans, and they were prone to failure. A lot of these people should never have been given loans with interest rates that high. It was the job of Freddie Mac to hel...


... middle of paper ...


...he Special Examination of Freddie Mac. OFHEO.
(2003). Report of the Special Examination of Freddie Mac.
The Associated Press. (2007). Freddie Mac pays $50M to settle fraud charges. Washington: USA TODAY.
REFERENCES:
http://www.freddiemac.com/corporate/company_profile/

http://abcnews.go.com/Business/story?id=3664473

http://abcnews.go.com/WNT/video/fannie-mae-freddie-mac-execs-accused-fraud-15175308

http://www.nbcnews.com/id/21027918/ns/business-us_business/t/freddie-mac-settles-accounting-fraud-charges/#.UyyxlvldWyU

http://www.foxbusiness.com/2011/12/16/fannie-freddie-former-execs-could-lose-bubble-era-pay/

http://www.foxbusiness.com/topics/business/finance/CEOs/richard-syron.htm

http://www.ncpa.org/sub/dpd/index.php?Article_ID=5028
http://www.freddiemac.com/investors/infostat/pdf/supplement_082503.pdf
http://www.huduser.org/publications/pdf/gse.pdf


Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Essay on Government Oversight and Corporate Ethics

- Ethical corporate behavior has been a recurring issue of public policy. Recent events have brought this issue into sharp focus beginning with the Enron scandal in 2001 and more recently the financial crisis of 2008. Subsequent regulation such as the Sarbanes-Oxley act seem to be in reaction to the public clamoring for government action in the wake of painful economic outcomes. A deeper examination of the events leading up to Enron and the financial crisis both seem to indicate that government agencies were asleep at the switch....   [tags: Business Ethics ]

Strong Essays
2011 words (5.7 pages)

Government Policy, Moral Hazard and the Endless Financial Crisis Essay

- The story begins in 1938 when Roosevelt establishes Fannie Mae to purchase mortgages from lenders and sell them to investors as mortgaged backed securities. Loan originators are no longer exposed to mortgage default risks, and they have a continuous supply of money to lend as they sell each loan to Fannie. In 1970, congress creates Freddie Mac to buy and securitize private loans not guaranteed by Fannie Mae. Because Freddie Mac and Fannie Mae are government sponsored enterprises (GSE), investors believe the securities are backed by the US Government and thus very low risk....   [tags: Fannie Mae, Freddie Mac, mortgage, loans]

Strong Essays
1751 words (5 pages)

Essay about The Case Of Freddie Gray

- The amount of “reasonable force” that Law enforcement is allowed to use nowadays has decreased substantially to try to avoid injuries to those who are both being detained and are already detained. However, there are a few methods that sneak through the cracks and make their way into unnecessary and unsanctioned police behavior. This is evident in the case of Freddie Gray, a young man of 25 years that was given a “rough ride”. A “rough ride” is when an offender has been arrested and handcuffed with their hands behind their back and placed in the back of a police van without being properly secured by a seat belt while being bound....   [tags: Police, Crime, Constable, Police officer]

Strong Essays
1025 words (2.9 pages)

Essay about Mac Os X Is The Most Stable Operating System

- Nowadays, Mac OS X is the most stable operating system in the world. It is not only easier to use but also secure to protect MacBook to against Trojans and Viruses. However, Mac OS X is not compatible with many applications, especially games. It lacks highly specialized software for a few industries and education. That is why MacBook’s users want to have an operating system as Windows to solve Mac OS X’s problems. There are several solutions to install Windows 10 on MacBook but it is really complicated to carry out....   [tags: Operating system, Apple Inc., Mac OS X, Macintosh]

Strong Essays
791 words (2.3 pages)

Differences Between Windows 10 And Mac Operating Systems Essay

- The similarities and the differences between Mac operating system (OS X) and Windows 10 operating system. As the internet is becoming faster and faster, an operating system (OS) is needed to manage the data in computers. An Operating system can be considered to be a set of programed codes that are created to control hardware such as computers. In 1985 Windows was established as an operating system and a year earlier Mac OS was established, and they have dominated the market of the computer programs since that time....   [tags: Operating system, Apple Inc., Macintosh, Mac OS X]

Strong Essays
727 words (2.1 pages)

Mac OSX User Experience Essay

- Mac OSX User Experience Essay For those of you that still stuck in windoze land, have no fear; Mac OSX is here. As a 6-year user of Bill Gate's Windows, making the move to the Mac's creative user-interface was easy. I've been using Mac's throughout my whole life, but only come to enjoy it since OSX was released. OSX is jam-packed with matrix like features, the best pre-bundled software, and boyish good looks. Some of my favorite parts of OSX are the tiny little user friendly elements. Expose is a perfect example, if I have 20 windows open, with just one click of the button, I can see everything....   [tags: Computer Mac Analysis]

Free Essays
739 words (2.1 pages)

Mac Cosmetics Essays

- MAC (Makeup Art Cosmetics) is originally a Canadian company that has been operating for more than 20 years and it has already penetrate to many countries all around the world, in the North and South America at most. It sells brand cosmetics of high quality that is intended for professional as well as everyday usage. The brand is sought-after also by many celebrities, fashion models, and photographers because of its delicate texture, huge choice of colors, and durability. The products are usually very well tolerated on every skin type and MAC make-up items are also suitable for women with sensitive eyes (MAC, 2007, p....   [tags: mac cosmetics report]

Free Essays
1884 words (5.4 pages)

Mac PC Essay

- We hear it all the time. Or no, I don't guess we do, cause it mostly seems like a PC world to me.I was reluctant to ever get a computer, I just wanted to do things the old way and not set foot into this new world. People would over and over urge me to get one, especially after watching a movie I had made or seeing the television shows. I guess they knew what new worlds it would open up for me. But I just knew I was way too far behind to get caught up on all that technology. A few years back when Roanoke.com had first built the website and set up email and all...well, I didn't even know how to answer an email....   [tags: Technology Comparison Personal Computer Mac]

Free Essays
1289 words (3.7 pages)

The Case Of Freddie C Gray Essays

- Freddie C Gray was born on August 16, 1989. He is survived by his mother Gloria Darden, his twin sister Federicka Gray and another sister name, Carolina. At the age of 25 the young man nick name “ Pepper” has already encountered a troublesome past. He lived with his mother and twin sister in a Gilmore Home neighborhood in Baltimore. His friends described him as a loving, funny person who loved Football. Freddie upbringing was not easy. His mother Gloria had a substance abuse problem and a disability while he was growing....   [tags: Constable, Police, Lead poisoning, Police officer]

Strong Essays
1091 words (3.1 pages)

Essay about Ethics

- Ethics Imagine a 15 year old student in philosophy class. After discussing why should you or shouldn't you judge other societies, and getting in depth with ethics, the teacher decides to tell a story to the class. She says"..there is a tribe in the Amazon(Brazil) were they show love and respect by cutting body parts.It would be a good sign if your father cuts a finger of a son...." she then asked the class ".... if you end up in the Amazon, would you stop a father cutting a sons finger because in your society is wrong....   [tags: Work Ethics Morals]

Strong Essays
1607 words (4.6 pages)