Cuomo responded to this action, stating, "You can not have 2 sets of rules-one set of rules for shoppers and one for senior officials" (Ellis, 2008).
The ethical difficulties in this scenario include not merely deceptive corporation practices but also a double standard. UBS pretended to investors that it would be there to buy back the auction-rate securities if they wanted to sell, but then backed out and left investors holding the bag, yet its executives created certain they could sell their unique very own holdings. Auction-rate securities are commonly regarded as "liquid cash" by in estors, but "When the auctions began failing in mid-February, investors had no way to sell" (Pressman, 2008). If this had been not enough, "a new round of charges of unfair practices, inadequate disclosure, and securities law violations is emerging" (Pressman, 2008). Some little investors are complaining how the issuers' refinancing of a portion of their auction-rate securities just isn't yielding them a fair share, and others relate that "they've been accessible loans charging double or triple the rate they are receiving on their securities" (Pressman, 2008). Even as soon as investors are willing to sell during the secondary industry and sustain an immediate loss, their brokerage businesses refuse to allow them to do so (Pressman, 2008).
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