ACR101 Lecture Notes - Lecture 7: National Wealth, Cybercrime, Insider Trading
WEEK 7: White Collar and Corporate crime
Harvard referencing
Intext citation (Salzmann (2012, p.4) or (Salzmann 2012, p.4) or pp.4-5 need page numbers)
Overview:
- Case study: the sub-prime mortgage scandal
- Challenges of white collar crime
oDefinition
oProsecutions
oDetecting offences
- Regulating white-collar crime and harm
oBraithwaite’s enforcement pyramid
the sub-prime mortgage scandal
- Bank/mortgage company help paying the loan
- They check they can repay the loan, or a garunter
- Banks give loans to people for house which they were sure they couldn’t pay back
- Their standards went out of the window
- It was reckless and dangerous
- They figured they could make money by selling them on
- Called them “tranche” they transfer the loan to other companies even though they new they
couldn’t repay them
- Market place, trader selling the bad debt kept getting moved around
- The bank runners were pushing to sell loans
- Its called fraud because they new the products were worthless, under false pretense
- To make profit in the short term
- There are supposed to be checks and balance, governments are meant to regulate it and
should have stopped it
- “if you wants us to make money leave us alone, you are holding us up” the government tries
to stay out of it as much as possible
- And credit rating agencies were meant to be another check and balance, they are meant to
regulate and let the government know that it was wrong and not going to work
- They didn’t keep things above broad
- What do you do how can you put a case in court (who, what and when)
find more resources at oneclass.com
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