Exchange Commission Sec Week 2Blueprint And Repl
- Just need an article added throughout my paper with intext citations. I will upload my paper after I select a tutor. Absolutely no plagiarism.
- Also need three replies to discussion boards, each one needs to be 2 paragraphs left with an in-text citation and each needs to have an open-ended question at the end. Please add reference at the end of each one separately, please do not add a cover page:
Discussion 1
Please reply to: Patrice
After watching the video, Regulators Squirm When Asked About “Too big to Jail”, do you think that reaching a settlement serves the same end as bringing an offender to trial?
I do not think that reaching a settlement serves the same end as bringing an offender to trial due to information presented in the assign video by Mr. Curry and Ms. Walker. Mr. Curry discussed management tools used to correct deficiencies of banks, identification of problems and decisions made to determine solutions to achieve goals. He explained that decisions made on settlements are more effective than going to trial. Mr. Curry suggests that settlements are more in line with banks’ solution for unethical correction than trials (Stopthenewwordordernow.com, 2013 February 19). Ms. Walker discussed ways which their solutions are penalties which in some cases are limited; compare awards between settlement and trials, and litigation which the commission can accept or reject. Ms. Walker was not sure on whether or not The Security and Exchange Commission (SEC) has every taken a big bank to trial (Stopthenewwordordernow.com, 2013 February 19)
Do we need to take Wall Street banks to trial?
I think laws and regulations are in place to decrease financial disasters from big banks but there is room for improvements because all fraudulent behavior and scandals are not alike. The Dodd-frank Act was the solution to the financial crises of 2008 but did little to amend and modify the statues for financial criminal activities of institutes and individuals (Heltman, 2015). “The Dodd-Frank Act did modify the Commodities Exchange Act, statue authorization of the Commodity Futures Trading Commission, to ease standards of evidence so the CFTC can charge institutions and individuals with market manipulation” (Helman, 2015 p.4).
Are settlements enough to set an example?
I think settlements are reasons for not going to trial because of cost, time, and weak evidence. I think settlements from fraudulent behavior are monies that were never theirs in the beginning. I think settlements are profit payments with interest. I think settlements would never be enough to fix the issues of fraudulent behavior.
Reference
Heltman, J. (2015, Aug. 4). Why ‘Too big to jail’ is still a matter of debate. American banker. Retrieved from ProQuest database.
Stopthenewworldordernow.com. (2013, February 19). Regulators squirm when asked about “too big to jail”. [Video].
Discussion 2
Please reply to: Deborah
What concerns should Elizabeth Pemberley bring up that trouble is ahead?
Economic bubbles are all different, but they often unfold in a predictable pattern. A financial asset will perform well and is then viewed as a safe and profitable investment. As the asset grows in value, more investors become attracted to its value and ability to increase returns even further. This creates an incentive for ruthless brokers to develop creative products to market and sell to investors that are eager to get in on the action. This is the point when laws most often get broken. Financial crashes are inevitable and can destroy banks and economies large and small. The market is not only prone to crisis, but it is shaped by it, so banks must heed early warnings and be prepared to weather these types of storms (The Economist, 2014). If the bank does not consider historical events in its risk analysis for investment strategy it could get caught up with other investors who make decisions based primarily on greed and become overly leveraged. As we have learned, this is not a good place to be in when the bubble bursts (Heltman, 2015).
How should she convince the CEO that immediate changes are needed?
Elizabeth Pemberley should put together historical data regarding other banks that have failed due to investments in high-risk products of this nature. She should make arguments that appeal to the CEO’s desire to maintain NAMG’s stellar reputation in the industry. It takes a long time to build trusting relationships with customers and investors and forever to restore them if poor investment decisions are made.
She can also provide a post-mortem analysis of what happens when a bank invests in high-risk products and an economic bubble ensues. There are examples that she can point to where Federal investigators uncover wrongdoing after the fact and pursue charges against executives or other decision-makers based on evidence involving securities fraud, market manipulation, insider trading or some other regulatory violation. These are extreme examples, but it is good for executives to have a healthy respect for the potential consequences of intentionally pursuing high-risk transactions, even when there are visible warning signs that the investment falls within a gray area or could easily fail. Bad actors can be held personally liable, have to endure a public trial and potentially serve jail time (if convicted), as well as facing other sanctions such as being barred from the banking or finance industry or holding an executive position in a publicly traded company. The risks for personal liability can be found in a declaration made by the U.S. Securities and Exchange Commission (“SEC”) indicating that it was changing its approach to enforcement. Specifically, Andrew Ceresney, the head of the agency, proclaimed that “Heightened accountability or acceptance of responsibility through the defendant’s admission of misconduct may be appropriate, even if it does not allow the agency to achieve a prompt resolution” (Morgenson, 2015). The SEC’s strategy was to go after individuals who were responsible for the decisions to pursue these transactions if a) the case harmed a large number of investors; b) posed significant risks to the market; or c) if the facts of the case would send a message to other investors. Within two years, the SEC secured guilty pleas in cases involving nineteen companies and ten individuals. This new enforcement program is still in its infancy but serves as a cautionary tale for corporate executives that are considering high-risk financial transactions that could challenge then tenets of their fiduciary duty (Morgenson, 2015).
The Economist. (2014, April 10). Financial crises. Retrieved October 9, 2018, from https://www.economist.com/news/essays/21600451-finance-not-merely-prone-crises-it-shaped-them-five-historical-crises-show-how-aspects-today-s-fina (Links to an external site.)Links to an external site.
Heltman, J. (2015). Why ‘too big to jail’ is still a matter of debate. American Banker. Retrieved from ProQuest database.
Morgenson, G. (2015). S.E.C. Wants the Sinners to Own Up. New York Times. Retrieved from http://www.nytimes.com/2015/03/15/business/sec-wan…
Discussion 3
Please reply to: Debra
Michael Porter points out that if we don’t know the strategy of the company, we don’t know if we have the right projects. Basically, we need to develop alignment with the company strategy in order to ensure that the project brings value to the organization. In line with Porter’s views, Bridges (2016) points out:
The reason why we want to align is it provides a mechanism that allows you to map your project and support the strategic goals. And the benefit of that is it allows your project to contribute directly to the corporate vision. And then the third reason why is, it becomes a playbook to anticipate the market trends. (p. 1)
While this makes total sense to me, in reality, I think there will be some challenges aligning my project to our company strategy. At a high level, our strategy is aimed at improving the experience for our customers, pursuing new sources of revenue, improving our data and platforms and developing a workplace of the future. It is difficult to figure out how developing Compliance metrics fits into any of these buckets.
So, what can I do about this? Being an ethical company has been and still is one of our core values. While my project doesn’t necessarily align directly our company strategy, it does align with our core values. In addition, my sponsor is very supportive of this project. I think the best route for me to take is to meet with some of the business leaders earlier on in the project and have my sponsor sit in on those meetings. I had these meetings listed as deliverables later in the project, right before we roll the project out to the organization, but it would probably be wise to move this up in the process to get buy in right from the beginning. There is some danger in doing that as they could totally change the focus of the project, but communicating clearly and demonstrating a tie between the project and our core values will be important. I’m fairly certain I can get through this hurdle with the right level of communication earlier in the process.
References:
Bridges, J. (2016, May 23). How to Align Your Project To Business Strategy. Retrieved from https://www.projectmanager.com/training/how-to-ali…