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2019 | OriginalPaper | Chapter

4. Financial Machinations and Ethical Perspectives

Author : Jadranka Skorin-Kapov

Published in: Professional and Business Ethics Through Film

Publisher: Springer International Publishing

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Abstract

The first part considers business greed and the case of Enron collapse in 2001. Since greed often involves manipulation infringing on human rights, discussions involve films provoking thoughts on manipulating people, including Equity (2016), Arbitrage (2012), Trading Places (1983), and Hudsucker Proxy (1994). In relation to business fraud, we look at the RJR Nabisco 1988 Leveraged Buyout (LBO) which was adopted for the screen in Barbarians at the Gate (1993). We also look at the 1995 collapse of Barings Bank, adapted for the screen in Rogue Trader (1999). Other films discussed include Wall Street (1987) and Other People’s Money (1991). Greedy view of profit comes in contrast with social responsibility and led to the subprime mortgage crisis of 2007–2008. Case discussion considers the Lehman Brothers 2008 collapse. Financial practices widening the gap between profit and responsibility are illustrated through films Margin Call (2011) and The Big Short (2015).

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Footnotes
1
See Milton Friedman on The Donahue Show in 1979 discussing “What is Greed?”: https://​www.​youtube.​com/​watch?​v=​Vpq3Cv5Wen8.
 
3
The Ponzi scheme was named after Charles Ponzi who led a large operation deceiving investors, many of them being new immigrants. Ponzi went to prison when his operation was uncovered and shut down in 1910.
 
4
The web page for The Business Roundtable Institute for Corporate Ethics is http://​www.​corporate-ethics.​org/​about/​.
 
6
For more information about Actor-Network Theory (ANT) and the sociology of translation, see Callon (1986).
 
7
Junk-bonds are high-risk high-yield bonds. Bonds are rated according to the risk of a bond issuer not making required payments, and ratings range from AAA (least likely to default) to D. Junk bonds are speculative bonds with a high chance of default, with a credit rating of BB or lower.
 
8
Glass–Steagall Act of 1932 was a legislation separating commercial banks from investment banks, prohibiting investment banks from speculating with customer’s deposits.
 
9
The book entitled Too Big to Fail: The Inside Story of How Wall Street and Washington Fought to Save the Financial SystemAnd Themselves was published in 2009 (Sorkin 2010), and the TV film Too Big to Fail, directed by Curtis Henson was first broadcast on HBO on May 23, 2011.
 
10
John Maynard Keynes (1883–1946) was a very influential British economist analyzing the causes of business cycles and advocating a market economy, but with government interventions during recessions. He is considered the founder of modern macroeconomics theory.
 
11
The real characters serving as inspiration for the characters in The Big Short are presented in http://​ew.​com/​gallery/​oscar-nominees-inspirations/​christian-bale-as-hedge-fund-manager-dr-michael-burry-in-the-big-short.
 
12
The Season 3, Episode 11 entitled Science Goes to the Movies: Greed is available at https://​vimeo.​com/​205449970.
 
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Metadata
Title
Financial Machinations and Ethical Perspectives
Author
Jadranka Skorin-Kapov
Copyright Year
2019
DOI
https://doi.org/10.1007/978-3-319-89333-4_4

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