Inside Jobs

This movie had revealed a series of ethical issues in Wall Street and the financial world of America. There were many parties that involve in the cause of Iceland bankruptcy and sub-prime crisis in 2008. The government, investment banks, rating agencies and economists were all credited to these financial crisis that lead many people lost all of their money and savings.

Ethical Issue

1. Lake of regulation - American Government

The Bush Government appointed economist as treasury secretary who imposing deregulation of financial system. This act may originally aimed to promote free market and boosting financial market; but it also exposed loopholes for bankers to sell derivatives to public investors without regulation, so that leaded to the sub-prime crisis. The government should protect its people with good monitoring system and regulation from financial fraud and deregulation loopholes, but it fail to do so.

Financial Fraud - Investment banks

The instant bonus of selling financial products are very attractive to the brokers. As they aim to get those bonus, so they cheat the investors to buy some junk bonds. However, after the sub-prime crisis, those bank director would not be accused for any criminal liability. They could even get a compensation of resigning the job. These financial workers deceived innocent people’s money to satisfy their endless greed. They compete with bigger jet, abuse drugs and prostitution.

3. Unjust Enrichment - Rating agencies

The reason why brokers can sell junk bonds was because of credit rating agency giving those bonds good rating. The main roles of credit rating agency is providing the accurate information to the investors. The rating for the investment products reflect the agency's degree of confidence to the bonds. It also gives the investors some information of the bonds performance. However, in this movie, the credit rating agency fail to provide fair information to the investors. They receive money for giving unjust rating. And finally it caused lots of investor suffered in it. Without these “good rating”, the case of blind investment would reduce. And the number of investors, who suffered in it, would be fewer.