OUTLINING:

READ. Page 55-56

A. Read and outline the passage. In your outline include answers to the questions in Before You
Read, Part B (p.54)

Possible Answers

I. Investment banks = private companies bridging buyers & sellers on large scale = Wall Street
A. Manage complex financial transactions
B. Clients include individuals, large corps. Gov’ts. Pension funds
C. Largest include: JP Morgan Chase, Goldman Sachs, Bank of America, Merrill Lynch,
Morgan Stanley, & Citigroup
D. Play imp. role in society
1. Advise cos. imp. financial transactions
2. Buy & rent securities
3. Assist in country’s overall economic growth

II. Investments banks = to make profit

1. Size, imp + actions = affects global economy
2. Great Recession of 2007 – 2009 accused of making deals = ethics for profit
economic hardship
III. The US Financial Crisis Inquiry Commission = explored happened, wrong in the financial
meltdown
1, Investment bankers made questionable ethical decisions.
2, Investors sale earned huge profits for investment banks.
IV. The Banking industry government about 110 billion for misconduct
1, Goldman Sachs: the largest investment banks 5 billion
2, The banking industry forced to deal with government.
3, The government imposes major regulation on the banking industry after the financial
crisis.
V. Investment banks are moral.
1, These institutions take care of important financial services, boss make plenty of good
business.
2, Investment banks are made up of humans and subject to human error.
3, Banks product government and the wider business environment, when doing unethical
failures, bank and faced the most public outrage.
VI. Investment banks are very competitive
 1, Bank keep on making ethical decisions passive to avert future financial disasters.

Thinking critically

1. How does the writer of the article feel about the ethics of investment banker in general? How
do you know?
Investment banks are not inherently unethical. In paragraph 4 , writer has shown that despite
their falling they will not doing unethical failures.
2. What make the investment banking industry difficult to regulate? Why do you think ethics
problems so often occur in investment banking?
The investment banking industry difficult to regulate because investment bank made
questionable ethical decisions when they sold off risky subprime mortgage-backed securities to
investors. So ethics problems so often occur in investment banking
3. Do you think it is possible to prevent economic crises to regulate like the Great Recession of
2007-2009 from happening again in future? How?
I think it is possible to prevent economic crises in the future because in the modern world,
humans put ethical first with the high technology they set up AI robot to check out your account
and ID .If you do something wrong, AI will block you and put the report to the sever, everyone
will know you are making unethical things. Therefore, the Great Recession will not happen
again.