Ethical Dilemma Paper week 2 edited

Submitted By MarkRMitchell
Words: 352
Pages: 2

Ethical Dilemma Paper
Mark R. Mitchell
June 1, 2015
John Pierce
Ethical Dilemma Paper
The video I choose from films on demand was Moyers & Company: Banking on Greed (2012). The ethical dilemma explained in the short video was the scandal in banking centering on Barclays Bank in London, and LIBOR. LIBOR stands for London Interbank Offered Rate, where a group of bankers establish a daily interest rate is influencing trillions of dollars of dealings throughout the globe, and some of these bankers were manipulating the index.
Manipulating the Index
They manipulated the index to lower their banks borrowing costs and raise their profits; in essence taking from consumers and filling their own pockets. The video points out that the LIBOR survey is always associated with judgment or the “fudge factor” (Moyers & Company: Banking on Greed [Video file], 2012).
These bankers were expected to look at the factors involved, including what current transactions existed, what additional transactions transpired and what current market environments exist. The problems are that judgments are not associated with an actual transaction and also the complexity of these large banks without real transparency.
Ethical Dilemma Outcome
The outcome was to fine the major banking institutes primarily, Barclays Bank in London. For me, this holds no weight in keeping these financial institutes from returning to these practices. Additionally, fining just the bank and not the individual traders only injures the stockholder, not the company or those