Description
Hello,
Please see below what is needed. I have also attached a word document. Please let me know if you have any questions.
Requirements
This paper must be a minimum of five double-spaced pages but no longer than eight double-spaced pages. You must include a cover page, abstract, reference page and, if necessary, a bibliography page. (These pages do not count towards the minimum/maximum page count.) The paper must incorporate all of the required elements listed on Page Two of this document. This assignment must be written in APA format, 6th edition with in-text citations. You must include a minimum of six quality academic and/or financial industry references. The references listed below may be used in the paper yet they do not count toward the minimum reference requirement.
Case Related References
Ligon, J. & Beach, W. (2013). Housing Market Without Fannie Mae and Freddie Mac:
Economic Effects of Eliminating Government-Sponsored Enterprises in Housing. The
Heritage Foundation. Washington, District of Columbia, USA. http://www.heritage.org/research/reports/2013/01/a-housing-market-free-of-fannie-maefreddie-mac
Morgenson, G. (2011a, February 12). Imagining Life Without Fannie and Freddie. New York
Times. Retrieved from www.nytimes.com/2011/02/13/business/13gret.html?_r=l&ref
Wagner, D. & Kravitz, D. (2011). Fannie and Freddie: Obama Offers 3 Options for Mortgage
Market Overhaul. USA Today.
Acceptable references include: The Financial Times, The Economist, The Journal of Finance, The Wall Street Journal, BusinessWeek , Her Majesty’s Treasury, The Bank of England, U.S. Department of The Treasury, The Federal Reserve Bank, Reuters.com, CNBC.com
Unacceptable references include: Wikipedia.com, Investopedia.com, About.com, eHow.com, Personal financial blogs
Case Topic
The Federal Debt Reduction Commission recommended that both mortgage-related subsidies and tax breaks from the federal agencies that help middle- and lower-income families buy homes be scaled back or eliminated. The Obama administration has proposed taking the latter step, eliminating Fannie Mae and Freddie Mac but doing nothing about the incentives and tax breaks that benefit wealthier taxpayers. Is their proposal ethical? Why or why not?
Required Elements
- What are the relevant facts?
- What are the ethical issues?
- Who are the primary stakeholders? --> What are the rights of the stakeholders? (i.e. What is owed to the stakeholders?) -- >What are the duties of the stakeholders? --> Who derives the benefits of an unrealistic analysis? --> Who bears the heaviest burden of an unrealistic analysis? -->What is the most fair and equitable way to distribute the benefits and burdens across all stakeholders?
- What are the possible alternatives? --> Which alternative is the most fair to all stakeholders?
- What are the ethics of the alternatives? --> What is the cost and benefit of the alternatives? --> Which alternative provides the greatest benefits or the fewest costs for all concerned?
- What are the practical constraints
- What action(s) should be taken?
Expectations:
Writing Style: Writing is completely relevant and specific to the topic.
Body of Evidence: Supporting evidence is thorough and relevant and is used effectively to make arguments.
Conclusion: Conclusion emerges logically from primary arguments
Research: → Paper fully adheres to the standards of the APA Style Manual (6th edition). → Paper includes a title page, abstract, and reference page. → A minimum of 6 references in APA format. (6th edition) are cited in-text and listed on the reference page. → Highest quality academic and/or financial industry references given
Mechanics: → No grammatical errors. → No spelling errors.
Unformatted Attachment Preview
Purchase answer to see full attachment
Explanation & Answer
Attached.
Running Head: FINANCIAL ETHICS AND COMPLIANCE
Financial Ethics and Compliance
Name
Instructor
Institutional Affiliation
Date
1
FINANCIAL ETHICS AND COMPLIANCE
2
Abstract
Recent financial crises witnessed in the United States have been based on the supposition
that homeownership is virtuous. The notion may have been an element of the ‘American Dream’
from the nation’s beginnings, even though the main reason why slaves wanted to own property
was a means of escaping their debtors and owners rather than an end. Homeownership was not
considered as an element of the ‘American dream,' in fact when this term was coined in 1931,
James Trulow did not include it. However, throughout the years, homeownership was viewed as
an essential component of the American dream because it’s an investment that improves people’s
quality of lives. After the Great Depression, the federal government, through the Congress,
created two federal agencies; Fannie Mae and Freddie Mac. These agencies acted as a buffer to
protect the United States from experiencing financial crisis caused by borrowers who default
their payments. Fannie Mae and Freddie Mac benefited mostly middle and low-class individuals.
The decision by the Obama administration to eliminate tax breaks and mortgage-related
subsidies negatively affected a majority of Americans as opposed to wealthier taxpayers.
FINANCIAL ETHICS AND COMPLIANCE
3
Introduction
The Federal National Mortgage Association (Fannie Mae) and Federal Home Loan
Mortgage Corporation (Freddie Mac) are agencies designed by Congress. These two federal
agencies were created after the Great Depression when borrowers failed to pay their mortgages
resulting in banks facing financial crisis. Fannie Mae and Freddie Mac play a very crucial role in
the federal’s housing finance system. They offer liquidity, affordability, and stability to the
mortgage market. They also offer liquidity of several financial institutions and mortgage
corporations that provide mortgage financing. Fannie Mae and Freddie Mac are the largest and
leading mortgage corporations in the United States guaranteeing or holding over $5 trillion in
debt. They also help in stabilizing the mortgage markets by ensuring that borrowers do not
default in paying their mortgage.
Relevant facts
The Federal Debt Reduction Commission suggested that mortgage-related subsidies and
tax breaks provided by the federal agencies, Freddie Mac and Fannie Mae, that assist middle and
lower-income families to purchase homes be scaled back or eliminated. The Obama
administration proposed in eliminating the two agencies. However, it failed to eliminate and
reduce incentive and tax breaks that benefit the elite taxpayers.
On September 2008, the US Treasury placed Freddi...