Posted Monday, August 11, 2008 by
Matt Gargano
Please visit the article “At Freddie Mac, Chief Discarded Warning Signs” (Duhigg. 2008) and answer the following questions to spark a lively debate:
- The article reads “Richard F. Syron, the chief executive of Freddie Mac, says he had to balance the demands of shareholders and Congress.” (Duhigg. 2008) Do you think this is an acceptable (and plausible) response in this situation? Explain.
- Should Freddie Mac have been bailed out by the taxpayers? Was the concept of “moral hazard” (look this concept up as it is not in the article) applied fairly? Explain.
- Should CEO’s be held more accountable? Explain.
Let me know what you think.