ABSTRACT
This chapter focuses on fraud, bribery and corruption cases that have affected the way our global economy conducts business and how they could have been avoided. It highlights many instances where effective regulation and self-policing would have protected stakeholders and the public as a whole. The chapter also features examples of how too much regulation by government can suppress the economic engine and inhibit recovery from the meltdown, including driving up the cost of compliance programs. It focuses on the loose lending standards, incentives to mortgage brokers and other abuses by banking institutions. The industries that surrounded the banking institutions contributed to the banking and mortgage meltdown in 2008, in turn triggering a worldwide financial crisis. There are many reasons why the mortgage system in the United States failed and many more reasons why it resulted in the worst financial crisis since the Great Depression.
