The former CEO of Countrywide Mortgage (now a part of Bank of America), offered favorable loans to members of Congress, Countrywide government regulators, and members of the board and officers of Fannie Mae, the quasi-government agency that bought Countrywide's mortgages in the secondary market. The loans were jumbo loans at below-market rates. Countrywide sold 90% of its mortgages to Fannie Mae. Congress was responsible for the creation, funding, and policies of Fannie Mae. The members of Congress who received the Fannie Mae favorable loans sat on House and Senate Banking Committees. Which of the following categories of ethical breaches, if any, applies to this practice?
A) Taking things that don't belong to you
B) Taking unfair advantage
C) Conflict of interest
D) All of the above apply

Question

Quizplus · Accepted Answer

This practice constitutes a conflict of interest since the former CEO of Countrywide Mortgage offered favorable loans to members of Congress, Countrywide government regulators, and members of the board and officers of Fannie Mae, the quasi-government agency that bought Countrywide's mortgages in the secondary market. The loans were jumbo loans at below-market rates, and Countrywide sold 90% of its mortgages to Fannie Mae. The members of Congress who received the Fannie Mae favorable loans sat on House and Senate Banking Committees.

The Former CEO of Countrywide Mortgage (Now a Part of Bank