Unethical decisions in bank lending is likely one of the causes of the current economic crisis in the United States.

Question

Quizplus · Accepted Answer

Unethical decisions in bank lending, such as approving loans to individuals who could not afford them, contributing to the subprime mortgage crisis, and issuing loans without proper verification of income, were major factors in the economic crisis of 2008. This led to a wave of defaults and foreclosures, ultimately leading to the collapse of the housing market and subsequently the stock market.

Unethical Decisions in Bank Lending Is Likely One of the Causes