Answer the following questions. Use complete sentences and correct grammar. Remember the "3 Cs" - Clear, concise, and complete.
Refer to the movie "Inside Job" for the following questions.
1. Who is most to blame for the events depicted in the film? Were you angered by the events? Why?
2. Many of the transactions were legal, albeit perhaps unethical. Discuss a couple of transactions/financing arrangements that you feel should have been illegal, but were legal at the time of the film. Why do you think they should be illegal?
3. How do you feel about banks lending money at high interest rates to borrowers with poor credit (more likely to default)? Compare and contrast this with payday advance businesses, which lend money, and are often the only option for those with poor credit to obtain emergency loans, for a very high rate of interest.
Refer to the video about Jim and Tammy Bakker, Evangelists involved in a fraud:
4. List the rationalizations the Bakkers offered (there are many)?
Watch this video about a snack pilferer: https://m.youtube.com/watch?v=J6pINjggKhI
5. Why do you think Wal-Mart prosecuted this employee?
The "fraud scale", developed by Albrecth, lists several reasons why executives and employees commit fraud. Compare AND contrast his conclusions with Cressey's conclusions?
6. Review exhibits 1-5 through 1-18 in the book. Why are perpetrators with these characteristics more likely to commit fraud/cause higher median losses (e.g., why are college graduates more likely to commit fraud than high school graduates)?