Thomas Edison State BUs421 case 6 assignment

Case Study Assignment 6 The case study assignment formodule 7 drawson the following textbook case: Case 28: “Countrywide Financial Corp and the Subprime Mortgage Debacle,” by Ronald W Eastburn, C422–C436.

Read case 28 in the textbook, and then respond to the casequestions given below. (See “A Guide to Case Analysis” for further guidance on written case analysis.) In addition to using the Countrywide casestudy provided in the textbook, research the company further to find any relevant events that have transpired since the writing of the case study. Use the company’s Web site, Internet search engines such as Google, online data services, or other sources to locate the latest articles about the company including press releases and current financial information. Be sure to cite all sources according to APA guidelines (see also Appendix: A Note about Documentation).

Course Syllabus—Appendix S-30

Case Questions

1. Explain the cause of the housing bubble and its burst in the mid- 2000s. To what extent is this problem the result of ethical failure? Explain.

2. Evaluate Countrywide’s role in the subprime mortgage debacle. Was the company’s conduct unethical or illegal?

3. If we are to ensure that a crisis such as the subprime mortgage debacle does not occur again, what changes should occur in companies such as Countrywide?

4. Using this case as an example, who benefits and who gets hurt when a company engages in unethical or socially irresponsible behavior?