¶ … Governance Following the Financial Crisis
Principles of Good Governance Following the Global Financial Crisis
Many high profile companies suffered a downfall following the 2008 global financial crisis. The meltdown spanned across various nations including the top world economies. Accusations on the cause of the downfall pointed to the failure by institutional investors inadequate monitoring of investments. In 2007, the collapse of the subprime mortgage market in the U.S. marked the beginning of the financial crisis. The escalating default rates and the decline in housing prices contributed to the economic meltdown. Companies such as AIG, Freddie Mac, Lehman Brothers, and Freddie Mae filed for bankruptcy protection (United Nations Conference on Trade and Development [UNCTAD] 2010). A series of government bailouts followed various financial institutions including HBOS, Citigroup, and Washington Mutual, amongst others. Key policy makers fault weaknesses in corporate governance that explain the financial crisis.
Following the adverse economic implications, top world economies commonly referred to as the G20 convened a situation meeting in Washington D.C. The meeting endeavored to create an 'Action Plan' for the completion of high priority actions in addressing the crisis. Recommendations from the meetings delved in the appointment of independent experts to look into the case with consultations with various economies and existing bodies (Watson, Vasudev 2012). Focus of the recommendations pointed to various activities such as the identification of the sources of systematic risks engraved in financial systems. Other activities included capacity development to address the crisis and a review of compensation practices about innovation and risk-taking incentives.
World major economies, including the United Kingdom, committed to utilizing the recommendations and principles to foster reliable corporate governance to avoid any future occurrence (UNCTAD 2010). Several consultations and discussions with relevant stakeholders reached various recommendations. For the UK case, board size including the qualification and composition of members reiterated the need for an efficient...
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Organization Behavior Global Financial Crisis The most recent financial crisis has badly affected the Global economy. Individuals, businesses, and Governments; every entity has taken its impacts in one way or another (Burger, Coelho, Karpowicz, & Tyson 2009). Since its arrival, financial crisis has posed big threats to the world markets. The countries are trying to overcome the bad impacts of this crisis but have failed to recover their positions due to severe
Running head: The COVID- Slowdown and the Global Financial Meltdown of 2008 1The COVID-19 Slowdown and the Global Financial Meltdown of 2008 14The COVID-19 Slowdown and the Global Financial Meltdown of 2008Coronavirus virus, commonly known as COVID-19, has caused the world\\\'s greatest fear since the 2008 global financial crisis. With its rapid transmission rate, the World Health Organization announced that it had surpassed the epidemic situation to a pandemic. The
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Global Economy Key Player & Background As the spokesperson for an interest group representing an economic think tank, I am issuing this policy statement to detail the implications for the U.S. economy of a sovereign default in the Eurozone. As Reich notes, the financial crisis in Europe is threatening to spread to the United States. If there is a default in Greece, a panic could start in financial markets, spreading to other
Conduct a benchmarking analysis As explained by Prasnikar, Debeljak and Ahcan (2005) benchmarking depends on comparing between two activities of an organization and another. In our case, we shall compare McDonald's activities and those of its competitors, Burger King and Wendy's. • Best practices McDonald's as a main player in the fast food industry is concerned with best practices with the industry. To this end, the corporation has adopted some best practices that
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