blog




  • Essay / Government and Markets - 765

    This essay is a review of a lecture given by Mr. Spitzer, the former governor of New York, at the Edmund J. Safra Foundation Ethics Center at Harvard University , November 12, 2009. Like new. As York State Attorney General from 1998 to 2006, Mr. Eliot Spitzer successfully prosecuted corporate crimes, including stock price inflation, securities fraud, and lending practices predatory. Among his best experiences, Mr. Spitzer addressed how government should intervene in the functioning of the market. Mr. Spitzer explained why government intervention is necessary in the market: firstly, to ensure transparency, to guard against unfair market bases such as discrimination, to improve corporate governance and to demand that companies be held accountable for their dangerous behavior. . Mr. Spitzer emphasized that a necessary proposal for proper government in the marketplace is needed to restore public trust in government so that real transformation is possible. Mr. Spitzer spoke about the American International Group (AIG) and the financial rescue plan. I agree with what Mr. Spitzer said: why would we invest in AIG? Mr. Spitzer said: “Think about it. AIG was a worthless shell. Anyone would say, “I'm giving you, as a candidate, a check for $12.9 billion; you run around and give the check to Goldman? I want shares of Goldman, I don't want shares in a worthless shell. The Fed and Treasury have not considered this possibility. I don't know why, but it brings us back to the question of who pays. It was wrong. » (Fox TV, 2009). The question arises as to why an individual would allow our government to want to invest in a bankrupt company? AIG benefited from government intervention in TARP policies because our government declared the banks "too big to fail" and feared their failure would cause a plunging recession. However, the Troubled Asset Relief Program (TARP) money AIG received was primarily for CEO bonuses. It was reported in a letter after investigation (Fox TV, 2009). AIG's action appears to send the message that two banks can take all the risk. they liked, any loss will be covered by the taxpayer. Companies must be held accountable for risks and poor and unnecessary business choices..