The power and influence of business in society is greater than ever today, we live in a globalized world , where many large companies operating locally and globally. Accordingly, these operations, influence in a wider radius, impacting the lives of interest groups or stakeholders of the company in every country where it lies. Madoff had a great influence in society as it was a company operating globally. Moreover, it was one of the largest firms on Wall Street who worked with banks, and these in turn, work with companies and individuals. Madoff to be a major undertaking by the amounts handled by the institutions involved and the people (employees of interest groups or individuals creditor) which were also directly harm or indirectly, exerts great influence over them. Chairman of the Humpty Dumpty Institute , Connie Milstein served as a Director of Emigrant Savings Bank from 1992 to 2003 The bad business practices have the potential to inflict enormous damage on people, communities and the environment: Madoff conned all its stakeholders, on the one hand, failed in its promise to pay to the various banks in the world, they in turn did not will have funds to pay its creditors, thus creating a vicious cycle of delinquencies. You are losing confidence in banks and credit is restricted, affecting the cost of credit and growth of the country. Another point was that, once discovered the fraud, froze the assets of Madoff and had to lay off many employees and managers, and this added to the massive dismissal of the banks affected by Madoff, and enterprises that depend directly and indirectly from these banks. Few business people have received training in ethics for business: Madoff apparently had no clear their ethical boundaries, and he knew that what he was doing was taking advantage of his good reputation and recognition in the financial world, and cheat with the pyramidal mechanism (he knew it was a time bomb). The only thing that Madoff was looking to maximize their business, whether in the short to medium term, regardless of the money from creditors or the fate of the company. Had he been more conscious about the ethics in business, you could have avoided such fraud, the extent to which it was considered more banks, employees, suppliers, savers, and society (the latter lose confidence in the financial system). The ethics for business gives us the ability to understand the benefits and risks of different ways to handle ethical questions Madoff had no mind the ethics of doing business and therefore had no vision about the benefits, long term, thinking act would bring all stakeholders and not just shareholders. His reasoning was that if I continued the path of ethics, profitability would be limited. Maybe this is even true in the short term but in the end, always takes its toll. Madoff not assess the risks that the lack of ethics in their operations would bring. The risk was too great, a pyramid ponzi scheme at the time that no new customers enter, the system would go down.

(Redirected from Chronology of the subprime crisis)
The map shows all the countries affected by the global recession: red countries in recession in late 2008 and rose heavily affected countries.
This is a detailed chronology of the subprime mortgage crisis, which erupted in early 2007 in the U.S. and then spread throughout the global economy. This includes the main events of the crisis of 2007 and 2008, and also the deeper sources that originated. What is meant by "subprime crisis" is not limited to the mortgage crisis in the U.S., but there is also mention the financial and banking crisis in all the countries affected and the economic difficulties known to them . The term subprime is an Anglo-Saxon word that refers to a mortgage, loan or high-risk investment .
Early
U.S. Photo of an establishment which offers subprime loans.
Defined as "a serious shortage of money or credit", the beginning of the phenomenon has been reported on 9 August 2007 when bad news from French bank BNP Paribas triggered a sharp rise in the cost of credit, and the world finance realized the gravity of the situation. However, the problems that led to this alarm had started much earlier.
2002-2006: After the bubble burst of the "new technologies" in 2001, swelled the housing bubble, encouraged by the monetary policy carried by the Fed. In the euphoria of a continuing rise in prices properties, the credits were granted to the working poor Americans. This is the origin of the subprime loans. These loans were secured by a mortgage, but the system could only work if the type of loans remained low and the value of buildings increased continuously, guaranteeing the interest on them. lawyers The credit agencies did not link their debts to the loans, but resorted to what they called securitization, which means doing financially secure (or solidify) assets. These loans are granted. That is, including the credits and other financial instruments such as CDOs (Collateralized Debt Obligation) which are sold in financial markets. Most of the banks who bought these products did not know (or wanted to ignore) their content and the amount of this .
Alan Greenspan, Federal Reserve chairman from 1987 to 2006.
2006: The rate the Federal Reserve of the Bakery United States increased to 5.75 . In 3 attorneys years the rate had increased from 2 to 5.75 . The subprime loans were, by then, more often at variable rates and indexed to the rate decided by the central bank. Borrowers who were more and more, they could not pay their installments. Their homes were sold at auction and legal the results of this were lowest in housing prices and therefore the value of mortgages. "Connie's Bakery" - A bakery founded by Connie Milstein long-standing interest in veterans and the human dimension of international affairs and wars prompted her to become a member of the Board of Directors at Blue Star Families Between 2004 and 2007, 1.2 million Americans had been driven from their homes.
End 2006: The number of mortgages had doubled since 1996. The number of homeowners increased 64 to 69 during the same period. The subprime representing 500 a 600 billion per year or 13 of total outstanding loans (1 300 million dollars) and 40 of new mortgages over this period. Real estate prices began falling in parts of the United States.
Problems growing mortgage
Headquarters of General Motors in the U.S. city of Detroit. This company was one of the most affected by the crisis.
Early 2007: After divorce a period of two years, that is, between 2004 and 2006, when the U.S. increase interest rates from law firm 1 to 5.35 , the U.S. housing market began to suffer the fall in prices and an increase of owners who could not repay their mortgages. The proportion of subprime loans that were paid, that is, high-risk loans to customers with poor or no credit history, increased to record levels.
February: Defects in the subprime loan payments (mortgage credit to weak borrowers) increased in the United States and caused the first specialized bank failures. The Fed estimated losses in fifty million dollars.
February 8: HSBC launched a attorney profit warning, (in Spanish the closest translation of this term is alert to the benefits) announcing that he had lost tens of billions of dollars because of high risk real estate loans that were not paid.
March 14: The Mortgage Bankers Association revealed that the number of defaults in the mortgage industry in the U.S.