By Tom Creely, Ph.D.
The current mortgage crisis has contributed to the United States sliding into a recession which adversely affects all Americans. Recently, three major credit card companies, Bank of America, Capital One, and Discover Financial Services, revealed before Congress that they are passing their losses in the mortgage sub-prime loans on to credit card holders by increasing their interest rates on balances. Even people who have paid more than the minimum payment and on time are being hit with dramatic rate increases. According to recent testimony for the US Senate Committee on Bankruptcy Reform, Professor Elizabeth Warren stated “Sub-prime mortgage companies … have unlawfully taken millions of dollars from homeowners, then fled to the bankruptcy courts to protect their insiders and bank lenders.” This is more than a legal issue, it is a moral issue of greed, manipulation, and deception of people who could ill-afford high risk mortgages. Do you think such predatory lending was focused on the poor and economically disadvantaged? With Metro Atlanta having a large minority population, were they victims of cunning mortgage brokers? What ethical responsibilities do major financial institutions have? Tell me what you think.
Dr. Tom Creely is assistant professor of Leadership and Ethics at the Siegel Institute, Kennesaw State University.
Dr. Tom Creely is assistant professor of Leadership and Ethics at the Siegel Institute, Kennesaw State University.
