By the Ethics Sage –
Dan’s flow chart is both masterful and scary at the same time. It makes you wonder whether anyone really knows who owns a mortgage. When one party sells it to another as a securitized asset, it transfers the risk to that party. Given that the original holder of the mortgage no longer bears the risk of default, it can make unsupportable mortgages to undeserving parties and not worry about the probability of repayment. Multiply that by the number of times a mortgage is sold and you have a chaotic system that encourages bad behavior.
(The “Ethics Sage,” aka Steven Mintz, has been writing, speaking out, and blogging about a lack of ethics in business and society by attacking the decline of moral values in society, a vanishing work ethic, pursuit of self-interests mentality, and a tone at the top of organizations that tolerates and even encourages wrongdoing.
Dr. Mintz enjoys an international reputation for research, teaching, and speaking on ethics in business and accounting. He has published two textbooks and dozens of research papers on business and accounting ethics, and corporate governance. He teaches a course on accounting ethics at California Polytechnic State University at San Luis Obispo.
Dr. Mintz is a widely sought out speaker at ethics, professional and academic meetings. He has presented at: The Board of Director and Corporate Governance Research Conference in Henley, England; Global Finance & Research Conference in London; The Institute of Chartered Accountants in Trinidad & Tobago; Association of Asian-Pacific Accountants in Bangkok, Thailand; and the Asian International Business Association in Shanghai, China.
Dr. Mintz has his own blog on ethics issues under the name of Ethics Sage. The website address is: http://www.ethicssage.com.)
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