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Thinking About Punishment (or the Lack of it): The Case of the Economic Meltdown

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Abstract

The subprime mortgage crisis which was caused to a large degree by questionable mortgage lending and securitization practices that were furthered by deregulatory policies devastated the economy, led to large scale unemployment, and caused the foreclosure of millions of homes. There is evidence that numerous mortgage companies, financial firms, rating agencies, and high-level professionals were involved in unethical and often fraudulent business practices leading to the most severe economic meltdown since the Great Depression. In spite of the great economic and social harm, there was a lack of criminal sanctions against those companies and individuals, who were involved in creating the crisis that reached even global dimensions. This article analyses the reasons for and the possible social impacts of the lack of criminal sanctions against those who crossed the line between unethical and criminal business practices.

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Authors and Affiliations

  1. Professor Emeritus of Criminal Justice, California State University San Bernardino, 5500 University Parkway., San Bernardino, CA, 92407-2397, USA

    David Shichor

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  1. David Shichor
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Shichor, D. Thinking About Punishment (or the Lack of it): The Case of the Economic Meltdown. J Bus Ethics 147, 185–195 (2018). https://doi.org/10.1007/s10551-015-2989-2

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