Private Equity Funds: Christian Ethics and Leveraged Buyout Funding

February 25th, 2013 by Kara in Case Studies

While private equity funds have existed for years, they have come under increasing scrutiny and examination after the financial collapse of 2008.  Much like the mortgage securitization movement, private equity funds grew at considerable rates in 2006 and 2007 prior to the financial crisis, with activity of both investment vehicles falling off sharply thereafter.  Private equity funding was down 61% from the prior year in 2008 and down 88% from a previous high in 2006.  What has caused this shift in funding, who stands to lose the most, and what ...

Applying Virtue Ethics: The Rajat Gupta Case

February 11th, 2013 by Kara in Case Studies

A Short Introduction to Virtue Ethics                                    Virtue ethics is an agent-based approach to ethics. This approach focuses on the fundamental character and motivations of the individual moral agent. Moral behavior is not limited or attached to a rule or any guidelines, but rather involves the individual rationally pursuing moral excellence as a goal in and of itself. According to Aristotelian virtue ethics, virtue is defined as a desirable character trait, such as courage, that ...

The FSA vs. David Einhorn: A Case of Regulatory Overreach?

February 7th, 2013 by Kara in Case Studies

FSA levies fines against Greenlight Capital                           The Financial Services Authority (FSA) of the United Kingdom, imposed record fines against David Einhorn and his hedge fund Greenlight Capital for market abuse in the form of insider trading. This article describes Einhorn’s actions. It gives reasons the FSA imposed the punitive judgment based on the FSA’s statutory provisions and regulatory guide. The article analyzes the ethics of Einhorn’s actions and concludes the FSA imposed the large fine for two reasons: ...