Answer to Question #154170 in Management for ARahma

Question

The 2008 financial collapse was caused, in large part, due to a lack of government regulation and improper risk __________ practices.

Answer 1

The 2008 financial collapse was caused, in large part, due to a lack of government regulation and improper risk TAKING practices.

-According to the conclusions of a federal inquiry, the 2008 financial collapse was a preventable crisis caused by extensive failures in government regulation, corporate mismanagement and heedless risk-taking by Wall Street.

- The financial crisis was mainly caused by government deregulation in the financial industry that permitted the bank, and its counterparts to engage in tactics that benefitted themselves in the short-term but had huge repercussions in

the long-term like heedless risk-taking practices.

-Despite the availability and much trust of the then classical ideals like the free market economies, there was not enough government intervention to regulate the economies