Question

Did Corzine act appropriately? How would you characterize his behavior legally, ethically, and managerially? What other choices did he have?

Did Ms. O'Brien behave appropriately? Realistically, what other choices did she have?

Should the actions of either Corzine or O'Brien (or both or neither) be considered criminally negligent? Unethical? Bad judgment? Other?

What role should (or might have) the firm's Ethics and Compliance Officer played in this drama?

Answer 1

1)Corzine get confused at times and he respond in a way he shouldnt.when he get accused of the loss he fail to act in an appropraite manner.Corzine being the manager of a such a large firm with many customers and with high ranking has made a unethical decision,which lead to more severe problems,the filling of bankruptcy following lead to $1.6 billion funds of customer have dissappeared due to errors in accounting all those activities shows he acted illegally which he was fined for $5 million for his failure in management.he must have opted a brainstorming section with the company holders to increase the profit.

2)O brien didnt behave in a good way.she must have an option in order to notify about the corzine mismanagement to the company board.she has been accused for the misuse of customers money.leads to a great reputational damage to company as whole.

3)yes of course their actions should defenetly considered as unethical,negligent as well as bad judgement.corzine must consider to treat humanity in people but here corzine and O brien violated the trust of customers and acted recklessly and irresponsibly.they both failed to follow the legel procedures of the company board,which is unethical and without the consent of customers they chose to transfer funds that lead to criminal negligence.

4) the complaince officer could have prevent these illegel process by intervensing in this matter by providing various measures and procedures to the firm and the presence of risk management procedures could have prevent all these misuse of funds which thus helps to prevent the loss of customer assets.