You work as a loan officer at a large bank. You are working to close a large multi-million dollar loan which would represent an extremely large commission for you. When the loan is close to closing, you find out that liquid assets you reported for the borrower (person to receive the loan) are too low to qualify for the loan, and you are crushed because you have spent months on this loan. You circle back to the borrower, and they tell you that it is no big deal. They tell you that you just need to tell them what liquid amount needs to be in their accounts, and they will make sure it happens. They relate to you that they are “just protecting their assets for Uncle Sam”, but can show nearly any liquid amount in their accounts. The problem is that bank rules specifically state that all liquid assets must be disclosed on the loan documents. You are certain that this borrower has more assets than reported (although technically you have no direct proof other than that off-hand “Uncle Sam” comment), but no one actually has a means to determine the borrowers total assets. You need to decide whether to report the borrower and lose the loan or amend the reported liquid assets and let the loan go through.

During this process, you find out that the borrower is going to use this loan to condemn and develop the only homeless shelter in town into high-priced condominiums. Which of the following potential reasoning does not represent an ethical principle (seven principles of decision making) that may guide your reasoning to amend the reported assets and accept the loan?

A. You have no right to impinge on the borrower’s rights to develop the property

B. Because you have no direct proof, pushing the loan through is of the greatest long-term benefit to you and should be done

C. It is not illegal to push the loan through (against bank guidelines but not against government regulations) so you should push it through

D. B & C do not represent reasoning based on the principles of ethical decision making

E. All of the Above (A, B, & C) actually represent reasoning based on the principles of ethical decision making

Answer rating: 100% (QA)

The answer is E All of the Above A B C actually represent reasoning based on the principles of ethic... View the full answer