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Case Study Countrywide Financial

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Management strategies of the company played a vital role in the whole major fall and the loss of many. The strategies of the Countrywide Financial were not effective and it seems that the management was not updating their strategies with the passage of time and was not keeping them up to date with the changing needs of this world. It will not be wrong to say that the failure was caused due to the negligence of the management. Not only the management but the regulatory bodies also have contributed to this collapse. The management should update its policies on timely basis and was giving loan to almost everyone while following its aggressive approach; it was the duty of the regulatory bodies to interfere. They must have good management strategies …show more content…
A few fortunate people will have access to trusts or foundations to acquire funds. However, the majority of people will turn to the conventional means for financing in the form of loans through financial institutions like Countrywide. With regard to these loans, an alternative is also refinancing through more than one institution should interest rates become unmanageable. In this case it is the time were the abused borrowers do some unethical actions that they will declare that they do not have capacity to pay he obligation …show more content…
• It is time consuming to the management to check the every client’s status and credit ratings.
• It is costly in providing the data base and other things needed to check the credit ratings of every client.

Countrywide Financial must make sure to recognize and remove any employee from top management up to rank and file staff guilty of unethical and illegal conduct. Terminating employees ranks high on the list of most-dreaded tasks for human resources managers. The decision to end the employment relationship is a tough one, unless there's a clear-cut reason to remove the employee from the company premises like Countrywide Financial is facing.

• Terminating employees guilty of unethical and illegal conduct would definitely help save the life of the company;
• Unethical practices would probably be avoided in the system because of the fear of getting terminated.

• Human capital would be of great hindrance especially for scandals that Countrywide Financial is facing. Terminating employees guilty of unethical and illegal conduct and hiring new employees in exchange would probably be hard for them because of their negative reputation in

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