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Managers at some banks and mortgage companies have argued that providing subprime mortgages was based on...

Managers at some banks and mortgage companies have argued that providing subprime mortgages was based on their desire to give poor people a chance to participate in the American dream of home ownership. What is your opinion of this explanation in terms of ethics and social responsibility?

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Answer #1

In my opinion, this explanation looks ambiguous in terms of ethics and social responsibility. As in this case, the bank is owning some risks for some applicants who are not qualified for a loan, and even might not be able to afford the repayment.   

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