Problems in the Governance of Financial Companies and whether Current Corporate Regulation Can Prevent the Recurrence of Financial Crises

Abstract

During the financial crisis of 2008, global economics experienced an immense impact and the majority of the financial firms were affected a lot. In the aftermath of the crisis, experts have analyzed the major problems that emerged in the management of financial companies during the financial crisis, and have solved these problems. However, the outbreak of the financial crisis has a variety of causes, such as war, and disaster. A lot of the blame has been placed on subprime mortgage defaults. But the fact is that the bad loans of the bank existed for a long time. Contrary to common belief, the primary cause of the crisis was not subprime mortgage defaults, but rather a lack of corporate governance, according to the Association of Chartered Certified Accountants. Therefore, this paper analyses one of the reasons is the problems of financial companies in management, and the paper is divided into specific problems, solutions, contrast and conclusion to go over my point of view that the poor management of financial companies led to the 2008 financial crisis.