Corporate Governance in 2007 to 2009 - Research Paper Example

This research will begin with the statement that posts the 1929 Wall Street crash the world is now facing the next biggest and most serious financial crisis. This crisis has led to an inevitable repercussion on the housing markets, consumer markets and also the financial markets world over. According to a report, in mid-2008, ‘.the global economy is teetering on the brink of recession. The downturn after four years of relatively fast growth is due to a number of factors: the global fallout from the financial crisis in the United States, the bursting of the housing bubbles in the US and in other large economies, soaring commodity prices, increasingly restrictive monetary policies in a number of countries, and stock market volatility.

… the fallout from the collapse of the US mortgage market and the reversal of the housing boom in various important countries has turned out to be more profound and persistent than expected in 2007 and beginning of 2008. As more and more evidence is gathered and as the lag effects are showing up, we are seeing more and more countries around the world being affected by this rather profound and persistent negative effects from the reversal of housing booms in various countries’. There have been a number of fraudulent activities and failures in terms of corporate governance.

There have been a number of institutions that have failed over the last two years, where the world has been faced with the worse ever economic meltdown. There have been a number of causes for the economic meltdown and a number of firms that have contributed to the same. The report also anticipated the world would be faced with high levels of recession over the years. This has to a great extent proved to be true and the global economy has seen a major trauma over the last two years. The major reasons for the decline and depression in the economies worldwide have been due to the failure of the corporate governance in companies and corporations.

The lack of following of the rules and regulations that have been set down by law has led to a breaking up of the corporations and thereby causing a traumatic wave across the world’s economy. There have been a number of cases which will be discussed further in the report.