IntroductionFinancial organizations and the banking sector have been supporting their customers for centuries. Their goal is to help their clients grow and secure their wealth, provide services such as business and customer loans, and provide profits to their shareholders. Although a very mature sector, things took a turn for the worse in the mid to late 2000s as the then very active US real estate market came to a screeching halt and the global economy began to collapse. Readily available lending practices failed as consumers began defaulting on subprime mortgages, losses for banks and investors mounted, and home values ​​fell dramatically. The banking industry understood that subprime loans carried higher risks and paired subprime loans with less risky investments to protect themselves from risky investments. Although it made sense to consolidate subprime loans and spread risk, the industry failed to address the unethical behavior of the financial industry. Financial institutions misrepresented the loans when they packaged and sold them; thereby relieving them from risky loans. However, the losses were much greater than expected and caused the collapse of the banking sector. The subprime mortgage crisis and the resulting fallout from foreclosures have caused dissension among consumers, lenders, frustrated lawmakers, and created a furious debate over the causes and possible solutions to subprime mortgages and to the risky and greedy behavior of the financial sector. The paper is based on the Banking Collapse Case Study: The Ethical and Financial Risks of Derivatives and will determine the most applicable moral philosophy followed by...... middle of paper.... .. make a wise decision if this is a product or service they wish to invest in or purchase. This is what investors and customers expect and desire. Works CitedEl-Nadi, F., (2014). Culture: Examples Of Strong Corporate Cultures, retrieved February 25, 2014 from http://www.evancarmichael.com/Human-Resources/840/Examples-Of-Strong-Corporate-Cultures.htmlFerrell, OC, Fraedrich , J. and Ferrell, L. (2011). Business Ethics: Ethical Decision Making and Cases: Custom Edition 2011 (8th ed.). Mason, OH: South-Western Cengage Learning. Rankin, J.A., (May 16, 2013). Ethical Egoism, retrieved February 25, 2014 from the website http://philosophicalbusiness.com/2013/05/16/ethical-egoism/Unattributed, (2014). White-Collar Crime: Lying, Cheating, and Stealing, retrieved February 27, 2014 from http://www.fbi.gov/about-us/investigate/white_collar