First National Federal Bank Case Study Example | Topics and Well Written Essays - 1500 words - 2

First National national Bank - Case Study eccentricIn business today, the old adage about honesty is the best policy still holds current and it is more important than ever.Problem this case deals with an honest issue regarding the business practices of the First National Federal Bank located in the state of Wyoming. Loan officers are now required by the assert to adhere to changes implemented after the savings and contribute debacle with regard in particular to ethical business practices. This emphasis on ethics is to avoid those problems that arose due to unsavory policies and procedures concerning the approval of bank contributes. In this particular case, the issue at hand is whether to let a loan applicant pay for the hail of the officers out of town trip purposely to inspect the hard collateral offered by a thickening for his loan. It is a standard practice in the banking industry to require collaterals in exchange for a loan. A bank requires collateral as a guarantee f or repayment because a loan client would sort of not be in a position of abandoning his hard-earned collateral and lose it through foreclosure if a loan turns sour (bad). There is also ambiguity between what is legal and what is ethical (moral).Inputs - the issue that bothered Shelby concede the most was the question of whether to let one of their potential loan clients (Mr. Doug Whitton) pay for their trip to a gap he owns as part of the banks due diligence process of conducting an on-site evaluation (appraisal) of the offered collateral. At this point, it whitethorn seem unethical to let a client shoulder the expenses since there is no assurance the loan would be granted. Besides the collateral, there are factors that may work against loan approval such as credit history and repayment capacity (source of income to pay back the loan). If the two loan officers, Shelby Grant and Ben Garrison, would lead or accept the clients offer to pay for their trip, it may appear a bit awkwar d for them.