The Legal Perspective based on the film inside job Essay

The Legal Perspective based on the film inside job - Essay ExampleOne legal aspect that was clearly brought reveal in the movie is the issue of fiduciary duty. Fiduciary duty is a legal obligation that maven party, in this case, referred to as the fiduciary, act solely on another partys called, the principal, interests. In the within Job, the representatives of Goldman Sachs violated this fiduciary duty by selling corroborativeized debt obligations (CDOs) that were of doubted quality to their clients (Ferguson and Beck, 2010). The selling of these collateralized debt obligations to client meant that the financial institutions traffic with them was transferring the repayment risks to investors and other clients who purchased them.According to Ferguson and Beck (2010), the financial institutions dealing with these collateral debts obligations wont be touch on in case the collateral debts obligation market collapsed. The borrowers credit worthiness did not mean a thing to the fina ncial institutions that lend out collateral debt obligations. Since the investment banks knew of the impending risks in dealing with the collateral debt obligations, they had to part with hundreds of millions to credit rating firms such as Fitch, Moodys and S&P in order for them to give the credits triple-A credit ratings. However, these rating firms when confronted about their rating, they said that those were only opinions and no whizz was to rely on them. From these strategies of selling risky collateral debt obligations during the financial downturn, some financial institutions ended up gaining and making millions from these situations. These include the Morgan Stanley and the Goldman Sachs.Fiduciary duties from the above issues in the Inside Job have been breached. The fiduciary duties consume different elements. These include first acting in utmost good faith. The second element is to stupefy the clients interests first in all actions. The next element was to put all satis fying and