The purpose of this research essay is to understand how the financial crises of 2007-2008 were the product of the deregulation and risk taking behaviour of many financial institutions. The work mainly proposes to understand how this pro-recession behaviour could be used to better structure New Zealand’s economy which is seemingly moving towards a housing bubble situation itself. The work is divided into five key blocks of discussion which are:
1) An understanding of how corporate governance has failed to spot the threats and risks in the financial organizations which have caused the financial crisis in US during 2007-2008.
2) Whey and how corporate governance must have been designed to protect the stockholder investments and how the lack of this form of support led to the financial crises.
3) An analysis of the insider documentary to understand what form of a failed setup of bank CEO’s management, deregulating impact, agents with no previous knowledge on shares and stocks and more led to the financial crises. Four interview opinions are collected and critically analysed.
4) A better recommendation for protecting stockholder investments.
5) The reasons it appears that New Zealand is approaching a housing bubble form of financial crises.
Structure of Report: The report is divided into a main discussion which forms the body of the report, and conclusion and recommendations. The scope of the report is to understand the issues of financial corporate deregulation and its implications for New Zealand. The discussions section is subdivided to address different issues of 1) failure in corporate governance, 2) stockholder interest breach, 3) insider movie interviewee viewpoints on what the financial heads knew and what they could have prevented, 4) key recommendations for protecting stockholder investments, 5) implications for NZ and 6) critical review based on writer’s opinions.