Corso di studio in Finanza Aziendale e Mercati Finanziari

The course aims at reconsidering from an ethical perspective several aspects of finance already learned by the students in the Course "Corporate Finance and Financial Markets". The object is to form future managers well equipped not only from a technical point of view but also and above all with the awareness to behave correctly, with transparency, honesty, respect of the rules and social responsibility.

The attended results can be summarized as follows (Dublin indicators):

1. Know and understand the ethical principles of finance.
2. Ability to apply the concepts of ethical finance, banking ethics, ethical funds and micro-lending to the national and international scenario
3. Acquire independence of judgement through critical analysis of both positive and negative financial phenomena.
4. Ability to express and communicate the concepts learnt during lectures and classroom discussions.
5. Acquisition of the moral and ethical values illustrated and debated during the course, also with a view to orienting own actions in future professional activities.

“Insofar as they are instruments, the entire economy and finance, not just certain sectors, must be used in an ethical way so as to create suitable conditions for human development and for the development of peoples. It is certainly useful, and in some circumstances imperative, to launch financial initiatives in which the humanitarian dimension predominates. However, this must not obscure the fact that the entire financial system has to be aimed at sustaining true development”
(POPE BENEDICT XVI, Caritas in Veritate, 2009, par. 65).

The quotation, taken from the Pope Emeritus’ social encyclical letter, effectively summarises the two “core nuclei” of the Module: 1) demonstrate – in negative – how finance must not behave to avoid re-occurrence of crises and scandals; 2) illustrate – in positive – the “financial initiatives in which the humanitarian dimension predominates”.

In detail, these are the topics we will discuss:

1. Prof. Rovera

- the Ethical Bank
- the Ethical Funds
- the laundering
- the mutual guarantee systems
- the Usury
- Bail-in, Bail-out and Bail-over
- the Islamic Finance
- the Microcredit
- the Subprime crisis

2. Prof. de Sury

- the fallacy of the efficient market hypothesis and conflicts of interest
- the Ponzi schemes (Ponzi, Madoff, Stanford ...)
- Cases: Bernie Cornfeld and Robert Vesco
- Cases: Mike Milken and Ivan Boetsky
- Cases: Jerome Kerviel and Nick Leeson
- Cases: Callisto Tanzi and Sergio Cragnotti
- the bankruptcy of Banco Ambrosiano
- the bankruptcy of Lehman Brothers
- Cases: John Merriwether and George Soros

The course is delivered in 40 hours of lectures of the teachers and - whenever appropriate - professionals in the relevant fields.

The theoretical discussion is often integrated with the presentation of "real cases", useful to understand the practical application of the topics.

Rector's Decrees establish that the exam will be held in classroom.

EXAM

Students will be asked to prepare TWO papers: one on Prof. Rovera’s part (15 points), one on Prof. de Sury’s part. Time = 1 hour

The Professors usually indicate to students the reading of interesting and updated articles, going beyond the simple programme of the course.

Slides and Material on Moodle

Passing the exam requires a real understanding of the subject, not a simple mnemonic study of the concepts. Papers will be of reasoning.