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Friday’s Change Reflection Quote - Leadership of Change® - Change Leaders Embody Ethics

Updated: Jul 28, 2023

Fannie Mae and Freddie Mac

"Ethics are a timeless behaviour that all change leaders model"

👏 Happy Friday!

On this day, July 14th, 2008, the US Treasury and Federal Reserve unveiled sweeping steps to possibly bail out the nation’s two largest mortgage lenders, Fannie Mae and Freddie Mac. Treasury Secretary Henry Paulson said that the government would inject billions of federal dollars into the mortgage groups and pledged to buy stakes in the two companies should market conditions worsen. Both companies’ shares had been under increasing pressure and had lost as much as 80% of their value in the previous 12 months. Fannie and Freddie are government-sponsored enterprises (GSEs) that play a significant role in the mortgage market in the United States. Historically, they have been subject to various regulations imposed by the government. One such regulation was the restriction on the purchase of high-risk mortgages, but in the years leading up to the 2008 financial crisis, there was a significant expansion of risky lending practises in the mortgage industry, including the widespread issuance of subprime mortgages, which Fannie Mae and Freddie Mac participated in.

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✅Early in April 2007, Treasury Secretary Henry Paulson stated that “I don't see subprime mortgage market troubles imposing a serious problem. I think it's going to be largely contained.” The 2008 financial crisis that led to the bailout was fuelled by a combination of factors such as subprime mortgage lending, lax regulatory oversight, weak leadership, and flawed risk management practices. Financial institutions and banks were driven by greed as they pursued risky financial practices and engaged in unethical behaviour to maximise their profits. They took advantage of lax regulations and engaged in predatory lending practices, offering subprime mortgages to individuals who were unlikely to be able to repay them. These institutions then packaged these high-risk mortgages into complex financial products and sold them to investors, further fuelling the crisis. Change Leaders Embody Ethics.

"Ethics are a timeless behaviour that all change leaders model"

👉 The change leaders’ second responsibility is to model the new way, especially the new skills and behaviours. They must uphold high standards, even when their peers have different or lower ones. It can be tempting to neglect ethical conduct when no one is watching, succumbing to self-indulgence or greed. Modelling the new way is the one key task leaders of change do not need props for, nor should they delegate this to others.

Have a fantastic weekend with the ones you love and care for, enjoy some fresh air, exercise, eat, drink and be happy.


Peter consults, speaks, and writes on the Leadership of Change®.

For further information please visit our websites:

Change Management Body of Knowledge (CMBoK), Change Leadership, Change Management Global Thought Leader, Peter F Gallagher, Change Management Books, Leadership of Change Volumes 1 2 3 A B C 4 5 6 7, Change Management Fables, Change Management Pocket Guide, Change Management Handbook, Change Management Gamification, Change Management Adoption, Change Management Behaviour, Change Management Leadership, Change Management Sponsorship,

Peter F Gallagher is a Change Management Global Thought Leader, Guru, Expert, International Speaker, Author and Leadership Alignment Coach.

Listed #1 by leadersHum Top 40 Change Management Gurus You Should Follow in 2022 (Mar 2022).

Ranked #1 Change Management Global Thought Leader: Top 50 Global Thought Leaders and Influencers on Change Management (2023-2022-2021-2020) by Thinkers360.

Ranked #1 Business Strategy Global Thought Leader: Top 50 Global Thought Leaders and Influencers on Business Strategy (2022) by Thinkers360.

Ranked #2 Leadership Global Thought Leader: Top 50 Global Thought Leaders and Influencers on Leadership (Aug 2020) by Thinkers360.

Business Book Ranking

Change Management Behaviour - Leadership of Change® Volume 6, listed among the 50 Books from Thinkers360 Thought Leaders to read in 2022.

Change Management Adoption - Leadership of Change® Volume 5, listed among year-to-date’s (Jul 2021) most popular books on business and technology from Thinkers360 member thought leaders.

Change Management Handbook - Leadership of Change® Volume 3, listed among the 50 Business and Technology Books from Thinkers360 Thought Leaders to read in 2021.

Change Management Pocket Guide - Leadership of Change® Volume 2, ranked within the top 50 Business and Technology Books (Jan 2020) from Thinkers360 Thought Leaders.



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