CEO Responsibilities for Corporate Bankruptcies Fannie Mae and Freddie Mac collapsed because they were part of the widespread financial misconduct that is occurring here in the United States. Washington Mutual, a Seattle-based banking institution, collapsed due to taking on excessive bad debt with bad mortgages, making it the largest banking failure in U.S. history. The federal government took control of Pasadena-based IndyMac Bank, the second largest banking failure in U.S. history; AIG recently collapsed; Lehman Bros., a global investment firm collapsed; Bear Stearns, a New York City-based investment banking firm, collapsed; and there are others. It may be difficult to understand the reasons why all these large companies are failing because they are, in reality, very large and complex. However, it happens more often on a smaller scale and even in the backyard. At nineteen I went to work for a locally owned aerospace company. The owner put her trust in a great man to be the president of the company and run it profitably. The President spent a lot of time talking to each of the employees. He knew everyone by name. Everyone was important and had something valuable to offer, even the caretaker. He would come up to us at any time and talk to us about the football match the night before; on our families; or about our plans for the upcoming holiday weekend. Throughout the year we held numerous company-sponsored events, such as pizzerias, company picnics and bowling parties. We organized golf tournaments and also had a company softball team. In the summer we participated in activities such as water skiing and fishing. Nearly all of the company's 120 employees and their families participated in these activities from time to time. Morale was very high. He was one of us. He wanted the company to succeed because he knew everyone depended on their jobs to support their families. He knew that if the company did well, everyone would be generously rewarded. The company has been very profitable and has shown its appreciation by sponsoring these functions and more. New automated CNC (computer numerical control) equipment was designed and purchased to replace old and worn machines such as manual mills and lathes, improving the work of machinists.