CEOs responsible for corporate bankruptcies Fannie Mae and Freddie Mac collapsed because they were part of the widespread egregious financial misconduct taking place here in the United States United. Washington Mutual, a Seattle-based banking institution, collapsed due to excess bad debt and bad mortgages, making it the largest bank failure in U.S. history. The federal government took control of Pasadena-based IndyMac Bank, the second largest bank failure in U.S. history; AIG recently collapsed; Lehman Bros., a global investment firm, collapsed; Bear Stearns, a New York-based investment banking firm, collapsed; and there are more. It can be difficult to understand the reasons why all of these very large companies fail because they are actually very large and complex. However, it happens more often on a smaller scale and even in your own backyard. At nineteen, I went to work for a local aerospace company. The owner trusted a great man to be the president of the company and to make the company profitable. The president spent a lot of time talking with each of the employees. He knew everyone by name. Everyone was important and had something valuable to contribute, even the janitor. He would approach us all the time and tell us about last night's football game; on our families; or about our plans for the next holiday weekend. Throughout the year, we hosted many company-sponsored functions, such as pizza parties, company picnics, and bowling parties. We hosted golf tournaments and even had a company softball team. In the summer, we participated in activities like water skiing and fishing. Almost all of the company's 120 employees and their families participated in these activities on numerous occasions. Morale was very good. He was one of us. He wanted the business to succeed because he knew everyone depended on their jobs to support their families. He knew that if the company succeeded, everyone would be generously rewarded. The company was very profitable and showed its appreciation by sponsoring these events and more. New automated CNC (Computer Numerical Control) equipment was planned and purchased to replace old, worn machines like milling machines and manual lathes, thereby improving the machinist's work..