The second ethical theory that should have been adopted by the financial institutions and the regulatory bodies is utilitarianism. In Canada, the banks are very strict and are heavily regulated but they are also utilitarian, it is one of the reasons they do not and will not fail. They do not make risky loans because they are aware that if they do this they are putting not only themselves but the rest of their customers at risk. Additionally, they treat everyone the same which is key to being a good utilitarian. The American banks on the other hand are not utilitarian, far from it. First, they do not value everyone equally, and secondly, their actions do not result in the maximum happiness. Prior to the crisis there were roughly five million