Institutional trust explains the reasons why society relies on and trusts that organized bodies are not acting in their own self interest.
             Utilitarianism is based on the notion that since all parties are acting in their own self interest, then the "invisible hand of the market" will level the playing field and maximum utility will be achieved for everyone. Utilitarianism sets no limits to what people can or will do to maximize their own happiness. In this case, the investment brokerages told lies about the IPO market which led to its failure. The investment brokerages knowingly provided information to the public that was incorrect to promote their own self interests. Investors rely on investment brokerages for their investment decisions. They are the leading experts in the IPO market and therefore are expected to be trustworthy sources of information. Unfortunately, the investment brokerages were not troubled by the effects this erroneous information would have on the market. All they cared about was their own happiness. However, when the public realized that the IPO market was being valued at higher prices than its actual worth, the whole market collapsed. Misleading and giving false information to investors led to mistrust and failed institutional trust.
             Deontology on the other hand doesn't believe in the invisible hand. It is based on the notion of institutional duty. Categorical imperative states that if communication exists and if it is useful, then if lies were told continuously, society would end up not listening. This would undermine the whole purpose of communication. In this case, institutional trust failed when the IPO market collapsed because the investment brokerages did not fulfill their duty by telling the truth and helping people to make the right decisions. Although there are no universal rules for investment brokerages per say, there are rules of conduct and duty that must be followed. If the broke...