Federal Credit Bank has a loan receivable from Subway Construction Company. Subway is late making payments to the bank, and Milton Reed, a Federal Credit Bank vice president, is helping Subway restructure its debt. Reed learns that Subway is depending on landing a contract from Starstruck Theater, another Federal Credit Bank client. Reed also serves as Starstruck's loan officer at the bank. In this capacity, he is aware that Starstruck is considering declaring bankruptcy. Reed has been a great help to Subway, and Subway's owner is counting on him to carry the company through this difficult restructuring. To help the bank collect on this large loan, Reed has a strong motivation to help Subway survive.

Apply the ethical judgment framework from the chapter to help Reed plan his next action.