1. What was the case about? (Summary of the Case)
The case was about how one man single-handedly brought down one of the world’s most historic banks. The man was Nick Leeson and it happened from 1992 to 1995. He did it while holding the position of general manager to Barings Securities in Singapore. As general manager he oversaw both trading and back office needs, something uncommon in the industry due to the fact that it eliminated necessary checks and balances that would prevent such fraud from occurring. He had authority to deal in futures and options order for clients or other firms within Barings and arbitraging price differences between Nikkei futures traded on the SIMEX and Osaka exchange, it was a low risk strategy meant to
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5. How did the case come to the attention of the media?
The case came to the attention of the media when Barings bank executives discovered Leeson’s trading activity and informed the Bank of England that they would not be able to meet SIMEX’s margin call, therefore declaring them bankrupt. Leeson had fled Singapore to Malaysia with his wife in an attempt to make it to London. They where arrested in Frankfurt.
6. What was the outcome of the case?
Barings Bank collapsed because it was unable to meet SIMEX’s margin call. The bank of England was unable to save it due to the weariness of investors, they believed it was a black box and there wasn’t enough time to account for all the losses. On March 3rd, 1995 it was bought by ING for £1 and took on all of its liabilities. Nick leeson and his wife where arrested the same day in Frankfurt, Germany trying to arrive to England to avoid extradition to Singapore. He went on trial in Singapore and was found guilty of fraud; he was sentenced to serve six and a half years. While in prison he contracted cancer, survived and wrote and autobiographical book called “Rogue Trader”.
7. How could this case been avoided?
The situation could have been avoided if Barings would have had the appropriate checks and balances required to prevent fraud. In Leeson’s own words "I completely recognize my fault in what happened, but it was clear Barings were incompetent, and their lack of oversight was appalling – all
The Bank of the United States was designed to make money and build an economy. It was designed by men like Alexander Hamilton and Robert Morris, but did not benefit the common citizen as much as wealthy investors. Why did a fledgling government need to borrow millions from overseas in order to invest in a “national” bank, to turn around and then borrow the same money back and pay interest on it? The banking system developed by Alexander Hamilton and Robert Morris was prime pickings for speculators, and laid the groundwork for a history of unscrupulous activity regarding our nation’s money supply that continues to this day. The signatures on the Constitution were barely dry before corruption and
The following report will further examine the RBC Royal Bank brand, critically examining two promotional examples and how it uses IMC tools and channels to achieve their positioning. RBC Banking has successfully positioned itself as a friendly, approachable bank successfully reaching out to people who are in a more established stage in their life. This older demographic consists of people or couples who are ready to buy a house or attain a mortgage, going to make a large investment or looking to invest. Despite a more older generation as their primary target audience, they have made significant efforts to appeal to Millennials with targeted advertisements and promotions. As previously in the Positioning Analysis, the connection between
In the summer of 2012, JPMorgan Chase, the largest leading U.S. bank, announced trading losses from investment decisions made by its Chief Investment Office (CIO) of $5.8 billion. The Securities and Exchange Commission (SEC) was provided falsified first quarter reports that hidden this massive loss.
The community of Bankhead, Census Tract 85, is located on the west side of downtown Atlanta with surrounding areas such as The Bluff and counties like Rockdale, right outside of Fulton County. Its’ industrial area gets its’ name from the formerly named highway that used to be a way to The neighborhood is encapsulated street boundaries like Grove Park towards the West, Washington Park and Hunter Hills are located down towards the Southern region of the community. The community adjacent is called The Bluffs is known as English Avenue and Vine City. The community is in council district three and nine, and the area is considered metropolitan. The area codes common in this metropolis area are 30314 and 30318.
The financial industry had gone to several crises through the decades. Around 2008, Alex Preston notice that the investments banking industry was in a crisis. Big banks were closing its doors or selling out to other companies. As it was the case of the National City Corp.; the first ever American’s mortgage maker had to close its doors after taking a large amount of proprietary risk. Other big financial companies like Goldman Sachs and Morgan Stanley, to avoid having to go down the same way, became bank holding companies, which means that these companies could receive emergency federal funds.
After reading the case, it was truly fascinating how a very young man, Barry Minkow, could pull off such a huge fraud and how greed and audaciousness can make someone become so unethical. The fact that a young man had a goal and would do everything and anything to make sure he reaches his goal led him to commit fraud through his fake insurance restoration business. It all started when he was 15 years old and was driven to be successful, so he began a carpet cleaning business but soon came to realize that he would make it big if he were in the insurance restoration business. The way he gained customers for his business was by calling channel 4 in Los Angeles, pretending to be a fact customer, and explaining to them how the 16-year-old owner
The task force steering committee is made up of the Department of Justice, Department of the Treasury, Department of Housing & Urban Development (HUD), and the Securities and Exchange Commission (SEC). The investigators would also work with local authorities to “investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, address discrimination in the lending and financial markets and recover proceeds for victims.” (Justice News, 2008).
a. Compute the single indirect cost allocation rate that the bank would use to allocate the total indirect costs presented in Exhibit B. (Total indirect costs/total value of checks processed, in thousands)
The market mix may vary between different countries, only because the countries differ in their relative economic strengths. Some countries may differ in the timing of demand for various products. There are differences in promotions in different countries. The advertising will have to be translated in different countries. People in some countries are more receptive to advertising than others. Countries often have arbitrary rules on what can be advertised and what can be claimed (International Marketing). Firms will often try to charge high prices to subsidiaries in countries with high taxes so the income earned will be minimized.
The biggest mistake the board of directors made was to trust a single man only because of his reputation. Just because Nick Leeson was reporting large profits, he was given virtually free rein and nobody had knowledge of his activity, when a trader on arbitrage strategies should not report such profits. The fact that Nick Leeson was reporting such profits should have been interpreted by the board of directors as a warning bell.
In Italy during the Middle Ages and the Renaissance is when capitalism and private ownership took root. Italy was the dominant economic power of the western world. The merchants that worked and resided in the region were the leading business men of the time. Trade was growing rapidly and some of the major exports included silk, cloth and wool. Giovanni di Bicci de Medici worked his way to wealth and laid the foundation for his family to become the most powerful family in Italy.
The Royal Bank of Canada (RBC, RBC Royal Bank, or RBC Financial Group) is the largest banking institution in Canada. RBC serves more than 18 million clients and has over 80,000 employees distributed all over the world (RBC 2008). The company corporate headquarters are located in Montreal, Quebec, and its operational head office is in Toronto, Ontario. RBC is listed as the largest Canadian company by revenue and market capitalization by The Globe and Mail and was ranked at 50 in the 2013 Forbes Global 2000 listing. The company has operations in Canada, and 51 other countries (RBC 2011). In May 2004, the Royal Bank of Canada experienced a crisis which involved a programming change to an essential piece of banking software. Generally, this is
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The Century National Bank has offices in several cities in the Midwest and the southeastern part of the United States. Mr. Dan Selig, president and CEO, would like to know the characteristics of his checking account customers. What is the balance of a typical customer? How many other bank services do the checking account customers use? Do the customers use the ATM service and, if so, how often? What about debt cards? Who uses them, and how are they used?
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