Issue in Corporate Failure of Bank Essay

It also raised millions of revenue by accounting techniques to show false profits and hided their losses which occur in trading and bad debt. The biggest bank fraud in history According to Manhattan District Attorney Robert M. Morgenthau, the BCCI scandal that came to light in 1991 was ‘the largest bank fraud in world history. ‘ Perhaps no other criminal enterprise has involved or at least embarrassed so many prominent people, from billionaire Arab sheikhs to Third World dictators to present and former leading figures in the U. S. and British governments. Certainly none could match the international web of financial chicanery, political intrigue, and unsavoury figures with which BCCI was said to be associated. (Source: Encyclopaedia Encarta 2007) BCCI was engaged in four major frauds. One was a cover-up of $633m of losses on treasury trading. The second was the illegal acquisition through nominees of several banks in the US, in which it spend $346m. The third was a complex manipulation of accounts to prop up its largest borrower, the gulf shipping group of Pakistan, to which it lent more than $725m, which was over the limit set by banking regulations. The fourth was fundamental fraud by which BCCI allegedly acquire secret control of 56% of its own shares at a cost of over $500m. BCCI was a serpent eating its own tail. These sums add up to more than $2bn. But this is a minimum: it omits the enormous cost to BCCI of financing its secret losses. The manipulation to cover up the fraud involved another $2bn, bringing the grand total to well over $4bn. BCCI frauds were the main reasons for its corporate failure. The scale the fraud is breathtaking enough. But while most frauds involve the disappearance of real money, BCCI did the exact opposite. It manufactured billions of dollars out of nothing to conceal gaping holes in its balance sheet, like a giant game of ‘Double Your Money’. This involved extraordinary financial gymnastics and illegal loans on a huge scale. When BCCI finally came crashing down, it was not with a thud, but in a shower of paper. (Behind Closed Door: FT Publication) BCCI initiated every single route to excel its growth. In a first place its corporate structure was so complicated which involved uses of shell corporations frequently termed as satellites, bank confidentiality and secrecy. BCCI’s top management including nominees which also includes some famous personalities in politics were involved in corruption and made it a supreme atmosphere for crime. BCCI’s criminalities included, †¢Fraud by BCCI and BCCI customers involving billions of dollars; money laundering in Europe, Africa, Asia, and the Americas; †¢BCCI’s bribery of officials in most of those locations, †¢Support of terrorism, arms trafficking, and the sale of nuclear technologies; †¢Management of prostitution; †¢The commission and facilitation of income tax evasion, smuggling, and illegal immigration; †¢Illicit purchases of banks and real estate. Source: Walker, L. 2001) Abdul Basir, head of BCCI Pakistan operation, says: â€Å"We looked after clients in the most efficient, personalised manner. † The diamond market which is home to Lahore’s famous dancing girls, Prostitutes, who for centuries have provided entertainment for emperors and th eir courtiers – and latterly for politicians, Arab Sheikhs and bankers. BCCI used these girls to treat Arabs rich businessmen and major shareholders. BCCI’s Zafar Iqbal, former chief executive, was in charge of managing prostitutes. Corporate Failure of BCCI There were two main reasons of BCCI’s corporate failure apart from their criminal activities. These were high risk loans and trading. A bank’s treasury plays a key role in managing its financial affairs by trading large amounts of money and currencies. Some if this dealing is done on behalf of clients. But bank treasuries also speculate on whether currencies will rise or fall, using their own money. BCCI was no exception. According to Price Waterhouse, the bank combined these two activities by trading huge amounts of clients’ money – but in its own name, and without their knowledge.

Oopp Lab Work

Create a class account that maintains AC_no, name, and balance. Perform deposit, withdrawal and statement print operations. (statement print must print all the transactions that has taken place so for – use structures inside the class to maintain the details about Create a class that holds the details of the mobile phone like brand, mime, no of Simi cards, hone numbers etc. . Allow user to login with their mobile no. Use a function that sends a message from that mobile. Maintain the details of the message as a static member inside the send message function and display each time all the messages sent from that mobile, (b) 4. Create a class ID_card that maintains the details In an ID card. Perform insert, update, delete and display operation through functions that takes input through reference parameter. (c) Create a C++ program that takes employee details like ID, first name, last name, age and address.Create a class for student {name, course, regular/part-time, address}. Use f riend function to check that a student with same name and address can't be a regular student as well as an employee. (c) 6. Synthesize a C++ program that has two classes (one for employee and one for student), have a separate class for address (with door no. Street name, city, state) and reuse address both for employee and student. Perform insert, delete and display operations by taking choice of person (employee or student) from the user. Allow user to have more than one address also.Create an class that stores details about the computer (Assembled/branded, RAM, HAD, processor speed, price etc. ,). Use constructors to initialize the object and a destructor that deducts the count of object each time the object is passed to destroy function. Also use copy constructor to create a system with the configuration same as that's of an existing system. (b) 8. Create a savings_account class that maintains the details of customers like name, phone number. Cancan. Balance. Ensure that the vari ables are protected with proper specifies such that only the user's personal details can be modified directly.Perform deposit, withdrawal, statement print, and pin change operations by checking for minimum balance and other conditions. Create a new account for the same user by copying the basic details of the user using a copy constructor. (c) † 9. Create a class which maintains information like surname, password, age, mailed, phone number, accepted friends list, etc†¦ Declare a friend function Inside the class. Create 3 users such that the first user is friend with 2 and 3 (update friend list of user 1 with user names of 2 and 3). If the users logs in, he should see the personal Information

Shaping Ethical Contexts Essay Example | Topics and Well Written Essays - 250 words

Shaping Ethical Contexts - Essay Example oped to explain and give insight into how leaders ought to conduct business in a multicultural environment and the perceptions their employees have towards them. One of the theories is the implicit leadership theory which postulates that people’s beliefs, assumptions, and stereotypes tend to influence their perception on the qualities of good leadership. The other one is the culturally endorsed implicit leadership theory which advanced some leadership dimensions that include power distance, gender egalitarianism, societal and group collectivism, humane orientation, performance orientation, assertiveness and uncertainty avoidance (Murrell, Crosby & Ely, 1999). Ethical leadership styles across cultures include transformational, transactional, and paternalistic leadership. Paternalistic is a leadership style that incorporates a hierarchical relationship between the leader and the workers. The leader expresses personal interest in the personal and professional lives of employees and in return expects respect and loyalty from them. The three defining elements are moral leadership, benevolence, and authoritarianism. This type of leadership has been found to yield positive organizational commitment and exchange between leaders and the employees in a multicultural environment (Brown, Trevià ±o & Harrison, 2005). Transformational leadership is one that emphasizes on a common goal and therefore, it is a charismatic form of leadership style that mobilizes employees around a common goal. Transactional leadership on the other hand is one that emphasizes on incentives and rewards between leaders and their employees (Brown & Trevià ±o, 2006). This form of leadership styles have been shown to yield trust and performance at the workplace in various populations but not all of them. It has further been noted that collectivists are more responsive and conform to transformational leadership because they unite individuals. On the other hand transactional leadership most welcomed in

Finance Essay Example | Topics and Well Written Essays - 1000 words - 1

Finance - Essay Example The interstate and intrastate deregulation of the trucking industry in 1980 and 1994 that helped expand the industry from mere trucking of goods to lifting them by air that paved the way of the modernization of the package and parcel industry. UPS (United Postal Service) One of the companies that were established early was UPS (United Postal Service) which was known as UPS Air Operations back 1929. It closed shop during the recession and resumed operations in 1953 albeit its air operations were only limited to East and West coasts. By 1978, it was already operational in every state and was granted an authorization by the FAA (Federal Aviation Administration to have its own aircraft. Fedex The second player to follow UPS in the package and parcel industry is Fedex which was incorporated in 1971 but only became operational on April 17, 1973. The name Fedex was derived from Fedreal Express at a time when its founder Fred Smith was in the process of securing a contract with Federal Reser ve Bank. Fedex begun international operations by 1975 and grew rapidly when it acquired Tiger International Inc. in 1989 and Caiiber System in 1998 which is now known as Fedex Ground. It also went early in the Chinese market when it acquired Evergreen Internation Airline’s cargo authority to deliver in China. Perhaps the multitude of services that delivery and package industry now offers to its customer can be attributed to Fedex because it first introduced services that we are now familiar today such as same day and next delivery, delivery guarantee, etch. DHL and TNT The other two competitors in package and parcel industry are DHL and TNT. DHL however differentiates itself from Fedex because it is more focused on the international market unlike UPS which caters to both. Its customer bases are located in Europe, Latin America, Middle East, Australia and Africa. Due to its focus on the international market, DHL was also the first company to provide China an express transporta tion service. TNT is also player in the package and parcel industry that like DHL is more focus on its international market. II. Evolution of the company's competitive position   Although Fedex’s entered in the industry later than UPS, it was however the pioneer of the many innovative services that are now practiced in the industry. It also started in the US domestic market but has geographically expanded its operation in a short period of time. It only started operations in 1973 but already had an international presence 16 years later (1989) with the acquisition of Tiger International Inc and Evergreen International Airlines. But perhaps it is Fedex’s innovativeness that revolutionized its competitive position. Many of the idea and the many options that customers enjoy now about parcel and package delivery were Fedex’s ideas. Fedex introduced the same day, next day delivery, deferred time specific delivery options, delivery guarantees and even the idea of tra cking numbers on monitoring the movements of packages and parcels. In addition to the traditional parcels and packages, Fedex also transcended its services to logistics and financial services. Having said this, it would be safe to conclude that the Fedex’s competitive position is brought and hedged on its innovativeness. III. Competitive position

Platos Republic Essay Example | Topics and Well Written Essays - 5000 words

Platos Republic - Essay Example Plato believed that a harmonious society can be attained by the interaction of specific mode of righteous and rational order of political philosophy based on the implementation of virtue. However, the "Republic" likewise the "Statesman" and the "Law" and other few other short dialogues, described as political dialogues, the political philosophy had received significant consideration in the approach of Plato. Conceptual analysis, as introduced by Plato for the first time in the framework of political philosophy, is defined as a mental clearance implying the clarification of a conceptualization in its implication, using which the philosopher and analyst can deal with incompatible ideas corresponding to the requirement based on rational reality. In his political philosophy, Plato thus, coined the conceptual analysis as a tool for evaluating beliefs corresponding to find out the result of the best political order. The continuum representing the movement from clarification of analysis by the virtue of evaluation of beliefs to attain the goal of best political order is enunciated in the structure of Plato's Republic. This paper aims at finding out the basic philosophy of Plato's analogies and his formulation of the division of soul structure as well as an insight of Plato's defence of the Republic King in the "Republic" with a clear understanding of critical evaluation of Plato. Basic Philosophical Conceptualization of Plato The Good Plato, being the idealist philosopher, described the idea of the Good in his volume "Republic" through the dialogues of Socrates. The idealization of the Good is described as the child or offspring (ekgonos) of the Good, as ascribed by the superlative model of goodness, hence attributing to the absolute determinant of justice. Plato's explanation of his theory of justice, as articulated in his ideology of a city in dialectics, affirmatively attributed the rule of rational mind as implicated in the formation of philosopher-king, having the ability to take a hold of the Idea of the Good. Plato theorised that the highest attainment of knowledge or wisdom is the Idea of the Good, which has an implication in gaining usefulness and value. In general, the humans are programmed to practise the good, but without the knowledge of philosophical reasoning this attainment is not perfectly possible. Goodness has its own implication of involving factors such as justice, truth, equality and beauty t hat can be defined as the "Hierarchy of Forms". Our ideologies to understand materialistic knowledge based on mathematics and science are propounded with the underlying theme of abstraction by the methods of opinion based on perception that is actually situated at the bottom of the materialistic plane. The Cave The Republic is one of the most influential contributions made in the history of political philosophy and the Cave is the most popular allegory of the Republic. In the Republic, the human condition is described as in the state of prisoners constrained in a cave observing only the shadows reflected on the wall they are facing. The goal of human mind is thus transcendence from this state by virtue of incorporating genuine education, envisaged as liberation from imprisonment, and articulated as a movement

International Legal and Ethical Issues in Business DB Week 2 Essay

International Legal and Ethical Issues in Business DB Week 2 - Essay Example ome citizens to make purchases they are not capable to repay; poor understanding of financial accountability or shopping obligation is frequently the core of reckless spending. Eventually, these operating expenses can shoot up to the position where the arrears are too much for an individual to pay back (Elias, Renauer, & Leonard, 2011). Losing jobs, a mandatory decline in working hours or lesser venture incomes can cause major financial strain on a person. After their investments are exhausted, individuals may find they require filing bankruptcy when they are not capable to counterbalance their decline in earnings with new jobs or substitute earnings opportunities. Foreclosures of mortgage crop up when a person neglects his or her disbursement plan and financial establishment which embraces the mortgage come to a decision to take back the home. For the duration of this type of bankruptcy process, the sum of money in debts may be bulged into a new reimbursement plan that allows a person to stay in his home (Elias, Renauer, & Leonard, 2011). When individuals proclaim bankruptcy, they can be vindicated from most types of debts at the cost of harshly destructing their credit score. Given that a credit score is a figure that is inevitable to replicate the risk a particular person who borrows presents according to his tendency to defaulting, bankruptcy is one of the most horrible possible dealings to have on a person’s credit

Organizational Governance Analysis Essay Example | Topics and Well Written Essays - 2000 words

Organizational Governance Analysis - Essay Example At departmental levels, decisions are mandatory and all departments need to make decisions which are oriented to the vision, mission and general objectives of the organization. The governance of an organization bears on organizational culture which may be construed to refer to attitudes, values and beliefs which are shared by the people constituting a particular organization. Alternatively, organizational culture may be seen to refer to both the norms, principles and standards that guide individual behavior in an organization thereby controlling the way individuals and groups of people within the organization interact with one another and with other stakeholders that are found out of the active running of the organization (Hill and Jones, 2001). The governing body not only gives direction to organization through decision making but also initiate a permanent organizational culture (Huse, 2009). This paper seeks to highlight the general concept of organizational governance paying empha sis to the good and bad organizational governance practices. This is achieved through an analysis of an organization thereby giving its strengths and weaknesses as far as governance is concerned. Organizational governance may be defined as the processes, Policies, and structures which an organization puts to use so as to not only gain direct control of the organizational activities but also realize organizational objectives and also protect the interest of the entire shareholder population and the society as a whole. The processes, Policies, and structures distinct of organizational governance enhance the handling of the interests of the shareholders and society in such a way that is based on the most appropriate moral and ethical standards. Another way of terming the words in the foregoing paragraph is that the function of organizational governance is basically the leadership function in an organization which offers direction within an organization manages risk and controls all the organizational activities. Based on this submission, the organizational governance can then be termed as a function which enables the organization to: Comply with societal legal and regulatory rules Comply with the accepted business norms, ethics and meet the general societal social expectations of the organization. Benefit the society at the same time enhancing the interests of the stakeholders Report completely and honestly to not only its owners but also its regulators, stakeholders, and the general public in a bid to ensure responsibility for its conduct, decisions and performance Successful organizational governance requires that there exists synergy among its basic functions of its governing body. The governing body of an organization is made up of the board of governors, the management, the internal auditors and the external auditors. If synergy among these four organs of organizational governance exists, then the result is a well performing and efficient organization. The board of governor's responsibility is that it sets a governing and managing tone at the top. Being the focal point of all management activities in the organization it ensures ultimate accountability at every level of the organization and oversees all the organizational activities without necessarily managing them directly (Pointer & Orlikoff, 2002). The management is divided into two;