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Case Study Barings Bank

Case Study Barings Bank - crisis For this reason that we...

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Case Study 1 Barings Banks Saint Leo University MBA 540 spring 2009 By Alberto Marino
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Case Study: Barings Bank The stability of a legendary and solid bank such as Barings and its steep falling in 1995 was possible due to the lack of control of the risk taker Nick Lesson in whom he oriented investments in a massive way in future stocks based in the Japanese index Nikkei and the Capital market of Singapore. The weak structural organization of Barings did not detect in time all the times Lesson bid on the low volatility of the Japanese and Singapore markets. For this reason, there was an increase in this market and for the lack of internal controls in place at Barings, the actions taken were to hide earnings in secret accounts and this lack of internal safeguard couldn’t stop the
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Unformatted text preview: crisis. For this reason, that we can conclude that the lack in leadership on the part of the board of directors, the ambiguity to lead a bank by the family and a charitable nonprofit can deviate the focus of important issues such as the importance of the financial business entity and all the decision should have never fall into just one decision maker like Lesson. In this case, it is clear that part of the huge revenues produced were given among his managers and each year they succeeded in hide the mistakes made and the financial disaster was inevitable and only surpassed by the current economy crisis 2008-2009....
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