star-trader-turnedrogue‚ Nick Leeson‚ was consistently misleading the senior management to believe that his entire strategy was based on arbitrage between Simex and Osaka stock exchanges. It turned out he was taking leveraged bets on the Japanese Index‚ Nikkei 225. A single event‚ Kobe earthquake on January 1995‚ a black swan event of a kind‚ triggered the index to fall by 1‚000 points‚ the opposite direction to what Mr.Leeson was heavily betting for. Ironically‚ Leeson followed the suit of traders’
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According to board structure‚ the difference of corporate governance among different countries is may be unitary or dual board on the country. In the UK and the USA‚ a unitary board of directors in the form of board structure‚ characterized by one single board comprising executive and non-executive directors. (Aguilera‚ 2003) It is responsible for all aspects of the activities of the corporation. A dual board of directors is including a supervisory board and executive board of management. Nevertheless
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financing foreign trade. After the deregulation of financial market in 1986‚ Barings expanded aggressively into derivative trading and recruited some extreme risk takers. Aiming at being the pioneer in speculative derivative trading‚ The Bank appointed Nick Leeson who seemed to understand financial market as the Chief trader in Barings Futures Singapore (BFS). During the first stage of audit risk assessment‚ the auditor should obtain understanding of the BFS’s business strategy to determine the corresponding
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Assignment #4 Banking Industry Meltdown: The Ethical and Financial Risks of Derivatives Charlotte Witherspoon December 2‚ 2012 Ethics and Advocacy for Hr Professionals- HRM 522 Dr. Jack Huddleston‚ Instructor Assignment #4 – Banking Industry Meltdown 1. Determine which moral philosophies (as discussed in chapter 6) is most applicable to an understanding of the banking industry meltdown. Explain your rationale. “Moral philosophy is the study of moral judgements or the value
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Nothing ventured‚ noting gained «Nothing ventured‚ nothing gained” idiom means that it is necessary to take risks in order to achieve something. Speaking about investments‚ you have to invest your own money somewhere to make financial gains. There are many different types of investors such as venture capitalists investing in start-ups‚ investment banks or insurance companies investing in securities portfolios‚ and just people investing in property‚ fine art‚ antiques‚ rare books and wine. I’m
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Fraud Fraud is listed by the 2003 UK Threat Assessment issued by the National Criminal Intelligence Service as one of the seven most significant threats facing the world1. What is a Fraud? A fraud is when one party deceives or takes unfair advantage of another. A fraud includes any act‚ omission‚ or concealment‚ involving a breach of legal or equitable duty or trust‚ which results in disadvantage or injury to another. In fact‚ in a broad strokes definition‚ fraud is a deliberate misrepresentation which
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next meet Miss Leeson‚ a young typist who rents "the skylight room" because it is the only room she can afford. (This is the room shown by the housekeeper.) It’s a tiny room with a small iron cot. The room’s only redeeming quality is the skylight. On summer nights‚ the roomers gather on the front steps to pass the time and talk. Miss Leeson is very popular due to her youth and charm. One of the older men becomes enamored with Miss Leeson. During these summer evenings Miss Leeson tells everyone
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Bryce Pettyjohn Fishing In The Modern World After an analysis of the sport of fishing‚ I have learned a lot about its discourse community and how people are involved in the sport today‚ and how the sport has effected the world today. My research started with the interpretation of several books related to the discourse community‚ which brought the attention of new information about professional fishing to the forefront of my research of the everyday life of the discourse community members.
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The Skylight Room by O. Henry -------------------------------------------------------------------------------- First Mrs. Parker would show you the double parlours. You would not dare to interrupt her description of their advantages and of the merits of the gentleman who had occupied them for eight years. Then you would manage to stammer forth the confession that you were neither a doctor nor a dentist. Mrs. Parker’s manner of receiving the admission was such that you could never afterward
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Plekhanov Russian Academy of Economics International Economics DERIVATIVE MARKETS FUTURES‚ FORWARDS‚ OPTIONS‚ SWAPS‚ CAPS AND FLOOR MARKETS Prepared by: Zagorskaya Ksenia 1. OVERVIEW OF DERIVATIVE MARKET Derivatives are financial instruments whose value is derived from the value of something else. They generally take the form of contracts under which the parties agree to payments between them based upon the value of an underlying asset or other data at a particular point in time.
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