financial institutions do not learn from the lesson of Barings’ collapse in 1995
ID: 2796631 • Letter: F
Question
financial institutions do not learn from the lesson of Barings’ collapse in 1995. Tolerating rogue traders in financial institutions tends to weaken public confidence in financial systems and to trigger off Barings-typed banking crises. what can be do on internal control systems which highlights the following issues: Identify 5 general categories of trader misconduct cases in 2000-2017. These cases may be associated with either humans or robots (automated system or AI) or both. Please provide links (news or others) to support your categorization. Identify major regulatory efforts and corporate works on process re-engineering which can prevent the misconduct categories you identify. Try to comment their rationale and effectiveness.
Explanation / Answer
Identify 5 general categories of trader misconduct cases in 2000-2017:
1. In Feb, 2016, The Barclays Bank and Credit Suisse agreed to pay combined $154. 3 Million to settle charges that they misrepresented their private sector trading services. After regulators contended that their stock trading platforms, advertised as places were investors would not be preyed on high frequency traders were actually presicsely the opposites. On both bank systems, investors trying to execute their transaction fairly were harmed.
2. Mirror trade suggest a sustained plot to shift and hide money og possibly dubious origin. Deutsche bank Moscow headquarter involved in mirror trading with more than expatriating Rubel of one of his client and now the bank is under investigation of US Department of justice the New York State Department of Financial Services, and financial regulators.
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