Securities and Exchange Commission (SEC)
Accounting Irregularities and Missing Internal Controls in the LIBOR Currency Manipulation Scandal
The London Interbank Offered Rate, or Libor for short, was the recent subject of collusion between some the world's largest banks to manipulate the exchange rates; no one seems to know for sure when these banks began to manipulate the exchange rate, but some reports show these activities beginning in 2003, or possibly much earlier (McBride, Alessi, & Sergie, 2015). The Libor rate represents a benchmark interest rate in which banks lend to each other in London interbank market. The exchange rate is calculated daily and determined by a submission of eleven and eighteen banks who submit their average borrowing rates for the day.
The Libor rate was considered to be a fairly reliable benchmark for determining an amount of interest that was used in determining short-term transactions and this rate had indirect implications for a wide range of international economic implications around the globe. For example, hundreds of trillions of dollars in securities and loans are based upon the Libor published rate which included everything from government and corporate debt to auto, student, and mortgages (McBride, Alessi, & Sergie, 2015). This analysis will look at the role of the bank's external auditors and their fraud was perpetrated by individuals within the banking networks that worked together daily a close knit network that evolved, and in which a small group of people effectively had the opportunity to influence the Libor rate. For example, at the Swiss bank UBS at least 2,000 requests for "inappropriate submissions" to the key rates were documented and at least 45 individuals "including traders, managers and senior managers were involved in, or aware of, the practice of attempting to influence submissions," the FSA reported and feared every one of those submissions was potentially suspicious (Treanor, 2012). For example, on 18 September 2008, a trader explained to a broker (Treanor, 2012):
"if you keep 6s [i.e. the six-month Japanese yen Libor rate] unchanged today ... I will fucking do one humongous deal with you ... Like a 50,000 buck deal, whatever ... I need you to keep it as low as possible ... if you do that ... I'll pay you, you know, 50,000 dollars, 100,000 dollars ... whatever you want ... I'm a man of my word"
UBS, one of the largest issuers of structured notes in the world, agreed to settle the SEC's charges that it misled U.S. investors in structured notes tied to the V10 Currency Index with Volatility Cap…
Lehman Brothers Failure On September 15, 2008, Lehman Brothers, the fourth largest U.S. investment bank at the time, filed for bankruptcy. At the time of its collapse, Lehman Brothers had $639 billion in assets, and $619 billion in debt, making it the largest bankruptcy filing in history. Lehman's collapse also made it the largest victim of the U.S. subprime mortgage crisis. This paper examines the collapse of Lehman Brothers and the
The fourth element is the company's currency policy. Crocs has some limited operations. The firm began by utilizing technology from a Canadian firm, which was later absorbed into the company. They have undertaken some overseas production, including in Brazil, Mexico, Romania and China. Crocs has indicated that they have aggressive international expansion plans, as evidenced by their applying for patent protections in over 36 countries worldwide (Reeves, 2006). Crocs sells in
As a consequence, investors may suffer. Importance of the Study It is necessary and pertinent to discuss the importance of any study, and this particular study is important to many people across many countries. Not only does it have importance for people who are trusting people with their pension and hedge funds in Germany, but it also has importance for people who are considering a career working with these funds and
98% to 43.72%. The average fund in this category has a mean total return of -0.64% and a standard deviation of 12.23 USAA Precious Metals and Minerals (USAGX), 2009). Another factor that one should look at when contemplating investing in a mutual fund is how much the fund has rewarded shareholders relative to the risk they have taken. One should look at a risk-adjusted measure of performance known as the Sharpe ratio. It
Financial Derivatives This study emphasized the importance roles of financial derivatives, which has been known for the last decade and its effects on the Global financial crisis. It further analyzes the impact of financial derivatives and how it can be controlled to prevent corporations from incurring a lot of risks. It also explains the existence of financial derivatives since 1970, to the recent Global Financial Crisis which occurred in the 2006. Risk