from depositors or clients fraudulently while posing as a bank, agent or any other financial institution. In many countries and especially the United States, bank fraud is a criminal offense even though experts refer to it as a white collar crime due to the manner in which it is carried out. The paper below will look at the vulnerabilities that face the banking industry while using the example of Stanford Financial Group Company to show how the banking fraud can be committed. Moreover, the paper will
Shinhan Financial Group (A) 1. Why did SFG want to buy Chohung? Was this part of a reasonable strategy, in light of the state of the two banks and the Korean banking industry? For example, having received immediate visible employee resistance, should they have gone forward? Following the Asian financial crisis in the late 1990’s, the South Korean banking industry became less fragmented as firms frequently engaged in M&A. The number of commercial banks in South Korea dropped 35% after
Stanford Financial Group Corporate Scandal Authors: Brian Bailey, Gina Hallman, Matthew Kazor, ShaVonne Robinson, Daryl Wertz, and Devin Williams Date: Week 5 Tuesday 22nd January 2013 1-2. In February of 2009, the Antigua/Texas based global financial group (made up several subsidiaries owned by the same owner) owned by R. Allen Stanford was charged with scamming their customers by the Securities and Exchange Commission. Stanford Financial Group was charged with fraud when deceptively
and Leroy King, Antigua’s chief banking supervisor, executed a massive Ponzi scheme. In addition, Laura Pendergest-Holt, the chief investment officer of Stanford Financial Group (“SFG”) and a member of SIB’s investment committee, gave credence to the fraudulent scheme by misrepresenting herself to investors and to the firm’s financial advisers claiming that she oversaw SIB’s entire investment portfolio and employed a sizeable team to invest in conservative and liquid assets. The notion of potential
Allen Stanford was, at one point, a successful entrepreneur whose investment company’s accounts totaled in the billions. The aforementioned keyword is ‘was.’ As CEO of Stanford Financial Group, Stanford essentially ran a massive Ponzi scheme; he issued certificates of deposit at an offshore bank that he controlled and illegally used the investors’ funds. These CD’s were appealing to investors due to their high returns of nearly twice the average rate of return of investments in U.S. banks. Investors
CONCLUSION After conducting researches on both Principal Financial Group and New York Life Insurance Company, I would be more likely to choose to work at Principal Financial Group. Both companies have strong background. Also, the products (insurance, investment, retirement solution) and services they provide for their customer are almost similar. Two companies, Principal and New York Life help individuals to create a plan that is the best fit for each person and design to be achievable and effective
The principal activities of Fairfax Media for the financial year are stated in the Leading The Change: Annual Report 2013. “Publishing of news, information and entertainment, advertising sales in newspaper, magazine and digital formats, and radio broadcasting” (Fairfax Media Limited, 2013 Pg.25). These are all principal activities of the business while in the Media industry, Fairfax Media’s principal activities do differ from its close competitors. An example of such a competitor in the media industry
Restatement of Huron Consulting Group, Inc.: The Effect on Financial Statement and the Affect on Stockholders Abstract Huron Consulting Group, Inc. provides business consulting services in diverse industries in regard to improving performance, complying with complex regulations, resolving disputes, recovering from distress, leveraging technology, and stimulating growth. On July 31, 2009, the Company made the announcement that it will restate its financial statements for the fiscal years 2006
cooperate and engage in association wherein one party the principal delegates decisions and /or work to another an agent to act on its behalf (Tan & Lee, 2015). The important assumptions underlying agency theory is that potential goal conflicts exists between principals and agents; each party acts in its own self-interest; information asymmetry frequently exists between principals and agents; agents are more risk averse than the principal; and efficiency is the effectiveness criterion (Miller & Sardais
To establish a more effective and competitive UK banking system, the 2011 report of the Independent Commission on Banking (ICB) has come up with different recommendations, the ICB was chaired by Sir John Vickers, this is why the report is also called the ‘Vickers Report’. These recommendations are mainly based on strengthening the stability of the banking system by a combination of measures on the structure and the ability to absorb losses of the banks. It is suggested that some degree of structural