The Collapse of Barings Bank and Lehman Brothers Holdings INC: An Abridged Version

2020 ◽  
Author(s):  
Matey Juabin
Keyword(s):  
Operational Risk ◽  
Credit Management ◽  
Legal Rules ◽  
Market Inefficiencies ◽  
Unethical Practices ◽  
Lehman Brothers

It is clear that bank crises occur when there is excess expenditure on investment due to low generated income emanating from bad credit management, market inefficiencies and operational risk. These undoubtedly trigger panic withdrawals by depositors for fear of bank collapse.In fact, the failure of these two banks is attributable to varied factors spanning from non-monitoring of employee activities, dubious accounting practices, unethical practices by management, over indulging in risky and unsecured investments in derivatives. It is recommended that, governments create legal rules to reduce externalities.

scholarly journals The Collapse of Barings Bank and Lehman Brothers Holdings INC: An Abridged Version

2020 ◽  
Author(s):  
Matey Juabin ◽  
James Dianuton Bawa
Keyword(s):  
Interest Rates ◽  
Liquidity Risk ◽  
Interest Rate Risk ◽  
Security Market ◽  
Business Practices ◽  
Credit Management ◽  
Market Inefficiencies ◽  
Lehman Brothers ◽  
Near Future ◽  
Bank Collapse

Bank crisis can mostly be traced to a decrease in the value of bank assets. Banks are vulnerable to a number of risks. This happens in one or a combination of the following incidences; when loans turn bad and cease to perform (credit risk), when there are excess withdrawals over available funds (liquidity risk) and rising interest rates (interest rate risk). Bad credit management, market inefficiencies and operational risk, among a host others can trigger panic withdrawals by depositors with a sense of insecurity emanating from the fear of loss of investment. In fact, the failure of Barings Bank and Lehman Brothers Holdings Inc was attributable to varied factors spanning from non-monitoring of employee activities, management’s involvement in dubious accounting practices, unethical business practices by management, over indulging in risky and unsecured derivative trade. To guide against similar bank collapse in the near future, there should be an enhanced communication among international regulators and authorities that exercise oversight responsibilities on the security market. National bankruptcy laws should be invoked to forestall liquidity crisis so as to prevent freezing of margins and positions of solvent customers.

ASPEK ETIK DAN SISTEMIK DALAM EKONOMI DAN BISNIS ISLAM

ALQALAM ◽  
2014 ◽  
Vol 31 (1) ◽  
pp. 187
Author(s):  
Budi Harsanto
Keyword(s):  
Financial Crisis ◽  
Business Ethics ◽  
Moral Hazard ◽  
Global Financial Crisis ◽  
Financial Institution ◽  
Research Question ◽  
Academic Journals ◽  
Lehman Brothers ◽  
The World ◽  
The Global Financial Crisis

The fall of Enron, Lehman Brothers and other major financial institution in the world make researchers conduct various studies about crisis. The research question in this study is, from Islamic economics and business standpoint, why the global financial crisis can happen repeatedly. The purpose is to contribute ideas regarding Islamic viewpoint linked with the global financial crisis. The methodology used is a theoretical-reflective to various article published in academic journals and other intellectual resources with relevant themes. There are lots of analyses on the causes of the crisis. For discussion purposes, the causes divide into two big parts namely ethics and systemic. Ethics contributed to the crisis by greed and moral hazard as a theme that almost always arises in the study of the global financial crisis. Systemic means that the crisis can only be overcome with a major restructuring of the system. Islamic perspective on these two aspect is diametrically different. At ethics side, there is exist direction to obtain blessing in economics and business activities. At systemic side, there is rule of halal and haram and a set of mechanism of economics system such as the concept of ownership that will early prevent the seeds of crisis. Keywords: Islamic economics and business, business ethics, financial crisis 

Efekt zarażania - od upadku Lehman Brothers do greckiego kryzysu

2011 ◽  
pp. 21-23
Author(s):  
Sławomir Wyciślak
Keyword(s):  
Lehman Brothers

W artykule uporządkowano wiedzę dotyczącą pojęcia zarażania, które wykorzystuje się w czasopiśmiennictwie ekonomicznym. Stwierdzono, że do zarażania dochodzi wtedy, gdy następuje znaczne nasilenie powiązań między podmiotami ekonomicznymi, prowadzące do zwielokrotnienia pierwotnego szoku. Warunki, w jakich następuje zarażanie, zachodzą wtedy, gdy podmioty ekonomiczne mają te same aktywa. Rozprzestrzenianie się kryzysu finansowego, od upadku Lehman Brothers do kryzysu zadłużenia, opisano, wykorzystując pojęcie zarażania i mechanizmy jego przenoszenia. (abstrakt oryginalny)

Unseen Laws- A Quantitative Approach to Developments in North Korea’s Legal System

2018 ◽  
pp. 22-62
Author(s):  
Martin Weiser
Keyword(s):  
North Korea ◽  
Legal Rules ◽  
The North ◽  
Legal Texts ◽  
Policy Fields ◽  
Policy Agendas ◽  
Broad Policy ◽  
Sophisticated Analysis ◽  
Detailed Picture ◽  
Law Making

The position of law in North Korean politics and society has been a long concern of scholars as well as politicians and activists. Some argue it would be more important to understand the extra-legal rules that run North Korea like the Ten Principles on the leadership cult as they supersede any formal laws or the constitution.1 But the actual legal developments in North Korea, which eventually also mediate those leading principles and might even limit their reach, has so far been insufficiently explored. It is easy to point to North Korean secrecy as a main reason for this lacuna. But the numerous available materials and references on North Korean legislation available today have, however, not been fully explored yet, which has severely impeded progress in the field. Even publications officially released by North Korea to foreigners offer surprisingly detailed information on legal changes and the evolution of the law-making institutions. This larger picture of legal developments already draws a more detailed picture of the institutional developments in North Korean law and the broad policy fields that had been regulated from early on in contrast to the often-assumed absence of legislation in important fields like copyright, civil law or investment. It also shows that different to a monolithic system, various law-making institutions exist and fulfil discernably different legal responsibilities. Next to this limitation in content, scholars in the field currently also have not used all approaches legal developments in the North Korea could be analysed and interpreted with. Going beyond the reading of legal texts or speculating about known titles of still unavailable legislation, quantitative approaches can be applied ranging from the simple counting of laws to more sophisticated analysis of legislative numbering often provided with legislation. Understanding the various institutions as flexible in their roles and hence adoptable to shifts in leadership and policy agendas can also provide a more realistic picture of legal practices in North Korea.

Functional and operational risk as a criterion for assessing the durability of an autonomous energy system

2019 ◽  
Vol 12 (1) ◽  
pp. 56-62 ◽  
Author(s):  
A. O. Nedosekin ◽  
A. V. Smirnov ◽  
D. P. Makarenko ◽  
Z. I. Abdoulaeva
Keyword(s):  
Service Life ◽  
Structural Reliability ◽  
Residual Life ◽  
Fuzzy Random Variable ◽  
Operational Risk ◽  
Energy System ◽  
Technical System ◽  
Residual Service Life ◽  
Technological Parameters ◽  
Residual Service

The article presents new models and methods for estimating the residual service life of an autonomous energy system, using the functional operational risk criterion (FOR). The purpose of the article is to demonstrate a new method of durability evaluation using the fuzzy logic and soft computing framework. Durability in the article is understood as a complex property directly adjacent to the complex property of system resilience, as understood in the Western practice of assessing and ensuring the reliability of technical systems. Due to the lack of reliable homogeneous statistics on system equipment failures and recoveries, triangular fuzzy estimates of failure and recovery intensities are used as fuzzy functions of time based on incomplete data and expert estimates. The FOR in the model is the possibility for the system availability ratio to be below the standard level. An example of the evaluation of the FOR and the residual service life of a redundant cold supply system of a special facility is considered. The transition from the paradigm of structural reliability to the paradigm of functional reliability based on the continuous degradation of the technological parameters of an autonomous energy system is considered. In this case, the FOR can no longer be evaluated by the criterion of a sudden failure, nor is it possible to build a Markov’s chain on discrete states of the technical system. Assuming this, it is appropriate to predict the defi ning functional parameters of a technical system as fuzzy functions of a general form and to estimate the residual service life of the technical system as a fuzzy random variable. Then the FOR is estimated as the possibility for the residual life of the technical system to be below its warranty period, as determined by the supplier of the equipment.

Cyber attacks as a source of operational risk in electronic banking

2018 ◽  
Vol 24 (3) ◽  
pp. 629-640
Author(s):  
P.V. Revenkov ◽  
◽  
A.A. Berdyugin ◽  
Keyword(s):  
Operational Risk ◽  
Cyber Attacks ◽  
Electronic Banking

Making gender visible in family business: past and present

2012 ◽  
Vol 13 (1) ◽  
Author(s):  
Paloma Fernández Pérez ◽  
Eleanor Hamilton
Keyword(s):  
Family Business ◽  
Family Firms ◽  
Business Leadership ◽  
Legal Rules ◽  
Developed Economies ◽  
The Family ◽  
Interdisciplinary Synthesis ◽  
Complex Forms ◽  
Rules Of The Game

This  study  contributes  to  developing  our understanding of gender and family business. It draws on studies from the business history and management literatures and provides an interdisciplinary synthesis. It illuminates the role of women and their participation in the entrepreneurial practices of the family and the business. Leadership is introduced as a concept to examine the roles of women and men in family firms, arguing that concepts used  by  historians or economists like ownership and management have served to make women ‘invisible’, at least in western developed economies in which owners and managers have been historically due to legal rules  of  the  game  men,  and  minoritarily women. Finally, it explores gender relations and  the  notion  that  leadership  in  family business  may  take  complex  forms  crafte within constantly changing relationships.

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