Was the existence of the 88888 Account one of the fundamental problems at Barings Bank plc or was the problem with its use? Explain
What will be an ideal response?
The existence of the 88888 Account does not appear to be the problem. As long as this account was balanced on a daily basis, Leeson could not have exposed Barings to such
life-threatening risks. Establishing special accounts, such as Barings' 88888 Account, is a reasonable ways to conduct daily bank business. The problem was that Barings did not audit and control this account, and therefore, Leeson was left free to speculate as he wished.
You might also like to view...
The price component of a marketing mix is:
a. a competitive weapon for companies. b. decided after the promotion strategies are finalized. c. the starting point of the marketing mix. d. the least flexible element of the marketing mix.
Which of the following is true of maximum likelihood methods
A. They calculate the maximum possible values for parameters B. They calculate parameters that give the highest probability of past data occurring C. They calculate values for key variables that are most likely to occur in the future D. They involve a multivariate regression analysis