In fact the price of the securities decreased, and due to the large invested sums, the bank went into bankruptcy.

The reasons that led to the fall of the Baring bank institution were the inadequate organizational structure, more specifically the lack of control on such important financial transactions. Although timing is crucial in taking advantage on the opportunities on the market, due to the large sums involved, a committee of 2-5 investment managers should be used in this case, in order to diminish the risk and responsibility of such an investment. Besides the actual decision, the committee should handle the financial statements related to the transactions in a proper manner, and then submit the records to an audit independent company. The company failed to take the necessary measures, and relied solely on one individual, fact that resulted in the company entering into bankruptcy and the employee being imprisoned for a...
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