Version 1
: Received: 1 July 2020 / Approved: 2 July 2020 / Online: 2 July 2020 (13:01:52 CEST)
Version 2
: Received: 24 September 2020 / Approved: 24 September 2020 / Online: 24 September 2020 (12:16:56 CEST)
Version 3
: Received: 8 October 2020 / Approved: 8 October 2020 / Online: 8 October 2020 (09:38:17 CEST)
How to cite:
Juabin, M. The Collapse of Barings Bank and Lehman Brothers Holdings INC: An Abridged Version. Preprints2020, 2020070006. https://doi.org/10.20944/preprints202007.0006.v1
Juabin, M. The Collapse of Barings Bank and Lehman Brothers Holdings INC: An Abridged Version. Preprints 2020, 2020070006. https://doi.org/10.20944/preprints202007.0006.v1
Juabin, M. The Collapse of Barings Bank and Lehman Brothers Holdings INC: An Abridged Version. Preprints2020, 2020070006. https://doi.org/10.20944/preprints202007.0006.v1
APA Style
Juabin, M. (2020). The Collapse of Barings Bank and Lehman Brothers Holdings INC: An Abridged Version. Preprints. https://doi.org/10.20944/preprints202007.0006.v1
Chicago/Turabian Style
Juabin, M. 2020 "The Collapse of Barings Bank and Lehman Brothers Holdings INC: An Abridged Version" Preprints. https://doi.org/10.20944/preprints202007.0006.v1
Abstract
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.
Keywords
Bank Collapse; Barings Bank; Lehman Bank; Derivatives
Subject
Business, Economics and Management, Finance
Copyright:
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.