Brief Report
Version 2
This version is not peer-reviewed
The Collapse of Barings Bank and Lehman Brothers Holdings INC: An Abridged Version
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)
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.; Bawa, J.D. The Collapse of Barings Bank and Lehman Brothers Holdings INC: An Abridged Version. Preprints 2020, 2020070006 Juabin, M.; Bawa, J.D. The Collapse of Barings Bank and Lehman Brothers Holdings INC: An Abridged Version. Preprints 2020, 2020070006
Abstract
It is clear that bank crisis occur when there is excess expenditure on investment due to low generated income from the said investment to facilitate daily business obligations. This could be as a result of bad credit management, market inefficiencies and operational risk, among a host others. These undoubtedly can trigger panic withdrawals by depositors with a sense of insecurity for fear of bank collapse and loss of investment. In fact, the failure of these two banks is attributable to varied factors spanning from non-monitoring of employee activities, involvement in 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.Similarly, there should be enhancedcommunication among international regulators and authorities that exercise oversight responsibilities on the security market. National bankruptcy laws should be promoted to forestall liquidity crisis so as not to freeze the margins and positions of solvent customers.
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.
Comments (1)
We encourage comments and feedback from a broad range of readers. See criteria for comments and our Diversity statement.
Leave a public commentSend a private comment to the author(s)
* All users must log in before leaving a comment
Commenter: Matey Juabin
Commenter's Conflict of Interests: Author