Working Paper Brief Report Version 2 This version is not peer-reviewed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)

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.

Subject Areas

Bank Collapse; Barings Bank; Lehman Bank; Derivatives

Comments (1)

Comment 1
Received: 24 September 2020
Commenter: Matey Juabin
Commenter's Conflict of Interests: Author
Comment: Minor amends have been made to the abstract. The entire document has had isolated cases of revision. I must stress here that the word is COLLAPSE NOT COLLOPSE, as being carried around by some platforms, eg, RESEARCHGATE. They must substitute that copy with this current revised one.
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