Nasir Ahmad Mohibi Dr. Tat Puthsodary PAD 110 11/19/2014 The Kabul Bank Fraud Introduction: What was the issue of Kabul bank? Why did it collapse? And who were responsible for it? The crises in Kabul bank are very complex and profound. The case reports have reached to almost all the government departments and also have endangered and humiliated the organizers as well as all the involved people like politicians, government officials and business people (Bijlert, 2013). This incident happened in 2010 when there were talks about $300 million loss in the bank when two of the bank administrative Khalilullah Ferozi and Sher Khan Farnood were fired from their position because of negligence, however, the governor of the Central Bank of Afghanistan …show more content…
Firstly, the case has relation with the political definition of PA which says, “it cannot exist without its political context” (Shafritz, Russell and Borick, page, 6). The Kabul bank crisis too could not happen without hand from government officials and political leaders. The central bank chief and some other people who are influential and have power had managed and planned this crisis. It could not happen without big hands there were people who worked and designed this inside and outside the country in order to somehow harm the economic system of Afghanistan and wanted to play a game of making citizens rise against the government. In relation to the legal concept of PA “it is what the state does and everything is done in accordance to the law” (Shafritz, Russell and Borick, page, 11). The case of Kabul bank had many legal issues. The first one was the weakness or to say the carelessness of the previous government toward this issue, it was taken for granted by them. There was no action against the responsible people instead they were in their jobs and doing what they wanted. The second reason the case was not heard in the court can be because some of the powerful officials were involved in the scandal so the government was somehow unable to take any action against them. However, finally by the creation of the new government the guilty ones were arrested and the ones that had gone out of the country in fear of facing any charge are wanted by the Interpol Police. Lastly, the managerial concept of PA says, “it is a field of management” (Shafritz, Russell and Borick, page, 14). Nevertheless, the management of the government and the judicial branch was not well and resulted to make the legal process weaker. In the prior government the attorney general’s office and the government had not managed what to do with the in charges of the Kabul bank crisis because many of them were
The Savings and Loans Crisis of the 1980’s and early 90’s created the greatest banking collapse since the Great Depression in 1929. Over half the S & L’s failed, along with the FSLIC fund that was created to insure their deposits.
The setting for this ghost story was at Sturdivant Hall, in Selma, Alabama in the 1860’s.
At the time, under U.S. GAAP all majorities owned subsidiaries must be consolidated except when the subsidiary is in legal reorganization or bankruptcy or the subsidiary operates under severe foreign restrictions. Enron loophole to seize this one, from operating profits, losses and liabilities were transferred to some obscure related businesses。
The stock markets immediately responded to the restatement and the stock price dropped to less than $10 a share (Thomas, 2002). Enron and Dynegy announced the merger agreement of $7.8 billion which would have created Dynegy Corp, where 64% owned by Dynegy and 36% owned by Enron on November 9, 2001 (Enron Fast Facts, 2015). Dynegy terminated merger agreement with Enron on November 28, 2001 due to Enron’s lack of full disclosure of its off-balance-sheet debt. This immediately downgraded Enron’s rating to junk status (Enron Fast Facts, 2015). Enron’s stock price had dropped closely to zero, 26 cents per share on November 30, 2001 (Thomas, 2002). It only took a year for Enron to collapse from its highest point. Enron filed for Chapter 11 protection
Lehman was very highly leveraged and was taking no steps to get borrowing under control. After delivered of Freddie Mac and Fannie Mae on September 7th and Lehman announced a large third quarter loss three days later the bank began to have pronounced liquidity problems. But the Lehman had failed to take any decisions. Some New York bank also asked to firm that was there any reasonable plan to control the financial crisis but there was no plan. Then the government had declared that no public money would flow to Lehman bros. Lehman Brothers Holdings, Inc. filed for bankruptcy.
Banks collapsed after market crash and to avoid any more bankruptcy American banks closed ( 9,000 > ) nation’s money supply fell by more than 1/3
The bank failures happened around 1920s to 1933. After hearing the news, everyone tried their best to withdraw all their money from their banks. Many wealthy people also tried to pull out their investment assets out of the economy. The total amount of the money lost was $140 billion, which is the money that people had deposited in their accounts (Facts About The Great Depression | Facts About Bank Failures). Bankruptcies were also becoming more common after the failures. Not only banks that got bankrupted, but around 32,000 businesses also went bankrupted and they closed down their stores (The Great Depression). Later on in time, Federal Deposit Insurance Corporation (FDIC) was created. FDIC is actually a U.S financial system by insuring deposits in banks and thrift institutions for at least $250,000. (Federal Deposit Insurance Corporation). This system actually helped thousands of bank failures that happened from 1920s and early
...13, the U.S. has spent about $54 billion funding security forces in Afghanistan and $92 billion on reconstruction, agriculture, and other development projects” (Labelle 2). If one third - approximately 49 billion - is lost to the hands of corruption, then why continue to give so much? The Taliban has bribed their way into high positions. Agencies have tried interventions that have failed due to the low literacy of Afghanistan's population. E zFurthermore, the Taliban pose security risks to any one who oppose their commands. "Corruption is the enemy of development, and of good governance. It must be got rid of. Both the government and the people must come together to achieve this national objective" (Pratibha Patel). Corruption is the root of Afghanistan's suffering. As of now, no amount of money can fix the hurt of this country; it is in the hands of its people.
A report compiled by the U.S Financial Crises Inquiry Commission shows that the infamous global crises could have been avoided. It pointed out that failure in different financial institutions including the Federal Reserve accelerated the crises. Lehman brothers; one of the three largest investments banks in the United States has been cited in the financial crises in 2007. The bank went bankrupt and it had to be sold in September 2008 (Currie, 2010). The other two banks Morgan Stanley and Goldman Sachs had to become commercial banks where more regulation was done. The collapse of large and significant financial institutions like the Lehman Brothers propagated the economic crises. Investors withdrew over $150 billion from the money funds in the USA in two days after the collapse of the Lehman Brothers. This caused the money markets to get unstable thereby nee...
Upon the banks having to shut down completely, people began to lose their savings. All of their hard earned money was just suddenly taken away as in if they never had any money in the first place. People that suffered from losing their entire savings from the banks eventually began getting frustrated the government.
Embezzlement has become more common in the last few years. No one knows for sure whether the problem has increased due to the bad economy, less ethical behavior among employees or other attitudes toward the government or businesses in general. Charleston, South Carolina is no exception to the rising number of fraud cases. Every year more cases are being discovered and exposed to the public. One such case is the embezzlement of cash from a county owned garage. The embezzlement case of Martina Moultrie Richardson will be discussed as well as types of evidence desired in this case, methods/procedures for gathering the evidence and procedures for cataloging and maintaining the evidence.
This case study is related to the computer glitch that happened in a bank. The Royal Bank of Scotland has caused millions of the customers unable to access their account. This incident happened is caused by a junior technician in India do not have the skills that are efficient in carrying out a given job.
In 2008 one of the longest running Ponzi Schemes came to an end. Bernard Madoff had successfully stolen money from thousands of people from all walks of life. In the last 100 years there have been multiple cases of people pulling forms of fraud on others with the goal of tricking them out money or other items claiming to invest the money or items with a promise of consistent monetary returns. Many questions come to mind when talking about this problem. Team 3 will conduct a case study analysis to get to the bottom of the problem with Ponzi and Pyramid and recommend solutions to help prevent these schemes from continuing to happen.
Why is the United States not up to date with Europe in issuing safer credit and debit card transactions? Europe has had the chip and pin credit and debit cards since the year 2004. These new security chip cards started to become a trend in the year 2014 in the United States. The United States has over ten million credit card terminals so it was hard to get such a large market to adopt to a new type of technology. There are three sectors of the market that had to work together which were the retailers, big financial institutions, and then the card associations like Visa or MasterCard. Retailers and credit card companies could never decide who would pay the transaction fees so there was another conflict that slowed the process of implementing
His name was Michael he recently planned and set in motion events to execute the perfect bank robbery. Why? Beyond the obvious financial motivation, he could.