Issue in Corporate Failure of Bank of Credit and Commerce International (BCCI)

Issue in Corporate Failure of Bank of identification and Commerce International (BCCI) Introduction and background: Bank of course credit and Commerce International k instantern as BCCI was founded by Pakistani financer Mr. Agha Hasan Abedi in 1972. Its headquarter was located in London and was collective in Luxembourg. BCCI was ranked 7th largest private stick with number assets which amounts to $20.6 billion. By the end of 1988, BCCIs network included 417 offices in 73 countries. The annual report noted that the bank now served 1.3 million customers through 14,000 staff members of 90 nationalities. (Peter et al. 1992) BCCI was initially funded by rich Arab businessmen who demanded high return on their investment without taking big risks. They havent got some(prenominal) solid base of finance since incorporated as they were subordinate on their depositors to meets its operating expenses. The Bank of America initially held 25% of BCCI shares which they sold in 1980. BCCIs main objective was to give rapid growth as it wanted to be rick global bank which can represent third world. They gambled on futures and options trading and gave some high risk loans. It also increase millions of revenue by accounting techniques to show false dinero and hided their losses which occur in trading and bad debt.

The biggest bank fraud in history According to Manhattan District attorney Robert M. Morgenthau, the BCCI scandal that came to light in 1991 was the largest bank fraud in world history. Perhaps no other criminal opening has involved or at least embarrassed so many prominent people, from billionaire Arab sheikhs to Third World dictators to present and motive leading figures in the U.S. and British governments. Certainly none could check into the international web of financial chicanery, political intrigue, and unsavoury figures with which BCCI was say to be associated. (Source: Encyclopaedia Encarta 2007) BCCI was engaged in four major(ip) frauds. One was a cover-up of $633m of losses on treasury... If you want to get a full essay, order it on our website: Ordercustompaper.com

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