[Misconduct] Libor Fixing Scandal - A Study in Greed & Failed Controls

BACKGROUND

Bankers ensure that any un-needed surplus would be deposited by the dealers towards the end of a trading day. They would place this money on overnight deposits with other banks. The benchmark for interest payment on this deposit would be the Libor (or Euribor).

Settlement rate was not determined by what rates were actually in the market. Instead, the British Banker’s Association (BBA) polled banks, asking them what the rates were. The highest and lowest quoted rates were discarded and the rest were averaged, giving the settlement rate. 

The Libor was also used as an "weather report" of what conditions were in the market that day and a rough indicative of the banks' financial condition.  

[Misconduct] Misselling of Structured Notes in Singapore - Part 1 - Background Info

BACKGROUND

This post will provide pertinent details from the Monetary Authority of Singapore's investigation report on the sales and marketing of structured notes linked to Lehman Brothers. The aim of this post is to highlight the importance of complying with regulations and guidelines on product's sale and marketing materials especially during the planning stages which no doubt has a rippling effect.

[Misconduct] Misselling of Structured Notes in Singapore - Part 2 - Key Findings, Impact, Root Causes & Views

KEY FINDING
we will look at the types and number of lapses found by MAS for each FIs. Before we delve further, here is a list of internal approval obtained in the various FIs for the distribution of the Structured Notes. . There are two distinct types of approval structures in any organization being a vertical (require higher authority approval depending on predefined policy) and horizontal (sign-off from stakeholders) with vertical structures usually being the faster route. 

Asset Management Challenges

BACKGROUND

After the financial crisis (Lehman 2008), there were substantial growth and profitability in the industry. This post will discuss the challenges & issues in the asset management industry. Below are some past performance data on AuM (Sourced from Financial Institutions and Insurance Practice Areas & BCG Global Asset Management Database)