Coca Cola Case Study

Overview of the history, the background, and the details of the case: The case Banking Industry Meltdown: The honorable and Financial Risks of Derivatives describes how these financial tools helped contribute to the global recession. Corporate cultures were make on rewards for taking risks quite of the long term benefits for customers and stakeholders. Derivatives ar financial instruments with values that change relative to underlying variables, such(prenominal) as assets, events, or prices. In other words, the value of derivatives is ground on the change in value of something else, called the underlying employment or exchange. The main types of derivatives are futures, forwards, options, and swaps. ( Farrell, 2009). The case talked about four-spot financial companies and the actions that led to their demise. The companies were Barings Bank, UBS, Bear Sterns, and Lehman Brothers. Barings Bank was one of the oldest banks in England. The company ceased to exist on February 26, 1995. (Ferrell, 2009) The bank failure was because of a futures trader named Nick Lesson. Lesson lost approximately $1.4 billion in the company assets. Lesson loses started in the first two months of 1995 but instead of getting help, he tried to cover these loses by place in more risky investments.

These investments only yielded greater losses. coupled Bank of Switzerland (UBS) is a financial services company that is headquartered in Switzerland. Recently UBS has been investigated by the IRS for helping some of its American clients to overcloud money if offshore accounts to avoid taxes. In 2008, UBS asked the Swiss presidency for aid, because of the banks dependant on derivatives and mortgage tie in securities. In exchange for the aid, UBS agreed to not pay its bring in 3 executive $27.7 million in pay. Bear Sterns was founded in 1923. In 2002, the firm started focusing on the housing industry, which would be the cause of the companys doom five days later. After the firms failure,... If you want to get a full essay, order it on our website: Ordercustompaper.com

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