Sample Essay

The actions that were taken by the Citibank to take aggressive part in the speculative trading as per the nature of the bonds and stocks market made the bank lose large amounts of funds in the forms of the fines and payments that it had to make for the chaos that it caused with its speculative trading. As a result the Citibank did not end up making much money and in fact lost much more than it made with its trade in the bonds and stock market.

 The failures in internal control that led to such poor performance of the company was that the company did not account for the traders to stop trading and requisition the market to stop dealing with Citibank or in Citibank related Euro MTS in order to stop their losses to increase instantaneously and incrementally. The initial hype and dynamic change in the market resulted in huge profits and then huge losses for the dealers who as a response to stop these losses went against the nature of the Euro MTS and stopped trading in them as a forced measure. This was not speculated and predicted by the Citibank which lost the opportunity to make more money on the trade. Aside from this the fact that the market was on to the trick and speculation played by Citibank was not ascertained by the bank leading to the unexpected fines and losses for which the company was held responsible and liable to finance.

As a result of the case study it can be determined and clearly depicted that financial institution, especially those having a large share in the market should not play aggressively for instantaneous personal gain in the market. This is because their activity can have a detrimental effect on the market making it crash in the long term and proving more losses to the company as well as the market and the economy than the personal gains to the company.

These are excerpts of essays please place order for custom essay paper, term papers, research papers, thesis, dissertation, book reports and case studies.

Essay: Culture and internal control at Citigroup
Tagged on: