The Scandel at Banco Intercontinental

The bank at some point received negative attention for issuing credit to arms companies, including companies like Boeing, Lockheed Martin, General Dynamics, Textron, Colbun, BAE Systems and EADS. Some companies within the bank’s portfolio have also been involved in environmental and labor rights violations scandals, for instance Wal-Mart and Total USA. This negative attention may lead to loss of investor confidence in the bank.

Thomas Farrow was a very smart man who had a great idea and followed through with it. He decided to start a bank and run things in his own way without much oversight from other banking professionals. His stubbornness and greed got in the way of what could have been a very successful venture. He would not be the first person to make a mistake while taking on a new venture. Mr. Farrow let early success cloud his vision of a long and success bank by not listening to those who knew better. He knew that he was providing services that were not available at other banks so he set out to capitalize on those endeavors. Mr. Farrow only saw money, and this is clearly why he failed where other banks succeeded. By ignoring simply and well established banking practices, Mr. Farrow set his bank up for failure. Thomas allowed his hubris to cloud his judgment and in the end he would listen to no one.

"It (the Second Bank) enjoys an exclusive privilege of banking under the authority of the General Government, a monopoly of its favor and support, and, as a necessary consequence, almost a monopoly of the foreign and domestic exchange" (Hofstadte 291).

Secondly, out of the twenty-five stockholders of the Bank, five of these were government owned. Thus showing support of the Bank by subscribing to one-fifth of its $35 million (Schlesinger 74). In addition, among the Bank’s functions was to hold all government money, sell all government bonds, and make commercial loans. However, no voters could dictate its policies or reign in its power, due to its privately owned status (Roughshod 2). Finally, the government also allowed bank notes to be used as payment for taxes.

In the document is also said that even when people have money in that bank people would go to the bank and go get their money since that bank was going to be a failed and it also said that after their failure the repressive effect on the spending of its clients. They couldn’t do anything to help the bank to crash even though they will all be crashed any day.

The banks are faceless and cruel. What would be a modern representation of these banks?

There was a time in which this family operated their banks with the aid of management (Parks 181). The grandfather, Cosimo, facilitated this arrangement (Parks 154). Constructing a managerial structure prevented the family from capitalizing on their banking branches. One might think this would stop the prospect of financial corruption. However, this dynamic evolved, as the younger generations employed their political understanding, and their search for power.

New York Times reported that a small merchant in the Bronx went to a branch of the Bank of United States and asked to sell his stock in the institution. When told the stock was a good investment and advised not to sell, he left the bank and began spreading rumors that the bank had refused to sell his stock. Within hours, a crowd had gathered outside the bank, and that afternoon between 2,500 and 3,500 depositors withdrew a total of $2 million in funds.

Tellson’s bank exemplifies the economic problems through its old and broken-down infrastructure and service. The bank’s old fashioned way of business stands for the ancien regime when the Third Estate had a massive tax burden. The First and Second Estates’ refusal to pay taxes is reflected by the bank’s stubbornness to change with other surrounding banks.

He also increased the risk exposure of the bank and had hidden it from its superiors. By using his reputation and the trust from the bank he speculated while he should not have been able to do so.

The stock of the bank was bought and held mainly by the US government and numerous businessmen among the states of the Union. It paid interest on public debt, issue a national currency, dealt in foreign exchange, paid government officials, and numerous other tasks. It was both a private and public institution but if asked by the Treasury, it would have to open its books to inspection.

William, M (2003). Barbados: a brief look at Barbados’ financial system. Euromoney,. 31-34. Retrieved from http://search.proquest.com/docview/198920608?accountid=12085

During the volatile and instable period, the risk was obviously brought to a new level. Morgan’s Private Bank kept their eyes open all the time. I concluded two main aspects.

Valerie Wyatt finished her report and rushed into Al Hassler’s office and handed him the report. Hassler slowly scanned the report and then said, “You’ve done a good job here, Val. But now that we have the system operating, I don’t think we should upset the apple cart, do you? Let’s just keep this to ourselves for the time being and perhaps we can correct most of these problems. I’m sure Frank wouldn’t want to hear this kind of stuff. This system is his baby, so maybe we shouldn’t rock the boat with this report.

Within the novel, The Confessions of an Economic Hit Man, the author provides many strengths that can be depicted very strongly throughout it. The first one to which comes to appear almost in every chapter is the exposure of financial institutions that include the World Bank, International Monetary Fund (IMF) and General Agreement of Tariffs and Trade (GATT) (Hamann, 12). These are the major financial institutions that have a great impact still to this day of how loans and currency exchanges are dealt