Evaluating The Quality Of Governance After A Major Corporate Scandal

There are some opinions and ideas come from me after I had watched that I watching in lecture class BMG 1034 at last Tuesday. I had learnt many things about humane behaviour and system of management after IЎЇve watched this movie.

Nick Leeson was a derivatives trader at the Singapore office of the Barings Bank in Britain. Nick Leeson went to Jakarta to solve the problem after his employer offer him an opportunity. He was willing to go to Jarkata that no body else wants, he was a person that who knows grasp the opportunity by himself.

Nick Leeson met with Lisa and they get married in Jarkata. They went to Singapore together with opportunity that given by Barings Bank to set up the future options trading operation by Nick Leeson and Lisa.

Nick Leeson was made large profit for company at the first year, there was a big success for him and he continues his trade. A code name is given by to him. Even he has illegally broken trading rules and makes loss profit, but he had cover up the loss profit with secretly. Cause of his eager to excel in everything, he believes that he can make more and more profit. At the last, he has lost control to gamble without limitation after the death of his unborn child. So that he was started to make bigger loses and he unable to settle the huge amount of money. ItЎЇs cause the bankruptcy of the Baring Bank.

His wife, Lisa has advised him not to misappropriation of public funds for many times. Cause of his desire of greedy, he is being ready to pay any price to gamble in market share. But he didnЎЇt care of the consequence and emphasize the profit and benefit; therefore he just invested the money of his client without restraint and illegally.

In my opinion, his wife should stop him not to be continuing the illegal trade. But his wife just only advises him and didnЎЇt stop him as far as she can. This is why Nick Leeson still doing illegal trading and to gamble without limitation.

Nick Leeson always too self-confidence to himself. He was made a large the profit at the beginning. After the death of his unborn child, he totally loses control on his trade. He felt that he could make a large profit and cover up the loses even the market share went down, so he just invest the money illegally without planning.

After the market share was going down, he became afraid and nervous. He still bet that he could get back the profit and cover up the loses. He didnЎЇt know how to solve the loses after he has calculated the amount of loses. He canЎЇt repent, so heЎЇd tried to escape with his wife to go back to Britain.

Even though he makes a large profit for company with illegally, but he is a person who really uses the weakness of economy system and law to invest the money. Now Nick LeesonЎЇs action has reminded and warned the countriesЎЇ economy as an alert when invest the money with prudent and plan. The failure of Nick Leeson also causes the debacle of many non-solid companies.

Nick LeesonЎЇs failures brought the seriousness of economy of many countries in between 1997 and 1998. The whole countries of Asia were affected by this money market storm. Life of people was changed totally after this event. The economy of Malaysia and Singapore became slowdown. Investor not willing to invest in these two countries cause of fear of taking high risk because they might lose all the money. Many people were jobless and the rate of unemployed was increased. The people has loses a lot of money because of fallen of market share. Some of them are declare as bankrupt.

Beside that, the country such as Indonesia was occurred the insurrection and against Chinese. They killed, robbed, and raped the Chinese women. ItЎЇs make Chinese afraid and scared, therefore they ran from Indonesia to other countries just for their lives. The politics of Indonesia has become mess and insecure. People didnЎЇt believe to government and tried to overturn the government.

The former president of Philippine has replaced with the new president. He has involved with corruption and he was run off with the money. Situation of Philippine changed to chaos. People are jobless, rate of crime was increased, and security also unstable.

Those are the social problem that had been occurred after the Barings