Royal Bank of Scotland Group (2008)
Prepared for: Marcos A. Kerbel
Participating Adjunct Professor
Department of Finance
College of Business
Florida International University
In partial fulfillment of the requirements of
Course: FIN 4324-Commercial Bank Management
Term: Spring, 2016
Estrella Rachel Figueroa Pinales
(786) – 413 - 0730 firstname.lastname@example.org Sunday, April 10th, 2016
1. What is ethics and why it is important in global banking and business?
Ethics represents and individual morality, in order words, it represents the reasoning of what is good and bad. With the history of fraud in banking and business, ethics may seem as a surprise for some people. Ethics is key in any type of company. Following the ethics principles will help banks and business to keep far away from the risk of being fined for any kind of poor behavior. A poor behavior in global banking and business can mean the crash of an economy worldwide as it happened in 2008 with the collapse of Lehman Brothers.
2. What was the case about? (Summary of the Case)
After the Royal Bank of Scotland Group acquired ABN Amro in October 2007, both banks started posting massive losses, revealing lower …show more content…
By that date, there was an overall systemic crisis in which the bank was in their worse position, and that includes the Royal Bank of Scotland. Also, the deficiencies in the bank management led them to a series of bad decision, when part of the board are just willing to gain over its rival in order to get power, it must be a red flag for the governance of the bank, this include viewing the behavior of the executive or director, that instead of looking for solution, was defending himself as being the best man for the man, even though he caused one of the worst episodes of the bank in 40