4 ms·
That’s a bit of a grim take. There’s been multiple instances of otherwise well regulated banks being blind sided by deliberate concealed fraud by its employees.
by SgtBastard 4y ago
That’s a bit of a grim take. There’s been multiple instances of otherwise well regulated banks being blind sided by deliberate concealed fraud by its employees.
https://en.m.wikipedia.org/wiki/Barings_Bank https://en.m.wikipedia.org/wiki/Barings_Bank
- tialaramex 4y agoLeeson is an example of a bank completely failing to use controls whose purpose is to prevent exactly what happened. The bank should have another employee who is in effect marking Leeson's homework, and instead he was allowed to mark his own, so when he was down a million dollars he could say he was up a million dollars, and keep his job. And of course it's quickly not just one million. This isn't hindsight, these were normal controls, but Barings just didn't bother.
- jen20 4y agoThe tragic part of this story is that none of those who should have been responsible for implementing such controls faced any kind of legal action.