Are financial derivatives adequately disclosed in the bank’s financial statements.
Here are sample questions that students answered in the past (you may not use these specific questions.
· JP Morgan encountered problems in managing credit default swaps during 2012. Some observers believe that these problems revealed internal control problems that financial managers should keep in mind. Do you believe that there were internal control problems or were the losses merely a result of poor securities trading?
· Why did the US government bail-out Bear Stearns by selling it to JPM but it did not help Lehman Bros?
· Has the securities industry succeeded in transferring credit and interest rate derivatives from principal transactions to exchange-based transactions as intended in the Dodd-Frank act?
· Are financial derivatives adequately disclosed in the bank’s financial statements.
· What were the problems that led to Wells Fargo bank’s failure to detect and stop the creation of fraudulent bank accounts and credit cards?