Reference no: EM13829134
Article 1 Summary - Requirements
One of the requirements for this course is to summarize two articles. Your first article should relate to the material covered in the first nine chapters of your textbook. Here is what you need to do for this activity:
* Find an article in one of the resources listed on the syllabus (Wall Street Journal, Business Week, Economist and American Banker) that relates to these chapters. It needs to be a recent article (no older than last July).
* Summarize the article and list its association to specific chapter material or concepts in your textbook. State the reason(s) for your selection.
* List some important points or lessons learned from this article.
* Provide a full copy of the article (links are not acceptable).
A sample article has been posted in the "Articles and Assignments" folder in the course content area.
This is an example.
How Citi Stumbled in Mexico; Bank Fires 11 Employees Amid Alleged Fraud; Missed Warning Signs?
By Amy Guthrie, Christina Rexrode and Laurence Iliff
Wall Street Journal May 16, 2014
SUMMARY: Citigroup Inc.'s Mexican unit showered loans on a troubled oil-services company as other banks were pulling back, according to people familiar with the matter, setting the stage for a loss of about $400 million that has sparked fraud probes in the U.S. and Mexico. Citigroup Chief Executive Michael Corbat said in a memo Wednesday that the third-largest U.S. bank by assets had fired 11 employees in its Banamex unit in connection with the loan losses from Mexico's Oceanografía SA de CV that the bank has blamed on fraud.
Reasons for choosing this article: This article is very relevant for the Commercial Bank Management course as it provides us with an opportunity to explore lending fraud with the case of Citigroup's Banamex unit. Providing loans to businesses is discussed in chapters 16 and 17 of our textbook. Some of the lessons learned with this article are:
1. The importance of appropriately evaluating a loan applicant.
2. The need to establish a monitoring system and follow any warning signals carefully.
3. The critical role that verification of information can play in the loan approval process.
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