One can decide whether Treasury auction irregularities are a very big deal or not after indiscretion is observed in the stock market. Apart from that, auction irregularities are discovered if clients find out that unauthorized bids have been submitted in their accounts. However, it is only after the aggrieved clients report the matter to the concerned authorities that the issue of whether the auction irregularities are a big deal or not can be verified (Linda 22).
The 1991 August disclosure triggered a crisis because Solomon failed to provide a “long when issued position.” This means that the company failed to commit itself to buy Treasury securities yet its clients had already issued the securities to them. In every occasion, the company managed to outwit treasury department regulations that limit every firm’s bid and award to a maximum of 35% of the entire issues.
The crisis is best explained as an organizational failure. This is because as much as Mozer’s actions were unusual, there was a need to modify certain aspects of the company’s culture. This is because the perception of the outsiders was that the company was deeply corrupt even though this was the action of a few disgruntled elements. This called for a re-assertion of the company’s traditional values in order to avert the occurrence of such a crisis in the future. Without this, then permissiveness was likely to take hold of employees who desire to make money at all costs.
The scandal was actually a clear indication that the company had lost its way or sense of direction. The money culture in the streets had infiltrated the company. People started thinking of how they could make millions for themselves at the expense of the company’s reputation and their own careers. The individuals seized the opportunity and capitalized on the inherent flaws. There was a need to ensure that all employees uphold moral principles since the company failed to establish standards where characters with Wall Street egos would not have thrived. Following this failure, it was up to the company to reclaim its reputation through internal reorganizations in order to avert a crisis of this nature in the future (Linda 23).
As Maughan, my concerns upon assuming leadership on August 18 would have been to take time to address the existing management issues. It would be critical to deal with management issues even before dealing with the auction irregularities because management was the source of the problem. If you deal with a problem and forget about its source, the problem is likely to reoccur. By focusing on management reorganization, I would get rid of the rotten eggs and get in new and fresh blood that is not part of the awful breed. In addition to this, I would ensure that senior management who are well versed with the oversea markets and communities take charge of the foreign branches (Linda 24).
The new management was very effective in handling the crisis. To begin with, on September 25 following the end of the third quarter, Buffet and other top company executives met over 350 clients in New York and globally via satellite. Buffet assured the esteemed customers that the company had already gone past the crisis. He assured them that he was confident there would be no criminal charges against the company from the government. This is because theirs was an isolated case of a few disgruntled elements. Apart from that, in comparison to E.F. Hutton, Drexel, Lambert, or Burnham, Salomon had not stonewalled or acted strangely by circling the wagons. Maughan also likened the former top Solomon Managers to drunk drivers who recklessly drove the company resulting in a dent that had since been pulled out by the current sober drivers.
Upon meeting the company customers, Buffet and Maughan separately met with Congress and the company shareholders. They briefed these important parties on the crisis at the company and the steps are undertaken to address and avert such an occurrence in the future. Buffet used over $500,000 in advertising letters to the company shareholders. He also advertised a letter in the mainstream newspapers where he insisted on the value of integrity amongst Solomon’s employees. The company also tasked Cooper and Lybrand to audit its risk management systems upon which it introduced a more formal risk management process. By the time the year was ending, some of the company’s important customers such as the World Bank had started trickling back (Linda 25).
The crisis was not really over until May 20, 1992, when the US Justice Office announced it had decided not to take criminal action against Solomon. Amongst its major consequences was a renegotiated settlement between the SEC, national treasury, Federal Reserve Board, and the Justice Department that Salomon would pay $290 million to a public fund that would be used to pay any incriminating damages claims. The company was also suspended for two months from any trading activities with the Federal Reserve Bank; however, the Federal Reserve reinstated the firm as a primary dealer. At the end of 1992, Salomon posted a whopping $1.02 billion in pretax profits. This was the best that had ever been posted by a security firm publicly held in the USA (Linda 26).
Linda Grant, “Taming the Bond Buccaneers at Salomon brothers” Los Angeles Times, Feb 16 1992: 22-26. Print.
Are you busy and do not have time to handle your assignment? Are you scared that your paper will not make the grade? Do you have responsibilities that may hinder you from turning in your assignment on time? Are you tired and can barely handle your assignment? Are your grades inconsistent?
Whichever your reason is, it is valid! You can get professional academic help from our service at affordable rates. We have a team of professional academic writers who can handle all your assignments.
Students barely have time to read. We got you! Have your literature essay or book review written without having the hassle of reading the book. You can get your literature paper custom-written for you by our literature specialists.
Do you struggle with finance? No need to torture yourself if finance is not your cup of tea. You can order your finance paper from our academic writing service and get 100% original work from competent finance experts.
While psychology may be an interesting subject, you may lack sufficient time to handle your assignments. Don’t despair; by using our academic writing service, you can be assured of perfect grades. Moreover, your grades will be consistent.
Engineering is quite a demanding subject. Students face a lot of pressure and barely have enough time to do what they love to do. Our academic writing service got you covered! Our engineering specialists follow the paper instructions and ensure timely delivery of the paper.
In the nursing course, you may have difficulties with literature reviews, annotated bibliographies, critical essays, and other assignments. Our nursing assignment writers will offer you professional nursing paper help at low prices.
Truth be told, sociology papers can be quite exhausting. Our academic writing service relieves you of fatigue, pressure, and stress. You can relax and have peace of mind as our academic writers handle your sociology assignment.
We take pride in having some of the best business writers in the industry. Our business writers have a lot of experience in the field. They are reliable, and you can be assured of a high-grade paper. They are able to handle business papers of any subject, length, deadline, and difficulty!
We boast of having some of the most experienced statistics experts in the industry. Our statistics experts have diverse skills, expertise, and knowledge to handle any kind of assignment. They have access to all kinds of software to get your assignment done.
Writing a law essay may prove to be an insurmountable obstacle, especially when you need to know the peculiarities of the legislative framework. Take advantage of our top-notch law specialists and get superb grades and 100% satisfaction.
We have highlighted some of the most popular subjects we handle above. Those are just a tip of the iceberg. We deal in all academic disciplines since our writers are as diverse. They have been drawn from across all disciplines, and orders are assigned to those writers believed to be the best in the field. In a nutshell, there is no task we cannot handle; all you need to do is place your order with us. As long as your instructions are clear, just trust we shall deliver irrespective of the discipline.
Our essay writers are graduates with bachelor's, masters, Ph.D., and doctorate degrees in various subjects. The minimum requirement to be an essay writer with our essay writing service is to have a college degree. All our academic writers have a minimum of two years of academic writing. We have a stringent recruitment process to ensure that we get only the most competent essay writers in the industry. We also ensure that the writers are handsomely compensated for their value. The majority of our writers are native English speakers. As such, the fluency of language and grammar is impeccable.
There is a very low likelihood that you won’t like the paper.
Not at all. All papers are written from scratch. There is no way your tutor or instructor will realize that you did not write the paper yourself. In fact, we recommend using our assignment help services for consistent results.
We check all papers for plagiarism before we submit them. We use powerful plagiarism checking software such as SafeAssign, LopesWrite, and Turnitin. We also upload the plagiarism report so that you can review it. We understand that plagiarism is academic suicide. We would not take the risk of submitting plagiarized work and jeopardize your academic journey. Furthermore, we do not sell or use prewritten papers, and each paper is written from scratch.
You determine when you get the paper by setting the deadline when placing the order. All papers are delivered within the deadline. We are well aware that we operate in a time-sensitive industry. As such, we have laid out strategies to ensure that the client receives the paper on time and they never miss the deadline. We understand that papers that are submitted late have some points deducted. We do not want you to miss any points due to late submission. We work on beating deadlines by huge margins in order to ensure that you have ample time to review the paper before you submit it.
We have a privacy and confidentiality policy that guides our work. We NEVER share any customer information with third parties. Noone will ever know that you used our assignment help services. It’s only between you and us. We are bound by our policies to protect the customer’s identity and information. All your information, such as your names, phone number, email, order information, and so on, are protected. We have robust security systems that ensure that your data is protected. Hacking our systems is close to impossible, and it has never happened.
You fill all the paper instructions in the order form. Make sure you include all the helpful materials so that our academic writers can deliver the perfect paper. It will also help to eliminate unnecessary revisions.
Proceed to pay for the paper so that it can be assigned to one of our expert academic writers. The paper subject is matched with the writer’s area of specialization.
You communicate with the writer and know about the progress of the paper. The client can ask the writer for drafts of the paper. The client can upload extra material and include additional instructions from the lecturer. Receive a paper.
The paper is sent to your email and uploaded to your personal account. You also get a plagiarism report attached to your paper.
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more