I’ve filed a fraud claim with my financial institution and they’re refusing to reimburse me although I’m 100% not at fault. What can I do?
Fraud claim.
Fraud is any deceptive action intentionally designed by a perpetrator with an unlawful gain. There are several types of fraud including credit card fraud, tax fraud, bankruptcy fraud, and securities fraud.
In a situation where a financial institution fails to compensate a filed fraud claim the victim should refer the complainant to the Financial Ombudsman. The Ombudsman contemplates carefully before making a decision whether the victim acted carelessly for the fraud to occur. This is done with an understanding that cybercrimes are increasingly advanced and harder to notice. If the Ombudsman fails to give a solution the victim can contact a solicitor to find out if the fraud can be recovered. Example of a solicitor is Hayes Connor.
Which provisions of the Global Legal Settlement do you think are beneficial, and which are not?
Global Legal Statement.
Global Legal Statement is any governmental settlement, disposal, agreement or alternative arrangements by way of order, legislation, regulation, taxation, class action settlement, levy, executive.
Global legal settlement eliminates the practice of one wall street which is a beneficial provision. This practise of one wall street leads to conflict of interest. It punishes investment banks by imposing a fine of more than $1.4 billion. This harsh punishment provides an incentive for the investment banking firms to avoid taking advantage of conflict of interest in the future. The global legal statement makes it a requirement for investment banks to contract with independent research firms to present information to their customers which is not a beneficial provision. The banks are taxed to fund the independent research thus making them to no longer contend for customers on the basis of the quality of the research. Independent research can produce dispassionate information.
Suppose the discount rate is below the federal funds rate and banks can borrow as much as they want from the Fed. How could a bank earn easy profits? Would the federal funds rate stay above the discount rate? Explain.
Discount Rate.
Discount rate is loan interest charges on the depository institutions and commercial banks, payable to the federal reserves. It fluctuates depending on the prevailing market condition.
A bank can make easy profits by increasing its federal reserve borrowing and increase its lending to other banks. The FMOC regulates the rate of interest charged on the Federal funds. The commercial banks apply this rate when lending short-term loans to other banks. The rate of federal funds would stay below the federal interest rate. This is because interest rate charged by the Federal reserve facilitates the accomplishment of its role in the economy. Some of the roles include, minimizing inflation, ensuring the commercial banks meet their reserve requirement, and maximising employment.
A879. What is Illiquidity ratio (price impact) and what does it mean for a company? Please also describe what it is used to when comparing multiple companies regarding the illiquidity-ratio.
Liquidity ratios
Liquidity ratios indicate the extent at the company converts its current assets into cash to finance the short-term liabilities without the use of external sources.
Illiquidity ratio reflects the rate of return on the company’s illiquid investments. The illiquid assets and securities cannot be exchanged or be converted to cash easily without incurring losses such as cars. The higher the returns on illiquid assets, the lower the prices. The price will rise if there are low returns from illiquid investments. It implies that the company will not be able to settle its short-term debts in the future. Investors use liquidity ratios to determine the comparing the illiquidity levels of a company.
Visit the website of a major bank, e.g., BBVA Compass at www.bbvacompass.com. Explore the website to learn about the bank’s services and operations. Required: What do you think the bank’s overall, long-term goals are? Develop a balanced scorecard for the bank. Include two to five measures in each of the scorecard’s perspectives. How would the balanced scorecard affect the way managers develop the bank’s strategy? Explain the concept of lead and lag measures in the context of the scorecard you have developed.
BBVA Compass
BBVA Compass is the best world’s digital bank. It offers a variety of services such as online banking services, savings, in a vast region in the US.
The overall goals of the BBVA bank is to generate online banking services worldwide by use of research, embracing inclusion and diversity, and utilizing innovations.
Balanced BBVA compass scorecard
| Financial | |
| Goals | Measures |
| Prosper | Increased Rate of return
Rise in market shares. |
| Internal Business | |
| Goals | Measures |
|
Technology capabilities |
Competition
The plan vs the actual production. |
| Customer | |
| Goals | Measures |
| Customer contentment.
|
Sales percentage
Customer feedback. |
| Innovation and Learning | |
| Goal | Measures |
| Technology leadership
|
Competition vs introduction of new product. |
The balanced score will help the management to focus on the high yielding operations. Innovation is the lead successor while products competition is the lag measure of the bank operations.