Where does this leave the public? Left in the dark? Will there ever be reform that works or is that just the nature of Wall Street and the global financial system? In 2008, rating agencies that inaccurately rated mortgage backed securities(MBS) for fees from banks faced no repercussions, and 1 banker from credit Suisse went …
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What happens now? What can be done?
In the opinion of the major regulatory agencies, this was the last straw for banks, and more significant change had to be made. As of now, Libor still functions the same way it always has. According to New York FED economists David Skeie and David Hou, they reached out communicating concerns about manipulation of Libor …
Repercussions
In 2012, the cover on this scandal was pulled and everyone was left exposed and guilty. All said and told, global banks paid $9 billion in fines after persecutors from the US and Europe led a thorough investigations over a 3-5 year period exposing the wrong doings. In the end, and through a long tedious …
What happened? Why was this so bad?
The major banks involved in this widespread scandal were, Deutsche Bank, Barclays, UBS, Rabobank, HSBC, Bank of America, Citigroup, JPMorgan Chase, the Bank of Tokyo Mitsubishi, Credit Suisse, Lloyds, WestLB, and the Royal Bank of Scotland, with Deutsche Bank, Barclays, UBS, Rabobank, and the Royal Bank of Scotland being the most prominent and most heavily …
What the hell is LIBOR?
Libor, or London Interbank offered rate, is a combination of interest rates, expressed in various currencies that determine global rates for debt financing. Libor is the interest rate that banks loan money to each other at. This rate has enormous trickledown effect, meaning whatever Libor is at on any given day greatly impacts the rates …
My Action for Nike
There are only two courses of actions that Nike can exercise. Either Nike continues to stick to their past practices of using tax-havens to mitigate their total expenses and optimize their profits, or they can say goodbye to the “dog days,” and begin acting ethically by paying their taxes to the US government. I understand …
Nike and the Media’s Response
The media has been particularly critical on many companies performing these tax-avoidance strategies. Reporter Max Haldevang from Quartz described his take. “Well, apart from the fact that it forces ordinary people and smaller companies to pay more taxes to keep up the roads, schools, and military, it also makes a mockery of trickle-down economics.” Max …
Nike’s Response
Nike has been pretty silent in terms of responding to criticism of their corporate plans. There were only two quotes that I found on the topic of tax avoidance and accusations of unethical behavior regarding this topic. 2016 Statement: “We fully comply with tax regulations, and we rigorously ensure our tax filings are fully aligned …
Nike Background
Nike was founded by Phil Knight and Bill Bowerman in 1964. Nike is actually the Greek God of Victory. Nike initially started out selling athletic shoes. Their unique designs and extraordinary performance propelled the brand to eventually open up appeal and sports equipment divisions. The company boasts more than 73,000 employees as of 2018. Their …
My Suggestion
To suggest that I have an end all solution to this massive, ever growing issue that I have relatively small knowledge of compared to the executives of this massive social media conglomerate, would be naive. However, I do believe there are some simple things that we can start with in the prevention of the spread …
Get Off My Case! 