Financial Disasters's ...Question regarding BT case?

[shivanin]

My Question here is How Bankers's trust Case is Classified as Case of "Customer Conduct"...While it is clearly evident from Allen's reading that BT mislead and manipulated P&G and Gibson.

Why is it not a case of Misleading Reporting??

 

[ShaktiRathore]

Hi,
Bankers's trust promised its customers that it would be fair and ethical in all its dealings and business conduct. However the BT failed to keep up to its promise as it mislead and manipulated P&G and Gibson and did some unethical business therefore breaching the customer conduct(ethical guidelines promised to customers),hence it was a case of failure of Customer Conduct.

thanks

 

[shivanin]

I agree with you ShaktiRathore but......That there is misreporting too....makes it a bit confusing.

 

[David Harper CFA FRM]

Good point @shivanin I think Allen's division of case studies into exclusively three categories is occasionally strained, but esp for BT. FWIW, previous to Allen, Gallati was assigned to cases and, supporting your point, he gives the primary cause as "Material misrepresentations and omissions to client" (see Chapter 6 of https://forum.bionicturtle.com/resources/risk-management-and-capital-adequacy.98/)

 

[shivanin]

Thanks for this David...at least Its clear that the classification is strained. But now for the sake of Exam...I think I will go with Allen's division.