This case is about ETHICS
PUBLICATION DATE: December 02, 1996
Kidder, Peabody & Co.: Creating Elusive Profits, Chinese Version Case Solution
On April 17, 1994, Kidder, Peabody & Co. announced a $350 million charge against earnings resulting from the discovery of bogus trading gains. That same day, the conclusion of the employment with the business of Joseph Jett was made public.
This case describes the trading strategy that resulted in the development of bogus gains, by illustrating the mechanics of bond bookkeeping. Failures of internal control are also discussed. The case finishes by asking who was to blame.
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