Citic Pacific

Corporate Governance at Citic Pacific

An unauthorized foreign currency transaction left Citic Pacific, the Hong King branch of CITIC Group (the large state-owned Chinese investment bank) exposed to the tune of approximately two billion dollars (Ko & Joshi, 2009). Not only was this unnecessary risk taken on through an unauthorized trade, but investors and shareholders in the bank were not notified of this fact until six weeks following the date that the transaction and risk came to the attention of leaders at the bank (Ko & Joshi, 2009). Only when the loss was certain was it announced, and though apologies and guarantees about reforming the practices and policies that allowed this to happen were made, distrust and outrage were rife amongst investors and analysts (Ko & Joshi, 2009). This case touches on several issues that are worthy of consideration from a corporate governance and management perspective.

Corporate Governance...
[ View Full Essay]