It is pretty amazing to discover that many of the worlds biggest Banks could get taken in by the exploits of one well connected individual. It just goes to show how massive greed has corrupted the financial system all over the world and the full effect is yet to be felt by Emerging Economies such as Kenya.
Mr Jimnah Mbaru One of Kenya’s leading Financial Gurus, Chairman of Dyer and Blair has sounded the alarm bells on the state of the Kenyan Economy. He said the country has already suffered negative economic growths in the last two consecutive quarters; a clear indicator the economy was in a recession. Mbaru said other factors leading to the contraction of the economy include a decline in farm outputs, high cost of food as well as high transport costs due to high oil prices, which have prevailed recently. The question is how related is this crisis to the going ons in the West and how can the major financial players like Mbaru prevent a free fall.
Being part of a Business Consultancy(www.cymapk.com) that advices banks on how to implement IT solutions to monitor and track funds i know for sure that any offshore or foreign investments have to be tightly regulated to provide a safeguard for local Banking Industries. This failure to regulate in the west is really surprising and many are left wondering how this situation arose. Only time will tell perhaps.
My Irish friend Gerry called this the chicken’s coming home to roost. An old English saying that suitably depicts the state of many banks today.
How can we regulate against this greed ? How can we legislate against Pyramid or Ponzi Schemes which are still by commision legal in Kenya?
Here is the list of the Banks that have been affected worldwide.
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Read more at CNN: http://edition.cnn.com/2008/BUSINESS/12/15/madoff.arrest.exposure/index.html
Read more at the Standard: http://www.eastandard.net/business/InsidePage.php?id=1144001462&cid=14&
