HOW FRAUD INFLUENCE FINANCE MANAGEMENT

HOW DOES FRAUD INFLUENCE FINANCE MANAGEMENT?

I see finance management as being critical to all governments across the globe. As was observed in the past decades, capital mismanagement and fraud scandals had become rampant. Resent examples of individuals involved in fraud include Michael Milken, Al-Waleed Bin Talaa and Merrill Lynch. Fraud is a serious crime in any part of the world. As such, the punishment rendered to the convicted are often quite harsh. I believe that those involved in this practice refrained because of the new rules which were implemented with the purpose of saving governments from financial crisis that had been anticipated. Effective and efficient management of working capital is significant in the current business field. Since the American government turned its back on the over- the –counter derivatives, banks have expanded their businesses by opening new branches and increasing their lending rate. In the current decade, Washington’s Wall Street has turned into an economic power. These transformations were influenced by rapid change in the financial trends which required important decisions to be made. Over the years, the U.S economy has been growing because of efficient capital management.

WHAT ROLE DOES RETRUCTURING OF FINANCE PLAY IN FINANCE MANAGEMENT?

Restructuring of the financial system helped America to gain its stable economic status. The former U.S president George Bush tried to change the rules of the system by declaring closure of insurance institutions which were running while bankrupt. As was observed, that government was not serious about that rule or change. My observation is that things went back to normal after the announcement. It was until the current U.S president Barrack Obama was that changes were made and implemented in the actual field. He made some changes on financial institutions, new security regulations, and new power for the government to cope and manage crisis. Through these changes, America has gained a stable economy. There are a number of regulatory policies which might be beneficial, but these changes were addressing the financial crisis which was affecting the country.