Hi, need to submit a 2000 words essay on the topic Economic Crime- Collapse of Franklin National Bank.
The failure of the bank invited changes in the existing banking regulations as well as practice. The failure tempted the banking policymakers to devise new international banking methods. Cooperation was encouraged in the international financial markets so to avoid financial disasters in the future. During the 1970’s and 1960’s, many American banks were internationalized. This included the Franklin national bank also. This bank even acquired an international owner named Michele Sindona (Spero.1999).
On October 1974 the US core banking sector was severely shaken by the demise of the 20th largest bank in the country, the Franklin national bank. The failure of the bank was mainly caused by mismanagement as well as fraud. The failure of the bank caused severe after effects in the economy as well as in the social setup of the country. Jail sentences were awarded to many bankers who were associated with the Franklin bank.