Free Essay


In: Business and Management

Submitted By pearlnette
Words 1333
Pages 6
MWF 1:30-3:30

Who is Robert Kiyosaki? A fourth-generation Japanese American, Kiyosaki was born and raised in Hilo, Hawaii. After graduating from Hilo High School, he attended the U.S. Merchant Marine Academy in New York, graduating with the class of 1969 as a deck officer.
He is an investor, businessman, self-help author, motivational speaker, financial literacy activist, and occasional financial commentator. Kiyosaki is perhaps best known for his Rich Dad Poor Dad series of motivational books.
As a devout global financial literacy advocate, Kiyosaki has been a staunch proponent ofentrepreneurship, business education, investing, and that comprehensive financial literacyconcepts should be taught in schools around the world.

Why did he filed for bankruptcy? Robert Kiyosaki filed for corporate bankruptcy through one of his companies, Rich Global LLC.
Rich Global LLC filed for Chapter 7 bankruptcy protection on Aug. 20 in a Wyoming bankruptcy court. Kiyosaki and his bankruptcy attorney did not immediately respond to requests for comment.
The company had been weighed down by a lawsuit filed by Learning Annex, one of Kiyosaki's earliest backers who had helped arrange his public speaking events earlier on.
Bill Zanker, the founder and president of Learning Annex, sued Kiyosaki after he allegedly failed to pay a percentage of profits from his speaking engagements. A district judge in New York awarded Learning Annex $23.7 million.
"I took Kiyosaki's brand and made it bigger," Zanker told the New York Post. "The deal was I would get a percentage, and he reneged. We had a signed letter of intent. The Learning Annex is the greatest promoter. We put his 'Rich Dad' brand on a stage. We truly prepared him for great fame and riches. But when it was time for him to pay up, he said 'no.' "
However, Kiyosaki isn't taking after his poor dad's title just yet. Though Rich Global LLC has filed for bankruptcy, he reportedly conducts business through a number of corporations, including Rich Dad Co.
Mike Sullivan, CEO of Kiyosaki's Rich Dad Co., told the Post, "The dealings we had with Learning Annex were with a company that hasn't been in business for a number of years . . . I am not surprised Learning Annex is upset and angry, the money doesn't exist in that company, and we can't bring money out of the group.
"Robert and [wife] Kim are not paying out of personal assets. We have a few million dollars in this company, but not 16 or 20. I can't do anything about a $20 million judgment . . . We got hit for what we think is a completely outlandish figure."
Rich Global LLC's liabilities are nearly $26 million with assets of $1.8 million, according to its bankruptcy filing. Its biggest creditor is the Learning Annex due to its $23.7 million legal claim.

Insights: It’s a corporate bankruptcy, not a personal bankruptcy. Robert Kiyosaki is offering us another lesson in how the rich are different,that is they file for bankruptcy not because of ill health or unemployment related issues, but instead as a strategic business move. This issue interesting. It is a question why a well-known financial guru will make such decision. It must be something that we don’t know or cannot foresee. The word “bankrupt” or “bankruptcy” have been stereotyped negatively. The moment these words go into out mind, most of us will relate to a bad news. However, in corporate world, it can be one of the smartest move. LCC means Limited Liability Company. The advantage of this is that the company and shareholders are having separate entity, unlike Sole Proprietor or Partnership. When a limited liability company goes bankrupt, the assets of the shareholders are not affected.
Robert Kiyosaki must be taking the most strategic move. Rich Global LLC has been filed bankruptcy. However, Rich Dad Co. is still generating millions. His investment in gold, silver and oil will not be affected too.
Filing bankruptcy is the best move to prevent losing of assets, but it’s somehow way too cruel for the opposing party. It’s all about the matter of integrity.


Who is Nick Leeson? He was born in Watford, where he attended Parmiter's School. After finishing school in 1985 he landed a job as a clerk with a private bank, Coutts. He then moved to Morgan Stanley in 1987 for two years, eventually ending up with Barings in 1989. In 1992 he was appointed general manager of a new operation in futures markets on the Singapore International Monetary Exchange. Leeson was sent to Singapore after he was denied a broker's license in the United Kingdom because of fraud on his application.
In October 1994, Leeson was arrested in Singapore for an incident involving mooning.
From 1992, Leeson made unauthorized speculative trades that at first made large profits for Barings. However, his luck soon went sour and he used one of Barings' error accounts (accounts used to correct mistakes made in trading) to hide his losses. Leeson claims that this account was first used to hide an error made by one of his colleagues.
However, Leeson used this account to cover further bad trades. He insists that he never used the account for his own gain, but in 1996 investigators had located approximately $35 million in various bank accounts tied to him.
Management at Barings Bank also allowed Leeson to remain Chief Trader while also being responsible for settling his trades, jobs usually done by two different people. This made it much simpler for him to hide his losses from his superiors. He was sent to prison. Since leaving prison in 1999 he became, and subsequently resigned as, the CEO of Irish football clubGalway United and is active on the keynote / after-dinner speaking circuit where he advises companies about risk and corporate responsibility.

Why did the Barings bank collapsed? Nick Leeson opened a secret trading account that was numbered “88888″ to facilitate his surreptitious trading. He lost money from the beginning. Increasing his bets only made him lose more money. By the end of 1992, the 88888 account was under water by about GBP 2MM. A year later, this had mushroomed to GBP 23MM. By the end of 1994, Leeson’s 88888 account had lost a total of GBP 208MM. Barings management remained unaware.
As a trader, Leeson had extremely bad luck. By mid February 1995, he had accumulated an enormous position—half the open interest in the Nikkei future and 85% of the open interest in the JGB [Japanese Government Bond] future. The market was aware of this and probably traded against him. Prior to 1995, however, he just made consistently bad bets.
Betting on the recovery of the Japanese stock market, Nick Leeson suffered monumental losses as the market continued its descent. In January 1995, a powerful earthquake shook Japan, dropping the Nikkei 1000 points while pulling Barings even further into the red. Leeson frantically purchased even more Nikkei futures contracts in hopes of winning back the money that he had already lost.
Surprisingly, Nick Leeson effectively managed to avert suspicion from senior management through his sly use of account number 88888 for hiding losses, while he posted profits in other trading accounts. In 1994, Leeson fabricated £28.55 million in false profits, securing his reputation as a star trader and gaining bonuses for Barings’ employees.
After the collapse of Barings, a worldwide outrage ensued, decrying the use of derivatives.
After a series of lies, cover ups and falsified documents, Leeson and his wife fled from Singapore to Kuala Lumpur, Malaysia. By then, Barings' senior management had discovered Nick Leeson's elaborate scheme. The total damage suffered by Barings was £827 million, or $1.4 billion. In February 1995, England's oldest, most established bank declared bankrupt. Leeson and his wife were arrested in Frankfurt, Germany on March 3rd, 1995. That same day, the Dutch bank, ING, purchased Barings for a mere £1 and assumed all of its liabilities.

Similar Documents

Free Essay


...Pagsusuri sa Binasa Life of Pi Christian Bartonico Plaza BS in Biology 1-B Gng. Luden L. Baterina Guro Ika-7 ng Pebrero, 2014 Buod Life of Pi Ni: Yann Martel Ito ay isang kwento ni Piscine Patel, na may palayaw na Pi (paay) at ang kanyang paglalakbay. Siya ay isang batang Indiano na anak ng isang nag mamay-ari ng zoo. Siya rin ay nag-aaral ng Hinduismo, Kristiyanismo at Islam. Ang unang parte ng libro ay nakatuon sa kanyang paglaki kasama ang mga hayop, pamilya at kanyang pananampalataya. Ang ikalawang bahagi ng libro ay nakatuon sa pag padpad niya sa karagatan. Nagdesisyon kasi ang kanyang mga magulang na lumipat sa Canada dala-dala ang mga alagang hayop para ibenta doon. Sumakay sila ng isang barko pero lumubog ito at bangkang sinasakyan ni Pi ay nakalutang lamang sa Karagatang Pasipiko ng higit na dalawandaang araw kasama ang hyena, zebra, orangutan, at isang Bengal tiger. Pagkatapos, ang unang tatlong hayop ay isa-isang namatay ngunit ang tigre at si Pi ay buhay pa rin hanggang sa mapadpad sila sa isang baybay sa Mexico. Ang huling parte ng libro ay ang pakikipagpanayam sa pagitan ni Pi at ang mga Japanese maritime officials. Isinalaysay ni Pi ang kanyang karanasan kasama ang mga hayop pero inisip ng mga opisyales na hindi ito kapani-paniwala kaya nagsalaysay uli si Pi pero hindi na kasama ang mga hayop. Nagtanong si...

Words: 624 - Pages: 3

Premium Essay


...dfjhdf dfjh eiruyi erejdf dhdjf d djhjd hdfj dfhjhd hdfj dfjhjdhf j dhjhjd fjhdj dj j j j j j j j jj j j j j j j j hh hjhj hjh jhj F Ds Fsdfsdfsdfdsfdsf Sfds F Sd Fds F Dsds F Dsf Ds Fsfds F Ds Fsdfdsfsdfdsfsdfdsfdsfsbsdhjajhfhdsagasjkhsdfgjhafgkshdsjhvz kdjhvbzxcvjzdfhvbfjhgzbvdfgvzdfjhvbzfdjhvbzdfvfdjhgvfdbvzdfb vjfhdgbzdfjbv hgh ghgh ghg ghgh ghg gh gh g h hg h hg h h gh hg h hg g h h h h h h h h h h h h h h h h h h h h h h h h h h h hhh h h h h hhhhh hh h hhh h h hhh h hh Qwe D fsd dfdsd d sdsdf Sdshdjh sk Sdfsfdfdsf sdffdfsdf Sdfsd Fsd Fd Fsd fzdfjvjdfhbvzfdjh vgzdfjhvhdfjgjhfdshfhdksgdfjs hghjdfghajsgjdhfasjhfghjkjhgtuwertewry ugfdjhgspdgdfvbregb r esgbzfd hjvgdfkjgk hjkgfhjdghs djfgjhsdf Sdfds F Ds dfjhdf dfjhdf dfjh eiruyi erejdf dhdjf d djhjd hdfj dfhjhd hdfj dfjhjdhf j dhjhjd fjhdj dj j j j j j j j jj j j j j j j j hh hjhj hjh jhj F Ds Fsdfsdfsdfdsfdsf Sfds F Sd Fds F Dsds F Dsf Ds Fsfds F Ds Fsdfdsfsdfdsfsdfdsfdsfsbsdhjajhfhdsagasjkhsdfgjhafgkshdsjhvz kdjhvbzxcvjzdfhvbfjhgzbvdfgvzdfjhvbzfdjhvbzdfvfdjhgvfdbvzdfb vjfhdgbzdfjbv hgh ghgh ghg ghgh ghg gh gh g h hg h hg h h gh hg h hg g h h h h h h h h h h h h h h h h h h h h h h h h h h h hhh h h h h hhhhh hh h hhh h h hhh h...

Words: 270 - Pages: 2

Free Essay


...fd g h f a af d gfd s gfd g f d sfdg g f fg fjk j jk jjk h ghh hj aadsfkj klaj jadskfljakl klj kljakl jfkla jklfaj lja ljf l fl fkljlsaj fklas klasjfkjklasdjfkl j fkl jn jkj hj ghgh gh ghj hj hkjkljhjh yug jh hhj jk j j kj hh gh g yu jkl j hjg df ersdtr hjkj kjl jiu ut r tg hj hhg gfy rtgyu hj hbh gh tres rxdcfbh jfnjnadsfkn afjioaj iofjadso ifjadiofj ja dijad fs idoas iofdjas oijaosdjf ojoijoaidfsj ojaodfs ad sjoaj dsiojas ioj adsfo oadfj sodj o ad adsfiojadsio jodfs ajoaj dfsoiadfso oadfs oiajds foijadsiofjoi joifj io adfoafo oadf soafdsoadfso oadfs oadfso oadj fo fo afof df asdfsn oasdfno anfo odf oajdsfoj oadf ojafo jaof oad fj oajsdf oja dso jfa odj ofadj oja ofj ofjdadfj oadijf sojdf ojao sjoadjsofj oj adsfo jads ofj oadsjf ojadfo ja odfsj ohariu fiubasdn fonawuerbf jagui baidfsn lkansdf iobiafub iubadfsi bkajdfni as o dbif aijd sf I ua bs df kljn adfs n iua shd fiu has d fnio au ds hfia dfs d afs adsjfkas da fjkladsfj klajdsfasdfj kldjafs kla dsjfklajdsfkl dafsj kladsfadfkj jadsfkljakldsfj dklafsjklasj dafsj klajdsfkl aeoif aiadfjioaewf dasfjioaejfio jgfvndaf jaidsfj ioafojadfsjio ajfasdf ashdfakj safj kasjdfajdflkadjfs kladlfj lkadfsjklasdfn kljadfsl kjkladsfjsdfj klajdsf ladsjf ladfs d lkjdfkjlsadfjdkaf kadjflkajdsfkl kadlfjlkadsjf dfklsj ljadfslk j klj h ghgh hj n bng gyu n kj iuuy fy bhkn kjnkj...

Words: 300 - Pages: 2

Premium Essay


...Vvfgfgdddddddddddddddddddddddddddddv fg fhg dfg dgh dgh dgh dfh gdh dgh dfh dfh df the thrw fg dfg fg sfg sfg sfg sdg fg fh gh f fgf hfdh dfh dh dgh gh ghgh gh fg sg sdg afg h ru g fg rshgd f bcb fdh ryj yr fsdv cv fg tj gfh fb bg jtr s fs bg htr y rf dght y trfd c bh yut rfd fb hy trfed adfhy tre dc vfgbh rtgf dascd vfbgh rytgf edsax dcvfgh yt refds agbf hytr efdas gf hytr fdesa adfg try rgfed sax dfgth yrefd sc gfh ytr gefdsx cd gfh ygtrf eds xdcfg ht rfedws af g trefd asd cfgth y rewd sdcf gthyu 7 y6t5 df gthry u67 yt refwds xa dcfgtr yu7 6t5r ewdsx adcf ghyu 7y6t5 r4ews xdc gfhyju ij hygtrfeds waz xdcfgtr hyuy gtrfed ws derf tgyu 67yhgtrf edwsqed rftgy 7u6gtfr edwsd rfty gtfrde swdrftg y5hgt frdewr tgy5hg trfedw rftg rfede gt rfd cfghy gtfrd fghy gtfre gthyuj hygtfr gthju hygt hyjuik ujhygt fhyju hygt frghy ujhy gtrfegt hyujy hgtfdc fregtyujolpikyujhfcdsxazXS DCFERGTYUJ YHTGFV CDS VGBNHJY UHG VFCDXS CFVGBH BGVF F D G F F F FF F DF F F FF F F F F F F F F FF F G F DGB HGF DSDF VGBHGF DSDFV GFDS DCFVG FDSD FVGBF DSDFG FD FCGH FD FGH GFDF G DFG DFG FD FG FDS DFG FDF GH FDF VGBHG FD FGB FD FGBH GFDSD FVGB FDSDF GF DFG BF DFGBH GFDS FVGBH GFD FCVB VGFD CFVB VFD FVGBVF DCFVB VFD CFVB VFD FVGB VFDC FVGBG FDSDFVGB GFD FVGB GFD B F G VB...

Words: 269 - Pages: 2

Premium Essay


...Lennard Ramirez 9/16/15 ECET 303-101 Lab 1: MEASUREMENT OF OHM’S LAW, KCL AND KVL Prelab Figure 1 Figure 1 Figure 2 Figure 2 Error Analysis Using 100 as the value of R2, range for voltage is 90 omhs-110 ohms and range of current is from 450µA-500µA. 1. For the circuit in Figure 1, vary R2 with the resistors as specified in the table below, and fill in the table in the measured values section. Before measuring the voltage and current, measure the exact value of the resistor you are using. PR2 PR2 | Expected Values | Measured Values | Simulated Values | | R2 | vr2 | ir2680 µA 680 µA | vr2 | ir2 | vr2 | ir2 | .211µW .211µW | 47Ω | 31 mv 31 mv | ghgh | | | 31.971mV | 678.113µA | .25µW .25µW | 100 Ω | 50 mv 50 mv ghghghgh | 500 µA 500 µA | | | 50mV | 500 µA | .144µW .144µW | 470 Ω | 82mv 82mv | 175 µA 175 µA | | | 82.456mV | 174.310 µA | 8.1µW 8.1µW | 1000 Ω | | 90 µA 90 µA | | | 91.101mv | 91.081µA | 1.94µW 1.94µW | 4700 Ω | 90 mv 90 mv 97 mv 97 mv | 20 µA 20 µA | | | 97.451mV | 18.381µA | Table 1 2. Plot ir2 vs. vr2 3. Repeat steps 1 and 2 for the circuit to the right in figure 2. PR2 PR2 | Expected Values | Measured Values | Simulated Values | | R2 | 2.7mA 2.7mA 100mv 100mv vr2 | ir2 | vr2 | ir2 | vr2 | ir2 | .27mW .27mW .1mW .1mW | 47Ω | hgh | fgf | | | 100mv | .28mW | 21.3µW 21.3µW | 100 Ω | 100mv 100mv | 1 mA 1 mA | | |......

Words: 420 - Pages: 2

Free Essay

Patagonia Ecocamp

...Algemene vragen. 1. zoek de kenmerken van de nieuwe romantiek. Vind je de gelezen gedichten typisch voor die stroming. Let op. - het hoge testamentgehalte; - de kunstmatige paradijzen; - het algemene levensgevoel; Neoromantiek: NNN p.312 De nieuwe romantiek (1970- tot heden). In de jaren 70, een periode van economische recessie en crisis, lijkt het engagement van de jaren 60 dood en begraven. Er is een algemene retrobeweging, een vluchtreflex naar het ‘ik-tijdperk’, het kleinschalige, de introspectie, de ‘navelstaarderij’. Kenmerken: 1. Gevoelens van onmacht, moedeloosheid, uitzichtloosheid vieren hoogtij: ‘veel ach en een beetje o’. 2. De dichter gebruikt vaak ironiserende, kitscherig-pathetische effecten (vooral in Nederland): ernst en pose zijn vaak moeilijk van elkaar te onderscheiden. 3. Er is een herstel van en een spel met klassieke dichtvormen: sonnettenrage, plechtige stijl met gebruik van nogal wat retorische figuren, metrum… (literatuur Nederland: Gerrit Komrij (1944-), Lévi Weemoedt (1948-), Jean Pierre Rawie (1949-). (literatuur België: Luuk Gruwez (1953-), Eriek Verpale (1952-), Jotie T’Hooft (1956-1977). *Recessie: achteruitgang * Introspectie: een activiteit waarbij de eigen gedachten, gevoelens en herinneringen tot onderwerp van overdenking gemaakt worden. * Kitscherig(kitsch): iemand die probeert om kunst te maken en daarin onbedoeld niet slaagt, wansmaak. * Pathetisch: hoogdravend * Retorisch:......

Words: 415 - Pages: 2