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Issue in Corporate Failure of Bank stressIt also raised millions of revenue by accounting techniques to show false profits and hided their losses which occur in trading and bad debt. The biggest bank machination in history According to Manhattan District Attorney Robert M. Morgenthau, the BCCI scandal that came to light in 1991 was the largest bank fraud in world history. Perhaps no new(prenominal) criminal enterprise has involved or at least embarrassed so many prominent people, from billionaire Arab sheikhs to Third World dictators to present and former leaders figures in the U. S. and British goernments.Certainly none could match the international web of financial chicanery, political intrigue, and unsavoury figures with which BCCI was said to be associated. (Source Encyclopaedia Encarta 2007) BCCI was engaged in four major frauds. One was a cover-up of $633m of losses on treasury trading. The second was the illegal acquisition through nominees of several banks in the US , in which it spend $346m. The third was a complex use of accounts to prop up its largest borrower, the gulf shipping group of Pakistan, to which it lent more than $725m, which was over the limit prepare by banking regulations.The fourth was fundamental fraud by which BCCI allegedly acquire secret control of 56% of its own shares at a cost of over $500m. BCCI was a serpent eating its own tail. These sums add up to more than $2bn. But this is a minimum it omits the enormous cost to BCCI of financing its secret losses. The manipulation to cover up the fraud involved another $2bn, bringing the grand total to well over $4bn. BCCI frauds were the main reasons for its corporate failure. The scale the fraud is dyspneic enough. But while most frauds involve the disappearance of real money, BCCI did the exact opposite.It manufactured billions of dollars out of nothing to conceal gaping holes in its balance sheet, give care a giant game of Double Your Money. This involved extraordinary fin ancial gymnastics and illegal loans on a wide scale. When BCCI finally came crashing down, it was not with a thud, but in a shower of paper. (Behind Closed Door FT Publication) BCCI initiated every single route to excel its growth. In a starting signal place its corporate structure was so complicated which involved uses of shell corporations frequently termed as satellites, bank confidentiality and secrecy.BCCIs top management including nominees which also includes near famous personalities in politics were involved in corruption and made it a supreme atmosphere for crime. BCCIs criminalities included, Fraud by BCCI and BCCI customers involving billions of dollars money launder in Europe, Africa, Asia, and the Americas BCCIs bribery of officials in most of those locations, Support of terrorism, arms trafficking, and the sale of nuclear technologies Management of prostitution The commission and facilitation of income tax evasion, smuggling, and illegal immigration extracurricula r purchases of banks and real estate. Source Walker, L. 2001) Abdul Basir, head of BCCI Pakistan operation, says We looked after clients in the most efficient, personalised manner. The diamond market which is home to Lahores famous dancing girls, Prostitutes, who for centuries have provided merriment for emperors and their courtiers and latterly for politicians, Arab Sheikhs and bankers. BCCI used these girls to treat Arabs rich businessmen and major shareholders. BCCIs Zafar Iqbal, former chief executive, was in charge of managing prostitutes. Corporate Failure of BCCIThere were 2 main reasons of BCCIs corporate failure apart from their criminal activities. These were high risk loans and trading. A banks treasury plays a key exercise in managing its financial affairs by trading large amounts of money and currencies. Some if this dealing is done on behalf of clients. But bank treasuries also opine on whether currencies will rise or fall, using their own money. BCCI was no exce ption. According to Price Waterhouse, the bank combined these two activities by trading huge amounts of clients money but in its own name, and without their knowledge.