Trusting the Trusted Accounts - Case Study Example

Trusting the Trusted Accounts Name Course Instructor Date Main arguments Billy has noticed that the bank he is working in as an intern in the trust sweep balance account is investing clients’ revenue from this account in a money market account so as to initiate the bank’s general size. This is at the expense of return of the client. Arguably, a bank is typically considered to enhance maximizing client’s revenue and also its revenue in order to be successful since this is important to its operations.finance company is ethically supposed to do as much as it can to give as much revenue to its investors as possible. Reasons and rationalisations It is evident that Billy has only worked with the bank for a short time and the entire workers including Joe, and the Trust Officers have been at the bank for long and therefore must be aware of the faults. His supervisor, Joe, has nearly 20 years of experience in banking while Billy, on the other hand, is just an intern. The It is required that alerting management on the matter be done in away that cannot disadvantage other workers in the bank. The people he works with might get harsh if he tries to change the operations of the bank since he is only a mere intern. What’s at stake for the important parties It is possible that the bank could be in conflict with the regulator for not maximising returns as it is required to. This would culminate in clients leaving the bank and take their earnings to a better bank that aims at increasing their revenues. If his colleagues in the bank’s staff find out about it, Billy might compromise his internship and may get terminated as he did not do right and he is only a new member of the staff. He might also not be respected by colleagues as they might need to think over about how they work. However, he would have self-respect if he says something since he is ethical. Clients gain more if he says anything if he fails to say something they obtain less, and if they get to know they will most likely abandon the bank. If Billy does not raise the issue to the department manager, he could be a problem with the investors for giving them less interest than they should get or underpaying them. Billy’s colleagues might get embarrassed for allowing this issue to go on for many years without taking into considerations the clients’ losses as they opt to upgrade their earnings not minimizing them. What to use to influence and argue to those who disagree The clients come back later when the bank becomes trustworthy since customers who will get served well by getting good returns will spread the good news about the bank thus customers are more likely to appear due to that. Most powerful and rational response I have noticed that customers are not gaining enough investment returns as it is supposed to be. According to my view, we would boost the bank’s operations if we were more ethical to our clients since the trust they would have for us would lead many of them to deposit cash on investments and dividends, which would, therefore, act as a wide pool of obtaining interests to our benefit. As such, this would mean having greater asset value and growth on our side. Clients would acknowledge that we provide more value proposition as opposed to other banks. Who should the argument be made to and what context The argument should be directed the immediate supervisor in a verbal manner. INDIVIDUAL SCRIPT (In my script, I have involved a narrator to give out the facts of the scenario including Billy’s actions and thoughts on what he decides to do. I have also included three other characters beside Billy). Narrator: Billy was just through with his junior year after pursuing a degree in Finance at an undergraduate university which was highly ranked. He got an internship in the Trust Department at a publicly traded community bank which was local. He was eagerly waiting to apply skills he had learnt in the course. Billy was capable of interacting with employees in the department quickly. He wanted to portray his enthusiasm and interest, and thus, he decided to reach out to many people within the staff with friendlier tone. Additionally, as a result of a reduced numbers of staff, he could effectively create a stronger bond with the immediate supervisor. Nevertheless, Joe was one of the bank’s top management. Billy was given a project to monitor the trust accounts’ cash sweep balance. Billy found out that the specific returns being reflected by the cash sweep balances were involved in investments in one of the bank’s money market account instead of maximizing client revenue. Billy found himself worrying and concerned about his findings. He began thinking out loud like... Billy: Oh no! The bank is not fully utilizing its earning of the cash within the trust account. Narrator: Tell us more … Billy: I thought maximizing client’s revenue is critical to the bank’s operation as well as the bank. Could they be investing the balances obtained for in benefiting themselves? Narrator: and so… Billy: Anyway, the institution may seek to opt to keep this money in order to increase its assets so as to attract new clients. But wait! This does not in any way address the fact that the customers at the moment could be gaining a bigger return. Narrator: Billy became nervous about sharing what he has found out. He had only been there for a short period of time compared to others Billy: are my colleagues really aware about this? Narrator: Tell us more.. Billy: how will my colleagues take me if decide to speak up? Narrator: Tell us more.. Billy: how will it affect the bank’s operation if I speak up? Narrator: He thinks of approaching Joe his immediate supervisor and still his disturbing thoughts strike him Billy: No! This is not a good idea, should I keep quiet then? Narrator: He tries to think about the situation again Billy: Although I am still new here I still pity investors who have fully entrusted the bank to maximize their revenues, and I need to do something about it. It really does not feel good to see this, having the downturn of the economy negatively affecting so many people Narrator: he then makes his final decision Billy: I think I will approach Joe on this matter. Narrator: Billy plans to approach Joe that afternoon. In the meeting... Billy: Hello Sir! Would like to talk to you about a certain issue. It is bothering me so much. Joe: Of course you can. Come in. Billy: I have noticed that customers are not gaining enough investment returns as it is supposed to be. According to my view, we would boost the bank’s operations if we were more ethical to our clients since the trust they would have for us would lead many of them to deposit cash on investments and dividends, which would, therefore, act as a wide pool of obtaining interests to our benefit. As such, this would mean having greater asset value and growth on our side. Clients would acknowledge that we provide more value than other banks. I would like something to be done about this. Thanks for your time. Joe: Thanks for bringing this to light Billy. I will work on the matter. Read More

 

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