The Tale of Two Peregrines Harvard Case Solution & Analysis

Based in the year 1980, Peregrine Financial Group, Incorporation ("PFG") was included in 1992 as a futures commission merchant in USA and legitimately registered with National Futures Association, spotlight in commodities and foreign exchange futures brokerage services.

As PFGBest PFG was rebranded in 2008, it purported to have customers in customer assets in more than 80 nations and more than US$600 million by 2012. On 10 July 2012 PFG filed for Chapter 7 protection after its founder and chairman, Russell Wasendorf, Sr. attempted suicide. In his suicide note, he described his deceitful act of embezzled as much as US$220 million in the previous 20 years from the bank accounts of PFG. He declared that his ego was too big to confess failure and so he cheated.

A completely unrelated company Peregrine Investment Holdings Limited ("PIHL") was founded in 1988 by former Citibankers Philip Tose and Francis Leung who were backed by lots of Hong Kong's business elites. It absolutely was "Asia's only indigenous investment bank" and took prominent roles in the neighborhood bourses. A US$265 million bond issue was underwritten by PIHL by Steady Safe, an Indonesian transportation company, which failed by the end of 1997. In January 1998 PIHL was pressured into liquidation after it did not get crisis aid or white knights from the Hong Kong Monetary Authority and lost all liquidity. A report commissioned by the Hong Kong Government cited poor risk management and blemished internal control as the causes for the downfall of PIHL.

The Tale of Two Peregrines Case Study Solution

PUBLICATION DATE: June 26, 2013 PRODUCT #: HK1005-HCB-ENG

This is just an excerpt. This case is about LEADERSHIP & MANAGING PEOPLE

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