Part I

Ms. Rodriguez is a freelance window cleaner who has been hired to clean the windows of the Tall, Inc. headquarters building. While cleaning a window on the 67th floor, she listens (through a vent screen) to the president and the CEO secretly discuss, that the corporation has discovered a new growth hormone that causes fat people to lose weight, hairy bald men, and beautiful ugly people. The two officers are drafting a press release that will be shared with the public at noon the following day. Ms. Rodriguez immediately calls her stock broker on the portable phone and instructs him to buy 25,000 shares of Tall, Inc. The next day, the stock price jumps from $ 80 per share to $ 160 per share, and the Mrs. Rodrguez sells what she just bought and earns a million dollars. When she brags about what she has done at her local hair salon, an SEC agent listens to them and makes a formal complaint. The SEC sues Ms. Rodriguez for violating SEC rule 10b-5. Is Ms. Rodrguez responsible? Why or why not? Explain the theories of US trade privilege.

Part ii

Describe the relationship between a bank and the bank depositor. Discuss the roles of central and commercial banks. Finally, explain why the largest multinational banks prefer to operate through subsidiaries rather than overseas branches.