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This is a Simplified Chinese version. The Crescent Standard Investment Bank Limited (CSIBL) was the largest investment bank quoted on all the stock exchanges in Pakistan, so when it declared a huge loss of Rs2.1 billion (US$35.5 million) for the year December 31, 2005 the market was taken by surprise. There had been some rumours that all was not well and that the investment banking regulator, Securities and Exchange Commission of Pakistan (SECP), had sent a team to investigate the affairs of the bank. Since the main shareholders were individuals or companies of the well-known business group known as the Crescent Group, there was enormous interest in the CSIBL affairs by financial and political circles as well.The case describes the various types of entities that were merged to form the CSIBL, principally to protect the stakeholders by creating an entity with a large capitalization. The bank had reported in its annual reports that all the internal control mechanisms for good governance stipulated by the SECP were in place and the auditors (internal and external) had reported that these were satisfactory. Yet, when subjected to an investigation, it was revealed that the internal management was involved in a variety of acts of misrepresentation and concealment. The case focuses on the weaknesses in the structure of the corporate governance regime in Pakistan. The fact remains that no amount of internal or external checks can stop the internal management from colluding to perpetuate a fraud.