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Case
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Reference no. HKS1387.0
Published by: Harvard Kennedy School
Published in: 1997
Length: 17 pages
Topics: Regulation

Abstract

This case tells the incredible story of what may be viewed as one of the century''s most infamous stock scams: the rise and collapse of the Canadian mining firm Bre-X, based on doctored reports of a gold strike in Indonesia said to have been worth $70 billion. The case raises the question of what, if anything, could have been done by Indonesian or Canadian regulators to prevent, or soften the impact, of a stock stampede which saw the value of a Bre-X share rise from two cents to more than $200 -- before collapsing in the face of what appeared to be evidence of fraud.

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Abstract

This case tells the incredible story of what may be viewed as one of the century''s most infamous stock scams: the rise and collapse of the Canadian mining firm Bre-X, based on doctored reports of a gold strike in Indonesia said to have been worth $70 billion. The case raises the question of what, if anything, could have been done by Indonesian or Canadian regulators to prevent, or soften the impact, of a stock stampede which saw the value of a Bre-X share rise from two cents to more than $200 -- before collapsing in the face of what appeared to be evidence of fraud.

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