Question

Q.) Assume you are the Barclays CEO in the case and you know that other Banks are involved in low balling rates. How would you respond when you know your competitors are cheating?

Answer 1

ANSWER:

Lets first understand what is lowball or low balling rate:

A Low balling rate is an offer that is lower than the seller's asking price. It means the buyer is giving a false estimate to a seller in an offer because the intention of the buyer is expecting that seller might not push the offer forward. This can be used to start or push the negotiation.

My response as a Barclays CEO:

If I am dealing with my competitors: I won't be in any deal with my competitors as it won't yield my bank in any offer made because an unrealistic value for an offer is a foolish deal but if there is something different that I can explain my competitor then they might accept the offer made by us or if not then there is no way to make the deal countered by them as it is an invalid deal.

But for the long term for my bank dealing with competitors who are getting involved in low balling rates and are cheating then as a CEO of Barclays i would suggest not to make any deal with them.