The true story of is a masterclass in how a "can-do" attitude can accidentally demolish a 233-year-old institution.
On February 23, 1995, Leeson left a note on his desk saying and fled the country. He left behind a $1.4 billion loss —more than double the bank's entire available capital. Rogue Trader (1999)
Barings Bank, which had survived the Napoleonic Wars and financed the Louisiana Purchase, was declared insolvent and sold to the Dutch bank ING for the symbolic price of . The Aftermath The true story of is a masterclass in
Because he was in charge of both the trading floor and the back-office reporting (the "settlements"), he was effectively his own boss, allowing him to cook the books and make it look like he was making millions while he was actually drowning. The Kobe Earthquake Barings Bank, which had survived the Napoleonic Wars
By 1995, Leeson’s secret losses were staggering. He placed a massive bet on the index, wagering that the Japanese market would remain stable overnight.
Then, the unthinkable happened: the struck Kobe. The Japanese markets plummeted, and Leeson’s positions turned into a black hole. He tried to "trade his way out" by buying more, but the hole only deepened. The Collapse
In the early '90s, Barings Bank—the oldest merchant bank in London—sent their rising star, Nick Leeson, to Singapore. His job was to head the futures floor at SIMEX. He was charismatic, aggressive, and quickly became the bank’s golden boy, reportedly accounting for 10% of Barings' total profits at one point. The "Error Account"