Barings Bank Collapse

Barings Bank Collapse

The disintegration of Barings Bank in 1995 due to unauthorized and fraudulent trading by Nick Leeson, a derivatives broker employed in Barings' Singapore office. Leeson was permitted to conduct arbitrage by buying futures on Nikkei and at the same time selling them on Simmex. Instead, he made unhedged futures transactions on Nikkei and reported his losses as gains. His trading was exposed following large losses on Nikkei after an earthquake. His losses totaled more than $1 billion, twice Barings' available capital. Barings quickly became insolvent and was sold to ING for 1 pound.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
The power to ban bankers as directors was last used in 1995 after the Barings Bank collapse. Bailey expressed surprise over the ban not having been used since then.
Powers to ban bankers as directors are believed to have been last used after the 1995 Barings Bank collapse.
THE trader who caused the 1995 Barings Bank collapse has landed the top job at an Irish football club.
His failed gamble on a high-risk German market has echoes of the Barings Bank collapse when Nick "Rogue Trader" Leeson lost pounds 860million.