Article Abstract:
The collapse of Barings could have been prevented if senior executives had not deliberately covered up indications of the problems being caused by the speculative trading of Nick Leeson, according to a report from authorities in Singapore. Barings greatly exceeded its capital exposure limits to a number of Asian exchanges, and the Bank of England also failed to take action against this. The report claims that Nick Leeson forged documents, altered accounts and submitted incorrect reports.
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Article Abstract:
Barings dealer Nick Leeson, who is now at the centre of the scandal surrounding the bank's sudden collapse, is reported to have boasted that he was making a large contribution to the bank's profits and that he had been offered a bonus of almost 1 million pounds sterling. It has now been established that he gambled on very dangerous derivatives transactions, and some observers believe that he was deliberately trying to ruin the bank.
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Article Abstract:
An investigation into the collapse of merchant bank Barings is to be undertaken by the Serious Fraud Office (SFO), even though the Bank of England had requested that the SFO make no moves until the bank has been sold. There are now open rifts between Barings directors, and it has been publicly admitted that insufficient monitoring allowed trader Nick Leeson to undertake very large speculative trades.
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