Singapore between 1992 and 1995 enabled Nick Leeson to operate effectively without supervision from Barings Bank in London. Leeson acted both as head of settlement operations (charged with ensuring accurate accounting) and as floor manager for Barings’ trading onSingapore International Monetary Exchange‚ or SIMEX. This placed Leeson in the position of reporting to an office inside Barings Bank which he himself held. Because of the absence of oversight‚ Leeson was able to make seemingly small gambles
Premium Barings Bank Nick Leeson Derivative
Nick Leeson ’s Double Life In 1999‚ director/screenwriter James Drearden released the movie Rogue Trader‚ which encapsulates the true life of futures trader Nick Leeson and his role in the downfall of Barings Bank. Ewan McGregor stars at Nick Leeson‚ an ambitious young British stock trader while Anna Friel plays his wife Lisa. Drearden ’s focus is on Leeson ’s activities at the Singapore Stock Exchange but he also constructs a love story subplot that adds little to the central plot. Critics of
Premium Nick Leeson Futures contract Stock exchange
REVIEW QUESTIONS 1. Why did Nick Leeson sell numerous short straddles for each long futures contract he bought? When Nick Leeson was being promoted on the Singapore branch of the Barings bank‚ the strategy of the bank was to reduce the risk exposure by using a combination of one short straddle (combination of put / call) and for one long future. Since Nick Leeson used to be a specialist on Future contracts on Nikkei 225 and Japanese 10 years bond and was sure this market would arise. So
Premium Futures contract Short Derivative
Rogue Trader‚ Nicholas Leeson Case 1) What was Nick Leeson’s strategy to earn trading profits on derivatives? Leeson was trading derivatives contracts on the two exchanges that were‚ in some cases‚ of different types and‚ in some cases‚ in mismatched amounts. He was hoping making profits by selling put and call options on the same underlying financial instrument‚ the Nikkei 225 Index. 2) What went wrong that caused his strategy to fail? He thought as the Nikkei was already low that
Premium Derivative Nick Leeson Barings Bank
Science and Technology Economics Department Postgraduate studies MBA Topic: Barings Bank Scandal 1995 Professor: Dr. Goran Ridic Student: Dinka Lujinovic Sarajevo‚ 2014 Content Contents Introduction 5 Research methodology 6 Nick Leeson 6 Barings Bank 8 Nick Leeson and the collapse of Barings Bank 9 Risk Management and Internal Control 9 Conclusion 12 Reference list 13 Introduction Barings Bank was established in 1762 by Francis Baring. It was known as John and Francis Baring Company
Premium Barings Bank Internal control Nick Leeson
office‚ Nick Leeson.[1] The chain of events that led to the collapse of the bank could have been mitigated‚ if not entirely avoided‚ had management and/or the board of directors followed recommendations contained in internal reports that drew attention to the risks present in the highly leveraged trading program constructed by Nick Leeson‚ or by more thoroughly questioning the exorbitantly large profits being regularly reported by the relatively small Singapore office. The Nick Leeson case must
Premium Barings Bank Nick Leeson Board of directors
well into the twentieth century. Nick Leeson grew up in London’s Watford suburb and worked for Morgan Stanley after graduating from university. Shortly after‚ Leeson joined Barings and was transferred to Jakarta‚ Indonesia to sort through a back-office mess involving £100 million of share certificates. Nick Leeson enhanced his reputation within Barings when he successfully rectified the situation in 10 months. In 1992‚ after his initial success‚ Nick Leeson was transferred to Barings Securities
Premium Barings Bank Derivative Nick Leeson
be viewed by the world. This case study will chronicle the events that took place‚ identify the failures‚ and recommend how these events could have been avoided. To chronicle the events‚ books and articles of the event were read to understand how Nick Leeson’s activities caused the fall of Barings Bank. Failures such as risk management were identified throughout the events so that final recommendations like regular monitoring could be made to prevent these disasters from happening again. With
Premium Barings Bank Futures contract Derivative
What was Nick Leeson’s strategy to earn trading profits on derivatives? Nick Leeson’s strategy to earn trading profits on derivatives was to trade futures on the Nikkei 225 stock index and the Japanese government bonds. This strategy would have either provided huge gains or huge losses. This went completely against what Barings was expecting him to do. He opened a secret trading account to avoid being caught. 2. What went wrong that caused his strategy to fail? Leeson oversaw trading
Premium Barings Bank Derivative Nick Leeson
Rogue Trader Name(s) ___________________________ Accounting information systems ____________________________ I understand that this exam is to be completed by myself or in a team of two and that any assistance received from other students or any unauthorized source is cheating and subject to the appropriate disciplinary action as deemed by the Office of the Dean of Albers School of Business and Economics. I (we) am aware of the exam policies / rules provided and agree to abide by
Premium Internal control Barings Bank Nick Leeson