Collapse of Barings Bank Case Study by Neatwriter

Collapse of Barings Bank
A discussion of how the activities of Nicholas Leeson caused the collapse of Barings Bank and what lessons can be learnt.
# 60569 | 4,365 words | 12 sources | MLA | 2005 | US
Published on Aug 31, 2005 in History (British) , Business (Finance, Investment and Banking)


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Description:

Nicholas Leeson was directly responsible for causing the collapse of Britain's Barings Bank by concealing $1.4 billion in losses in 1995. This paper provides an overview of the events leading up to the collapse of Barings Bank in 1995, a discussion of Nick Leeson and commodities trading and an assessment of the adequacy of internal controls at Barings Bank. An analysis of the lessons learned and steps taken to preclude recurrences of such events in the future is followed by a summary of the research in the conclusion.

Table of Contents
Introduction
Review and Discussion
Background and Overview
Barings Bank
Nick Leeson and Commodities Trading
Internal Controls at Barings Bank
Lessons Learned and Steps Taken to Preclude Recurrences
Conclusion

From the Paper:

"The research showed that Britain's venerable Barings Bank was driven to bankruptcy by the now-infamous Singapore-based derivatives trader, Nicholas Leeson. Although the evidence to date suggests that Leeson was in fact involved in shady deals, it appears that other factors were also involved in the bank's collapse. Leeson's superior knew, or should have known, what the trader was up to, and had been provided with advance notice concerning his activities. Furthermore, Leeson was not the only trader engaged in such activities, and the philosophy of many financial institutions of the day appeared to encourage the sorts of techniques employed by Leeson. In the final analysis, the Leeson case demonstrates what can happen when one individual is entrusted with too much power, and time will only tell if the remedial steps taken since then will preclude such recurrences in the future."

Cite this Case Study:

APA Format

Collapse of Barings Bank (2005, August 31) Retrieved October 23, 2014, from http://www.academon.com/case-study/collapse-of-barings-bank-60569/

MLA Format

"Collapse of Barings Bank" 31 August 2005. Web. 23 October. 2014. <http://www.academon.com/case-study/collapse-of-barings-bank-60569/>

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