Project I07

The broker Nick Leeson perpetrated the most devastating financial offense
in Europe and Asia the last century.
Nick Leeson became part of the black legend of finance on Thursday,
February 23, 1995 at five o'clock in the afternoon.
He lost more than 1,400 million dollars investing in Japan's Nikkei index,
therefore, he was responsible for ruining the Barings Bank which was one of
the most venerable financial institutions in the UK, with a branch in
Singapur.
Barings Bank (1762 to 1995) was the oldest commercial banking company
in London until its collapse in 1995.
Leeson had worked at Morgan Stanley before going to Singapore to work for
the famous Baring Asian futures market. Then He became the most famous
futures trader of that market, making a lot of money for him and for the
Bank.
Before the disaster, Leeson had won many millions for Barings bank.
Leeson went from a council flat in London to a luxury apartment; from metro
of the British capital to a Porsche and an account with exorbitant expenses.
All in just four years. He began to splurge the stolen money.
The problems began when, to cover a mistake by a colleague of the entity
and prevent their dismissal, Leeson falsified accounting in a few thousand
pounds. What at first it was a little ruse became usual when, due to the
pressure of working in that market, Leeson business went wrong, which
increased the risk and the money were running out.
He had opened a secret account, the famous 88888, which hid all his wiles.
Nobody cared London and didnt see that their businesses were too risky
and illegal.
Leeson deceived the bank saying that was investing by others when it was
the money of the entity. They had suspected that something was wrong
after repeated injections of money claimed by the trader from Singapore.
However, internal controls of the House of Barings failed to appreciate the
magnitude of the tragedy that finally materialized.
By the time all was lost, Leeson and his wife had fled to Kuala Lumpur,
where the trader apologized to the entity through a fax. He didnt get away
with his crime because He was finally apprehended in Frankfurt and moved
to Singapore, where he spent behind bars four and a half years.
Barings, which was real emblem of the British establishment, with clients
such as Napoleon III or the very queen of England - who apparently lost
more than a million dollars after bankruptcy - had an irreparable hole of
1,400 million dollars, they couldnt get out of debt, hence it went under.
In conclusion, the bad financial maneuvers of Leeson and their serious
consequences, make this event will become the most devastating financial
crime occurred last century in Europe and Asia.