"2007 a similar jacket used by Leeson's team but not thought to have been worn by Leeson himself sold at auction for £4,000. Nick Leeson Nicholas William ""Nick"" Leeson (born 25 February 1967) is a former English derivatives broker famous for bringing down Barings Bank, the United Kingdom's oldest merchant bank, into bankruptcy. A rogue trader who made fraudulent, unauthorised and speculative moves, his actions led directly to the 1995 collapse of Barings Bank, for which he was sentenced to prison. Between 2005 and 2011 he had management roles at League of Ireland club Galway United. He is also active"
"his trades, jobs usually done by two different people. This made it much simpler for him to hide his losses from his superiors. By the end of 1992, the account's losses exceeded £2 million, which ballooned to £208 million by the end of 1994. The beginning of the end occurred on 16 January 1995, when Leeson placed a short straddle in the Singapore and Tokyo stock exchanges, essentially betting that the Japanese stock market would not move significantly overnight. However, the Kobe earthquake hit early in the morning on 17 January, sending Asian markets, and Leeson's trading positions, into a"
"International Monetary Exchange. His decisions routinely resulted in losses of substantial sums, and he used money entrusted to the bank by subsidiaries for use in their own accounts. He falsified trading records in the bank's computer systems, and used money intended for margin payments on other trading. As a result, he appeared to be making substantial profits. However, his luck ran out when the Kobe earthquake sent the Asian financial markets—and with them, Leeson's investments—into a tailspin. Leeson bet on a rapid recovery by the Nikkei, which failed to materialise. On 23 February 1995, Leeson left Singapore to fly to"
"sweeping cutbacks in their trading operations as a result. Both Carney and Malcolm—neither of whom had anything to do with Jett's accounting trickery—were out of jobs, and they went their separate ways. Malcolm took a position with a venerable English bank, Barings. He was again to work out of Osaka, but this time his orders were coming from Singapore, where Barings' star trader, Nick Leeson, held court. Leeson, though, was making huge unauthorized trades during this period. In January 1995 he made an enormous bet on a rise in the key Japanese stock exchange index, known as the Nikkei (large"
"Kuala Lumpur. Barings Bank auditors finally discovered the fraud around the same time that Barings' chairman, Peter Baring, received a confession note from Leeson. Leeson's activities had generated losses totalling £827 million (US$1.3 billion), twice the bank's available trading capital. The collapse cost another £100 million. The Bank of England attempted an unsuccessful weekend bailout. Employees around the world did not receive their bonuses. Barings was declared insolvent on 26 February 1995, and appointed administrators began managing the finances of Barings Group and its subsidiaries. The same day, the Board of Banking Supervision of the Bank of England launched an"
"London in 1762. In the 1950s, Barings realised the potential of asset management and set up its own investment department in 1955. Clients were corporate clients, sovereign connections, pension funds and charitable institutions. In the 1970s, Barings expanded this business internationally with offices in the Far East, North America and Europe. In 1989, Barings combined all of its asset management activities within Baring Asset Management Limited, headquartered in London. In 1995, Barings Bank, the oldest investment bank in Britain, collapsed as a result of unauthorised trading by its head derivatives trader in Singapore, Nick Leeson, who was imprisoned for six"
"before nine p.m.; or else the twenty thousand pounds, now deposited in my name at Barings, will belong to you, in fact and in right, gentlemen. Here is a cheque for the amount."" Barings Bank Barings Bank was a British merchant bank based in London, and the world's second oldest merchant bank (after Berenberg Bank). It was founded in 1762 and was owned by the German-originated Baring family of merchants and bankers. The bank collapsed in 1995 after suffering losses of £827 million ($1.3 billion) resulting from poor speculative investments, primarily in futures contracts, conducted by its employee Nick Leeson,"
"Australian Securities Exchange (ASX) suspended Lehman's Australian subsidiary as a market participant after clearing-houses terminated contracts with the firm. Lehman shares tumbled over 90% on September 15, 2008. The Dow Jones closed down just over 500 points on September 15, 2008, which was at the time the largest drop in a single day since the days following the attacks on September 11, 2001. In the United Kingdom, the investment bank went into administration with PricewaterhouseCoopers appointed as administrators. In Japan, the Japanese branch, Lehman Brothers Japan Inc., and its holding company filed for civil reorganization on September 16, 2008, in"
"United Kingdom, with assets of over £1.5 billion. But the company was over-extended, and after Gerald's criminal conviction in the Guinness share-trading fraud during which time he spent six months in Ford Open Prison, by the mid-1990s the company almost collapsed with debts of over £1 billion owed to 11,000 bondholders. The company survived with help from Bill Gates, Rupert Murdoch, Craig McCaw, Oracle Corporation’s founder, Larry Ellison, and others who gave loans to Heron. Now supported by a series of investors, Heron International is a property development company, having developed more than of commercial and retail property, and around"
"rules, and it has widely been said that employers turned a blind eye to transgressions due to the profits involved. One famous rogue trader is Nick Leeson, whose losses on unauthorized investments in index futures contracts were sufficient to bankrupt his employer Barings Bank in 1995. Through a combination of poor judgement on his part, increasingly large initial profits, lack of oversight by management, a naïve regulatory environment, and an unforeseen outside event, the Kobe earthquake, Leeson incurred a US$1.3 billion loss that bankrupted the centuries-old financial institution. The key factor determining the use of the term is lack of"
"been worn by Nick Leeson while trading on SIMEX in Singapore. The jacket was offered for sale on eBay but it failed to reach its reserve price despite a highest bid of £16,100. It was subsequently sold for £21,000. In October 2007 a similar jacket used by Leeson's team but not thought to have been worn by Leeson himself sold at auction for £4,000. The 1999 film ""Rogue Trader"" is a fictionalized account of the bank's downfall based upon Leeson's autobiography """". In the film, the bank is repeatedly described as the oldest merchant bank and private bank in the"
"and extradited back to Singapore on 20 November 1995, though his wife Lisa was allowed to return to England. While he had authorisation for the 16 January short straddle, he was charged with fraud for deceiving his superiors about the riskiness of his activities and the scale of his losses. Several observers have placed much of the blame on the bank's own deficient internal auditing and risk management practices. Indeed, the Singapore authorities' report on the collapse was scathingly critical of Barings management, claiming that senior officials knew or should have known about the ""five eights"" account. Leeson pleaded guilty"
"its respective management teams, which today include Baring Vostok Capital Partners in Russia, GP Investments in Brazil as well as Baring Private Equity Asia, and Baring Private Equity Partners India. With the failure of Barings, N M Rothschild & Sons is the only name remaining from the glory days of 19th-century British merchant banking. After learning of Barings' collapse (and realising he was certain to be jailed for his actions), Leeson booked a flight to London where he intended to surrender to British police in hopes of serving prison time in the United Kingdom as opposed to Singapore. However, he"
"profits at the time of the sale. Japanese investment bank Nomura mounted a £700m leveraged buyout of William Hill in 1997, when Brent Walker collapsed with debts exceeding £1.3bn after an investigation by the Serious Fraud Office which saw two directors given prison sentences. In February 1999, a proposed stock market flotation was abandoned due to ""weak interest"" and Nomura offloaded the company to funds managed by private equity firms Cinven and CVC Capital Partners for £825m instead. The company was eventually listed on the London Stock Exchange in 2002. The following year Chief Executive David Harding was awarded a"
"the , the name chosen by the Japan Meteorological Agency in the week after the main shock. The quake ravaged many of the facilities of what was then the world's sixth-largest container port and the source of nearly 40% of Kobe's industrial output. The sheer size of the earthquake caused a major decline in Japanese stock markets, with the Nikkei 225 index plunging by 1,025 points on the day following the quake. This financial damage was the immediate cause for the collapse of Barings Bank due to the actions of Nick Leeson, who had speculated vast amounts of money on"
"15, had been set to zero. On October 24, many of the world's stock exchanges experienced the worst declines in their history, with drops of around 10% in most indices. In the US, the DJIA fell 3.6%, i.e. not as much as other markets. Instead, both the US dollar and Japanese yen soared against other major currencies, particularly the British pound and Canadian dollar, as world investors sought safe havens. Later that day, the deputy governor of the Bank of England, Charles Bean, suggested that ""This is a once in a lifetime crisis, and possibly the largest financial crisis of"
"Rogue Trader (book) Rogue Trader: How I Brought Down Barings Bank and Shook the Financial World is a book by Nick Leeson, who served four years in prison for fraud after bankrupting the London-based Barings Bank in 1995 by hiding $1.4 billion in debt he accumulated as a derivatives trader in Singapore. The book was released on February 19, 1996 by Little, Brown & Company. The book was made into a 1999 feature film of the same name. Following an interview with Nick Leeson in prison, Sir David Frost realized the potential for a movie and optioned the rights to"
"Barings Bank Barings Bank was a British merchant bank based in London, and the world's second oldest merchant bank (after Berenberg Bank). It was founded in 1762 and was owned by the German-originated Baring family of merchants and bankers. The bank collapsed in 1995 after suffering losses of £827 million ($1.3 billion) resulting from poor speculative investments, primarily in futures contracts, conducted by its employee Nick Leeson, working at its office in Singapore. Barings Bank was founded in 1762 as the John and Francis Baring Company by Francis Baring, with his older brother John Baring as a mostly silent partner."
"a Russian-owned spread betting firm established in the UK, temporarily declared insolvency before announcing its desire to be acquired (and later denied rumours of an acquisition) by FXCM. FXCM was bailed out by its parent company. Saxo Bank of Denmark reported losses on 19 January 2015. New Zealand foreign exchange broker Global Brokers NZ announced it ""could no longer meet New Zealand regulators' minimum capital requirements"" and terminated its business. Media questioned the ongoing credibility of the Swiss central bank, and indeed central banks in general. Using phrases like ""extend-and-pretend"" to describe central bank exchange rate control measures, Saxobank chief"
"investments. On 4 February 2012, Doughty was found dead in the gymnasium of his Lincolnshire home. Then, on 10 August 2015, the firm announced the shut down of most of its European offices after abandoning its next round of funding. The offices included closed in 2015 included Paris, Frankfurt, Madrid and Stockholm. In May 2017, the firm re-branded itself to DH Private Equity Partners. Doughty Hanson traces its history back to 1985 when Nigel Doughty and Richard (Dick) Hanson started working together on European buyout investments within Standard Chartered Bank as founding members of its management buyout unit. In 1990"
"denied a broker's licence in the United Kingdom because of fraud on his application. Neither Leeson nor Barings disclosed this denial when Leeson applied for his licence in Singapore. From 1992, Leeson made unauthorised speculative trades that at first made large profits for Barings: £10 million, which accounted for 10% of Barings' annual profit. He earned a bonus of £130,000 on his salary of £50,000 for that year. However, Leeson's luck soon went sour and he used one of Barings' error accounts (accounts used to correct mistakes made in trading) to hide his losses. The account was numbered 88888. Leeson"
"resulting in a £1 million profit for Ramsden. In 1988, following the 1987 stock market crash and later the Japanese asset price bubble bursting, Ramsden proceeded to lose vast sums of money including £57 to £58 million on racetrack gambling and suffered capital losses nearing £100 million. In 1991 he was arrested and jailed in Los Angeles for six months while awaiting extradition to the United Kingdom for fraud. In prison he witnessed gang violence. By 1992 he was £100 million in debt. He declared bankruptcy and pleaded guilty in 1993 to recklessly inducing fresh investments into Glen International. He"
"trading losses were discovered at Barings Bank (Nick Leeson), Daiwa Bank (Toshihide Iguchi), Sumitomo Corporation (Yasuo Hamanaka), Allfirst Bank (John Rusnak), Société Générale (Jérôme Kerviel), UBS (Kweku Adoboli), and JPMorgan Chase (Bruno Iksil). Fraudsters may seek access to facilities such as mailrooms, post offices, offices of a tax authority, a corporate payroll or a social or veterans' benefit office, which process cheques in large numbers. The fraudsters then may open bank accounts under assumed names and deposit the cheques, which they may first alter in order to appear legitimate, so that they can subsequently withdraw unauthorised funds. Alternatively, forgers gain"
"more than $1 billion loss. In September 1995, fearing the damage his losses may cause the bank if inadvertently discovered, Iguchi wrote a confession letter to the president of Daiwa Bank, Japan, detailing what had transpired with the complete detail of all the unauthorized trades he had done during the previous 12 years. By this time, the loss was in excess of $1 billion. According to Iguchi, concealing this loss to protect his reputation and job was the impetus for his subsequent unauthorized trading. Upon receiving this confession letter, Daiwa instructed Iguchi to continue concealing the loss and assist other"
"destruction of all incriminating records relating to Riley’s money transfers. The bank's collapse was precipitated by the death of its founder Frank Nugan in the early hours of 27 January 1980. Nugan (who was facing charges of stock fraud) was found shot dead by a .30-calibre rifle in his Mercedes-Benz outside Lithgow, New South Wales. An inquest later returned a verdict of suicide. However, questions remain unanswered in regard to the lack of fingerprints on the weapon and the probability that the police who found Nugan had prior knowledge of his death. Suspicions about the bank's activities grew in subsequent"
"NSC gained the authority to trade stock in 1938, and went public in 1961. In October 2008, Nomura acquired most of Lehman Brothers Asian operations together with its European equities and investment banking units to make one of the world's largest independent investment banks with Y20,300bn (£138bn) assets under management. In April 2009, the global headquarters for investment banking was moved out of Tokyo to London as part of a strategy to move the company's focus from Japan to global markets, with Josh Tokley appointed Head of UK Investments. Following his subsequent suspension, Tokley was replaced by Michael Coombs. Nomura"
"banks that offered both banking and trust services during the postwar era. In 1995, a New York-based Daiwa bond trader, Toshihide Iguchi, lost $1.1 billion speculating in the bond market and was charged with forgery and falsification of bank records. The bank was criminally indicted in November 1995 and ordered to leave the U.S. market; in the wake of this incident, there were talks of a merger between Daiwa and Sumitomo Bank, which would have created the world's largest bank at the time. Daiwa closed its United States operations in 1996, and eventually pulled out of overseas banking entirely in"
"arrangement that made it easier for him to hide his losses. After the collapse, several observers, including Leeson himself, placed much of the blame on the bank's own deficient internal control and risk management practices. A number of people had raised concerns over Leeson's activities but were ignored. Because of the absence of oversight, Leeson was able to make seemingly small gambles in the futures arbitrage market at Barings Futures Singapore and cover for his shortfalls by reporting losses as gains to Barings in London. Specifically, Leeson altered the branch's error account, subsequently known by its account number 88888 as"
"The companies left behind liabilities of ¥925.4 billion (US$8 billion) and had employed 11,412 people. In the immediate aftermath of the earthquake, Japan's ""Nikkei"" stock market index saw its futures slide 5% in after-market trading. The Bank of Japan said that it would do its utmost to ensure financial market stability. On Tuesday, 15 March, news of rising radiation levels caused the ""Nikkei"" to drop over 1,000 points or 10.6% (16% for the week). Other stock markets around the world were also affected; the German DAX lost 1.2% within minutes. Hong Kong's Hang Seng index fell by 1.8%, while South"
"own supervisor. Leeson abused this situation to secretly make increasingly large unauthorized trades on his employer's behalf. He fraudulently doctored the bank's accounts, and reported large profits, while trading at losses. After the 1995 Kobe earthquake, the stock market went into a downward spiral, and the truth of his losses was uncovered, bankrupting Barings Bank. The Secretary of State sought director disqualification orders under the Company Directors Disqualification Act 1986 against three directors of Barings for their failure to supervise his activities. They were alleged to be incompetent, and therefore ""unfit to be concerned in the management of a company"""
"£226 million following a write down in the value of much of its property portfolio. Over the following years the groups losses continued as it struggled to bring down its debt with asset sales and debt for equity swaps by its bankers (the part publicly owned Lloyds Bank plc through its HBOS subsidiary). Finally in January 2015, in one of the largest business failures in scottish history, the group collapsed with liquidators Deloittes being appointed. Through its debt for equity swaps of £150million on April 2010 and £117.9 in March 2012 together with its outstanding debt of £200 million on"
"Lloyd's and one of its leading underwriters, Ian Posgate (later acquitted). In 1986, the year Lloyd's moved into a new building at 1 Lime Street (where it remains today), the British government commissioned Sir Patrick Neill to report on the standard of investor protection available at Lloyd's. His report was produced in 1987 and made a large number of recommendations, but was never implemented in full. It has long been normal for one Lloyd's syndicate to reinsure another, but when Piper Alpha, a North Sea oil rig, exploded on 6 July 1988 causing an initial $1.4bn loss, the practice had"
"Shinsei Bank Shinsei Bank is the successor of the Long-Term Credit Bank of Japan, which had a government monopoly on the issuance of many long-term debt securities. Following the collapse of the Japanese asset price bubble in 1989, the bank was riddled with bad debts: the government nationalized it in 1998, and it was delisted from the Tokyo Stock Exchange. After several proposed mergers with domestic banks, LTCB was sold to an international group led by US-based Ripplewood Holdings in March 2000 for ¥121 billion, the first time in history that a Japanese bank came under foreign control. Investor Christopher"