Thoughts On The Collapse Of Baring Bank

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Issue:

Business

 

Written by:

Michael L

 

Date added:

July 13, 2016

 

Level:

University

 

Grade:

A

 

No of pages / words:

7 / 1725

 

Was viewed:

9702 times

 

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Essay content:

This placed Leeson in the position of reporting to an office inside Barings Bank which he himself held. Several observers (and Leeson himself) have placed much of the blame on the bank's own deficient internal auditing and risk management practices. Because of the absence of oversight, Leeson was able to make seemingly small gambles in the futures market and cover for his shortfalls by reporting losses as gains to Barings in London...
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Specifically, Leeson altered the branch's error account, subsequently known by its account number 88888 as the "five-eight account", to prevent the London office from receiving the standard daily reports on trading, price, and status. Leeson claims the losses started when one of his colleagues bought contracts when she should have sold them Using the hidden "five-eight account," Leeson began to aggressively trade in futures and options on SIMEX...
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