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Barings was declared insolvent on 26 February 1995, and administrators began managing the finances of Barings Group and its subsidiaries. [37] The same day, the Board of Banking Supervision of the Bank of England launched an investigation led by Britain's Chancellor of the Exchequer; its report was released on 18 July 1995. [ 37 ]
Nicholas William Leeson [2] (born 25 February 1967) is an English former derivatives trader whose fraudulent, unauthorised and speculative trades resulted in the 1995 collapse of Barings Bank, the United Kingdom's second oldest merchant bank. He was convicted of financial crime in a Singapore court and served over four years in Changi Prison.
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 judgment 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 ...
However, the Bank harboured a terrible secret. In the late 19th century Barings almost went bankrupt after investing heavily in South American bonds, including backing the construction of a sewer system in Buenos Aires. The bank was saved by The Bank of England, but Edward Baring, the head of the bank, was financially ruined and never recovered.
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Rogue Trader tells the true story of Nick Leeson, a young employee of Barings Bank who after a successful spell working for the firm's office in Indonesia is sent to Singapore as General Manager of the Trading Floor on the SIMEX exchange. The movie follows Leeson's rise as he soon becomes one of Barings' key traders.
After the Panic of 1890 nearly ruined Edward Baring, 1st Baron Revelstoke, along with several other family members and bank partners, the family's property holdings began to decrease. Most of the estates were long gone by the time the final crash of Barings Bank in 1995 claimed the bank's longtime headquarters at 8 Bishopsgate.
Barings went bankrupt and in 1995, management bought back the firm. [9] In 1997, the company was sold to Swiss Bank Corporation in 1997 and merged with S. G. Warburg & Co., to become Warburg Dillon Read. [10] In 1998, it became part of UBS when Swiss Bank Corporation merged with Union Bank of Switzerland to become UBS. [11]