This case is designed to give an overview of the collapse of a prestigious financial institution and the organizational failings that contributed to it. The case outlines the history of Barings Bank, the creation of its securities business, particularly in the Far East, and how Nick Leeson, a Barings trader in Singapore, was able to run up massive losses in derivative trading which caused the collapse of the bank. The case identifies the cultural clashes, remuneration system, control failings and other issues which severely weakened the effectiveness of the matrix management system, an important contributor to the collapse.
IMD retains all proprietary interests in its case studies and notes. Without prior written permission, IMD cases and notes may not be reproduced, used, translated, included in books or other publications, distributed in any form or by any means, stored in a database or in other retrieval systems. For additional copyright information related to case studies, please contact Case Services.
Research Information & Knowledge Hub for additional information on IMD publications