Designed as an overview of the spectacular collapse of a prestigious financial institution, this case outlines the history of Barings Bank, the oldest merchant bank in London, describes how it became involved in Far East markets and how a trader in its Singapore operation, Nick Leeson, was able to run up massive losses on unauthorized dealings which led to the collapse of the bank. The case identifies areas of poor internal control, inadequate board oversight and a remuneration culture that encouraged risk taking. It looks at the role of both internal and external auditors and of the regulatory authorities.
Keywords
Collapse, Corporate Governance, Board, Banking
Settings
United Kingdom
1995
Available Languages
English
IMD case studies are distributed through case clearing houses. In order to browse the collection and purchase copies please visit the links below.
Copyright Information
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.
