Nick Leeson

The amazing thing about Leeson's activity is that Baring can cumulate such amazing losses without noticing management. Leeson plays a variety of roles in BSS, general manager, chief trader, and backstage manager. In many cases, various people perform these tasks, but Baring's management does not recognize that conflicts of interest will arise for people who take on multiple roles. Leeson manages the trading desk and clearing and settlement functions, eliminates the necessary necessary checks and balances common in trading organizations, obviously violating the basic principles of risk management.

When Nick Leeson started trading, Leeson lost money because Nick Leeson was unable to hedge his contract. Nick Leeson tried to conceal his loss by writing a fake report every day in London. The London Stock Exchange has not identified incorrect accounts and details of 88888 in the internal reporting system. Nick Leeson intentionally cheated his employer. Nick Leeson keeps trading and keeps working for a long time. When Nick Leeson tried to report a colleague of a woman who sold 20 contracts, the situation started to be a serious mistake. On July 3, 1992, the 88888 account recorded a loss of £ 40,000. In 2 months, the loss reached £ 320,000. Because of his basic mistake, Nick Leeson did not trade anything against him.

In October 1992, Nicholson sold the option without hedging. With this move, Nick Lisson faced a big loss. In a six-month deal, Nick Leeson suffered a loss of £ 2 million in trading. In addition, Nick Lissen concealed the truth about relying on his losses and fraud. However, Nick Leeson executed an arbitrage transaction, and the profit flowed to Baring, not the customer. This is a transaction with a small price difference between the center and other centers, and its profit can be realized by fast trading. Nick Leeson believes that Singapore is a more suitable place for trading than Tokyo and Osaka. The necessary margin for SIMEX is 15%, which is only half compared with Osaka