1995day.year
The UK's oldest investment banking institute, Barings Bank, collapses after a rogue securities broker Nick Leeson loses $1.4 billion by speculating on the Singapore International Monetary Exchange using futures contracts.
Barings Bank, the UK’s oldest investment bank, collapsed after trader Nick Leeson lost $1.4 billion on futures contracts.
On February 26, 1995, Barings Bank, established in 1762, collapsed when rogue trader Nick Leeson lost $1.4 billion speculating on futures contracts at the Singapore International Monetary Exchange.
Leeson concealed his losses in hidden accounts and doubled down on risky positions hoping for a turnaround.
When the magnitude of the losses became clear, the bank could not cover its obligations and was forced into bankruptcy.
This event marked one of the most dramatic financial failures in modern history.
The collapse prompted stricter risk management and regulatory oversight in banking and derivatives trading.
Barings’ downfall highlighted the dangers of unchecked trading positions and lack of internal controls.
1995
Barings Bank
Nick Leeson
Singapore International Monetary Exchange
futures contracts