Case Study

The collapse of Barings Bank

8 pages
February 1996
Reference: IMD-1-0154

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
Type
Published Sources
Copyright
© 1995
Available Languages
English
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