What is the Barings bank?

British company Barings Bank was one of the most respected and respected banks in the world until its unexpected collapse in 1995 thanks to the actions of the only merchant Nick Leeson. During the year, the company has become a financially stable institution with considerable shares on one pound of Šterlinky, the price paid for the Dutch bank after collapse. The fate of Barings Bank is an infamous story in the financial industry with some persistent lessons for the financial regulators and governments concerning the activities of financial companies. Like many financial institutions, Barings Bank have been involved in various investment activities around the world, including speculation at a number of markets, under the supervision of experienced financial officers in various overrass branches. He found himself in a unique position of authority, which allowed him to take a risky speculative position without being detected. Unfortunately, for Leeson he mercilessly speculated and Barings Bank began to lose losses. Initially, these losses could be hidden but eventuallythe truth emerged. Leeson's unauthorized speculative shops successfully gutted Barings Bank, outrage generation and considerable concerns in the financial industry.

Instruction gained from the failure of Barings Bank is nowadays in the financial industry. Banks take steps to reduce the development of dishonest trading, limit the actions of rogue traders and quickly identify unauthorized trades. These steps include the creation of a bright chain with controls and balances to remove the possibility to allow a banking officer to develop what was a private fiefdom in Leeson.

The

failure of Barings Bank has a historical interest for many reasons, including mere failure, at that time over one billion dollars of the United States. The age and reputation of the bank also make the failure remarkable, as well as the sudden nature of the collapse. Investors and other members of the financial community had a minimum inArming that the bank is about to fail and the bank itself did not know Leeson's business until they had already brought the bank to their knees and made it impossible to recover.