The Little Accountant That Bankrupt Barings Bank In England

 

 

 

 

 

 

 

 

 

 

 

 

 

Barrings Was England's Oldest Bank

 

 

 

 

 

 

 

 

The Mench Who Collapsed Barclays Bank

Leeson was born in Watford, north-west of London. He attended Parmiter's School. He was a Jewish accountant with the exclusive private bank. In 1992 he was appointed general manager of a new operation of Barings in futures markets on the Singapore International Monetary Exchange.
   

 

 

 

 

 

What Did He Do?

On January 16, 1995, when Leeson placed an enormous short straddle in the Stock Exchange of Singapore and Tokyo stock exchanges, essentially betting that the Japanese stock market would not move significantly overnight. The markets move against him and Losses eventually reached £827 million (US$1.4 billion), twice the bank's available trading capital. 3

 
   

 

 

 

 

 

Leeson Is Now On The Run

Realizing the gravity of the situation, Leeson left a note reading "I'm Sorry" and fled on February 23.  After a failed bailout attempt, Barings was declared insolvent on February 26.
 
   

 

 

 

 

 
   

Leeson Was Arrested And Released

Leeson was released from Changi Prison in Singapore in 1999, having been diagnosed with colon cancer, which he has survived despite grim forecasts at the time. He lives in England off an estimated $35 mill pounds he scammed.
 
   

 

 

 

 

 

What About The Bookie?

Would Vito Correloeone take a $1 million dollar bet from a shoe salesman? Did Chin Li accept a billion dollar bet from some flunky trader?

 
   

 

 

 

 

 

Think About International Bankers

These swindles don't just happen, they are allowed to happen. It is just a way to transfer wealth.

   
 
 

 

 

 

 

 

 

 

The Barring Bank Collapsed Because Of Futures Trading

Lets say you thought interest rates were going up so you went out and bought a futures contract. If you bought a $10 million dollar futures contract for 1%, or $100,000, and the interest rates went up, than your $10 million dollar contract went to $15 million and you are a hero.

But with futures there is no limit to your liability, so if the contract dropped from $10 million to $5 million, then you are liable for the $5 million. If American banks bet the futures (derivatives) than the bailout will be in the tens of trillions. And have no fear, the banks bet on derivatives.
 

 

 

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