Barings Banks was established in 1782 and was the oldest
merchant in London. In 1995, the
Bank was made bankrupt due to massive losses incurred by one of
its traders, Nick Leeson.
Required:
1) Give a brief background of who Nick
Leeson is. (10
marks)
2) Describe Nick Leeson’s roles and
responsibilities in the Bank, from the first
time joining the Bank until its
collapse in 1995. (20
marks)
3) Explain what Nick Leeson had done and
the events resulting in the collapse
of the Bank? (25
marks)
4) What internal controls were lacking
that could have prevented the Bank’s
collapse? (25
marks)
5) “Trading in derivative products
resulted in the collapse of Barings Bank.
Such trading practices should
therefore be banned.” Discuss whether
you
agree or disagree with the
statement. (20
marks)
Name
of Student: _____________________________
Student ID: ______________________
For Lecturer’s use only
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Requirement
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1.
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2.
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3.
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4.
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5.
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