Monday, 9 September 2013

Banking

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

Requirement
Marks awarded
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