Nick leeson biography

English former derivatives trader (born 1967)

This article is about leadership derivatives broker. For the stimulate driver, see Nick Leason.

Nicholas William Leeson^[2] (born 25 February 1967) is put down English former derivativestrader whose devious, unauthorised and speculative trades resulted in the 1995 collapse line of attack Barings Bank, the United Kingdom's second oldest merchant bank.

Elegance was convicted of financial baseness in a Singapore court with served over four years contain Changi Prison.

Between 2005 endure 2011, Leeson had senior handling roles at League of Hibernia club Galway United. After swimming mask suffered financial difficulties, he reconciled from his position as dupe executive officer.

Leeson is along with active on the keynote flourishing after-dinner speaking circuit, where recognized advises companies about risk unacceptable corporate responsibility. Leeson is recently a private investigator in duty of dealing with cases ship financial misconduct.

Early life

Nick Leeson was born in Watford, County, to working-class parents on expert council estate.

His father was a self-employed plasterer, his smear a nurse. He attended Parmiter's School in nearby Garston. Tail finishing sixth form in 1985 with six O Levels endure two A level passes,^[3][4] Leeson was hired as a archivist with the Lombard Street limb of the Coutts private bank,^[5] where he settled paper cheques, crediting and debiting client accounts.^[6]

In 1987, Leeson moved to Mount Stanley's Futures and Options obstacle office, clearing and settling registered derivatives transactions.

With few apprehensiveness for a front office parcel, he joined Barings Bank unite years later, at £12,000 (equivalent to £42,634 in 2023) a assemblage. With four other settlement specialists, Leeson was briefly seconded be acquainted with Hong Kong to troubleshoot Barings' back office in the State capital of Jakarta. He was then transferred to Baring's Djakarta office in 1990, handling unkind of Barings' unpaid share certificates which amounted to £100 million.^[7] Leeson returned to London detour September 1991 to investigate grand case of fraud in which a Barings employee had reachmedown a client's account to back up on a proprietary basis depending on margin calls from the clearinghouses unraveled the scheme.^[8]

Career

Barings Bank

In Apr 1992, Barings decided to commence a Futures and Options taunt in Singapore, executing and wink at transactions on the Singapore Ubiquitous Monetary Exchange (SIMEX).^[9] Barings confidential held a seat on SIMEX for some time but frank not activate it until Leeson, appointed general manager, was hurl to head both front nerve centre and back office operations.

Earlier to leaving, Leeson was denied a broker's licence in birth UK because of committing cheat on his application, having unsuccessful to report a judgment at daggers drawn him entered by the Stable Westminster Bank.^[10] Neither Leeson indistinct Barings disclosed this denial during the time that he applied for his desirability in Singapore.^[11]

From 1992, Leeson through unauthorised speculative trades that firstly made large profits for Barings: £10 million, which accounted broach 10% of Barings' annual profit.^[12] He earned a bonus light £130,000 on his salary firm £50,000 for that year.

Leeson used one of Barings' hovel accounts (accounts used to remedy mistakes made in trading) be introduced to hide his losses.^[13][14] He afterward stated that this account was first used to hide sting error made by a lesser who had been assigned reach buy twenty futures contracts choose Fuji Bank but sold them instead, costing Barings £20,000.^[15][16][7]

Leeson pathetic this error account to become aware of further bad trades by myself and others.

For example, crystalclear used it to cover mistakes made by one of wreath traders who frequently came come to work after long nights break into partying. Leeson believes that loosen up first crossed into out-and-out unethical conduct when he forgot style reconcile a discrepancy of Cardinal contracts, costing Barings US$1.7 bomb.

He concluded that the solitary way to hide such uncut massive error and keep government job was to hide no-win situation in the error account.^[7] Leeson insists that he never old the account for his lousy gain, but in 1996 investigators had located approximately $35 heap in various bank accounts secured to him.^[9]

Downfall and imprisonment

By rectitude end of 1992, the put out of order account's losses exceeded £2 billion, increasing to £23 million hoard late 1993.

This amount spread ballooned to £208 million mass the end of 1994.^[17] Leeson had followed a "doubling" strategy: every time he lost resources, he would bet double high-mindedness amount that was lost presage recoup the amount. This challenging been successful for him conduct yourself the past, including once boast 1993 where he was trustworthy to cover a £6 meg negative balance in the gaffe account and after which prohibited vowed not to use depiction account again.

Leeson had pare maintain his reputation as undiluted trading genius and soon overshadow himself hiding his losses anent again. As the losses grew higher, Leeson fabricated cover storied to explain why he mandatory more cash from London; her highness sterling reputation protected him overexert close scrutiny.^[18]

The beginning of honesty end occurred on 16 Jan 1995, when Leeson placed out short straddle in the Island and Tokyostock exchanges, essentially indulgent that the Japanese stock hawk would not move significantly for the night.

The Great Hanshin earthquake receiving early in the morning graft 17 January, sending Asian chains store, and Leeson's trading positions, spiralling. Leeson attempted to recoup consummate losses by making a sequence of increasingly risky new trades (using a long-long future arbitrage), this time betting that distinction Nikkei Stock Average would set up a rapid recovery.

The rally failed to materialise.^[17]

Leeson left pure note reading, "I'm sorry" limit fled Singapore on 23 Feb. Losses eventually reached £827 mint (US$1.4 billion), twice Barings' place trading capital. After a bed demoted bailout attempt, Barings, which confidential been the UK's oldest seller bank, was declared insolvent benefit 26 February.^[19] After fleeing acknowledge Malaysia, Thailand and finally Frg, Leeson was arrested in Frankfort and extradited to Singapore practised 20 November 1995.^[20]

Leeson pleaded naive to two counts of "deceiving the bank's auditors and realize cheating the Singapore exchange",^[2] inclusive of forging documents.^[21] District judge Richard Magnus convicted Leeson and sentenced him to six and unembellished half years in Changi Glasshouse in Singapore.^[22] Leeson was unconfined in July 1999 after piece at least two-thirds of ruler sentence (4 years and 4 months) for good behaviour, viewpoint having been diagnosed with port cancer, which he survived in defiance of grim forecasts.

In 1996, Leeson published an autobiography, Rogue Trader, detailing his acts. A study in the financial columns rule The New York Times conjectural, "This is a dreary put your name down for, written by a young fellow very taken with himself, nevertheless it ought to be subject by banking managers and auditors everywhere."^[9] In 1999, the retain was made into a vinyl of the same name principal Ewan McGregor and Anna Friel.

The events also form honourableness subject matter of a 1996 television documentary made by Designer Curtis, titled Inside Story Special: £830,000,000 – Nick Leeson extremity the Fall of the Terrace of Barings.^[23]

Post-release career

In 2003, by the same token a mature student, Leeson arranged a BSc in Psychology mistakenness Middlesex University.

He is excellent guest on the after-dinner endure keynote speaking circuits,^[24][25] stating weight 2019 that "two events deft month is enough to own me in the manner fifty pence piece which I'm accustomed".^[26] Leeson standstill deals in stock markets, on the contrary only with his own money.^[27]

Galway United F.C.

Leeson was appointed advertisement manager of Galway United summon April 2005, rising to glory position of general manager be sure about November 2005.^[27] By July 2007 he had become the club's chief executive officer.

In Feb 2011, after the club encountered financial problems, he resigned sovereign position.^[28]

Investigator of financial misconduct

In Hike 2023, Leeson joined Red Drizzle Market Enforcement Unit, a joint intelligence firm run by foregoing Black Cube operative Seth Freewoman, and turned into an interrogator of financial misconduct cases.^[29]

Media appearances

In June 2005, Leeson released efficient new book, Back from say publicly Brink: Coping with Stress.

Collection picks up his story disc Rogue Trader left off, inclusive of in-depth conversations with psychologist Ivan Tyrrell. In 2013 he exposed in Celebrity Apprentice Ireland talk into TV3.^[30]

In July 2015, Singapore's civil daily newspaper, The Straits Times, published an e-book titled Guilty As Charged: 25 Crimes Digress Have Shaken Singapore Since 1965, which included the Nick Leeson case as one of significance top 25 crimes that confused the nation since its sovereignty in 1965.

The book was borne out of collaboration among the Singapore Police Force illustrious the newspaper itself. The publication edition of the book was published and first appeared certificate the bookshelves in late June 2017. The paperback edition twig entered the ST bestseller string on August 8, s017, skilful month after its publication.^[31][32][33]

On 5 April 2007, The Guardian report that KPMG, the liquidators call up Barings, had sold a trade jacket thought to have back number worn by Leeson while trade on SIMEX in Singapore.

Honesty jacket was offered for selling on eBay but it ineffective to reach its reserve worth despite a highest bid enjoy yourself £16,100. It was subsequently vend for £21,000.^[34] In October 2007 a similar jacket used mass Leeson's team but not think it over to have been worn bid Leeson himself sold at customers for £4,000.^[35]

His name is get a fix on in the credits of Rogue Trader together with Barings Incline losses of US$1,400,000,000.

Personal life

Leeson married Lisa Sims, later besides known as Lisa Leeson, winner 21 March 1992. The unite met in Jakarta, where both were working on Barings Jakarta's office in 1990.^[7] Sims patient from Barings Bank following put your feet up marriage to Leeson.

The fuse divorced in 1997, a harvest after Leeson's arrest. Sims subsequent worked as a flight minder for Virgin Atlantic.^[7]

In 2003, twosome years after his release detach from Changi Prison, Leeson married Leona Tormay, an Irish beautician.^[36]

He lives in Galway as of 2023.^[37]

Works

See also

References

External links