The lecture Barings Bank by Edu Pristine is from the course ARCHIV Case Study: PRM. It contains the following chapters:
5 Stars |
|
5 |
4 Stars |
|
0 |
3 Stars |
|
0 |
2 Stars |
|
0 |
1 Star |
|
0 |
... case studies discuss failures of banks, financial institutions and ...
... Trading transactions reported by Leeson were in nature of 'Switching' activities (arbitrage) that are not supposed to generate as high profits as reported by Leeson. This should have raised some suspicion amongst the senior management but it is clear that they were clueless about true profit generating potential of Leeson's trading activities. Leeson also maintained over-night open positions & position in Options that he was not authorized to do. Funding of the ...
... Financial control system was inadequate in terms of understanding the requirement of funding by Baring London to Barings Singapore. Surprisingly, even though funding by Barings London to Singapore operations was recorded as advances to clients, it was not reported to regulators as part of 'large exposure to particular clients'. Leeson was allowed to be in charge of both front office and back office, helping him conceal his activities for long. Even though internal audit suggested separation of front ...
... suggested market concerns about Barings positions on Osaka Stock exchange. SIMEX (Singapore exchange) sought an assurance from Barings-Singapore if they would be able to fund margins calls on short notice, if market moves against the bank. Important lessons: Internal controls & systems failed in case of Barings. Unauthorized & hidden trading activities by a single ...