Nick Leeson
The Rogue Trader Who Broke Barings Bank
Nick Leeson
Derivatives & Arbitrage
Key Stats
Net Worth
N/A
Origin
British
Lifespan
Born 1967 (59 years old)
Biography
Nick Leeson is the infamous trader whose unauthorized speculative trades caused the collapse of Barings Bank, Britain's oldest merchant bank. His story serves as a cautionary tale about risk management and oversight failures.
Rise at Barings
Leeson joined Barings Bank and was sent to Singapore to manage arbitrage operations. Initially successful, he began hiding losses in a secret account numbered 88888.
The Collapse
After the 1995 Kobe earthquake, Leeson's hidden losses spiraled out of control. His positions lost £827 million ($1.3 billion), exceeding Barings' entire capital and causing the 233-year-old bank to collapse.
Lessons Learned
Leeson's story highlights the dangers of inadequate risk controls, the importance of separating trading from back-office functions, and how small losses can compound into catastrophic ones when hidden.
Trading Philosophy
"I was gambling, not trading. The moment you start hiding losses, you've already lost."
Famous Trades
Nikkei Futures
Unauthorized positions in Nikkei futures collapsed after the Kobe earthquake, destroying Barings Bank.
Catastrophic Loss
-£827 Million
Legendary Quotes
"I was gambling, not trading. The moment you start hiding losses, you've already lost."
"The physical act of hiding the losses was easy. Living with it was the hard part."
Recommended Reading
Rogue Trader
His account of the Barings collapse