The Little Accountant That
Bankrupt Barings Bank In England
Barrings Was England's Oldest
Bank
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The Mench Who Collapsed Barclays Bank
Leeson was born in Watford, north-west of London. He attended
Parmiter's School. He was a Jewish accountant with the exclusive
private bank. In 1992 he was appointed general manager of a new
operation of Barings in futures markets on the Singapore International
Monetary Exchange.
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What Did He Do?
On January 16, 1995, when Leeson placed an enormous short straddle
in the Stock Exchange of Singapore and Tokyo stock exchanges,
essentially betting that the Japanese stock market would not move
significantly overnight. The markets move against him and Losses
eventually reached £827 million (US$1.4 billion), twice the bank's
available trading capital.
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Leeson Is Now On The Run
Realizing the gravity of the situation, Leeson left a note reading
"I'm Sorry" and fled on February 23. After a failed bailout
attempt, Barings was declared insolvent on February 26.
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Leeson Was Arrested And Released
Leeson was released from Changi Prison in Singapore in 1999, having
been diagnosed with colon cancer, which he has survived despite grim
forecasts at the time. He lives in England off an estimated $35 mill
pounds he scammed.
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What About The Bookie?
Would Vito Correloeone take a $1 million dollar bet from a shoe
salesman? Did Chin Li accept a billion dollar bet from some flunky
trader?
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Think About International Bankers
These swindles don't just happen, they are allowed to happen. It is
just a way to transfer wealth.
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The Barring Bank Collapsed Because Of
Futures Trading
Lets say you thought interest rates were going up so you went out and
bought a futures contract. If you bought a $10 million dollar futures
contract for 1%, or $100,000, and the interest rates went up, than your
$10 million dollar contract went to $15 million and you are a hero.
But with futures there is no limit to your liability, so if the
contract dropped from $10 million to $5 million, then you are liable for
the $5 million. If American banks bet the futures (derivatives) than the
bailout will be in the tens of trillions. And have no fear, the banks
bet on derivatives.
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