1. Barings Bank
... Kingdom was declared bankrupt. It could not meet its enormous margin obligations. Nick Leeson, one of the bank's traders in their Singapore division, had lost $1.4 billion (US) on derivatives trading. The banks reported capital was only about $6 million. The bank assumed he was exploiting low-risk derivative opportunities on the Singapore Money Exchange (SIMEX). In actuality, he was ... buying and selling different amounts of these contracts on both SIMEX and the OSAKA exchange. Any Control and Risk Management policies and procedures, which are critical in managing a derivatives operatio...
- Word Count: 1212
- Approx Pages: 5
- Grade Level: High School