Total Risk: Nick Leeson and the Fall of Barings Bank [Mass Market Paperback]

Judith H. Rawnsley (Author)

Book Description

Publication Date: October 1996

Provides an inside account of the shocking bankruptcy of the two-hundred-year-old British bank and the twenty-eight-year-old rogue trader in Singapore who caused its collapse. Reprint. PW.

Editorial Reviews

From Publishers Weekly

How could 28-year-old rogue trader Nicholas Leeson have brought down Britain's oldest investment firm, Barings Bank, the blue-blooded merchant bank that financed the Louisiana Purchase and the British Empire's expansion? Sent from London to a back-office job in Singapore in 1992, inexperienced, cocky Leeson soon became chief trader for the subsidiary, Baring Futures. While apparently earning superprofits betting on "derivatives," futures contracts pegged to fluctuations of Japan's stock exchange, he was actually, according to Rawnsley, racking up huge losses and concealing his unauthorized trading activities in a mislabeled account. By the time top management discovered his reckless bets, his losses had reached #827 million. Leeson, now in a German prison pending extradition to Singapore, was the catalyst for a disaster waiting to happen, declares Rawnsley, a Hong Kong-based journalist and former research analyst for Barings Securities (Japan) Ltd. She blames Barings's downfall on lax management, incompetence and inadequate oversight, all of which caused bank managers to ignore numerous warning signals regarding Leeson's speculation. This stunning cautionary tale tells the inside story of one of the most spectacular debacles in modern financial history. Photos.
Copyright 1995 Reed Business Information, Inc. --This text refers to an out of print or unavailable edition of this title.

From Library Journal

For over 200 years Barings Bank was one of the leading financial institutions in England. In 1803 it was instrumental in financing the Louisiana Purchase, and during the 19th century its financial clout was felt throughout the British Empire. But early in 1995 this preeminent London-based firm was brought down by one man: Nicholas Leeson. How and why it happened is chronicled by Rawnsley, herself a former employee of Barings. Leeson, depicted as overly ambitious, emerged from the back office and was posted to Singapore, where he quickly became involved in trading. According to Rawnsley, Leeson "lived for the limelight of the trading floor." Leeson was so good at winning that he quickly became a star trader. But he made mistakes and tried covering them up, continuing to lose even more money. It was just a matter of time before it all came crashing down. Leeson was the catalyst for the debacle, but Rawnsley also points a finger at Barings management for a faulty risk management system and for fostering an environment where "rogue traders" were allowed to wreak havoc. An entertaining and topical book recommended for all nonfiction collections.?Richard Drezen, Washington Post News Research Ctr., Washington, D.C.
Copyright 1996 Reed Business Information, Inc. --This text refers to an out of print or unavailable edition of this title.

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Product Details

• Mass Market Paperback
• Publisher: Harpercollins (Mm) (October 1996)
• Language: English
• ISBN-10: 0061095354
• ISBN-13: 978-0061095351
• Product Dimensions: 6.7 x 4.2 x 0.8 inches
• Shipping Weight: 4.8 ounces
• Average Customer Review: 2.5 out of 5 stars  See all reviews (2 customer reviews)
• Amazon Best Sellers Rank: #2,188,863 in Books (See Top 100 in Books)

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Most Helpful Customer Reviews

8 of 8 people found the following review helpful:

4.0 out of 5 stars An Enjoyable Read, December 8, 1999

By 

sandra states (Los Angeles, CA) - See all my reviews

This review is from: Total Risk: Nick Leeson and the Fall of Barings Bank (Mass Market Paperback)

Unlike the previous reviewer, I found the book to be a captivating and educational read! The plot held my attention throughout the book, even through the technical descriptions of how investment futures work. I felt that the book was a balanced blend of story and analysis. If you want more than a superficial account of the Barings debacle, this is a good book for you.

It is true that this author focuses as much on the role of management in the fall of Barings as on Nick Leeson's role in it, which is fine. It is an opinion that she substantiates somewhat persuasively throughout the book. The reader gets the sense that Nick was just an opportunist who took advantage of a glaring management weakness at Barings. (The author will not be able to persuade you, however, that Nick is just a good guy who slipped. He's scum. I think the author was too lenient with him.) But through her account of Baring Bank's mismanagement of its Futures division, the author provides a very useful lesson for senior management out there.

2 of 4 people found the following review helpful:

1.0 out of 5 stars Pretty dull really, August 7, 1997

By A Customer

This review is from: Total Risk: Nick Leeson and the Fall of Barings Bank (Mass Market Paperback)

This is an account which does not delve enough into the psychology of Nick Leeson personally (as opposed to traders generally) to be interesting, and is too apologetic for the management debacle that was Barings. Skip it. Nick's disingenous account is better. Lefevre's story of about stock operators is better still