Internation finance nicolas lesson case
So Leeson comes in, and he gets on this hot streak if you will. The following two case studies are brief descriptions of similar, catastrophic losses by traders with little, or no, oversight.
They're OK with that. Leeson attempted to recoup his losses by making a series of increasingly risky new trades using a long-long future arbitragethis time betting that the Nikkei Stock Average would make a rapid recovery.
Nick leeson book
While he had authorisation for the 16 January short straddle, he was charged with fraud for deceiving his superiors about the riskiness of his activities and the scale of his losses. The bank was greedy. Watch this minute video. Leeson attempted to recoup his losses by making a series of increasingly risky new trades using a long-long future arbitrage , this time betting that the Nikkei Stock Average would make a rapid recovery. A review in the financial columns of The New York Times stated, "This is a dreary book, written by a young man very taken with himself, but it ought to be read by banking managers and auditors everywhere. His sterling reputation protected him from close scrutiny. He was appointed commercial manager of Galway United F.
This made it much simpler for him to hide his losses from his superiors. It's the beginning of the end for Barings. In the mids, Leeson works for a string of big banks. In Januarya huge earthquake hit Japan, sending its financial markets reeling.
In a desperate attempt to offset losses, he continues to gamble, shuffling money around to cover his tracks. The market is still reeling from the Kobe, Japan earthquake.
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