7 Breathtaking Twists Inside the Rogue Trader's Saga That Shattered Barings Bank

Barings Bank, established in 1762, was the oldest merchant bank in London until its unexpected collapse in 1995. The bank didn't fall because of a financial crisis or recession, but because of the actions of one man—Nick Leeson, a rogue trader. This section gives an overview of Barings Bank and introduces Leeson, setting up the story behind one of the most shocking failures in banking history. Barings Bank had weathered two World Wars, many recessions, and even the Great Depression. But it was unprepared for the chaos Leeson would cause. Leeson, a young man from a working-class family, seemed like an unlikely person to bring down such a prestigious bank. Yet, his reckless trades and deception led to losses of over £827 million, which resulted in the bank going bankrupt.

1. Nick Leeson - The Unlikely Rogue

Nick Leeson was an unexpected figure to become a rogue trader. Raised in a working-class family in Watford, England, he didn't fit the mold of a typical high-powered banker. This section looks into Leeson's background and early career, showing how he first entered the banking world and eventually landed at Barings Bank. Leeson started his banking career at Coutts, then moved to Morgan Stanley for a while. He joined Barings Bank in 1989 and quickly climbed the ladder thanks to his bold and profitable trades. However, his success was built on risky decisions and deception, which would ultimately lead to his downfall.