State about the nick leeson and barings, Financial Management

Nick Leeson and Barings

Leeson was the trader who managed to bring about the collapse of Barings Bank in 1995. The main reason he was able to do this was because there was a central weakness in the banks internal controls being a lack of segregation of duties. Leeson was responsible for entire Singapore office (trading, back office and management) and was able to hide huge trading losses in the accounts whilst reporting healthy profits to his superiors in London.

Other weaknesses in the controls lied with his superiors in London who didn't properly interrogate and review the accounts and simply just accepted them for what they showed, and even gave Leeson bonuses for falsified profits in accounts. Furthermore the auditors failed to bring to light these basic weaknesses in internal controls.

 

Posted Date: 9/3/2013 2:39:14 AM | Location : United States







Related Discussions:- State about the nick leeson and barings, Assignment Help, Ask Question on State about the nick leeson and barings, Get Answer, Expert's Help, State about the nick leeson and barings Discussions

Write discussion on State about the nick leeson and barings
Your posts are moderated
Related Questions
What are the specefic control procedures of benchmarking Specific control procedures must be in place which include: O Organisational structure (clear lines of responsibilit

a) A niche market refers to a lucrative and small market segment. Marketing strategy is targeted and concentrated at this specific market segment. Pink Ladies are specifically targ

Extent of Financing Required It is clear that sales are unsure with low, high and medium estimates of demand. This of itself gives a few uncertainty but the reliability and pr


Why does a tax create a deadweight loss?  What determines the size of this loss? A tax makes deadweight loss by artificially increasing price above the free market level, so de

Determine the advantages of explicit cost Explicit cost of an interest bearing debt will be the discount rate which equates present value of the contractual future payments of

Are there any legal factors which could restrict a corporation in its effort to pay cash dividends to common stockholders?  Explain. A firm might be legally restricted as to the

Organizational Structure of pension funds In an investment organization such as pension funds, endowments, life and casualty insurance companies, the central bank's investment

Stock on Tap: Most of the players who invest in these securities are institutions and hence the volumes are high. Considering that these securities are the first choice for ban

Formation of Board of AMC and Restrictions on Directors Having regard to the significant role of the Board of Directors of the AMC in rendering the company's operations efficie