Research Paper sample - Rogue Trading within Bank Industry about:(Nick Leeson)

Rogue Trading within Bank Industry about:(Nick Leeson) Research Paper example
Research Paper
Finance & Accounting
Pages 10 (2510 words)
Download 0
Rogue Trading within Bank Industry about:(Nick Leeson) Contents Contents 2 1.Introduction 3 1.1.Aims and Objectives 3 2.Review of Literature 4 2.1 The Mechanism and Impact of Rogue Trading 4 3.The Case of Nick Leeson and Collapse of Barings Bank 5 4.Major Causes and Implications of Barings Bank Collapse 7 5.Initiatives by Regulating Authority against Rogue Trading 8 6.Research Methodology 10 7.Findings 10 8.Conclusion 11 9.Recommendations 11 Bibliography 12 1…


Among these rogue trading is also a kind of corporate scandal and hurt shareholders’ and investors’ interests (Tulder and Zwart, 2006, p.174-175). After the bankruptcy of Barings bank in 1995, the rogue trading has become a major issue for the entire corporate world and for the capital market efficiency. Since 1995 till date, there have been nearly eight to nine instances of big losses due to the rogue trading, and among this rogue trading in banking industry has been the most frequent one. The collapse of Barings Bank of UK in 1995 was due to Nick Leeson, who took an arbitrage position in Nikkei 225 future contracts and lost $1.4 billion whereas the bank’s capital was only around $600 million. This paper will present the case of Nick Leeson as to how he brought down one of UK’s oldest banks and the inefficient role played by regulators. 1.1. Aims and Objectives In order to conduct a focused research through discussion and analysis, a set of objectives have been determined considering area of this research topic. To discuss the bankruptcy of Barings Bank as a result of rogue trading by its employee Nick Leeson. ...
Download paper
Not exactly what you need?

Related papers

How Individual Firms Can Prevent A Leeson Incident From Happening To Them
Leeson’s double role enabled him to cover up losses and hide them from Barings’ management. Then, like a desperate gambler at the roulette table, Leeson tried to make up his losses with ever-riskier trades, until finally the bottom fell out and Barings was bankrupt because of his actions. The aim of this paper is to examine in more detail why the Leeson affair occurred. Another aim is…
10 pages (2510 words)
Trading Simulation Assignment
Date Trade Currency Contracts Maturity Price 9/2/2012 Buy GBP/USD 10 March 2012 1.5854 15/2/2012 Sell GBP/USD 10 March 2012 1.5765 15/2/2012 Buy GBP/USD 10 March 2012 1.5685 16/2/2012 Sell GBP/USD 10 March 2012 1.5765 19/2/2012 Buy GBP/USD 10 March 2012 1.5835 19/2/2012 Sell GBP/USD 10 March 2012 1.5860 1.1 Analysis of portfolio value and risk of the portfolio. This report a delineation of trading…
10 pages (2510 words)
Share Trading Assignment
Trading Activities Buying of Shares with the notional ?100,000 888 Holdings PLC (888.L) ?31.25 as at September 30, 2011 11:07 Prev Close: 32.75 Open: 32.25 Bid: 35.50 Ask: 36.00 1y Target Est: 1.05 Beta: N/A Next Earnings Date: N/A Purchase cost ?54,000.00 1,500 shares times the ask price of ?36.00 per share. Stamp Duty ?270.00 ?32,750 times 0.005 (Note: 0.005 = 0.5%) Brokers commission ?10.00 It…
8 pages (2008 words)
insurance research paper about the real estate development industry
UAE Insurance Regulations 9 9.0 Topic 8. Economic Crisis Affected the Insurance Companies 10 Works Cited 11 This report will try to throw some light on real estate industry of Dubai the second largest emirate in UAE. Dubai has international reputation due to its cosmopolitan nature, multi cultural society, excellent infrastructure, stable political environment and last but not the least the city…
8 pages (2008 words)
Managing Financial Risks Within Event Industry
The methodology revolved around a survey of past and recent literature on financial risk management in the event industry. The study found out that cost-cutting measures and strategic investment are key strategies that feature in many of the risk management methods in literature. Introduction The element of risk in the event industry is one of the factors that continue to attract the concern of…
12 pages (3012 words)
Trading Simulation Report
A portfolio once built and left alone is of no use. Hence, I have decided to carry out a trading simulation and an in depth analysis of the four companies that have been chosen by me. As all four of these companies provide different products and services, it is almost obvious that different returns are expected from each of these companies. Although the portfolio had been developed keeping in mind…
10 pages (2510 words)
Share Trading Assignment
Diversification of investment spreads the risk over many assets. The concept of Efficient Market Hypothesis (EMH) states that since the stock prices reflect all relevant information in the market, it is not possible for the investor to beat the market by purchasing selling stocks at inflated prices or purchasing undervalued stocks. Thus, in order to beat the market the investor will have to be…
8 pages (2008 words)