Barings had strict trading limits and believed that it was diligently monitoring
all its traders to make sure they did not exceed their limits, but the
bank’s systems were not prepared for the level of fraud and misrepresentation
that Leeson committed, and Barings was not aware of the secret passageway
Leeson found to its crown jewels. In July 1992, shortly after being
assigned to Singapore and only a couple of days after Barings gained membership
on SIMEX, Leeson opened an 88888 Account, just like the one he
uncovered in Barings’ Indonesia branch. By 1993, just a year after his arrival,
Leeson began reporting extraordinary profits.
Barings had strict trading limits and believed that it was diligently monitoringall its traders to make sure they did not exceed their limits, but thebank’s systems were not prepared for the level of fraud and misrepresentationthat Leeson committed, and Barings was not aware of the secret passagewayLeeson found to its crown jewels. In July 1992, shortly after beingassigned to Singapore and only a couple of days after Barings gained membershipon SIMEX, Leeson opened an 88888 Account, just like the one heuncovered in Barings’ Indonesia branch. By 1993, just a year after his arrival,Leeson began reporting extraordinary profits.
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