The disaster could have been greatly mitigated, if not entirely avoided, had earlier internal audit
reports drawing attention to potential risks had been given the importance they deserved and acted
upon immediately. For example, Leeson, the trader, was responsible for managing the back‐office;
suspense accounts were not being properly reconciled; because of internal office jealousies in
London nobody was asking to see evidence of the “customers” for whom positions were purportedly
taken and on which margin had to be paid, etc.