how was nick leason able to use all the money in the bank? was there no limit switch?

Answer 1

Arbitrage was made famous in the movie "Rogue Trader" in which Nick Leeson supposedly made his millions through arbitrage of the Nikkei futures index between Singapore and UK exchanges, in the process ruining Barings plc. He was confined for nine months in Frankfurt prison and upon extradition, sentenced to six and a half years by the High Court of Singapore for forgery and cheating.

The main flaws point towards a failure in the lack of segregation of duties in financial and operational controls supported by the connivance of over confident authorities who considered trading of this nature to be of low risk.

Leeson acted as general manager, head trader and de facto head of the back office which constitutes a breach in segregation of duties.

The idea behind segregation of duties is to prevent any one person abusing a position of authority enabling ultimate control and knowledge of specific operations at any one time.

Where a lack of segregation of duties exist, the person making the buy and sell decisions does so at their own discretion. Normal circumstances require prior checks and balances by different hierarchical authorities to reduce likelihood of bad decisions which are based on Management’s plan and approval.

In practice, traders sometimes act on speculation without prior authorisation due to the fast paced nature of the job. Most are able to cover their tracks of small losses hidden against larger gains. Usually, neither the trader nor his employer has any interest in publicizing the incident unless they are blatantly caught and the amount is significant to jeopardize the company.

Smaller losses of few tens of thousands can be easily recouped in as little as one to three days, hence small looses can be hidden in the larger gains. Some speculate that Leeson was most unlucky trader in history chalking up an streak of accumulated losses of two billion dollars.

Without an oversight, Leeson was able to transact unauthorised derivatives (futures) at off-market prices and hide losses in the 88888 account which he falsified.

When debts fell due and payable, he was similarly able to making misrepresentations to secure funds from companies within the Barings organization and mislead clients into lending funds.

With the losses hidden, he was able to reveal his other card hand that boasted gigantic profits adding an aura of unquestionability to his status as lead trader.

This in turn affects the effectiveness of audits that are based on voluntary full financial disclosures by the Client. In a sense, Leeson was the end of the audit paper trail as far as decision making was concerned; effectively the whole process controlled by one person, the skies your limit.

Answer 2

Im sure that anyone who watches the WWE has some sort of opinion of him, good or bad. Whether he has actual 'fans' or not, and who they are, I am not sure. I definately am not a fan of him. He does show more promise than Cody Rhodes, who doesnt look much more muscley than Colin Delaney nor more skilled. Ted DiBiase Jr. will need to have some decent matches in order for me to become a fan of him. Given that he is young, i'll give him the benefit of the doubt...for now. But unless he improves, and becomes involved in some sort of decent rivalry, or match, I will never be his fan. I was actually hoping he would turn on Randy Orton at some point, or maybe that when he had that match with Orton he would pull off a win by schoolboy pin or something similar, and really annoy Orton. But yet again, the writers made a crappy match.

Answer 3

He didn't use the money in the bank, he was trading with the banks and other peoples money. when he initially started to lose it, he covered it up by putting the losses into a separate account. He then tried to recover those losses with more trading and unfortunately for him it didnt work, he kept repeating this process until eventually he was so screwed he tried to do a runner and was stopped by his boss. The bank collapsed due to the debts that were run up not because he physically spent the money. The rest as they say is history.

Answer 4

1

Answer 5

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Answer 6

Yeah there was but due to lax controls, it was his own hand on the switch! Just think, if his gamble had come off he would have made billions and be hailed as a hero but it was not to be .....

Answer 7

He worked for the bank, watch Rogue Trader.

Answer 8

na no worries with his switch card
he had direct access didn't he
and how,,,, fraud easy innit
white collar crime very serious
we understand after all it's money

Answer 9

he must of been trusted with the account details.