The Fall of Bering's Bank: How a Rogue Trader Destroyed an English Institution

🏦Bering's Bank was a respected institution with a long-standing history and a reputation for strength and stability.

💼Nick Leeson, a former employee at Morgan Stanley, joined Bering's Bank with the intention of becoming a trader but faced a career setback.

💔Leeson's trading losses grew, and he resorted to hiding his mistakes in a separate hidden account called the 'five eighths' account.

💰Leeson believed he could trade his way out of losses and cover up his fraudulent activities, but his plan ultimately failed.

🔍Rob Baker, the head of in-house trading at Bering's Bank, discovered the hidden account, leading to the collapse of the bank.

What was Bering's Bank known for?

—Bering's Bank was known for its longevity, strength, and association with the most affluent class of people in the banking industry.

Why did Nick Leeson hide his trading losses?

—Nick Leeson hid his trading losses to cover up his mistakes and maintain his reputation as a successful trader.

How did Bering's Bank discover the hidden account?

—Rob Baker, the head of in-house trading, discovered the hidden account during an audit conducted in Singapore.

Did Nick Leeson's plan to trade his way out of losses work?

—No, Nick Leeson's plan to trade his way out of losses failed, and his fraudulent activities led to the collapse of Bering's Bank.

What were the consequences of Nick Leeson's actions?

—Nick Leeson's actions led to the collapse of Bering's Bank and resulted in financial losses for the bank and its clients.

00:02Bering's Bank, founded in 1762, was an English institution associated with longevity, strength, and a respected reputation.

00:36Nick Leeson, a former employee at Morgan Stanley, joined Bering's Bank and hid his trading losses in a hidden account called the 'five eighths' account.

09:45Leeson's losses grew, and he believed he could trade his way out of them, but his plan failed, leading to the collapse of Bering's Bank.