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This thread is about the trader who with his reckless trading destroyed the entire Barings bank. In case you would like to read more such informative threads,do not forget to retweet and share as acts as encouragement
This thread is about the trader who with his reckless trading destroyed the entire Barings bank. In case you would like to read more such informative threads,do not forget to retweet and share as acts as encouragement
-Nick Lesson was the guy behind this tragedy who was a trader in Barings bank,the OLDEST merchant bank in UK. He was a derivatives trader there heading the Singapore operations i.e SGX i.e. Singapore International Monetary Exchange. Initially he was a STAR trader,bank loved him.
-He bought huge profits to the bank BUT as his addiction to speculation without risk management increased,he started incurring huge losses. To make sure that management doesn& #39;t get to know about the same and he continues to receive big fat bonuses he played a trick.
-He started transferring the losses to a secret account by the name 88888. His plan was once he recovers his losses,he would re transfer the loss and turn it into gain without management ever getting to know what blunders he had committed. But bad luck never left him.
-He went with oversized positions to offset his losses on Japanese index but that backfired so badly that by 1994 his personal trade losses went upto 208 M pounds. In 1995 he went all in desperately to recover all with worst position sizing,BUT earthquake hit Japan and...
