Trader recommends Regulation that is intelligentIn the highly successful and informative RSA Europe 2009, a rogue trader who had been in the business of bankrupting banks before it became popular—Nick Leeson—stated to delegates that further monetary dilemmas (like the Barings Bank collapse he masterminded) will inevitably happen in the future unless the present quality of banking regulation improves. He stated to journalists that improving scam management systems with suitable knowledge-based regulations is the only way to expose financial fraud similar to the one he undertook for three years at Barings. Leeson emphasized that better regulation quality—not stricter or more lax directives—was needed in order to ensure the safeness of financial institutions everywhere against cavalier traders like himself. 25 year old mange rigged market in Singapore 1992When Leeson was just an overambitious twenty-five-year-old young man, he went to Singapore in 1992 and founded a business in derivatives and futures market for Barings. Despite his initial successes, Leeson was soon forced to disguise his losses into an error account named 88888 because of how staggering and numerous these deficits were. He concealed his negative cash flow by getting an overdraft, so daily funds from London kept the bank buoyant while the overdraft and losses piled up. It was only after other banks started calling in his liabilities that the whole state of affairs went down the drain. The people who investigated him had no comprehension of the deals he was making, which left them in the dark during most of his scamming tenure. |