February 26, 1995

On This Date in TWISTED-HISTORY.com! in 1995 the oldest investment institution in Britain collapse after one of their traders, Nick Leeson of the Singapore branch, lost over $1.5 billion dollars on futures trading. Mr. Leeson was using the bank’s money to bet on which way the market would swing and he bet wrong it time. One day he bet on the Japanese market to rise, but it was the very same day that the Kobe Earthquake hit and sent the Asian markets into a tailspin. Mr. Leeson subsequently pleaded guilty to two counts of deceiving the bank’s auditors and of cheating the Singapore exchange and was sentenced to 6 and ½ years in prison. Why such a lenient sentence? It was because the Bank itself allowed Mr. Leeson unfettered access to the accounts and did not supervise or oversee any of his decisions.

About Joel Byers

Born in North Georgia and educated at some very fine public institutions. Real education started after graduating from college and then getting married and raising two boys. Has the ability to see the funny and absurd in most things and will always remark on it, even if it means getting the stink-eye from his victims.
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