Saturday, January 05, 2008

STUNNING INCOMPETENCE

Nicholas William Leeson was rogue derivatives trader at Barings Bank. In INFECTIOUS GREED, page 241, Frank Partnoy lets us know managerial incompetence contributed to the fiasco:
Leeson hid his losses by entering losing trades into an error account, labeled #88888, which was not connected to the rest of the Barings computer network.

Now, Barings collapsed and was eventually sold for £1. How many of Leeson's supervisors were charged with criminal neglect?

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