Rogue Trader Essay

897 Words Mar 7th, 2014 4 Pages
Rogue Trader

How many times can you go double or nothing before you wind up a billion pounds in debt? In “Rogue Trader”, a film based on the life on Nick Leeson, we get a glimpse into this real world dilemma. The drama begins with Leeson’s promotion to general manager of Barings Futures Singapore. As general manager, he faces a personal quandary and must decide whether to cover for a friend and coworker who made an honest mistake (one that resulted in the loss of a substantial amount of money) or to turn the same person in to face termination. Leeson chooses loyalty to his friend over loyalty to the bank, and covers up the losses by creating an error account. This account served to hide said losses while Leeson tried to make back the
…show more content…
Additionally, Simon Jones, entitled the Regional Operations Manager of Barings South Asia, COO of Barings Securities Singapore, Director of Barings Futures Singapore did not once get any training throughout the movie - something that would have been crucial to do as the market changed. The lack of travel from the London offices to Singapore to check out suspicious behavior or to check progress was also sorely lacking throughout the movie. Ron Baker should have come to investigate and he never did progress reporting due to the amount of money Leeson was making. Leeson should also have had to been granted authorization from corporate to create 88888 account, especially owing to its magnitude, there should have been limits to what kind and how big of accounts Leeson was able to set up himself. Finally, Leeson should never have been granted both the job as manager of back office and manager of floor, it's a conflict of interest because it allows Leeson to get away with bending the administration rules to fit his purpose.
After watching “Rogue Trader”, audiences are inclined to feel sorry for Barings especially since Leeson’s actions directly resulted in the liquidation of the entire bank and jobs lost for all its employees. However after examining the lack of framework and attention paid to things like risk assessment and control activities, it is hard to put all the blame on Leeson for Barings’ shortcomings. After

Related Documents