Nick Leeson

 

 

• Barings bank

• 1992 – large profit, 10% - Nick’s profit

• Error account 88888

• No monitoring by superiors

• End of 1992 - £2 mln of losses

• End of 1994 - £208 mln of losses

• 1995 - £827 mln of losses

 

 

• 6,5 years in prison

• Barings bank was insolvent

 

The life story of Nick Leeson has been shown in

the feature film Rogue Trader (1999)

(may be found in my folder).

 

 

Storchevoy M. A. Corporate Social Responsibility. 2013

 

 

Storchevoy M. A. Corporate Social Responsibility. 2013

 

Storchevoy M. A. Corporate Social Responsibility. 2013

Topic 9. CSR in Finance

 

Rogue Trading

Jerome Kerviel

 

• Joined Societe Generale in 2000

• Not a senior trader

• Hedge exposures using futures

• Beginning of 2008 – failures started

• Balance each real trade with a fictitious deal

• Revealed by a phone call (trade>bank’s limits)

 

 

• 3 years of prison

• Societe Generale lost $7.16 billion

 

 

 

 

010)

Wall Street (1987, 2

 

Wall Street (1987, 2010)

 

 

Is Greed Good?

 

• Do you agree?

 

• Is Gordon Gekko a deviant?

 

• Sociopaths – are they good?

 

 

Wall Street (1987, 2010)

 

Financial speculations –

unproductive gambling?

 

• Making people worse?

 

• Wasting society resources?

 

• Do financial speculators create any value for the economy?

 

• Insider trading, Rumors, Betting against the market you make, shorting – is this productive?

 

• What is the use of bubbles?