Living in a fool’s paradise: the collapse of Barings’ Bank

Emerald - Tập 40 Số 3 - Trang 232-238 - 2002
Helga Drummond1
1Institute of Public Administration and Management, University of Liverpool, Liverpool, UK

Tóm tắt

Recalls that the collapse of Baring’s bank showed what may lie behind an apparently successful organization. Barings was destroyed by the unauthorised activities of a trader named Nick Leeson. For almost three years Leeson deceived the bank by appearing to earn phenomenal profits, while in reality incurring massive and ultimately catastrophic losses. A striking feature of the bank’s collapse is that it was both sudden and total. No one had the least suspicion of impending catastrophe despite the emergence of clear signs of malfeasance. The article explains why Barings’ management failed to respond effectively to those danger signs and considers the lessons to be learned.

Tài liệu tham khảo

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Emerald

Tập 40 Số 3

232-238

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