Barings scandal and derivative risk shake global markets
The Barings collapse highlights how derivatives and high risk trading threaten institutions. Investors blame trader Leeson for mass losses from futures and options while firms grapple with hedging, deregulation doubts, and weak internal controls. M Ray Perryman notes systemic vulnerabilities and calls for diligent risk management.
MENTIONED IN THIS ARTICLE
Britain
Leeson
M. Ray Perryman
Perryman Consultants Inc
Edwin L. Cox School of Business
Southern Methodist University
Barings collapse linked to Leeson Nikkei bets and Kobe quake
The Barings debacle centers on Leeson a Singapore futures chief who wagered heavily on Nikkei futures after the Kobe earthquake. As losses mounted London sought a bailout amid Bank of England action and talks with Brunei, while Singapore authorities detained Leeson and Frankfurt ordered extradition proceedings for forging documents.
MENTIONED IN THIS ARTICLE
Britain
Barings PLC
Leeson
Simex
Singapore Exchange
Osaka
Japan
Barings
Singapore
Singapore Futures
Kobe
Paribas
Watford
England
Johore Strait
Malaysia
London
Peter Baring
Baring
Bank of England
Eddie George
Avoriaz
France
George
Regent
Kuala Lumpur
Eddie
Threadneedle Street
Bank of Japan
Japanese
Ministry of Finance
Washington
U.S
Wall Street
John Phillips
Commodity Futures Trading Commission
United States
Shangri la
Borneo
Brunei
Ernst and Young International
Asia
Hong Kong
South Korea
Switzerland
Baring Futures
Financial Times of London
Sun
Leesons
Royal Brunei Airlines
Frankfurt
Germany
Global opportunities persist for U.S. investors
Audrey Snell of Sun America argues for home bias while noting U.S. firms derive earnings abroad. Edouard Iselin, newly appointed to run Venture Series International Total Return Fund, stresses long term opportunities in foreign markets. Greg Smith of Prudential Securities agrees the global economy offers greater potential for U.S. companies despite domestic maturity.
MENTIONED IN THIS ARTICLE
U.S
Audrey Snell
Sun America
New York
Edouard Iselin
Geneva
International Total Return Fund
Santa Fe
N.M
Greg Smith
Prudential Securities
Thrift fund burden eyed as GAO notes SAIF decline
The GAO reports the SAIF deposit base fell 25 percent since 1989 and urges reforms including merging the bank and thrift funds or sharing FICO bond costs. LaFalce warns none of the options is popular and taxpayer money could be considered to solve the issue.
MENTIONED IN THIS ARTICLE
Investor’s Equity of
Hawaii
Odessa College
West Texas
City Colleges of
Chicago
Proctor and Gamble
Gibson Greeting Cards
Ohio
Atlantic Richfield
Barings
LaFalce
SAIF
GAO
ING Group takes over Barings in landmark rescue
ING Group of the Netherlands agreed to acquire Barings PLC after the former oldest British bank collapsed over risky Asian futures. The deal covers Barings main units and preserves 4,000 jobs while ABN Amro and Smith Barney pursued partial bids.
MENTIONED IN THIS ARTICLE
London
ING Group
Netherlands
Barings PLC
England
Asia
Tokyo
ABN Amro
U.S
Smith Barney
Barings
ING
Associated Press
Latin America
Hessel Lindbergh
Barings Bank
Bank of England
Col
Ings
Holland
ABN Amro Holdings NV
Baring Asset Management
Baring Securities
Nick Leeson
Leeson
Germany
Singapore
Also Mentioned on This Page
Treasury
Federal Reserve Board
America
Ernest Lynch & Associates
Ernest C. Lynch
C.L.A. Chanered Financial Conseltant
5B Life Asset Planning Co
Market Street
Philadelphia
Thrift
Sevier
Infance Funds
FICO
S&ls
Linda Ramirez
Certified Public Accountant
Linda
University of Texas of the
Permian Basin
Midland College
Green & Frost, Inc
Teen & Frost, Inc
Public Accountants
Odessa
Toxce
Farmers Ira
Joe Allbright
Grandview
Insurance Itel
Edward D. Jones & Co
John Arrick
11Th St
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