It was the 1980s. Traders were young and greed was good. Nick Leeson, a working class lad from Watford, the son of a plasterer, was chuffed to land a job in the purportedly-glamorous world of the City of London in 1982.It was a relatively low-grade job, but he quickly made a name for himself. He worked his way up, becoming a whiz-kid in the hardworking atmosphere of the far eastern currency markets.
Soon, he was Barings Bank’s star Singapore trader, bringing substantial profits from the Singapore International Monetary Exchange. By 1993, a year after his arrival in Asia, Leeson had made more than £10m – about 10% of Barings’s total profit for that year.In his autobiography Rogue Trader, Leeson said the ethos at Barings was simple: “We were all driven to make profits, profits, and more profits … I was the rising star.”He and his wife Lisa enjoyed a life of luxury that the money brought.
He earned a bonus of £130,000 on his salary of £50,000

Nicholas Leesson ,the trader who brought down the Barings Bank in Februrary ,1995 ,is a made to order example of the business of not facing up to a loss ad getting out.He’s also a perfect example of the dangers of adding to a losing postioin in hopes of digging your way out.The Barings Bank was the bank that lent the United States the money to make the Louisiana Purchase.When Nicholas Lesson finished his trading for the bank ,Barings was sold for the equivalent of $ 1.40.
Leeson started with a bet that the Nikkei would remain stable at around 19,000.He sold an option straddle.By in mind that according to the rules of the Simex where he was trading ,a person should not be net long or net short more than 1,000 contrats in all contract months combined.
On January 17 ,the Kobe earthquake hit and the Nikke begain selling off ,gradually at the beginning ,and then picking up speed-first breaking 19,000 then 18,000 ,and finally breakin 17,000 before those left to handle Leeson’s mess could liquidate the positon.
Leeson had time after the earthquake to get out of the postion and manage the loss.He could have reversed the postion and gone short.He didn’t.He kept adding to his position as the Nikkei went down and down and down.By January 20,he had 7,135 long conracts.By January 27,he was long 16,852 Nikkei conracts.Then ,by Friday ,February 24,Leeson was long a total of 61,280 Nikkei futures contracts on three exchanges.On top of that he was short 25,900 Japanese government bond futures that were also losing.
As the losses got bigger ,the prospect of realizing them became more and more terrifying.In the end he was throwing up in the men’s room.Finally ,he skipped the country leaving a note saying ,”I’m sory.”In just  two months of over trading ,of not taking a loss ,and of adding to losing postion.Nicholas leeson single -handedly brought 233 year old Barings Bank to its’s knees.
Leeson pleaded guilty to fraud and was sentenced to six and a half years in prison.
During his detention, he was diagnosed as suffering from colon cancer and had surgery last autumn.
His marriage broke down and Lisa remarried.
After his conviction, Leeson wrote Rogue Trader, in which he condemned the practices that allowed him to gamble with such large amounts of money unchecked