Barings Bank

AAA

DEFINITION of 'Barings Bank'

A British merchant bank that was started in 1762, and for centuries was considered the largest and most stable bank in the world. In 1995, Barings - then the oldest bank in Britain - collapsed after it was unable to meet its cash requirements following unauthorized speculative trading in derivatives at its Singapore office by then-trader Nick Leeson.

INVESTOPEDIA EXPLAINS 'Barings Bank'

Leeson, acting as a rogue trader, accumulated well over $1 billion in losses, which eventually led to the bank's collapse. Barings Bank was purchased by ING for £1.00 shortly after it was determined that the bank did not have enough capital on hand to cover its debts.

RELATED TERMS
  1. Nick Leeson

    A former manager with England's Barings Bank, Leeson became a ...
  2. Merchant Bank

    A bank that deals mostly in (but is not limited to) international ...
  3. Derivative

    A security whose price is dependent upon or derived from one ...
  4. Speculation

    The act of trading in an asset, or conducting a financial transaction, ...
  5. Rogue Trader

    A trader who acts independently of others - and, typically, recklessly ...
  6. Hubris

    The characteristic of excessive confidence or arrogance, which ...
Related Articles
  1. Online Investment Scams Tutorial
    Economics

    Online Investment Scams Tutorial

  2. The Biggest Stock Scams Of All Time
    Investing

    The Biggest Stock Scams Of All Time

  3. Exchange Traded Notes - An Alternative ...
    Mutual Funds & ETFs

    Exchange Traded Notes - An Alternative ...

  4. How did derivatives trader Nick Leeson ...
    Forex

    How did derivatives trader Nick Leeson ...

comments powered by Disqus
Hot Definitions
  1. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  2. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  3. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  4. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  5. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
  6. Over The Counter

    A security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, etc. The phrase "over-the-counter" ...
Trading Center