Definition of Barings Bank:
A British merchant bank, established in 1762 and for many years considered the most stable bank in the world. The bank collapsed in 1995 as a result of unauthorized speculative trading by an employee named Nick Leeson. The bank was taken over by ING.
Barings Banks was a British merchant bank that collapsed in 1995 after one of its traders, 28-year-old Nick Leeson operating in its Singapore office, lost $1.3 billion in unauthorized trades.
Founded in 1762, Barings was among the largest and most stable banks in the world. However, thanks to unauthorized speculation in futures contracts and other speculative dealings, it ceased operations on February 26, 1995. The direct cause was its inability to meet its cash requirements following those unauthorized trades. Even efforts by the Bank of England to arrange a rescue package could not avert the inevitable collapse.
How to use Barings Bank in a sentence?
- The bank's assets were subsequently acquired by the Dutch ING Groep, forming ING Barings. This subsidiary was later sold to ABN Amro in 2001.
- Barings Bank was a UK-based merchant banking firm that failed after a trader named Nick Leeson engaged in a series of unauthorized and risky trades that went sour in 1995.
- Barings, having lost over one billion dollars (more than twice its available capital) went bankrupt. Following the trading debacle, Leeson wrote his aptly titled Rogue Trader while serving time in a Singapore prison. .
Meaning of Barings Bank & Barings Bank Definition