Nick Leeson

Nicholas William Leeson
Nicholas William Leeson
Born	February 25, 1967 (age 59); Watford, England
Occupation(s)	Derivatives trader, keynote speaker, private investigator
Years active	1987–present
Known for	Unauthorized speculative trading leading to the collapse of Barings Bank
Notable work	Rogue Trader: How I Brought Down Barings Bank and Shook the Financial World (1996), Back from the Brink: Coping with Stress (2005)

Nicholas William Leeson (born 25 February 1967) is a former English derivatives trader whose unauthorized speculative activities led to the 1995 downfall of Barings Bank, the oldest merchant bank in the United Kingdom. Convicted of financial crimes in Singapore, he served more than four years at Changi Prison.

Between 2005 and 2011, Leeson occupied senior executive positions at the League of Ireland football club Galway United, eventually stepping down as CEO amid financial challenges. He currently works as a keynote speaker, providing guidance to companies on risk management and corporate ethics. Since 2023, he has been engaged as a private investigator focusing on cases involving financial wrongdoing.

Early life

Leeson was born in Watford to parents from a working-class background; his father worked as a plasterer while his mother was employed as a nurse. He attended Parmiter's School in Garston, completing his sixth form studies in 1985 with six O Levels and two A Levels. His career began at Coutts private bank’s Lombard Street branch, where he worked as a clerk managing client accounts.

In 1987, Leeson joined Morgan Stanley’s Futures and Options back office team, responsible for clearing derivatives trades. Facing limited opportunities in front office roles, he transferred to Barings Bank in 1989 with an annual salary of £12,000. After a brief period supporting Barings’ back office operations in Hong Kong and Jakarta, he was assigned to Jakarta in 1990 to oversee unpaid share certificates valued at £100 million. Leeson returned to London in 1991 to investigate fraud involving improper use of client accounts for proprietary trading that collapsed under margin calls.

Barings Bank

In April 1992, Barings Bank established a Futures and Options division in Singapore to execute and clear trades on the Singapore International Monetary Exchange (SIMEX). Although Barings held a seat on SIMEX, it was only activated after appointing Leeson as general manager with responsibility for both front and back office functions. Leeson had previously been denied a UK broker’s license due to nondisclosure of a debt judgment on his application; however, this was not revealed by him or Barings when applying for his Singapore license.

Beginning in 1992, Leeson engaged in unauthorized speculative trading that initially yielded £10 million—approximately 10% of Barings’ annual profits—earning him a £130,000 bonus on a £50,000 base salary. He concealed losses by utilizing one of Barings’ error accounts, which were originally designed to rectify trading errors. Leeson later stated that this account first covered an error made by a subordinate who mistakenly sold futures contracts resulting in a £20,000 loss for Barings.

He continued to use the error account to mask further losses from himself and other traders, including covering mistakes made by an absent trader. Leeson admitted that his criminal behavior began when he failed to reconcile a discrepancy involving 500 contracts that cost Barings US$1.7 million and hid it within the error account to avoid detection. Despite claims that he did not personally profit from the account, investigators linked approximately $35 million to him by 1996.

Downfall and imprisonment

By late 1994, the losses hidden in the error account had ballooned to £208 million, up from £2 million in 1992 and £23 million in 1993. Employing a "doubling" strategy—placing increasingly large bets to recover losses—Leeson initially succeeded, including offsetting a £6 million deficit in 1993. To preserve his image as a successful trader, he fabricated explanations for additional funds requested from London and concealed mounting losses, benefiting from his sterling reputation.

The collapse was triggered on 16 January 1995 when Leeson executed a short straddle position on the Singapore and Tokyo stock exchanges, speculating on minimal overnight movement in the Japanese market. The Great Hanshin earthquake on 17 January caused markets to plunge sharply, severely damaging Leeson's positions. In an attempt to recover losses, he made increasingly risky bets anticipating a rapid Nikkei rebound; these gambles failed.

Leeson fled Singapore on 23 February after leaving an apology note. Losses had reached £827 million (US$1.4 billion), twice Barings’ entire trading capital. Following unsuccessful rescue attempts, Barings—the UK’s oldest merchant bank—was declared insolvent on 26 February. Leeson was apprehended in Frankfurt and extradited to Singapore in November 1995.

He pleaded guilty to charges including deceiving auditors and defrauding the Singapore exchange through document forgery. Sentenced to six and a half years at Changi Prison, he was released early in July 1999 after serving over four years with good behavior and overcoming colon cancer. In 1996, Leeson authored Rogue Trader, an autobiography detailing his actions; it became essential reading for banking executives and auditors alike. The book inspired the 1999 film Rogue Trader, starring Ewan McGregor and Anna Friel, and was featured in Adam Curtis’ 1996 documentary £830,000,000 – Nick Leeson and the Fall of the House of Barings.

Post-release career

In 2003, Leeson earned a BSc degree in Psychology from Middlesex University as a mature student. He became a frequent speaker at after-dinner events and keynotes, mentioning in 2019 that "two engagements per month suffice to maintain my accustomed lifestyle." Leeson remains active in stock trading, though exclusively using his personal funds.

Galway United F.C.

Leeson took on the role of commercial manager at Galway United in April 2005, progressing to general manager by November of the same year, and later assuming the position of CEO in July 2007. He stepped down in February 2011 amid the club’s financial struggles.

Investigator of financial misconduct

In March 2023, Leeson joined the Red Mist Market Enforcement Unit, a corporate intelligence agency headed by former Black Cube operative Seth Freedman, where he began working as an investigator focusing on cases of financial wrongdoing.

Media appearances

Leeson released Back from the Brink: Coping with Stress in June 2005, which continued his narrative from Rogue Trader, enriched with psychological perspectives provided by Ivan Tyrrell. In 2013, he participated in Celebrity Apprentice Ireland broadcast on TV3.

In July 2015, Singapore's leading newspaper The Straits Times published an e-book titled Guilty As Charged: 25 Crimes That Have Shaken Singapore Since 1965, which included the Nick Leeson incident. This publication was produced through collaboration between the Singapore Police Force and the newspaper. The paperback version was released in late June 2017 and appeared on the ST bestseller list by August that year.

On 5 April 2007, The Guardian reported that KPMG, acting as liquidators for Barings Bank, auctioned a trading jacket believed to have been worn by Leeson during his time at SIMEX in Singapore. The jacket initially received a top bid of £16,100 on eBay but failed to meet the reserve price before eventually selling for £21,000. Later in October 2007, another jacket associated with Leeson's team—but not personally worn by him—was sold at auction for £4,000.

Leeson's name is credited in the film Rogue Trader, alongside references to Barings Bank's $1.4 billion losses.

Personal life

Leeson married Lisa Sims (later Lisa Leeson) on 21 March 1992 after meeting her in Jakarta while both worked at Barings’ office in 1990. Sims left Barings following their marriage. The couple divorced in 1997, one year after Leeson's arrest. Subsequently, Sims pursued a career as a flight attendant with Virgin Atlantic.

In 2003, four years post-release from Changi Prison, Leeson wed Leona Tormay, an Irish beautician.

From 2023 onward, Leeson has been employed as a private investigator concentrating on financial misconduct cases. He currently lives in Galway.

Works

Rogue Trader: How I Brought Down Barings Bank and Shook the Financial World (1996)
Back from the Brink: Coping with Stress (2005)

External links