wk8_Barings - Weekly Financial News (Sep 16 th 2008):...

Info iconThis preview shows pages 1–7. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Weekly Financial News (Sep 16 th 2008): Lehman brothers plans to file for bankruptcy [USAToday] Who killed Lehman brothers? [DowJone Financial News] The chicken game over Lehman [CNN] Lehman latest sign of streets shrink job [Financial Week] The Brave New World of US Finance [WSJ] Reason: Richard Fuld & its $40 billion holding of US real estate. No way to save. Impact: -- sell its holding of other firms assets-- 25,000 employees-- derivative markets (swap deal, CDS) Case Study: Barings-- a lesson on how to make a 200-year-old bank collapse Who? Background: Barings Bank Barings Bank founded in 1762 by Sir Francis Baring. His families lived in both Germany and England.-- In 1802, it helped finance Louisiana Purchase (United States, Napoleon, US bonds)-- In 1890, it was saved by Bank of England from its Argentina and Uruguayan debt--During the Second World War, British government used Barings to liquidate its assets in the U.S. and finance its war effort. Background: Nick Leeson Leesons early years is a classic rags-to-riches tail-- He was born in 1967, as the working class son of a plasterer grown up in the Watford suburb of London.--In the early 1980s, he started as a clerk with royal bank Coutts. From there, he worked in a number of banks including Morgan Stanley, before ending up in Barings -- Shortly after joining Barings, he applied for and transferred to the Singapore office, called Barings Securities (Singapore) Limited (BSS). --He has been working in Operations and his accomplishments attracted the attention of Barings management team. Barings Securities Singapore: With the growth of BSSs trading volume, BSS expanded its operations and purchased a seat on Singapore Exchange (SGX)...
View Full Document

This note was uploaded on 03/25/2012 for the course FINS 3616 taught by Professor Curry during the Three '10 term at University of New South Wales.

Page1 / 17

wk8_Barings - Weekly Financial News (Sep 16 th 2008):...

This preview shows document pages 1 - 7. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online