The Peter McCormack Show #117 - Nick Leeson - I Lost £862 Million and Collapsed a Bank
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Oct 1, 2025 In this enlightening discussion, Nick Leeson, a former derivatives trader, shares his harrowing journey that led to the collapse of Barings Bank in 1995 after losing £862 million. He reveals how a small £10k loss spiraled into a massive cover-up, the fear that drove his risky decisions, and his life on the run. Nick talks about his time in a Singaporean prison, his transformation during those years, and the valuable lessons he learned about accountability and family, ultimately emphasizing the importance of integrity and honesty.
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Two And A Half Years Of Concealment
- The hidden loss grew over roughly two and a half years, reaching $5 million by September 1992.
- Leeson kept new trades and strategies running to hide earlier losses rather than closing them.
Missing Reconciliations Were Fatal
- Barings lacked routine reconciliations and daily position checks that would have exposed mismatches quickly.
- Siloed teams and ignored controls let Leeson operate unchecked for years.
Confidence As A Cover
- Leeson describes using confident misinformation as a 'confidence trick' to deflect scrutiny.
- Being persuasive and operating within organizational silos amplified his ability to deceive.
