According to the newspaper, before the tragedy on February 26th, the securities investment of Bahrain Bank had exposed great risks, but it did not arouse the vigilance of the bank's top management. In the first week of June 65438+ 10, Lisen held 3024 lots, and after 20 days, he held 16852 lots. In just 20 days, the contract holdings have increased fourfold.
By mid-February, Allison had more than 20,000 contracts, eight times more than the position held by the second largest trader in the same market. For reasons we don't know, the senior management of Bahrain Bank didn't notice this signal, so we responded accordingly. In a word, the internal control system and early warning system of Bahrain Bank failed, which eventually led to the tragedy.
Shortly after the bankruptcy of Bahrain Bank, its executives said that they knew nothing about Allison's behavior in Singapore. Until the day Allison resigned, that is, February 23rd, the company's risk report was still balanced.
However, according to the relevant authorities in Singapore, Bahrain remitted US$ 65.438+28 billion to Singapore International Monetary Exchange in the first 654.38+08 days of February 1995 to advance the maintenance fund.
According to the Financial Times, Eddie George, governor of the Bank of England, told members of the British Treasury and the House of Representatives Committee on April 5 that Bahrain had remitted 760 million pounds of cash to its Singapore branch without notifying the Bank of England.
Extended data
1992, 28-year-old nick leeson was appointed by the headquarters of Bahrain Bank as the general manager and chief trader of Bahrain Futures Co., Ltd. in Singapore, responsible for the futures trading of the bank in Singapore and actually engaged in futures trading.
From the end of 1994, Lisson felt that the Japanese stock market would rise, and traded high-risk financial derivatives without approval, hoping to profit from the price difference between the trading markets in different regions. After purchasing Japanese Nikkei stock index futures worth $7 billion, Allison made short trades worth about $20 billion in the Japanese bond and short-term interest rate contract futures markets.
Unfortunately, the Nikkei index fell all the way, and fell below 1995 in June. At this point, each drop will cost 2 million dollars. Alison tried to push up the Nikkei by buying a lot, but failed.
With the further decline of the Nikkei index, Lisen suffered more and more losses, and watched $654.38+0 billion go up in smoke. At that time, the capital and reserves of the entire Bahrain Bank were only $860 million. Although the Bank of England took a series of rescue measures, they all ended in failure. After mediation by the Bank of England, ING announced on March 5th that it had completed the acquisition of Bahrain Bank at a nominal price of 1.
Baidu Encyclopedia-Bankruptcy of Bahrain Bank