On the one hand, Nick Leeson used his commission to make up for the small mistakes in the 88888 account. On the other hand, he made up for the big losses by making accounts and withdrawing money from the London headquarters to conduct risky owner transactions. However, due to the stability of the Nikkei index at that time, Nick Leeson earned an option fee from the transaction. By July of 1993, he had turned a loss of 6 million pounds in account 88888 into a slight surplus. At that time, his annual salary was 50,000 pounds, and the year-end award was nearly 654.38+10,000 pounds. 1during an internal audit in July 1993, Allison passed the audit by getting drunk every night.
If Nick Leeson stops using the 88888 account, he won't make a big mistake. Nick Leeson said, "But when I returned to SIMEX on Monday, I found that I still had to use the 88888 account. My position is strange. On the one hand, I work in a trading place, and I am responsible for options trading in Japanese yen. On the other hand, I am the head of the logistics department, and I can make any request to London at will. I can see the whole picture-this is really a very easy thing for me. I may be the only person in the world who is responsible for both sides of the income balance sheet. I'm already addicted. ..... Apart from London being responsive to my remittance request and never asking in detail, another thing also contributed to my due behavior: according to the regulations, I have to report to three different people. Simon, the highest boss in Singapore, knows nothing about futures options trading. Nominal boss Mike, his business is in Tokyo, but he has little contact with him. He only cares about the profits I make. Two bosses in London, but they are excited about the profits I reported. ..... Because of this, I can handle my own affairs as I please without anyone's interference. " Although some memos questioned this, due to loose management, no one corrected this mistake.
In this way, Nick Leeson recorded more mistakes in the 88888 account. In order to win Philip Bonifay, the biggest customer in the Nikkei market, Nick Leeson made a very risky deal. He promised Philip's price, but in fact it was impossible. As a result, he transferred the risk of customers to himself, causing huge losses. Later, the market price soared 1 1,000 points every day. Due to frequent computer screen failures of clearing records, countless transactions have been accumulated. Because of the need for manual liquidation, many mistakes cannot be corrected in time. Li Sen lost $654.38 million+$700,000 in one day. In the case of no choice, Nick Leeson decided to continue to conceal these mistakes, and in order to earn back the loss, he continued to conduct the owner transaction. 1994 At the beginning of this year, Bahrain Bank sent a strict auditor to audit its branches. But as soon as she arrived in Singapore, she was recalled by the headquarters and replaced by two "easy-to-deal" auditors. Nick Leeson forged a deposit of 50 million pounds in Citibank, but actually there was not a penny. The 50 million pounds was used to make up for the loss of 88888. The auditors didn't check the statements carefully, which made Li Sen pass the test again. Although they once again suggested changing Nick's management mode and suggesting that the headquarters send a risk manager to supervise the work here, they did not get the attention of their superiors.
In the first seven months of 1994, he earned $2.5 million in arbitrage and trading business in Singapore and became a trading star.