1763, Sir Francis Bahrain founded the Bahrain Bank in London, which is the first "commercial bank" in the world, providing customers with funds and relevant advice, and also starting its own business. Of course, it has to bear the risk of buying and selling stocks, land or coffee like other businessmen. Due to its flexible and innovative management, Bahrain Bank soon achieved great success in the international financial field.
Its business scope is also quite extensive, whether it is refining copper mines in Congo, selling wool from Australia or digging Panama Canal, Bahrain Bank can provide loans for it. However, unlike ordinary commercial banks, Bahrain Bank does not develop ordinary customer deposit business and has limited sources of funds, so it can only rely on its own strength to survive and develop. 1803, when the newly born United States bought South Louisiana from France, all the funds came from Bahrain Bank. Although Bahrain Bank had a strong competitor at that time, a Jewish-run Ross Seto Bank, it was still the first choice of the government, major companies and many customers. 1886 Bahrain Bank issued "Guinness" securities, and buyers poured into the bank with application forms. Later, they had to use the police to maintain it. Many people waited in line for hours, bought a small amount of stocks and then waited for an opportunity to sell them. By the time it was sold the next day, the share price had doubled.
Cause of incident
At the beginning of the 20th century, Bahrain Bank was honored to acquire a special customer: the British royal family. Thanks to the outstanding contribution of Bahrain Bank, the Bahrain family has won five hereditary titles in succession. This is also a world record, thus establishing the prominent position of Bahrain Bank.
1July, 989, Lisen officially went to work in Bahrain Bank. Before that, he was a clerk in the clearing department of Morgan Stanley Bank. After entering Bahrain Bank, he quickly won the opportunity to work in Indonesia branch. Because he is patient, persistent and good at logical reasoning, he can solve many unsolved problems quickly. The work has improved. Therefore, he is regarded as an expert in futures and options settlement, and the London headquarters is quite satisfied with Allison's work in Indonesia and allows him to arrange a suitable position overseas. 1992, Bahrain headquarters decided to send him to Singapore branch to set up the futures options trading department as the general manager.
No matter what deal you make, mistakes are inevitable. But the key is to see how you handle these mistakes. This is especially true for futures trading. Some people will mistake the "buy" gesture for the "sell" gesture; Someone will buy the contract at the wrong price; Some people may not be careful enough; Maybe someone bought March futures when they should have bought June futures, and so on. Once a mistake is made, it will cause losses to the bank. After these mistakes happen, banks must deal with them quickly and properly. If the error cannot be recovered, the only feasible way is to transfer the error to an account named "Error Account" in the computer and report it to the bank headquarters.
When Allison worked as a futures trader in Singapore from 65438 to 0992, Bahrain Bank originally had a "wrong account number", and the personal account number was "99905", which was used to deal with mistakes caused by negligence in the trading process. This was originally a normal wrong account in the operation of the financial system. 1in the summer of 1992, Gordon Bousser, who was in charge of the overall liquidation work at the London headquarters, called Alison and asked her to set up another "error account" to record minor errors and handle them in Singapore so as not to disturb her work in London. So Allison immediately called Lisell, who was in charge of office liquidation, and asked her if she could create another file. Soon, Lissel typed some orders in the computer. In China culture, "8" is a very lucky number, so Leeson takes it as his lucky number. Because the account number must be five digits, a "wrong account" with the account number "88888" was born.
Event process
A few weeks later, the London headquarters called again, and the headquarters was equipped with a new computer, asking the Singapore branch to follow the old rules and report all the error records directly to London from the "99905" account. The "88888" wrong account was shelved as soon as it was established, but it became a real "wrong account" and was stored in the computer. Moreover, the headquarters had noticed that Singapore Branch had many mistakes at this time, but Allison cleverly avoided them. The neglected account number "88888" provided Li Sen with the opportunity to make false accounts in the future. If this account had been cancelled, Bahrain's history might have been rewritten.
1July 992 17, Wang Jin, a trader of Lissen, made a mistake after only staying in Bahrain for one week: when the customer (Fuji Bank) asked to buy 20 Nikkei futures contracts, the trader mistakenly sold 20 contracts, which was discovered in Lissen's liquidation work that night. To correct this mistake, 40 contracts need to be repurchased, which means a loss of 20 thousand pounds from the closing price of the day. And report to the London headquarters. However, under various considerations, Allison decided to use the wrong account "88888" to undertake 40 short contracts of Nikkei index futures to cover up this mistake. But in this way, Ellison's transaction became an "owner's transaction", which exposed the risk position of Bahrain Bank under this account. A few days later, because the Nikkei index rose by 200 points, the loss of this short position increased from 20,000 pounds to 60,000 pounds (note: the annual salary was less than 50,000 pounds at that time). At this time, Allison did not even dare to report this mistake to her superiors.
Another mistake exactly like this was made by George, Allison's good friend and executor. George and his wife divorced, immersed in pain all day and began to give up on themselves. Alison likes him because George is his best friend and one of the best traders. But soon George began to make mistakes. Allison indicated that he bought all the 65,438+000 September futures he sold, with a value as high as 8 million pounds, and the vouchers for several transactions were not filled in at all.