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What is the most fundamental reason for the collapse of Bahrain Bank?
Nick leeson, the futures manager of Bahrain Company in Singapore, misjudged the trend of Japanese stock market.

1995 1 10 In October, Allison was optimistic about the Japanese stock market and bought a large number of futures contracts in Tokyo and Osaka respectively, hoping to make a big profit when the Nikkei index rose. However, the Hanshin earthquake in Japan hit the rebound momentum of the Japanese stock market, and the stock price continued to fall. The final loss of Bahrain Bank was as high as $6,543.804 billion, while its own assets were only a few hundred million dollars, and the huge loss was hard to make up.

Extended data:

In the process of business adjustment and risk center adjustment, due to the lack of experience of commercial banks in monitoring market risks and operational risks, "devil traders" sometimes cause serious losses. In 2007, a trader of Societe Generale engaged in unauthorized speculative trading, which eventually led to a loss of 76,543.8 billion US dollars, setting a world record for illegal trading losses so far.

The appearance of devil traders is not a phenomenon in the banking system, but a defect in the internal risk management system of banks. The international banking regulatory authorities have greatly improved the requirements for monitoring the market risk and operational risk of commercial banks, but for regulators and banks, the related risks have not disappeared, and there is still a lot of work to be done in the future.

People's Daily-Economic Perspective of People's Daily: Reflections on the Internal Control System of Banks Caused by Devil Traders

Baidu Encyclopedia-Bahrain Bank?