The Barings Bank Collapse case is a classical example of the capability of one individual to completely destroy an organization. The Barings Bank was a 233 year old organization in 1995, when it was declared bankrupt. Nicholas ‘Nick' Leeson, now famous(or infamous!) as ‘The Rogue Trader', used the bank's money to involve in what is known as ‘derivatives futures trading' and ended up causing a massive loss of about USD1.4 billion to the bank.
If we drill down, we realize that the key issues which caused this financial catastrophe were
1. A bad Organizational structure
2. Careless Empowerment
3. Cultural differences within the organization
4. Greed

Analysis of the issues
1. Organizational structure
The snapshot of the organizational structure from 1992 to 1995 shows us the deficiencies of the system. In 1995, Nick Leeson was effectively reporting to three people –
- locally to Simon Jones
- co-ordinated with Fernando Gueler in Tokyo
- Mary Walz

This non-clarity......

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Title: Barings Bank Collapse
Approximate Word Count: 757
Approximate Pages: 4 (250 words per double-spaced page)

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