The Peter McCormack Show #117 - Nick Leeson - I Lost £862 Million and Collapsed a Bank
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Oct 1, 2025 In this enlightening discussion, Nick Leeson, a former derivatives trader, shares his harrowing journey that led to the collapse of Barings Bank in 1995 after losing £862 million. He reveals how a small £10k loss spiraled into a massive cover-up, the fear that drove his risky decisions, and his life on the run. Nick talks about his time in a Singaporean prison, his transformation during those years, and the valuable lessons he learned about accountability and family, ultimately emphasizing the importance of integrity and honesty.
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Collapse And Flight
- Nick Leeson admits he lost £862 million through illegal trading in Singapore which collapsed Barings Bank.
- He fled Singapore on 23 February 1995 when reconciliation work in London exposed the discrepancy.
From Council Estate To Trading Floor
- Leeson recounts growing up on a council estate and failing his maths A-level, yet entering banking via an apprenticeship route.
- He was headhunted into futures and options trading despite early academic setbacks.
Organizational Weakness Enabled Fraud
- Barings had a cultured merchant bank and a scrappy securities arm with weak controls in Singapore.
- That operational sloppiness created gaps that allowed hidden positions to accumulate unnoticed.
