The History Podcast
Invisible Hands: 4. The Big Bang
Apr 16, 2025
Nick Leeson, a working-class kid from Watford turned infamous trader, shares his remarkable journey from being a financial superstar to a fugitive after the collapse of Barings Bank. He delves into the transformative effect of Thatcher’s Big Bang on London's financial landscape, creating both incredible opportunities and reckless decisions. The discussion highlights how this era of free-market capitalism fueled ambition—but ultimately led to downfall. Leeson reflects on the cultural shifts of the 80s and the lasting implications for today's economy.
29:19
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Quick takeaways
- The Big Bang deregulation transformed London's financial sector by promoting innovation and attracting diverse investors while increasing market volatility.
- Nick Leeson's rise and fall exemplifies the dangers of unregulated trading environments, highlighting both individual recklessness and systemic vulnerabilities in finance.
Deep dives
The Rise and Fall of Nick Leeson
Nick Leeson's story illustrates the rapid rise and fall within the finance sector, particularly after the deregulation known as Big Bang. Initially, Leeson thrived in a new trading environment that allowed for greater freedom and less oversight, transitioning from a clerk to a star trader at Barings Bank. As he navigated through increasingly risky trades, Mr. Leeson turned a relatively small trading error into monumental losses, showcasing a classic case of a gambler's fallacy. His eventual collapse, which resulted in the loss of £827 million and the bank’s downfall, emphasizes both individual recklessness and systemic vulnerabilities in the financial industry.
