“What was the name of the British bank that collapsed in 1995 due to the actions of Nick Leeson?” It was Barings Bank. The 233-year-old institution failed after trader Nick Leeson accumulated enormous unauthorized derivatives losses.
Leeson worked at Barings’ Singapore operation, trading futures and options linked especially to Japan’s Nikkei 225 index. He hid losses in an error account while continuing to place speculative bets, hoping the market would reverse.
The 1995 Kobe earthquake and subsequent market turmoil pushed the positions further against him. Barings ultimately reported losses of about £827 million, more than the bank could absorb, and it entered insolvency in February 1995.
ING bought Barings for a nominal £1. The episode became a landmark case in operational risk and internal controls: Leeson was both a trader and the person responsible for settling and checking his trades. RBS and Northern Rock were unrelated British banks, while Lehman Brothers collapsed during the 2008 financial crisis.