Which of the following was most responsible for the collapse of Barings Bank?
A) bankruptcy proceedings
B) failure to monitor the activities of its traders
C) index arbitrage
D) index futures and options trading
E) the 1991 fall in share prices on the Tokyo stock exchange

Question

Quizplus · Accepted Answer

The collapse of Barings Bank was primarily due to the failure of its senior management to monitor and control the activities of one of its traders, Nick Leeson, who engaged in unauthorized and risky trades in the derivatives markets leading to massive losses for the bank. The other options listed may have contributed to the bank's overall financial instability, but they were not the direct cause of the collapse.

Which of the Following Was Most Responsible for the Collapse