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Barings Bank, previously known as Baring Brothers & Co., is the oldest merchant banking company in England, having been founded in 1762 by Sir Francis Baring.
Barings collapsed on February 26, 1995, due to the activities of one trader, Nick Leeson, who lost $1.4 billion by gambling on the SIMEX with primarily derivative securities. This was the second time Barings had faced bankruptcy, the first being in 1890 when a significant amount of investment was lost in South America following the Argentinan revolution . However, at that time, they had been bailed out by the Bank of England and other London banks.
Barings was purchased by the Dutch bank/insurance company ING after its collapse (for the nominal sum of £1) and no longer has a separate corporate existence. Its name lives on in Baring Asset Management.
Nick Leeson's autobiography of the events leading up to the collapse was dramatized in the movie Rogue Trader.
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Last updated: 10-23-2005 15:37:51
