Barings 1995
Barings Bank was wiped out in 1995 by Nick Leeson’s hidden Nikkei futures losses in Singapore — a rogue-trader plus failed control story, not a macro crisis.
Definition
Barings 1995 refers to a rogue-trader plus failed control story, not a macro crisis. Keep that definition fixed when comparing series, managers, or regimes — renaming the same tape does not create a new signal.
Why it matters
It is a named object desks use to frame risk, positioning, or process. When a rogue-trader plus failed control story, not a macro crisis shifts, related hedges, limits, and narratives usually need an explicit update rather than a quiet assumption.
Case
Suppose a desk is positioned for the opposite of what barings 1995 is saying. If a rogue-trader plus failed control story, not a macro crisis moves against that book, the first question is not “is the story clever?” but whether size, hedges, and stop logic still match the observation.
How to read it
Keep the definition fixed, then challenge it with cross-checks before sizing. Prefer a short written null hypothesis for Barings 1995: what would falsify the current reading in the next window?