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Nick Leeson: I sat my sons down this week to pass on the hard lessons I have learned

In an exclusive piece for TheJournal.ie, the former ‘rogue’ trader writes of his panic and embarrassment on this week 20 years ago as he collapsed a 232-year-old bank.

nickleeson Nick Leeson on his arrival from Germany in Singapore in 1995; on the day of his release from jail in 1999; this week. Press Association / AP images Press Association / AP images / AP images

THE 23 February 1995 and the ensuing days are not ones that I am likely to forget. Not least because the 25 February marks the date of my birthday but, by some strange twist of fate, these are the same days that mark the collapse of Barings bank.

So in my world, my birthday is always inextricably linked with the most embarrassing period of my life. It’s a tough one: Do you celebrate, commiserate or lower your head in shame and hide away?

The fact is, it’s been 20 years now since the judge handed down my sentence. I don’t believe that there is a minimum length of remorse that I was told to serve.

However, life moves on and it’s important that we all remember that.

On the 23 February 1995, I left Singapore for the last time. Finally, I’d been asked an intelligent question about the illegal trading position that I was holding on the Singaporean International Money Exchange and there was no longer any way to continue the deception.

My number was metaphorically and literally up.

Planes, trains and automobiles comes to mind. I needed the quickest route out of Singapore.

Paranoia was my constant companion; everyone was looking at me. As I approached the immigration desk, it seemed that my passport grew to twice the size of everyone else’s and that every conversation in the departure lounge concerned me. Every nod of the head was directed at me and there was no way out.

Somehow, I managed to stumble aboard the plane and start – what for this period of my life – was the beginning of the end. My simple apology note when I hit mainland in Malaysia escalated the problem that the bank was facing.

Early on the morning of 24 February, the Barings’ desks on the trading floor were vacant. The more astute vultures on the trading floor were already collecting memorabilia. By the close of business, Barings had informed the Bank of England of its insolvency and the message was conveyed to parliament.

The weekend of 25 and 26 February 1995 saw intense discussions taking place in the City of London. Was there a way to rescue Barings for the second time in its history or were the losses too big to quantify, or more importantly, to accurately calculate?

Unfortunately, the latter was the case and on the evening of 26 February, all 232 years of history of Barings bank was placed into administration. In the early morning of 2 March, I was arrested leaving a flight at Frankfurt airport and handed over to the border police.

It is impossible to distance myself from the embarrassment that still is the over­riding memory of that period. I wanted to be successful but will always be remembered for my biggest failure.

That still rankles to this day but whilst it was a livid open wound in the beginning, as you read and heard things about yourself, it does become easier to live with.

No longer do the words disgraced banker, fraud, criminal feel like fingers digging deeper into that open laceration, they simply brush off the scar tissue that now remains.

As much as that period serves to remind the financial world of how badly things can go wrong, it also serves as a reminder that you can recover and move on. I suppose that has been the most empowering part of my journey; at least to me. Prison was quickly followed by divorce and the onset of cancer, chemotherapy and a very bleak outlook.

Somehow though, you garner the strength to overcome. I firmly believe that it is innate within all of us and that we are only ever confronted by problems that we are able to work through.

I sat down with my two sons earlier this week to discuss in more detail than they’ve previously heard about the collapse of the bank and the messages that I would like them to take from my experiences.

I was never a great communicator but thankfully I have had to become one through the circumstances that I have had to face. It’s not always easy and I started by keeping a diary. Confronting my thoughts and problems on paper was an easier way to start.

The lessons I gave my sons are all quite simple but I think they need to be regularly enforced.

  • All action has consequence. Before you take any action, make sure that you are aware of the consequences and properly appraise them. It is always important to be responsible and accountable for you actions.
  • There is no mistake/problem that cannot be overcome. I have had to face into the abyss many times but there is always a way to work through your problems. It’s not always readily apparent what that route is, but you have to communicate and explain the problems that are facing you, at work, at home, at school. I explain that I am always there to help and whilst I’ll give advice, I will not judge.
  • Always ask for help and advice. I was surrounded by people that could have helped and steered me in a different direction but I thought I was able to deal with the situation and, as we now know, I wasn’t. Asking for help and advice early in my time in Singapore would have seen a very different outcome.
  • Everyone makes mistakes. Don’t ever be afraid of making mistakes but if you do make a mistake, never hide them. Hiding a problem only ever compounds the issues.
  • There are things in your life you can influence and things in your life that you can’t. Focus on the things that you can influence and don’t let the things that you can’t influence worry you.

Nick Leeson now lives in Barna, Galway.

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    Mute Ollie Fitzpatrick
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    Sep 27th 2023, 7:15 AM

    How the heck did we manage before they named storms and give us red, orange and yellow warnings?
    We just dressed sensibly and got on with it!!!

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    Mute Spudgesh
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    Sep 27th 2023, 7:28 AM

    @Ollie Fitzpatrick: Well said

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    Mute Ronan McGrath
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    Sep 27th 2023, 8:26 AM

    @Ollie Fitzpatrick: Ollie you’re so edgy

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    Mute Nell
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    Sep 27th 2023, 9:06 AM

    @Ollie Fitzpatrick: because some people don’t heed weather forecasts and don’t moderate their driving regarding their own or other’s safety. They have to be beaten over the head with a big stick to pay attention.?

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    Mute Alan Farrell
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    Sep 27th 2023, 9:25 AM

    That means a lot coming from…whoever the hell you are.

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    Mute Dave S
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    Sep 27th 2023, 9:26 AM

    @Ollie Fitzpatrick: because it very useful to people that are affected by weather, namely farmers, HGV drivers, construction, forestry, anything water based and thats only to mention a few.
    Can’t understand the whinging people do about colour warnings

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    Mute Stanley Marsh
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    Sep 27th 2023, 9:52 AM

    @Ollie Fitzpatrick: Yes, and were killed by flying roof debris as happened to a poor man in my village back in the 60s.

    I’m struggling to imagine how more information is a bad thing.

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    Mute Ollie Fitzpatrick
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    Sep 27th 2023, 11:40 AM

    @Ronan McGrath: Not edgy at all Ronan, just showing my age. Lol ;>)

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    Mute Ollie Fitzpatrick
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    Sep 27th 2023, 12:13 PM

    @Dave S: Dave, sorry if you thought I was whinging , I was being tongue in cheek whilst querying the national furore that exists when storms arrive. I was a professional driver all my working life over 50 years and know how these storms can affect all.

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    Mute Ollie Fitzpatrick
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    Sep 27th 2023, 12:20 PM

    @Nell: Nell, most people do heed forecasts, but as you allude to some, don’t and never will. They are the sawdust heads that know it all and do their own thing to the detriment of others.

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    Mute Ollie Fitzpatrick
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    Sep 27th 2023, 12:29 PM

    @Stanley Marsh: So sorry for the poor man who died. There are some people who will never heed weather warnings. We see them everytime there’s bad weather. If they actually got a phone warning, they still wouldn’t heed it!

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    Mute Willie Marty
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    Sep 27th 2023, 7:03 AM

    Getting fairly breezy here now in Limerick west where we have a yellow wind warning.Im a bit worried for my good friends and neighbours in Kerry (orange warning) I might light a candle for them.

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    Mute Paul whitehead
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    Sep 27th 2023, 8:24 AM

    @Willie Marty: If you were any good, you would drive down to save them.

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    Mute Willie Marty
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    Sep 27th 2023, 8:55 AM

    @Paul whitehead: too dangerous especially down around Kilgarvan where it might be extra windy if the Healy Raes are at home.

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    Mute
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    Sep 27th 2023, 5:21 AM

    A morning of uncertainity for parents, schools saying not closing and with less than 5 mins notice ” oh school is closing”,

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    Mute Wombleman
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    Sep 27th 2023, 6:09 AM

    @: Tough life – I’ve no idea how you manage to keep going.

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    Mute I can see clearly now
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    Sep 27th 2023, 6:37 AM

    @: The winds of change

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    Mute Sean O'Dhubhghaill
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    Sep 27th 2023, 6:51 AM

    Eh no. Quite simple. Red Warning means no transport so schools close. No red warning so schools are open.

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    Mute Gavin Gray
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    Sep 27th 2023, 8:10 AM

    It’s not even raining lol

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    Mute Diarmuid Hunt
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    Sep 27th 2023, 8:28 AM

    @Gavin Gray: Lashing here but I’ll take your word for it.

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    Mute ForYourSafety
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    Sep 27th 2023, 8:51 AM

    I remember walking to school in this kind of weather and you might get soaked, but it was just ordinary Irish weather, no big deal.

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    Mute colette byrne
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    Sep 27th 2023, 9:27 AM

    @ForYourSafety: and your teachers hogged the heater, while we froze yo death, the good old days.

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    Mute ForYourSafety
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    Sep 27th 2023, 9:59 AM

    @colette byrne: Lol you know it.

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    Mute Luka Roche
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    Sep 27th 2023, 6:57 AM

    I don’t see the Climate stopping at the invisible line above Dundalk like Greedy Greens are telling us in the Republic that they only measure the 26 counties for emissions.
    While the other 6 counties are happy out!!

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    Mute Wombleman
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    Sep 27th 2023, 7:07 AM

    @Luka Roche: What on earth are you on about, dear boy?

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    Mute Shane Lad
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    Sep 27th 2023, 10:21 AM

    @Luka Roche: a great point that nobody talks about.

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    Mute Magnificent Mongoose
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    Sep 27th 2023, 11:51 AM

    @Luka Roche: I never heard that one before.

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    Mute Spudgesh
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    Sep 27th 2023, 7:28 AM

    Nanny is on overtime again

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    Mute HisMastersAlibi
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    Sep 27th 2023, 9:13 AM

    Hay guys, I’m gona climb Carrauntoohil and paraglide off its peak, land on the skilligs,then swim to Castletownbere,ride my motorbike up to the quays in Cork and have a picnic,cause I’m hard and don’t believe in this orange warning clap trap. There were no rainbow warnings in my day.

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    Mute Jan Eire
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    Sep 27th 2023, 4:12 PM

    @HisMastersAlibi: hope you survive

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    Mute Pat the Baker
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    Sep 27th 2023, 9:18 AM

    Weather warning appear to be another day off for teachers.
    Everyone else has to get on with their lives as usual

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    Mute Nell
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    Sep 27th 2023, 10:30 AM

    @Pat the Baker: nothing to do with safety of children, no? Just send your children out to play in the gale so, sure a few flying roof tiles and falling trees won’t bother them. Schools have a duty of care to the CHILDREN!

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    Mute Michele Milne
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    Sep 27th 2023, 8:57 AM

    Rain now started here in co meath but not windy-yet! Stay safe everyone

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    Mute Paul whitehead
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    Sep 27th 2023, 8:22 AM

    If it’s breezy, I’m staying in bed till tomorrow. Disaster. Thank God for Topboy.

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    Mute Tommy Haze
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    Sep 27th 2023, 8:34 AM

    Beautiful here in Waterford. Early morning swim in Kilmurrin Cove then up the Cometaghs for a walk.
    Dehydration is the real worry.

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    Mute Tommy Haze
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    Sep 27th 2023, 8:35 AM

    Comeraghs.

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    Mute Diarmuid Hunt
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    Sep 27th 2023, 9:09 AM

    @Tommy Haze: Should stay up the Comeraghs for the afternoon, you know when it’s actually supposed to get stormy.

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    Mute Dermot
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    Sep 27th 2023, 8:23 AM

    Brewing up a Storm.

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