We include here the full, unedited Conclusion from the Bank of England report on the collapse of Barings.

REPORT OF THE BOARD OF BANKING SUPERVISION INQUIRY INTO THE CIRCUMSTANCES OF THE COLLAPSE OF BARINGS 18 July 1995

CONCLUSION

• OUTLINE
• HOW WERE THE MASSIVE LOSSES INCURRED?
  • The unauthorised and concealed trading
• WHY WAS THE TRUE POSITION NOT NOTICED EARLIER?
  • Controls
  • Lack of segregation of Leeson's duties
  • Supervision of BFS
  • Funding of BFS
  • (1) Settlements and Treasury
  • (2) Credit
  • (3) Financial Controls
  • Level of reported profitability of BFS
  • Implications of the SLK receivable
  • Market concerns in 1995
  • Reporting to regulators
• EXTERNAL AUDITORS
• THE BANK OF ENGLAND
  • Supervision by the bank
  • Large exposures
  • Solo consolidation
• THE SECURITIES AND FUTURES AUTHORITY (SFA)
• OVERSEAS REGULATORS
• GENERAL

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