Wednesday, January 04, 2006

Rogue trader

The more you conceal failure, the more things worsen.
I think I learned it in the field, and in that sense Nick was wet behind his ears then.

"Rogue trader(James Dearden 1999)" is a film based on a true story, Nick Lesson's private papers in prison, starring Ewan McGregor.
Nick was employed by Barings Bank in England. His academic qualifications were not so good but he had an ambition to become a trader. He solved a problem in Jakarta and met Lisa as a colleague there. Barings Bank gave him credit for the operation in Jakarta and they decided to send him to Singapore as a trader of advanced business. After getting married Nick and Lisa went to Singapore and started their happy life in their excellent, modern-designed apartment. The bank gave him permission to employ cheap and local labor. He trained his new, unskilled staff and he managed both the dealing and accounting division.
At first, one of his staff made a bad mistake, he tried to save her, and he hid the loss in a dummy account. The first year, he was barely helped by his luck. He made a large amount of profit, even covered up his big losses, by an illegal trading technique. But the second year, in the beginning of the year, he determinded he would never have to use the dummy account in which he hid the losses, but to prop up the market he bought too much, and as a result, in the bonus month his losses reached a huge figure. The bank was so satisfied with the pevious year's profit that they didn't discover his ruse. He worked for living up to his wife, his family, and his bank's expectations, so he never used or hid their money for himself. Hence finally he made up his mind that he would have got nowhere. He submitted his resignation via fax and bailed out with his wife from Singapore.
Because the bank didn't put a stop on the accounts soon enough, the balance of the debt trebled and it became bankrupt. On the flight his wife said she still loved him, but after he was captured, she divoced him and got married to another trader. He was not a bad man but I think gambling will never bring you true fortune.

No comments: