Barings culprits `will never work in the City again'

BY JOHN EISENHAMMER

in London and

STEVE BOGGAN in Singapore

Those found responsible for the Barings collapse will never work in the City again, according to Christopher Sharples, chairman of the Securities and Futures Authority, which polices investment banks.

"I think it is extremely likely that some of the people who prove to be culpable in this regard will find they will have to seek a career outside of the City," he said.

Speaking on the Panorama programme, to be broadcast tonight, Mr Sharples said: "We have always taken a very tough line over individual registration, and lots of people have found they have not been allowed to continue to practise in the City following misdemeanours or failures far less significant that this one."

In an interview for the World in Action programme, also to be broadcast tonight, Mr Sharples revealed that Nick Leeson, the Singapore dealer whose disastrous derivatives speculation bankrupted Barings, had misled the SFA in an application to become a trader in London. He failed in 1992 to reveal a County Court judgment against him for an outstanding debt of £639.

"We carry out our own checks and we established that he did have and so we notified Barings of the fact that this individual had been untruthful in terms of disclosing to us, and Barings simply withdrew the application," Mr Sharples said.

"People are now considering carefully where it is safe to place their deposits. I can't think of anything that's happened in my memory that has struck more to the heart of the City as a financial centre, particularly because of the very British nature of what has taken place," he said.

The Singapore investigator, Niky Tan, of the accountants Price Waterhouse, confirmed that in January and February Barings in London sent some £750m to Singapore. Andrew Bayliss, deputy managing director of Barings Securities until 1993, told Panorama : "An enormous sum like that could not have been transferred without the authority and approval of the most senior people. It is inconceivable you can bet twice the worth of the bank, or nearly that amount, without that being known about, signed off by people at the very top."

Mr Sharples said: "It seems to me that Mr Leeson pulled the trigger. But the bank gave him the gun, and the bank gave him the ammunition, and when he wanted more ammunition they gave him as much as they could give him until they ran out, and then the bank was bust."

In Singapore yesterday, two directors were removed from their posts at Barings, in what appeared to be the first blood-letting since the collapse.

James Bax, formerly managing director of Baring Futures (Singapore), and Simon Jones, formerly a director of Baring Futures and Securities, have been told they will be kept on by Barings' new owners, Internationale Nederlanden Groep (ING). But the Dutch bank and insurance conglomerate said it did not know what role the men would play. Cees Maas, an ING board member, also said the bonuses of all 20 people who worked in the Baring Futures office in Singapore with Nick Leeson had been cancelled.

Mr Maas announced that Baring Futures (Singapore) would be liquidated. ING will incorporate a new company today to trade on the Singapore International Monetary Exchange.

The new futures company will be known as Barings Futures International Limited and is likely to resume business in a few days. Baring Securities (Singapore) will restart operations on the Stock Exchange tomorrow.

The new chairman of the securities operation, Jaap Manse, painted a grim picture of what ING officials found when they went into the Baring Futures office, but he rejected reports that documents had been shredded before Mr Leeson's sudden departure. Asked what controls there would be to prevent a similar disaster, he said: "Put it this way, there will be controls."

News
Denny Miller in 1959 remake of Tarzan, the Ape Man
people
Arts and Entertainment
Cheryl despairs during the arena auditions
tvX Factor review: Drama as Cheryl and Simon spar over girl band

News
Piers Morgan tells Scots they might not have to suffer living on the same island as him if they vote ‘No’ to Scottish Independence
news
News
i100Exclusive interview with the British analyst who helped expose Bashar al-Assad's use of Sarin gas
PROMOTED VIDEO
Sport
Angel Di Maria celebrates his first goal for Manchester United against QPR
Football4-0 victory is team's first win under new manager Louis van Gaal
Arts and Entertainment
art
News
newsIn short, yes
Arts and Entertainment
Rob James-Collier, who plays under-butler Thomas Barrow, admitted to suffering sleepless nights over the Series 5 script
tv'Thomas comes right up to the abyss', says the actor
Arts and Entertainment
Calvin Harris claimed the top spot in this week's single charts
music
Sport
BoxingVideo: The incident happened in the very same ring as Tyson-Holyfield II 17 years ago
News
Groundskeeper Willie has backed Scottish independence in a new video
people
Arts and Entertainment
The Doctor poses the question of whether we are every truly alone in 'Listen'
tvReview: Possibly Steven Moffat's most terrifying episode to date
News
ebooksAn unforgettable anthology of contemporary reportage
News
i100
Life and Style
Cara Delevigne at the TopShop Unique show during London Fashion Week
fashion
News
The life-sized tribute to Amy Winehouse was designed by Scott Eaton and was erected at the Stables Market in Camden
peopleBut quite what the singer would have made of her new statue...
Sport
England's Andy Sullivan poses with his trophy and an astronaut after winning a trip to space
sport
News
peopleThe actress has agreed to host the Met Gala Ball - but not until 2015
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

SQL Developer - Watford/NW London - £280 - £320 p/d - 6 months

£280 - £320 per day: Ashdown Group: The Ashdown Group have been engaged by a l...

Senior BA - Insurance **URGENT**

£400 - £450 Per Day: Clearwater People Solutions Ltd: **URGENT CONTRACT ROLE**...

Training Coordinator / Resource Planner - City, London

£35000 - £38000 per annum + Benefits: Ashdown Group: Training Coordinator / Pl...

Data Governance Manager (Solvency II) – Contract – Up to £450 daily rate, 6 month (may go Permanent)

£400 - £450 Per Day: Clearwater People Solutions Ltd: We are currently looking...

Day In a Page

These Iranian-controlled Shia militias used to specialise in killing American soldiers. Now they are fighting Isis, backed up by US airstrikes

Widespread fear of Isis is producing strange bedfellows

Iranian-controlled Shia militias that used to kill American soldiers are now fighting Isis, helped by US airstrikes
Topshop goes part Athena poster, part last spring Prada

Topshop goes part Athena poster, part last spring Prada

Shoppers don't come to Topshop for the unique
How to make a Lego masterpiece

How to make a Lego masterpiece

Toy breaks out of the nursery and heads for the gallery
Meet the ‘Endies’ – city dwellers who are too poor to have fun

Meet the ‘Endies’ – city dwellers who are too poor to have fun

Urbanites are cursed with an acronym pointing to Employed but No Disposable Income or Savings
Paisley’s decision to make peace with IRA enemies might remind the Arabs of Sadat

Ian Paisley’s decision to make peace with his IRA enemies

His Save Ulster from Sodomy campaign would surely have been supported by many a Sunni imam
'She was a singer, a superstar, an addict, but to me, her mother, she is simply Amy'

'She was a singer, a superstar, an addict, but to me, her mother, she is simply Amy'

Exclusive extract from Janis Winehouse's poignant new memoir
Is this the role to win Cumberbatch an Oscar?

Is this the role to win Cumberbatch an Oscar?

The Imitation Game, film review
England and Roy Hodgson take a joint step towards redemption in Basel

England and Hodgson take a joint step towards redemption

Welbeck double puts England on the road to Euro 2016
Relatives fight over Vivian Maier’s rare photos

Relatives fight over Vivian Maier’s rare photos

Pictures removed from public view as courts decide ownership
‘Fashion has to be fun. It’s a big business, not a cure for cancer’

‘Fashion has to be fun. It’s a big business, not a cure for cancer’

Donatella Versace at New York Fashion Week
The fall of Rome? Cash-strapped Italy accused of selling its soul to the highest bidder

The fall of Rome?

Italy's fears that corporate-sponsored restoration projects will lead to the Disneyfication of its cultural heritage
Glasgow girl made good

Glasgow girl made good

Kelly Macdonald was a waitress when she made Trainspotting. Now she’s taking Manhattan
Sequins ahoy as Strictly Come Dancing takes to the floor once more

Sequins ahoy as Strictly takes to the floor once more

Judy Murray, Frankie Bridge and co paired with dance partners
Wearable trainers and other sporty looks

Wearable trainers and other sporty looks

Alexander Wang pumps it up at New York Fashion Week
The landscape of my imagination

The landscape of my imagination

Author Kate Mosse on the place that taught her to tell stories