Two top men at Barings resign

Peter Baring and Andrew Tuckey, chairman and deputy chairman of Barings, resigned yesterday, assuming formal responsibility for failing to spot the disastrous derivatives speculation that bust Britain's oldest merchant bank in February.

They are the first departures since Barings was bought by ING, the Dutch bank, but more senior executives are expected to leave once the Bank of England has completed its investigation into the events leading up to the bank's collapse.

Confidential internal documents handed to the investigators and acquired by the Independent reveal failures by senior management to act on concerns about the derivatives speculation of Nick Leeson in Barings' Singapore office. The documents reveal that worries about insufficient trading details were raised frequently but never acted on. Concerns were relayed to all levels of Barings managment, with executives sent to Singapore to investigate, but there was never a considered response until it was too late.

Reports were commissioned, and in effect ignored, as were internal auditors' calls made as far back as August 1994 for an immediate change in Mr Leeson's responsibilities in Singapore.

As well as the Bank of England investigation, inquiries are being conducted by the Securities and Futures Authority and the Serious Fraud Squad.

ING has previously said it would not push for resignations, but would await completion of the inquiries. Peter Baring and Andrew Tuckey had offered their resignations to ING on the day the Dutch took over, but were asked to stay on to smooth the handover. The two men apparently insisted on being able to depart at the first opportunity as a matter of honour.

While Mr Baring, aged 59, is expected to retire from the City, Mr Tuckey, aged 51, who once harboured ambitions of high office, even at the Bank of England, is believed to be interested in a return to Barings should his name be cleared. Hessel Lindebergh, an ING director now in charge of Barings, said: "We accept fully that they have made their decision on the basis of honour and principle."

Mr Baring and Mr Tuckey said in a joint statement: "With the new owners of Barings and with the individual businesses in the group returning to normal, ING and we have agreed that the time has come for us to resign. We have spent most of our professional lives with Barings and we view with great sadness and regret the events of recent weeks."

The Bank of England's investigation, the fact-gathering part of which is expected to be completed next month, is focusing on the extensive failure of controls that enabled Mr Leeson to build up undetected his massive derivatives speculation, which led to losses of around £850m.

A number of former senior executives, including those directly responsible in London for Mr Leeson, and some on Baring's special group committee for assessing risk, have not been appointed to the management of the new Barings by the Dutch owners. These people are no longer involved in the daily business, and are helping the authorities with their inquiries.

The main individuals involved are Peter Norris, the former head of Barings Securities; Ronald Baker, the head of the financial products group and Mr Leeson's direct London boss; Tony Hawes, the group treasurer; Ian Hopkins, the head of group control; and Geoffrey Broadhurst, finance director of Barings Securities.

Comment, page 25

Start your day with The Independent, sign up for daily news emails
Arts and Entertainment
Attenborough with the primates
tvWhy BBC producers didn't want to broadcast Sir David Attenborough's famed Rwandan encounter
News
Campbell: ‘Sometimes you have to be economical with the truth’
newsFormer spin doctor says MPs should study tactics of leading sports figures like José Mourinho
Sport
football
Life and Style
Agretti is often compared to its relative, samphire, though is closer in taste to spinach
food + drink
News
Kelly Osbourne will play a flight attendant in Sharknado 2
people
News
Down-to-earth: Winstone isn't one for considering his 'legacy'
people
News
The dress can be seen in different colours
i100
Sport
Wes Brown is sent-off
football
Voices
Lance Corporal Joshua Leakey VC
voicesBeware of imitations, but the words of the soldier awarded the Victoria Cross were the real thing, says DJ Taylor
Life and Style
Alexander McQueen's AW 2009/10 collection during Paris Fashion Week
fashionMeet the collaborators who helped create the late designer’s notorious spectacles
ebooks
ebooksA special investigation by Andy McSmith
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

SThree: HR Benefits Manager

£40000 - £50000 per annum + pro rata: SThree: SThree Group have been well esta...

Recruitment Genius: Office Manager / Financial Services

£30000 - £37000 per annum: Recruitment Genius: Established in 1999, a highly r...

Jemma Gent: Year End Accountant

£250-£300 Day Rate: Jemma Gent: Are you a qualified accountant with strong exp...

Jemma Gent: Management Accountant

£230 - £260 Day Rate: Jemma Gent: Do you want to stamp your footprint in histo...

Day In a Page

War with Isis: Fears that the looming battle for Mosul will unleash 'a million refugees'

The battle for Mosul will unleash 'a million refugees'

Aid agencies prepare for vast exodus following planned Iraqi offensive against the Isis-held city, reports Patrick Cockburn
Yvette Cooper: We can't lose the election. There's too much on the line

Yvette Cooper: We can't lose the election. There's too much on the line

The shadow Home Secretary on fighting radical Islam, protecting children, and why anyone in Labour who's thinking beyond May must 'sort themselves out'
A bad week for the Greens: Leader Natalie Bennett's 'car crash' radio interview is followed by Brighton council's failure to set a budget due to infighting

It's not easy being Green

After a bad week in which its leader had a public meltdown and its only city council couldn't agree on a budget vote, what next for the alternative party? It's over to Caroline Lucas to find out
Gorillas nearly missed: BBC producers didn't want to broadcast Sir David Attenborough's famed Rwandan encounter

Gorillas nearly missed

BBC producers didn't want to broadcast Sir David Attenborough's famed Rwandan encounter
Downton Abbey effect sees impoverished Italian nobles inspired to open their doors to paying guests for up to €650 a night

The Downton Abbey effect

Impoverished Italian nobles are opening their doors to paying guests, inspired by the TV drama
China's wild panda numbers have increased by 17% since 2003, new census reveals

China's wild panda numbers on the up

New census reveals 17% since 2003
Barbara Woodward: Britain's first female ambassador to China intends to forge strong links with the growing economic superpower

Our woman in Beijing builds a new relationship

Britain's first female ambassador to China intends to forge strong links with growing economic power
Courage is rare. True humility is even rarer. But the only British soldier to be awarded the Victoria Cross in Afghanistan has both

Courage is rare. True humility is even rarer

Beware of imitations, but the words of the soldier awarded the Victoria Cross were the real thing, says DJ Taylor
Alexander McQueen: The catwalk was a stage for the designer's astonishing and troubling vision

Alexander McQueen's astonishing vision

Ahead of a major retrospective, Alexander Fury talks to the collaborators who helped create the late designer's notorious spectacle
New BBC series savours half a century of food in Britain, from Vesta curries to nouvelle cuisine

Dinner through the decades

A new BBC series challenged Brandon Robshaw and his family to eat their way from the 1950s to the 1990s
Philippa Perry interview: The psychotherapist on McDonald's, fancy specs and meeting Grayson Perry on an evening course

Philippa Perry interview

The psychotherapist on McDonald's, fancy specs and meeting Grayson Perry on an evening course
Bill Granger recipes: Our chef recreates the exoticism of the Indonesian stir-fry

Bill Granger's Indonesian stir-fry recipes

Our chef was inspired by the south-east Asian cuisine he encountered as a teenager
Chelsea vs Tottenham: Harry Kane was at Wembley to see Spurs beat the Blues and win the Capital One Cup - now he's their great hope

Harry Kane interview

The striker was at Wembley to see Spurs beat the Blues and win the Capital One Cup - now he's their great hope
The Last Word: For the good of the game: why on earth don’t we leave Fifa?

Michael Calvin's Last Word

For the good of the game: why on earth don’t we leave Fifa?
HIV pill: Scientists hail discovery of 'game-changer' that cuts the risk of infection among gay men by 86%

Scientists hail daily pill that protects against HIV infection

Breakthrough in battle against global scourge – but will the NHS pay for it?