Barings Bank collapse (1995)
Nick Leeson, a trader at Barings Bank, made unauthorized derivatives trades that lost $1.3 billion, bankrupting the 233-year-old bank. The bank was sold for £1.
Barings Bank collapsed and was acquired by ING Group.
The case became a textbook example of how a single rogue employee can bring down an entire institution.
Like Roxy's Arcade, a trusted insider's hidden actions caused a business to fail, showing how lack of oversight can be catastrophic regardless of size.
