ABSTRACT
Leeson spent Christmas 1994 in Ireland. He decided not to return to Barings but his wife Lisa persuaded him to reconsider and remain at least until the end of February 1995 to collect his £450,000 bonus payment (Leeson 1997). There was a problem waiting for Leeson when he returned. SIMEX had written to Simon Jones saying the margin account for customer positions was apparently underfunded by $100 million, and that, contrary to the rules, Barings was apparently financing margin payments on a customer account. Both allegations were true. Leeson had manipulated the accounts to reduce the amount of margin called by SIMEX (a sum that ultimately escalated to over £250 million). Moreover, Barings was indeed financing a customer – itself. Luckily for Leeson, Simon Jones did not inform Geoff Broadhurst, Barings’ Group Finance Director, about the letter. Instead he passed it to Leeson and demanded an explanation.
