This post is part of a series on some of the most memorable companies that have disappeared.

I credit Nick Leeson for creating jobs for lots of my friends. Back in 1995, when he single-handedly brought down Barings Bank with currency trading run amok, I had never heard the term "risk management." But I soon started hearing right and left of friends getting highly paid jobs at financial firms in the "risk management" department.

Apparently, after Mr. Leeson lost $1.4 billion dollars in unauthorized trading rendering Barings insolvent, financial institutions around the world decided to put in more rigorous systems of checks and balances that would keep such things from happening. Hence, newly expanded risk management departments.

Founded in 1762, Barings Bank was the oldest merchant bank in London, financed the Napoleonic Wars, and was the Queen of England's own bank.

Continue reading Companies that vanished: Barings brought down by rogue trader

Companies that vanished: Barings brought down by rogue trader originally appeared on BloggingStocks on Tue, 10 Jun 2008 12:40:00 EST. Please see our terms for use of feeds.