Abstracts » Business

Barings pays the price of ignoring warning signals

Article Abstract:

Analysts argue that the collapse of Barings reflects problems with the bank's management rather than the actions of an individual trader, Nick Leeson. Barings' management could have discovered the positions being built up by examining data from the Osaka Securities Exchange. Management appeared to have assumed that such positions were hedged. Leeson was permitted to settle his transactions himself, while settlement and trading tend to be separated by banks. This is another instance of lack of control.

Banking industry, Barings PLC

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Operation 'restore hope.' (challenges faced by SG Warburg; includes related article on handwriting of senior executives of the company)

Article Abstract:

SG Warburg faces problems following a failed merger with Morgan Stanley, and has lost key staff and issued profits warnings. The merchant bank's chairman is David Scholey who is perceived as a good leader. Job losses are likely and these could be some 500 though pessimistic forecasts are for up to 1,000 job losses. SG Warburg may sell part of its stake in Mercury Asset Management (MAM) in order to increase its presence in the US, which could be achieved through an acquisition.

Merchant banks, S.G. Warburg and Company Ltd.

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Costly exit

Article Abstract:

National Westminster Bank has sold most of the equity business of NatWest Markets for 179 million pounds sterling. Bankers Trust has acquired the pan-European equities business, while the equity derivatives business is being acquired by Deutsche Morgan Grenfell. NatWest Markets was moving toward a loss of 210 million pounds sterling for 1997. Following these sales, NatWest markets will consist of corporate advisory activities and the fixed-income business.

Mergers, acquisitions and divestments, National Westminster Bank PLC (London, England), NatWest Markets

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