JDS reprimands Barings' FD
Simon Jones, former boss of rogue trade Nick Leeson at the collapsed Barings Bank, has been severely reprimanded and ordered to pay costs for his 'inescapable personal responsibilities'.
A Joint Disciplinary Tribunal has ordered Jones, former finance director of Barings Futures, the Singapore-based subsidiary of Barings, to pay costs of £5,000 for his role in the collapse of Britain’s once most venerable bank.
Jones, 47, was appointed director of BFS on 18 May 1990 and later became finance director. The Tribunal made it clear that as a director of BFS, Jones was ultimately responsible for reviewing and deciding upon the company’s internal controls.
Such controls at BFS were deemed inadequate, allowing Leeson to control both the front and back offices in Singapore, according to the JDS report. Leeson carried out unauthorised trading amounting to £830m ultimately leading to the bank’s collapse.
A JDS appeal tribunal report is due soon after former co-auditors Coopers & Lybrand disputed the initial findings of a tribunal in November 1999.