1. Teams of 3 to 5 Assess a Current Ethical Situation. In March 1995, Nicholas Leeson, a 28-year-old trader in Singapore, allegedly helped precipitate bankruptcy of the 232-year-old British merchant banking firm of Barings P.L.C. While it was not one of the prime players of the British financial scene, Barings was a venerable banking firm, perhaps best known for overseeing the financial aspects of the Louisiana Purchase. Leeson got involved in mortgage derivatives and purchased an extraordinary number of futures contracts on the Nikkei stock exchange resulting in losses of over $1 billion. In December 1995, a Singapore court sentenced Leeson to 6 years and 6 months.

Activity: Teams research different aspects of the Barings P.L.C. bankruptcy and report the results of their research orally to the class.

Team 1—The background of the problem: Present facts about Barings and Leeson.

Team 2—The event: Describe the event that allegedly bankrupted the firm.

Team 3—The ethical dilemma: Identify the ethical issues in this case.

Team 4—The future: Explore ways of preventing a recurrence of this type of event.

Team 5—(in collaboration with Team 4) The decision: Choose one of the team’s suggestions and defend why it would be effective.