NAB controls inadequate: Leeson

Notorious British rogue trader Nick Leeson said that National Australia Bank's two most senior executives failed to put adequate controls in place which led to the bank losing $360 million. Leeson, who destroyed Barings Investment Bank in 1995 with a 1.3-billion-pound market loss, also said it was correct for CEO Frank Cicutto and chairman Charles Allen to stand down over NAB's forex scandal. Leeson said he expected the PricewaterhouseCoopers report into the incident will show the NAB traders probably “fell into” rogue trading. They probably realised controls were poor and there were flaws in risk management but did not seek to exploit them, then got into a difficult situation and tried to dig themselves out, he said.