The collapse of Barings Bank in February 1995 was a huge shock to the financial world and led to a raft of regulatory investigations. In the immediate aftermath, the Board of Banking Supervision in the UK and inspectors appointed by the Singapore Ministry of Finance produced lengthy reports on the reasons for the collapse. Investigations were also carried out by the Accountants’ Joint Disciplinary Tribunal and the Department of Trade and Industry (DTI) brought disqualification proceedings under the Company Directors’ Disqualification Act, which resulted in the disqualification of a number of the former directors.
Proceedings were subsequently issued by the liquidators against the former auditors of Barings. Last month, following almost seven years of litigation, the High Court handed down its judgment on the liability of the auditors and on the extent of the responsibility of Barings’ management.
