Leeson’s lesson

«The government didn’t see it coming. The central bank didn’t see it coming. And you have to ask yourself, why?» Those were the words this week of Nick Leeson, the trader who in 1995 sank Barings Bank, a 200-year old institution. Old Nick knows a thing or two about naughty boys and the damage they can do. Unfortunately, as he says, neither governments nor central banks saw what was coming. Markets were too loosely regulated. Problems gathered – and exploded. Now tax-payers must pay to keep a fin...