Original rogue trader - Nick Leeson

NICK LEESON: Let me tell you about losing billions - By NICK LEESON

When markets are going your way, the feeling is brilliant - more intoxicating than champagne, more exhilarating than sex. A successful trade makes you feel invincible.

But when things start to go wrong, you hide your losses and blithely try to carry on in the hope that you can recoup them.

You can't tell your colleagues that you've lost money - the macho ethics of the trading desk do not tolerate admissions of failure. You certainly can't tell your wife that your high-end life is at an end.

It is as if you are slipping into a personal abyss as the panic begin to eat at you.

The only way back is to bet more, risk more - and lose more until there is no hope of return.


Regrets: Trader Nick Leeson brought Barings Bank down in 1995 with fraud was jailed for six-and-a-half years

That's what I felt back in 1995. So I experienced a sickening twinge of recognition when I heard of Jerome Kerviel's £3.5billion loss at Societe Generale.

Here, I thought, was someone going through exactly what I had experienced.

When you are losing such vast sums of money, you try to carry on in the misguided belief that can beat the market for a couple of days. But, in the end, the market always breaks you.

Of course, you may have a few good days when the markets go in your favour and you are persuaded that you can make the money back.

You still think you can pull yourself out the nightmare and get back to a break-even position. But ultimately you are living on borrowed time.

To work in such fast-paced environments, the City attracts a certain obstinate and compulsive character - especially in the derivatives market where Kerviel and I worked.

The truth is that banks need people with confidence who enjoy taking risks - traders who are prepared to gamble by betting on futures which their rivals might be too to timid pursue.

Then there's the intensity of trading on electronic systems which hold you in a trance

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You are watching up to ten screens at a time for the smallest change in the numbers as they update themselves every second, as Kerviel would be doing monitoring the French and German indexes and their main stocks.

When things start to go wrong, the creeping, paralysing panic takes hold. At first, you just shut down your browsers and walk away and seek a bit of light relief.

It's as if you are in a parallel universe. In the false world outside your head, all is well; everyone's celebrating their good times, your wife and family are enjoying the fruits of your success.
in your private world of mental turmoil, there is only a gnawing fear.

You realise you are going to lose your job and everything that goes with it.

You are going to lose the respect of your family. You're probably facing time in jail.

You are juggling two totally opposite worlds, trying to keep the positive things alive.

Drink often becomes a way to escape, although not in my case.

A marriage ought to bring you back to reality. But the danger is that your wife is too heavily committed to the success story and the enjoyment of all its trappings.

How can you break it to your partner - and your kids if you have them - that the car's going to be returned, the house is going to be repossessed and that your name will be a byword for failure around the world?

You don't want to let them down - which makes it harder to face up to the truth and stop trading. Fortunately, I didn't have kids at the time, but I lost my wife.

I have since remarried and I'm grateful that my children grew up knowing the real me rather than the newspaper and film image.

One of the problems with success is that it creates a feeling of unthinking omnipotence.
Not only have you made millions for your bank and earned the admiration of your peers on the trading desk but you have also beaten hundreds of the smartest financial brains on the planet.
But at the back of everyone's mind who works the financial markets is an unspoken fear of failure.

Indeed, there are plenty of traders who go on to the trading floor after smoking cannabis to calm themselves down. Equally, the bank bosses never want to talk about risk systems or how they might avoid mistakes and save money.

They simply want to know how traders are going to make more millions. A bank's trading desk is like a tribe - the smartest and most powerful tribe in the financial house's building.

A perfect example of this sense of teamwork was the case of John Rusnak, a trader with a U.S. subsidiary of Allied Irish Banks who placed large oneway bets that the yen would rise against the dollar and lost £345million.

At the time, everyone bought into his success story and failed to spot the danger signs.
But the tribal loyalties are very frail. When in trouble, you cannot turn to someone close to you in the office for support. At the height of my losses while working for Barings, I remember coming back from Singapore to England and having a family dinner.

No one knew what was going on at that point. I kept sneaking away to be sick out of pure fear.
Telling my family the truth, I thought, would be far worse than returning to face the markets.
Although I eventually fled to Malaysia, Thailand and finally to Germany, I had still never admitted to anyone by the time I got off a plane at Frankfurt airport what I'd done. I never even told my wife, Lisa. Everyone had to read the truth in the newspapers.

This latest loss of £3.5billion is an awful lot of trouble to get yourself into. I do not believe that the losses were racked up over a short period. It took me three years. I also don't believe that no one knew that it was going on. For the bank to ignore that degree of exposure stretches credibility.

For me, I took 100 per cent of the blame for what happened at Barings. I knew what I was doing and I realised that I shouldn't be doing it. Traders are highly intelligent people and anyone who makes a mistake and claims they didn't know what they were doing is not being honest.

Of course I didn't know how catastrophic my actions would be for Barings and that I would destroy the bank. It was simply a case that the losses that I had incurred got so big that it was impossible to unwind.

It took me a long time to return to normal, to look at people I respected in the eye.
For years I avoided looking at stories about firms losing large sums of money - I just couldn't bear being reminded of the horror I'd been through.

Only now I can look back and try to understand what happened. It will, I predict, be a long time before Kerviel will be able to do the same

The Origins of Malay

All this while I knew about this matter....here's the truth


Prepared By Michael Chick

It's been interesting to read such free-flowing comments on the subject of the Origins of the Malays. While we are on the subject, how many of you have read the book entitled "Contesting Malayness - Malay Identity Across Boundaries" Edited by Timothy P. Barnard published by Singapore University Press?

Written by a Professor of National University of Singapore. It reflects the Anthropologists views that there is no such race as the "Malays" to begin with. If we follow the original migration of the Southern Chinese of 6,000yrs ago, they moved into Taiwan, (now the Alisan), then into the Phillipines (now the Aeta) and moved into Borneo (4,500yrs ago) (Dayak). They also split into Sulawesi and progressed into Jawa, and Sumatera. The final migration was to the Malayan Peninsular 3,000yrs ago. A sub-group from Borneo also moved to Champa in Vietnam at 4,500yrs ago.

Interestingly, the Champa deviant group moved back to present day Kelantan. There are also traces of the Dong Song and HoaBinh migration from Vietnam and Cambodia. To confuse the issue, there was also the Southern Thai migration, from what we know as Pattani today. (see also "Early Kingdoms of the Indonesian Archipelago and the Malay Peninsular")

Of course, we also have the Minangkabau's which come from the descendants of Alexander the Great and a West Indian Princess. (Sejarah Melayu page 1-3)

So the million Dollar Question... Is there really a race called the "Malays"?
All anthropologists DO NOT SEEM TO THINK SO. (strangely, this includes all Malay Malaysian Anthropologists who are of the same opinion.)

Neither do the "Malays" who live on the West Coast of Johor. They'd rather be called Javanese. What about the west coast Kedah inhabitants who prefer to be known as "Achenese"? or the Ibans who simply want to be known as IBANS. Try calling a Kelabit a "Malay" and see what response you get... you’ll be so glad that their Head-Hunting days are over.

(In an article in the Star, dated: Dec 3rd 2006)

An excerp is reproduced here below:

"The Malays – taken as an aggregation of people of different ethnic backgrounds but who speak the same language or family of languages and share common cultural and traditional ties – are essentially a new race, compared to the Chinese, Indians and the Arabs with their long histories of quests and conquests.

The Malay nation, therefore, covers people of various ethnic stock, including Javanese, Bugis, Bawean, Achehnese, Thai, Orang Asli, the indigenous people of Sabah and Sarawak and descendants of Indian Muslims who had married local women.

Beneath these variations, however, there is a common steely core that is bent on changing the Malay persona from its perceived lethargic character to one that is brave, bold and ready to take on the world. "

The definition of “Malay” is therefore simply a collection of people's who speak a similar type language. With what is meant by a similar type language does not mean that the words are similar. (A native Kelantanese native speaker has no clue whatsoever what his Iban native brother is talking about; if both speak their own dialect) Linguists however, call this the "Lego-Type" language, where words are added on to the root word to make meaning and give tenses and such.

Somehow, the Indonesians disagree with this "Malay" classification and insist instead on being called "Indonesians" even though the majority of "Malays" have their roots in parts of Indonesia. They refuse to be called "Malay"…. Anyhow you may define it.

The writer failed to identify (probably didn't know), that the "Malay" definition also includes, the Champa, Dong Song, HoabinHian, The Taiwanese Alisan and the Philippino Aetas. He also did not identify that the "Orang Asli" are (for lack of a better term) ex-Africans. If you try to call any one of our East Malaysian brothers an "Orang Asli", they WILL BEAT YOU UP! I had to repeat this because almost all West Malaysians make the same mistake when we cross the South China Sea.

Worse, somehow, they feel even more insulted when you call them “Malay”. Somehow, “kurang ajar” is uttered below their breath as if “Malay” was a really bad word for them. I’m still trying to figure this one out.

Watch “Malays in Africa”; a Museum Negara produced DVD. Also, the “Champa Malays” by the same.

With this classification, they MUST also include the Phillipinos, the Papua New Guineans, the Australian Aboroginies, as well as the Polynesian Aboroginies. These are of the Australo Melanesians who migrated out of Africa 60,000yrs ago.
Getting interesting? Read on...

"Malay" should also include the Taiwanese singer "Ah Mei" who is Alisan as her tribe are the anscestors of the "Malays". And finally, you will need to define the Southern Chinese (Southern Province) as Malay also, since they are from the same stock 6,000yrs ago.

Try calling the Bugis a "Malay". Interestingly, the Bugis, who predominantly live on Sulawesi are not even Indonesians. Neither do they fall into the same group as the migrating Southern Chinese of 6,000yrs ago nor the Australo Melanesian group from Africa.
Ready for this?

The Bugis are the cross-breed between the Mongolian Chinese and the marauding Arab Pirates. Interestingly, the Bugis, (just like their Arabic ancestors) were career Pirates in the Johor-Riau Island areas. Now the nephew of Daeng Kemboja was appointed as the First Sultan of Selangor. That makes the entire Selangor Sultanate part Arab, part Chinese! Try talking to the Bugis Museum curator near Kukup in Johor. Kukup is located near the most south-western tip of Johor. (Due south of Pontian Kechil) He is more than willing to expound on the Bugis heritage. Buy him lunch and he can talk for days on end.

Let's not even get into the Hang Tuah, Hang Jebat, Hang Kasturi, Hang Lekiu, and Hang Lekir, who shared the same family last name as the other super famous "Hang" family member... Hang Li Poh. And who was she? Legend tells us that she is the Princess of a Ming Dynasty Emperor who was sent to marry the Sultan of Malacca. Won't that make the entire Malacca Sultanate downline "Baba"? Since the older son of the collapsed Malaccan Sultanate got killed in Johor, (the current Sultanate is the downline of the then, Bendahara) the only other son became the Sultan of Perak. Do we see any Chinese-ness in Raja Azlan? Is he the descendant of Hang Li Poh? But wait a minute....

That's what legend says. Let's look at the proof. The solid evidence. There is a well next to the Zheng He Temple in Malacca which is supposed to be the well built by the Sultan of Malacca for Hang Li Poh. According to legend, anyone who drinks of it shall re-visit Malacca before they die. Hmmm smells like a romantic fairy tale already. But let's look at who Hang Li Poh actually is. Which Ming Emperor was she a daughter to? So I got into researching the entire list of Ming Emperors.

Guess what? Not a single Ming Emperor's last name begins with Hang. In fact, all their last names begin with Tzu (pronounced Choo). So who is Hang Li Poh? An Extra Concubine? A Spare Handmaiden? Who knows? But one thing for certain, is that she was no daughter of any of the Ming Emperors. Gone is the romantic notion of the Sultan of Malacca marrying an exotic Chinese Princess. Sorry guys, the Sultan married an unidentified Chinese commoner.

Next question. If the Baba’s are part Malay, why have they been marginalized by NOT BEING BUMIPUTERA? Which part of “Malay” are they not? Whatever the answer, why then are the Portugese of Malacca BUMIPUTERA? Did they not come 100yrs AFTER the arrival of the first Baba’s? Parameswara founded Malacca in 1411.

The Portugese came in 1511, and the Dutch in the 1600’s. Strangely, the Baba’s were in fact once classified a Bumiputera, but some Prime Minister decreed that they were to be strangely “declassified” in the 1960’s. WHY? How can a "native son of the soil" degenerate into an "un-son"? The new classification is "pendatang" meaning a migrant to describe the Baba's and Nyonyas. Wait a minute, isn't EVERYONE on the Peninsular a migrant to begin with? How can the government discriminate? Does the Malaysian Government have amnesia?

The Sultan of Kelantan had similar roots to the Pattani Kingdom making him of Thai origin. And what is this "coffee table book" by the Sultan of Perlis claiming to be the direct descendant of the prophet Muhammed? Somehow we see Prof Khoo Khay Khim’s signature name on the book. I’ll pay good money to own a copy of it myself. Anyone has a spare?

In pursuing this thread, and having looked at the history of Prophet Muhammed (BTW, real name Ahmad) we couldn't figure out which descendant line The Sultan of Perlis was. Perhaps it was by the name Syed, which transcended. Then we tried to locate which downline did the Sultan descend from of the 13 Official Wives of Prophet Muhammad named in the Holy Koran? Or was the Sultan of Perlis a descendant from the other 23 non-wives? Of the 13 Official Wives were (at least known) 3 Israeli women.

Then you should come to this instant revelation, isn't Prophet Muhammad an Israeli himself? Yes, the answer is clear. All descendants of Moses are Israeli. In fact, the Holy Koran teaches that Moses was the First Muslim. Thus confirming all the descendants of Moses to be Israeli, including Jesus and Prophet Muhammad. But since this is not a Religious or a Theological discussion, let's move on to a more anthropological approach.

So, how many of you have met with the Orang Asli’s (Malaysian Natives)? The more northern you go, the more African they look. Why are they called Negrito’s? It is a Spanish word, from which directly transalates “mini Negros”. The more southern you go, the more “Indonesian” they look. And the ones who live at Cameron Highlands kinda look 50-50. You can see the Batek at Taman Negara, who really look like Eddie Murphy to a certain degree. Or the Negritos who live at the Thai border near Temenggor Lake (north Perak). The Mah Meri in Carrie Island look almost like the Jakuns in Endau Rompin. Half African, half Indonesian.

Strangely the natives in Borneo all look rather Chinese in terms of features and facial characteristics especially the Kelabits in Bario.

By definition, (this is super eye-opening) there was a Hindu-Malay Empire in Kedah. Yes, I said right… The Malays were Hindu (just like the gentle Balinese of today). It was known by its’ old name, Langkasuka. Today known as Lembah Bujang. This Hindu-Malay Empire was 2,000yrs old. Pre-dating Borrobudor AND Angkor Watt. Who came about around 500-600yrs later. Lembah Bujang was THE mighty trading Empire, and its biggest influence was by the Indians who were here to help start it. By definition, this should make the Indians BUMIPUTERAS too since they were here 2,000yrs ago! Why are they marginalized?

The Malaysian Government now has a serious case of Alzheimer's. Why? Simply because, they would accord the next Indonesian who tomorrow swims across the Straits of Malacca and bestow upon him with the apparently "prestigious title" of the Bumiputra status alongside others who imply have inhabited this land for hundreds of centuries. (prestigious, at least perceived by Malays) They also have a strange saying called "Ketuanan Melayu" which literally transalates into "The Lordship of Malays" The Malays still cannot identify till this day "who" or "what" the Malays have "Lordship" over.

And they celebrate it gallantly and triumphantly by waving the Keris (wavy knife which has Hindu origins in Borrobudor. Ganesan is seen brandishing the Keris in a bass-relief sculpture.) during public meetings over National TV much like a Pagan Wicca Ceremony on Steroids. Let's all wait for that official press release to see who the "Malays" have Lordship over, shall we?

Of the 3 books listed, "Contesting Malayness" (about S$32 for soft cover) is "banned” in Malaysia; you will need to "smuggle" it into Malaysia; for very obvious reasons.... :( or read it in Singapore if you don’t feel like breaking the law. Incidentally, the Professor (Author) was invited to speak on this very subject circa 2 yrs ago, in KL, invited by the MBRAS. You can imagine the "chaos" this seminar created... :( Fortunately the FRU was not called in.

The other, "Kingdoms of the Indonesian Archipelago, and the Malay Peninsular" (about RM84) are openly sold at all leading bookshops; Kinokuniya, MPH, Borders, Popular, Times, etc. You should be able to find a fair bit of what I’ve been quoting in this book too, but mind you, it is extremely heavy reading material, and you will find yourself struggling through the initial 200+ pages. It is extremely technical in nature. Maybe that’s why it hasn’t been banned (yet)…coz our authorities couldn’t make head or tail of it? (FYI, if I weren’t doing research for my film, I wouldn’t have read it in its entirety)

The "Sejarah Melayu" (about RM 50) however, is freely available at the University Malaya bookshop. I have both the English and Royal Malay version published by MBRAS. Alternatively, you could try reading the Jawi (Arabic Script) version if you are truly a sucker for unimaginable pain...... (may feel like circumcision)

There are actually many sources for these Origins of Malays findings. Any older Philippino Museum Journal also carries these migration stories. This migration is also on display at the Philippines National Museum in Luzon. However, they end with the Aeta, and only briefly mention that the migration continued to Indonesia and Malaysia, but fully acknowledge that all Philippinos came from Taiwan. And before Taiwan, China.

There is another book (part of a series) called the "Archipelago Series" endorsed by Tun Mahatir and Marina Mohammad, which states the very same thing right at the introduction on page one. “… that the Malays migrated out of Southern China some 6,000yrs ago…”. I believe it is called the “Pre-History of Malaysia” Hard Cover, about RM99 found in (mostly) MPH. They also carry “Pre-History of Indonesia” by the same authors for the same price.

It is most interesting to note that the Malaysian Museum officials gallantly invented brand new unheard-of terms such as "Proto-Malay" and "Deutero-Malay", to replace the accepted Scientific Term, Australo-Melanesians (African descent) and Austronesians (Chinese Descent, or Mongoloid to be precise) in keeping in line with creating this new “Malay” term.. They also created the new term called the Melayu-Polynesian. (Which Melayu exists in the Polynesian Islands?) Maybe they were just trying to be “Patriotic” and “Nationalistic”… who knows…? After all, we also invented the term, “Malaysian Time”.

While the rest of the world calls it “Tardy” and “Late”. It’s quite an embarrassment actually…. Singaporeans crossing the border are asked to set their watches back by about a 100yrs, to adjust to “Malaysian Time”…

In a nutshell, the British Colonial Masters, who, for lack of a better description, needed a “blanket” category for ease of classification, used the term “Malay”.

The only other logical explanation, which I have heard, was that “Malaya” came as a derivative of “Himalaya”, where at Langkasuka, or Lembah Bujang today was where the Indians were describing the locals as “Malai” which means “Hill People” in Tamil. This made perfect sense as the focal point at that time was at Gunung Jerai, and the entire Peninsular had a “Mountain Range” “Banjaran Titiwangsa”, as we call it.

The Mandarin and Cantonese accurately maintain the accurate pronunciation of “Malai Ren” and “Malai Yun” respectively till this very day. Where “ren” and “yun” both mean “peoples”.

Interestingly, “Kadar” and “Kidara”, Hindi and Sanskrit words accurately describe “Kedah” of today. They both mean “fertile Land for Rice cultivation. Again, a name given by the Indians 2,000yrs ago during the “Golden Hindu Era” for a duration of 1,500yrs.

It was during this “Golden Hindu Era” that the new term which the Hindu Malay leaders also adopted the titles, “Sultan” and “Raja”. The Malay Royalty were Hindu at that time, as all of Southeast Asia was under strong Indian influence, including Borrobudor, and Angkor Watt. Bali today still practices devout Hindu Beliefs.

The snake amulet worn by the Sultans of today, The Royal Dias, and even the “Pelamin” for weddings are tell-tale signs of these strong Indian influences. So, it was NOT Parameswara who was the first Sultan in Malaya. Sultanage existed approximately 1,500yrs in Kedah before he set foot on the Peninsular during the "Golden Hindu Era" of Malaysia. And they were all Hindu.

“PreHistory of Malaysia” also talks about the “Lost Kingdom” of the “Chi-Tu” where the local Malay Kingdom were Buddhists. The rest of the “Malays” were Animistic Pagans.

But you may say, "Sejarah Melayu" calls it "Melayu"? Yes, it does. Read it again; is it trying to describe the 200-odd population hamlet near Palembang by the name "Melayu"?(Google Earth will show this village).

By that same definition, then, the Achehnese should be considered a “race”. So should the Bugis and the Bataks, to be fair. Orang Acheh, Orang Bugis, Orang Laut, Orang Melayu now mean the same… descriptions of ethnic tribes, at best. So some apparently Patriotic peron decided to upgrade the Malays from Orang Melayu (Malay People) to Bangsa Melayu (Malay Race) Good job in helping perpetuate the confusion.

And since the “Malays” of today are not all descendants of the “Melayu” kampung in Jambi (if I remember correctly), the term Melayu has been wrongly termed. From Day One. Maybe this is why the Johoreans still insist on calling themselves either Bugis, or Javanese til today (except when it comes to receiving Government Handouts). So do the Achehnese on the West coast of Kedah & Perlis and the Kelantanese insist that they came from Champa, Vietnam.

Moreover, the fact that the first 3 pages of "Sejarah Melayu" claim that "Melayu" comes from Alexander the Great and the West Indian Princess doesn't help. More importantly, it was written in 1623. By then, the Indians had been calling the locals “Malai” for 1,500 yrs already. So the name stuck….

And with the Sejarah Melayu (The Malay Annals in page 1-3) naming the grandson of Iskandar Zulkarnain, and the West Indian Princess forming the Minangkabau. Whenever a Malay is asked about it, he usually says it is "Karut" (bullshit), but all Malayan based historians insist on using Sejarah Melayu as THE main reference book for which "Malay" history is based upon. The only other books are “Misa Melayu”, "Hikayat Merong Mahawangsa", "Hikayat Pasai", "Hikayat Raja-Raja Siak" and “Hikayat Hang Tuah” among others; which sometimes brings up long and “heated” discussions.

Interesting to note is one of the great "Malay" writers is called Munsyi Abdullah; who penned "Hikayat Abdullah" He was an Indian Muslim. Let's re-read that little bit. He was an Indian Muslim. How can an Indian change his race to be a Malay? He can change his shirt, his car, his religion and even his underwear, but how can anyone change his race? This must be The New Trick of the Century, which even David Copperfield will pay lots of money to watch (and perhaps learn).

"Mysterious Race Changing Trick"- created by The Malaysian Government.

Still, Malaysians are still only second to the Jews (who by the way, are the only other people in the world who are defined by a religion) So perhaps David Copperfield has yet to learn a few tricks on the mass deception skills of the Malaysian Government?
Malaysia Boleh...

I find this strange.

I also find, that it is strange that the "Chitti's" (Indian+Malay) of Malacca are categorized as Bumiputera, while their Baba brothers are not. Why? Both existed during the Parameswara days. Which part of the “Malay” side of the Baba’s is not good enough for Bumiputera classification? Re-instate them. They used to be Bumiputera pre 1960’s anyway.

Instead of "Malay", I believe that "Maphilindo" (circa 1963) would have been the closest in accurately trying to describe the Malays. However, going by that definition, it should most accurately be "MaphilindoThaiChinDiaVietWanGreekCamfrica". And it is because of this; even our University Malaya Anthropology professors cannot look at you in the eye and truthfully say that the word "Malay" technically and accurately defines a race.

This is most unfortunate.

So, in a nutshell, the “Malays” (anthropologists will disagree with this “race” definition) are TRULY ASIA !!! For once the Tourism Ministry got it right….

We should stop calling this country “Tanah Melayu” instead call it, “Tanah Truly Asia”

You must understand now, why I was "tickled pink" when I found out that the Visit Malaysia slogan for 2007 was "Truly Asia". They are so correct... (even though they missed out Greece, and Africa)

BTW, the name UMNO should be changed to UTANO the new official acronym for “United Truly Asia National Organization” . After all, they started out as a Bugis club in Johor anyway….
I told you all that I hate race classifications…. This is so depressing. Even more depressing is that the "malays" are not even a race; not since day one.

“Truly Asia Boleh”