January 25, 2008	Friday	Muharram 15, 1429

LONDON, Jan 24: The international banking system is as vulnerable to fraud as it ever was, infamous rogue trader Nick Leeson said on Thursday, adding that loopholes had not been closed after his 1995 scandal.

“It’s exactly the same story as Barings in 1995,” he told BBC television, commenting on a multi-billion-euro fraud at France's second bank, Societe Generale.

“They haven't closed down the loopholes. When you look at what the banks are trying to do, they focus on making the money. They’re not too interested in trying to save it.

“Not enough focus goes on those risk management areas,” he added.

Asked if the banking system remains vulnerable, he said: “It is as vulnerable as it was in my day. I just didn't believe that something of this magnitude would occur,” he added.

“Rogue trading happens probably on a daily basis. The banks don't like bringing it to the surface, because it will be a consumer confidence problem,” he said.

In 1995 it was discovered that Londoner Leeson had run up trading losses of over 850 million pounds (over $1.5bn) when he worked as a trader in the Singapore office of Barings Bank.

It equalled almost the entire assets of Barings, Britain's oldest merchant.

The bank was later bought for one pound by the Dutch banking and insurance group ING.

Leeson went on the run but was brought back to Singapore to face trial and served four years in prison. After his conviction Leeson wrote a bestseller, “Rogue Trader,” which was made into a film starring Ewan McGregor.—AFP