LONDON — Managers of Barings Bank, auditors and regulators all missed danger signals about trader Nick Leeson, whose losses brought down Britain's oldest merchant bank, an official inquiry reported Tuesday.
The Board of Banking Supervision laid the major blame on Leeson, so far the only person facing criminal charges, but did not rule out the possibility that other Barings' employees or outsiders broke the law. The bank collapsed in February.
Leeson, who is jailed in Germany while fighting extradition to Singapore, where he worked for Barings, refused to cooperate with the inquiry. His attorneys disputed some of the report's findings, but did not provide details, the report said.
Leeson faces fraud charges in Singapore.
Gordon Brown, Treasury spokesman for the opposition Labor Party, said the report was a "damning indictment of the Bank of England's whole approach to the supervision of the banking system," which relied too much on informal contact.