Macro
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month values ▾
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec |
|---|---|---|---|---|---|---|---|---|---|---|---|
| +0.05 | -0.94 | +0.20 | +0.25 | +0.30 | +0.30 | +0.35 | -0.61 | -0.68 | +0.35 | +0.40 | -0.49 |
The finance sector absorbed a severe shock this month with the collapse of Barings, the UK’s oldest merchant bank, following massive losses from unauthorized Nikkei index futures trades by a rogue trader. Despite this negative event, overall sector sentiment edged slightly upward due to resilient interbank lending activity and steady credit growth in major economies, which offset some of the turmoil. The final read settled at +0.15, reflecting underlying stability in core banking functions amid high-profile institutional failure.
How this mood is scored ▾
Barings was declared insolvent after Singapore trader Nick Leeson ran up 827 million pounds of hidden losses on Nikkei futures, twice the bank's capital. The 233-year-old institution was sold to ING for one pound. The collapse forced a global overhaul of trading controls and derivatives risk management.
Chase Manhattan and Chemical Banking are merging in a $10 billion stock swap, creating the largest bank in the US with nearly $300 billion in assets. The deal, expected to yield $1 billion in cost savings, will consolidate operations and likely eliminate thousands of jobs, with Chemical's CEO Walter Shipley leading the combined entity. The new bank will retain the Chase Manhattan name and rank among the world's four largest banks.
Daiwa Bank concealed a $1.1 billion trading loss for years, leading US regulators to revoke its US banking license and pursue fraud charges against executives. The scandal highlights a clash between Japan's insular regulatory culture and US enforcement, undermining trust in Japanese financial institutions and intensifying calls for regulatory reform.