A rogue trader at Barings Bank convinced the bank's risk controllers that large unauthorized trades were necessary to hedge the bank's portfolios.

Management of Barings Bank failed to investigate the high level of reported profits that were associated with supposedly low-risk trading strategies.

Traders at Barings Bank traded primarily in OTC foreign currency swaps that allowed the bank to delay cash payments on losing trades.

Management of Barings Bank was not aware of the losses incurred by the bank until clients reported unusual losses on trades that were booked to their accounts.