The main reason why Jester remembers this matter so clearly is that this sudden incident caused the bank to collapse.

This bank is an established bank with a century-old history.

Bahrain Bank.

You should know that Bahrain Bank is not an ordinary bank like Ahmao and Ah Dog. It is a truly old aristocratic bank with a profound historical heritage. The richest woman in the world. Her Majesty the Queen of England, Elizabeth II, also trusts this bank very much and often gives his financial business to this bank for management. It can be said that in the entire financial industry, although Bahrain Bank is not as rich as the four major investment banks in the United States, its influence is not weak at all.

In 1763, Sir Francis Bahrain founded the Bahrain Bank in London. It was the world's first "commercial bank" that provided funds and relevant advice to customers, and also did business by themselves.

Of course, it also has to bear the risk of buying and selling stocks, land or coffee like other merchants. Due to its flexible and innovative operations, Bahrain Bank quickly achieved great success in the field of international finance. Its business scope is also quite wide. Whether it is to refining copper mines in Congo, selling wool from Australia, or digging the Panama Canal, Bahrain Bank can provide loans for it. However, unlike ordinary commercial banks, Bahrain Bank does not develop ordinary customer deposit business, so its source of funds is relatively limited and can only rely on its own strength to survive and develop.

When the newly born United States bought the southern state of Louisiana from France in 1803, all the funds came from the Bank of Bahrain. Although the Bank of Bahrain had a strong rival, a Jewish-run Roschert Bank, Bahrain was also the bank of choice for governments, major companies and many customers.

In 1886, the Bank of Bahrain issued "Guinness" securities. The buyers rushed into the bank with application forms like a tide. Later, they had to use police force to maintain it. Many people lined up for a few hours and bought a small amount of stocks and waited for an opportunity to sell them. By the time they were sold out the next day, the stock price had doubled.

In the early 20th century, the Bahrain Bank was honored to have a special client: the British royal family. Due to the outstanding contribution of the Bahrain Bank, the Bahrain family successively won five hereditary titles. This can be regarded as a world record, thus laying the foundation for the prominent status of the Bahrain Bank.

Jester remembers that when news of the bankruptcy of Bahrain Bank broke out, it immediately caused a series of strong fluctuations in the financial circles of Asia, Europe and America. The exchange rate of the pound against Mark in Tokyo fell to its lowest point in the past two years, and the London stock market also plummeted, and the Dow Jones index in New York fell by 29 percentage points. However, from this point, it can be seen how much influence the bank has in the financial circle around the world.

Many people have many ways to analyze the reasons for the bankruptcy of Bahrain.

Some analyses, even most analyses, will blame Nick Lisen for the bankruptcy of Bahrain, but Jester personally thinks that this kind of blame is unreasonable. At least, the most important reason cannot be taken into account in this matter. Rather than saying this, it is caused by the inadequate supervision of Bahrain Bank itself.

Nick Lisen is not an ordinary person. He is a "genius trader" in the international financial industry. He was once the general manager and chief trader of Bahrain Futures Company in Singapore. He is known for his stability and boldness. In the futures market, he is known as the "invincible Lisen". In other words, Bahrain gives him quite a lot of authority because his ability is indeed very high and he can indeed make a lot of money for his employer.

So how exactly did the entire Bahrain Bank happen?

In fact, it is very simple. Because of the Plaza Agreement, at the turn of the 1990s and 1980s, Japan passed the craziest short-term money like dirt, and taxi started to start at one million yen, and soon the competition began to decline. However, in 1994, Japan's economy actually showed signs of recovery, which is also a consensus among many people in the financial industry.

Nick Lisen has caused a large amount of deficits to the company due to some of his own internal operations, with an amount of up to 50 million pounds. He must do everything possible to make up for this deficit.

So, this time the Bahrain incident occurred.

No matter what transaction you make, errors are inevitable, but the key is how you deal with these errors.

This is especially true in futures trading. For example, some people mistakenly call the "buy" gesture as the "sell" gesture, some people purchase the contract at the wrong price, some people may not be cautious enough, some people may have bought the June futures but bought the March futures, etc. Once the error is made, it will cause losses to the bank. After these errors, the bank must handle it quickly and properly. If the error cannot be recovered, the only feasible way is to transfer the error to an account on the computer called the "error account" and then report it to the bank headquarters.

When Li Sen was a futures trader in Singapore in 1992, Bahrain Bank originally had an "error account" with an account number "99905", which specifically dealt with errors caused by negligence during the transaction process. This was originally a normal error account during the operation of a financial system. In the summer of 1992, Gotton Bowser, who was in charge of liquidation at the London headquarters, called Li Sen and asked Li Sen to set up another "error account" to record smaller errors, and handled them in Singapore by himself to avoid trouble in London's work.

So Li Sen immediately found Lissel, who was in charge of office liquidation, and asked her if she could establish another file. Soon, Lissel typed some commands on the computer and asked him what account he needed. In Chinese culture, "8" is a very auspicious number, so Li Sen used this as his auspicious number. Since the account must be five digits, the "wrong account" with the account number "88888" was born.

A few weeks later, the London headquarters called again, and the headquarters had a new computer, requiring the Singapore branch to act according to the old rules, and all error records were still reported directly to London by the "99905" account.

The wrong account "88888" was just established and was put aside, but it became a real "wrong account" and stored in the computer. Moreover, the headquarters had noticed that there were many errors in the Singapore branch at this time. But Li Sen cleverly passed by. The ignored account "88888" provides Li Sen the opportunity to create fake accounts in the future. If this account was cancelled at that time, Bahrain's history might have been rewritten.

On July 17, 1992, a trader under Li Sen, who joined Bahrain for only one week, made a mistake: When Fuji Bank asked to buy 20 Nikkei futures contracts, the trader mistakenly sold 20 shares. This error was discovered when Li Sen was conducting liquidation work that night.

To correct this error, 40 contracts must be purchased, indicating that the closing price of the day will be calculated, and the loss will be 20,000 pounds and should be reported to the London Corporation.

But after various considerations, Li Sen decided to use the wrong account "88888" to undertake 40 Nikkei futures short contracts to cover up this mistake. However, in this way, the transactions made by Li Sen became "owners' transactions", exposing the Bahrain Bank to the risky area under this account. A few days later, due to the Nikkei rising by 200 points, the loss of this short area increased from 20,000 pounds to 60,000 pounds. You should know that Li Sen's annual salary was less than 50,000 pounds at that time.

At this time, Lison dared not report this mistake to the upper hand.

With more and more similar internal operations, Nick Lisen saved more and more deficits in this 8888 account, reaching 50 million pounds at most, which also attracted the attention of the Bahrain Bank headquarters. They conducted additional investigations on Nick Lisen several times, but they were all handled by him using very clever means.

For example, Nick Lisen knew that Bahrain Bank rarely checked the accounts of real big customers, such as Citibank. So he made a fake account with a deposit of 50 million pounds to deal with the headquarters' investigation of him, successfully concealing his huge losses of up to 50 million pounds in his 88888 account.

However, he also knew that he could not hide it like this forever. He had to do everything possible to fill in the 50 million pounds deficit.

With his annual salary of 50,000 pounds plus a bonus of 100,000 pounds, it was impossible for him to do this.

Therefore, he had to reach his hands into the company's account.

Nick Lisen also saw the Japanese market at this time. He keenly felt that the Japanese economy has begun to emerge from recession and the stock market will have a big upward trend. So he bought a large number of Nikkei 225 index futures contracts and call options. However, "human calculations are not as good as heaven calculations", and things went against their wishes. On January 16, 1995, the Hanshin earthquake in Kansai, Japan, and the stock market plummeted. Lisen's long positions suffered heavy damage, with losses of up to 210 million pounds.

£210 million is an astronomical figure for ordinary people. However, for old investment banks like Bahrain Bank, this figure is huge, but it is still within its tolerance range and will not shake the Bahrain Bank's position in the financial world. However, such a huge loss cannot shake the Bahrain Bank's loss, but it is enough to shake Nick Lisen, a promising trader, in Bahrain Bank, and even in the entire financial world.

Just imagine, if this matter is just done, he admitted the loss of more than 200 million pounds, and the fake accounts in the 88888 fake account he had done before would be exposed, then the reputation and honor he had accumulated before would disappear all at once. Not only would the Bahrain Bank no longer give him the previous transcendent status, but he would even directly let him go to prison, facing countless years of imprisonment. The consequence of this is that his entire financial circle will become infamous in the entire trader circle in the future.

Losing the chance to survive.

After he was released from prison, no one would even hire him.

Who dares to hire a trader who has caused 200 million pounds at one time due to private transactions?

Do you think you are too rich?

So, Nick Lisen made a big bet. This big bet was carried out by him behind the Bahrain Bank. With his genius mind, he keenly judged that the Nikkei index would definitely rebound, so in order to turn defeat into victory, he once again added a large number of positions to Nikkei 225 futures contracts and interest rate futures contracts, with a total position reaching more than 100,000 lots.

You should know that this is a futures contract that has been amplified by the "leverage effect". When the Nikkei 225 index fell below 18,500 points, every drop of a little, Mr. Li Sen's position would lose more than two million US dollars.

"Things tend to move in the worst direction", this is a summary of strong theories.

On February 24, when the Nikkei Index accelerated its plunge again, the position losses of the Bahrain Futures Company where Li Sen is located are close to the sum of the capital and reserves of the entire Bahrain Bank Group. There is no channel for financing, and the losses are irreparable. Li Sen fled for fear of guilt.

The bank Bahrain is facing a disaster of destruction, and the chairman of the bank had to turn to the Bank of England in hope of saving the situation. However, the loss at this time had reached US$1.4 billion, and with the continued decline of the Nikkei 225 index, the losses will further expand. Therefore, no financial institutions in all parties dared to help Bahrain, the former VIP, and the bank Bahrain went bankrupt since then.

Of course, Nick Lisen does bear great responsibility for this matter, but it is definitely not the real reason for the bankruptcy of Bahrain.

The real reason is that one has encountered force majeure. If it weren't for the tsunami-like collapse of the Nikkei Index caused by the Hanshin earthquake, then the Bahrain Bank would not have gone bankrupt. Nick Lisen could have successfully filled the 88888 deficit, and even made a lot of money.

After all, optimism about Nikkei was a trend in the world's financial circle at that time.

The Nikkei did make great progress at that time.

Without the emergencies of the Hanshin Earthquake, I dare not say how much Nikkei can rise, but it will definitely rise.

Although Jester thought of the Hanshin earthquake, there was also a problem here, which was force majeure and an emergency. He could not use his prescient ideas to convince Sandy Will to participate in this gambling. After all, in the eyes of others, he only had prescient ideas, but he was definitely not a power to predict the future.

When everyone is optimistic that the Nikkei will improve, I am bearish by myself. The most important thing is that Japan has not exposed too serious problems now, and I am not the king of short selling Soros, so I will definitely be ridiculed.

The most important thing is that ridicule is not the most critical thing. The most critical thing is because this thing would not have happened if it weren't for the Hanshin earthquake.

However, if you do this yourself, it is indeed a huge opportunity to make a fortune.

At least a few billion dollars of profits are in front of you.

This is almost all of my current property.
Chapter completed!