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The case discusses how Nicholas William Leeson''s (Leeson) unauthorised trading in derivatives led to the fall of Barings Bank, the oldest and one of the most reputed banks in the UK. It describes the complete sequence of events leading to the fall of the bank. The case also highlights the reasons for the fall, including the lack of proper managerial supervision and operational control systems, and the mismanagement of the bank''s derivatives operations. The case aims to teach students how mismanagement of trading in derivatives can lead to significant financial losses. The case is designed to enable students to: (1) analyse the reasons that led to the fall of Barings Bank; (2) discuss the importance of proper supervision and control systems in a bank to mitigate risks; (3) understand how derivatives can be utilised effectively as a risk management tool; (4) calculate the payoffs from a ''straddle strategy'' and analyse when this strategy should be used. The case is targeted at MBA/PGDBA students and is intended to be part of the finance curriculum. The teaching note does not contain an analysis of the case.