the world of private banking
the world of private banking
the world of private banking
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58<br />
THE WORLD OF PRIVAtE BANKING<br />
However, unlike <strong>the</strong>ir counterparts at <strong>the</strong> Deutsche Bank, <strong>the</strong> <strong>private</strong> bankers<br />
remained firmly in control: not only were <strong>the</strong>y in a majority on <strong>the</strong> board <strong>of</strong><br />
directors, but no managing director was appointed until 1899, after <strong>the</strong> bank<br />
had considerably expanded – and changed its name from Basler Bankverein<br />
to Schweizerische Bankverein. Responsibilities were henceforth increasingly<br />
delegated to pr<strong>of</strong>essional managers, although a proper managing board was not<br />
set up before 1929. 61 The Parisian haute banque remained equally in control <strong>of</strong> its<br />
banque d’affaires, <strong>the</strong> Banque de l’Union Parisienne (BUP), even though it had<br />
been founded with <strong>the</strong> Société Générale de Belgique in 1904, a full generation later<br />
than <strong>the</strong> Swiss Bank Corporation. The board <strong>of</strong> directors included representatives<br />
<strong>of</strong> <strong>the</strong> six founding <strong>private</strong> houses, <strong>the</strong> Société Générale, and <strong>the</strong> old Banque<br />
Parisienne taken over by <strong>the</strong> new bank, as well as a few independent people. More<br />
importantly, each <strong>of</strong> <strong>the</strong> founding <strong>private</strong> banks was represented on <strong>the</strong> board’s<br />
management committee, a body which met twice a week and was responsible for<br />
making <strong>the</strong> decisions concerning all aspects <strong>of</strong> <strong>the</strong> bank’s activities. Significantly,<br />
<strong>the</strong> general manager was not in regular attendance at <strong>the</strong>se meetings. 62<br />
Beyond <strong>the</strong> differences between individual banks, <strong>the</strong>re is <strong>the</strong> question <strong>of</strong> <strong>the</strong><br />
position <strong>of</strong> <strong>private</strong> bankers within <strong>the</strong>ir country’s corporate <strong>banking</strong> structures. In<br />
all European countries, a fair proportion <strong>of</strong> <strong>the</strong> joint-stock banks’ senior executives<br />
continued to be recruited from <strong>the</strong> <strong>world</strong> <strong>of</strong> <strong>private</strong> <strong>banking</strong> until well after <strong>the</strong> First<br />
World War. As senior managerial positions became compatible with an upper-class<br />
status, <strong>the</strong>y attracted an increasing number <strong>of</strong> scions <strong>of</strong> old <strong>banking</strong> families who<br />
brought to <strong>the</strong>ir bank a huge network <strong>of</strong> business relationships. However, English<br />
<strong>private</strong> bankers were able to remain in a particularly strong position. On <strong>the</strong> one<br />
hand, <strong>the</strong>y adapted remarkably well to <strong>the</strong> new <strong>banking</strong> structures: over a third<br />
<strong>of</strong> <strong>the</strong> directors <strong>of</strong> <strong>the</strong> country’s leading joint-stock banks were former <strong>private</strong><br />
bankers. Old <strong>private</strong> <strong>banking</strong> families were thus able to perpetuate <strong>the</strong>mselves in<br />
<strong>the</strong> big joint-stock banks, especially though by no means exclusively at Barclays<br />
bank. On <strong>the</strong> o<strong>the</strong>r hand, <strong>the</strong> City aristocracy, still firmly entrenched in <strong>the</strong> <strong>world</strong><br />
<strong>of</strong> <strong>private</strong> <strong>banking</strong>, was able to retain a collective control over <strong>the</strong> financial<br />
sector <strong>of</strong> <strong>the</strong> British economy through its massive presence on <strong>the</strong> boards <strong>of</strong> <strong>the</strong><br />
major joint-stock banks, overseas banks and insurance companies, as well as <strong>the</strong><br />
Court <strong>of</strong> Directors <strong>of</strong> <strong>the</strong> Bank <strong>of</strong> England. 63 Though parallels could be found<br />
elsewhere, especially in Paris, such a control was deeper and wider than in any<br />
o<strong>the</strong>r international financial centre.<br />
61<br />
Bauer, Société de Banque Suisse; Mazbouri, L’émergence de la place financière<br />
suisse.<br />
62<br />
E. Bussière, ‘La politique financière de la Banque de l’Union Parisienne de 1919<br />
à 1931’, Mémoire de maîtrise (University <strong>of</strong> Paris IV, 1977), pp. 253–69; H. Bonin, La<br />
Banque de l’union parisienne (1874/1904–1974): Histoire de la deuxième grande banque<br />
d’affaires française (Paris, 2001), pp. 18–43.<br />
63<br />
See Cassis, City Bankers.