What is the significance of the Schroders sale?

The sale of Schroders, founded in 1804, is seen as marking the potential end of an era for London's historic merchant banks, which were crucial in building the UK's financial services industry.

Who historically established London's financial services industry?

Historically, London's financial services industry was built by merchant banks founded by scions of Continental European families starting in the early 1700s.

Why are UK businesses being sold to foreign buyers?

The article suggests that many UK businesses are undervalued, making them attractive targets for foreign buyers, raising concerns about the future of British finance.

Home / Business and Economy / End of an Era: London's Merchant Banks Fade

End of an Era: London's Merchant Banks Fade

15 Feb

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Summary

Schroders' sale marks a significant shift in London's financial landscape.
Historically, Continental families built London's financial services industry.
UK businesses are increasingly undervalued and sold to foreign buyers.

End of an Era: London's Merchant Banks Fade

The sale of Schroders, an asset manager with over two centuries of history, prompts reflection on London's financial heritage. Founded in 1804 by Johann Heinrich Schroder, it was part of a tradition of merchant banks established by Continental European families that significantly shaped the UK's financial sector.

Historically, these firms, including names like Barings and Rothschilds, were instrumental in developing London into a global financial hub, second only to New York. The article notes that most are no longer independent, with only Rothschild remaining so, and that the UK's financial services industry is now heavily dominated by US firms.