Why Did Thompson and Company Collapse?

Mabel Winter ()
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Mabel Winter: University of Sheffield

Chapter Chapter 8 in Banking, Projecting and Politicking in Early Modern England, 2022, pp 181-205 from Palgrave Macmillan

Abstract: Abstract The collapse of early modern banks was not unusual. Early deposit banks were inherently risky institutions that relied on unstable financial and commercial markets and the trust of their clientele. However, the reasons behind each institution’s downfall vary considerably. This chapter analyses the commercial, financial, and political reasons behind the collapse of Thompson and Company in 1678. It builds on the historiography of credit and reputation in early modern England and argues that it was not Thompson and Company’s failure to meet their financial obligations that led to their collapse. Instead, it was the fact that the partners spread their credit across three different roles in the fields of finance, commerce, and politics and employed risky strategies that could easily be manipulated and used against them by enemies.

Keywords: Reputation; Risk; Politics; London; East India Company; Nonconformists; Opposition (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palscp:978-3-030-90570-5_8

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DOI: 10.1007/978-3-030-90570-5_8

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