 End of the Golden AgeBrian O’Sullivan ()
Chapter Chapter 2 in From Crisis to Crisis, 2018, pp 41-79 from Palgrave Macmillan Abstract: Abstract The outbreak of war in 1914 is often represented as the end of a golden age for the merchant banks, whereas it is argued in this chapter that the golden age was by 1914 already severely tarnished. The outbreak of war acted as a catalyst that exposed existing weaknesses already embedded in the merchant banking sector especially as a result of increasing competition from joint-stock banksJoint-stock banks , both domestic and foreign. The high-risk strategies adopted by the market leaders, BaringsBarings and RothschildsRothschilds , which in the case of the former firm almost resulting in its failure in 1890, is considered. The response of the merchant banks to new opportunities both domestic and in the emerging markets is examined. A detailed analysis of securities issuance immediately before the outbreak of war together with a declining market share in acceptance finance is used to highlight the deteriorating position of the merchant banks before the outbreak of war in 1914. Keywords: 1914; First World War; Securities issuance; Bill on London; Joint-stock banks; 1890 Barings crisis (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pal:psitcp:978-3-319-96698-4_2 Ordering information: This item can be ordered from DOI: 10.1007/978-3-319-96698-4_2 Access Statistics for this chapter More chapters in Palgrave Studies in the History of Finance from Palgrave Macmillan |
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