Kleinwort Benson

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{{Infobox company

| name = Kleinwort Benson

| logo = File:Kleinwort Benson Logo 02.2011.svg

| type = Subsidiary

| fate = Merged with SG Hambros to form Kleinwort Hambros

| owner = Société Générale

| foundation = {{start date and age|1786}}

| defunct=2016

| location = London, England

| key_people =

| num_employees =

| industry = Financial Services

| products =

| revenue =

| operating profit =

| homepage =

}}

Kleinwort Benson was a leading investment bank that offered a wide range of financial services from offices throughout the United Kingdom and Channel Islands. Two families, the Kleinworts and the Bensons, founded two different merchant banks in London. They merged in 1961 to create Kleinwort Benson Lonsdale, later Kleinwort Benson. Following its acquisition by Société Générale in June 2016, it was merged with SG Hambros, already a subsidiary of Société Générale, to form Kleinwort Hambros in November 2016.

History

File:fenchurch street.jpg

=Kleinworts=

The earliest known Kleinwort to go into banking was 24-year-old Heinrich Kleinwort, a grandfather of Sir Alexander Drake Kleinwort, 1st Baronet. In 1786, Heinrich set up a partnership with Otto Mueller in Holstein to finance trade with England.{{cite news|last1=Thurston|first1=Joshua|title=Kleinwort loses historic Benson name after mega-merger|url=http://citywire.co.uk/new-model-adviser/news/kleinwort-loses-historic-benson-name-after-mega-merger/a971369|access-date=26 March 2017|work=City Wire|date=17 November 2016}} Kleinworts established a successful trading business in Cuba, profiting from the expansion of the H. Upmann and Sons cigar business.Wake 1997, p. 79 Edward Cohen and James Drake joined the firm in the 1830s and for a while it was known as Drake, Kleinwort and Cohen; it was then renamed Kleinwort, Sons and Company in the 1880s.{{cite web|url=https://www.cityoflondon.gov.uk/things-to-do/london-metropolitan-archives/the-collections/Pages/kleinwort-benson.aspx|title=Gold, Mexican cotton and enemy debts: archives of Kleinwort Benson Group, merchant investment bankers|publisher=City of London|access-date=10 February 2018}}

The firm helped finance Francisco Franco's coup d'état in Spain by approving a credit of 800,000 pounds at 4% interest on 15 September 1937. A month later Kleinworts agreed another loan of 1,500,000 pounds sterling at 3%.{{cite web|url=http://www.publico.es/politica/financiadores-del-golpe-da-inicio.html|title=¿Quién puso el dinero para el golpe del 18 de julio y la Guerra Civil? |publisher=Publico|access-date=2 February 2018}}

=Robert Benson & Co.=

In 1786, Robert Benson, a Quaker, joined with William Rathbone IV of the existing house of William Rathbone & Co. to form Rathbone & Benson, a Liverpool business trading mainly with America. Over the course of the 19th century, the Benson family, under the control of Robin Benson, grew its wealth through railway finance in Britain, Europe and America. For example, it became part of a syndicate that marketed shares in the Illinois Central Railroad in 1852.Wilkins, p. 852

In 1947 Robert Benson and Co. merged with Lonsdale Investment Trust (founded by Leo Lonsdale) to form Robert Benson, Lonsdale and Co.Wake 1997, p. 478 The Benson family interest in the group was watered down but operational control of bank remained with its chairman, Rex Benson.{{cite ODNB | url=http://www.oxforddnb.com/view/10.1093/ref:odnb/9780198614128.001.0001/odnb-9780198614128-e-30716 | isbn=978-0-19-861412-8 | doi=10.1093/ref:odnb/30716 | title=The Oxford Dictionary of National Biography | year=2004 }}

=Kleinwort Benson=

Kleinworts and Robert Benson, Lonsdale and Co. merged to form Kleinwort Benson Lonsdale in 1961. The merged firm acquired the bullion dealer Sharps Pixley in 1966 thereby securing a seat on the London gold price fixing committee that met twice daily in the offices of N M Rothschild & Sons.{{cite web|url=https://taxfreegold.co.uk/sharpspixley.html|title=Brief History of Sharps Pixley as London Bullion Market Member|publisher=Chard|access-date=10 February 2018}} Kleinwort Benson worked on several major mergers and acquisitions at this time including the merger of Cadbury with Schweppes in 1969.{{cite web|url=https://www.thetimes.com/business-money/companies/article/lord-rockley-zc68qxnn9z3|title=Obituary: Lord Rockley|work=The Times|date=12 January 2012|access-date=10 February 2018}}

The firm decided to enter the securities market buying Charlesworth and Co., a stock jobber, in October 1984{{cite book|url=https://books.google.com/books?id=P6Z-DwAAQBAJ&pg=PA341 |title=From Crisis to Crisis:The Transformation of Merchant Banking, 1914–1939|first= Brian|last=O'Sullivan|year=2018|page=341|publisher=Springer International Publishing|isbn=978-3319966984}} and Grieveson Grant, a leading stockbroker, in April 1986.Wake 1997, p. 428

In the 1980s, Kleinwort Benson was a pioneer in privatisation. It managed the reprivatisation of British Aerospace, the first of the British Government's programme of disposals in 1981.{{cite web|url=https://www.nytimes.com/1981/02/05/business/british-aerospace-shares.html|title=British Aerospace shares|work=The New York Times|date=5 February 1981|access-date=2 February 2018}} It also managed the flotation of Cable & Wireless in the same year.Parker 2009, p. 459 It next advised on the privatisation of Associated British Ports in 1983.{{cite web|url=https://api.parliament.uk/historic-hansard/written-answers/1983/feb/02/associated-british-ports|title=Associated British Ports|work=Parliamentary Debates (Hansard)|date=2 February 1983|access-date=2 February 2018}} It went on to advise the British Government on the sale of 50.2% of British Telecom, the largest ever share issue at the time, in 1984.{{cite web|url=https://api.parliament.uk/historic-hansard/commons/1984/nov/16/british-telecom|title=British Telecom|work=Parliamentary Debates (Hansard)|date=16 November 1984|access-date=2 February 2018}} It assisted with the privatization of Enterprise Oil in the same year.{{cite web|url=http://etheses.lse.ac.uk/1332/1/U062840.pdf|page=335|title=The Privatization of UK Oil Assets 1977-87: Rational Policy-Making, International Changes and Domestic Constraints|publisher=London School of Economics|first=Stephanie M. |last=Hoopes|access-date=10 February 2018}} Important private sector transactions at that time included the takeover of Harrods by the Fayed brothers in 1984.{{cite web|url=https://www.nytimes.com/1985/09/08/business/harrod-s-new-owner-mohamed-al-fayed-a-quiet-acquisitor-is-caught-in-a-cross-fire.html?pagewanted=all|title=Harrod's new owner: Mohamed Al-Fayed; a quiet acquisitor is caught in the crossfire|work=The New York Times|date=8 September 1985|access-date=2 February 2018}}

The firm also worked on overseas privatisations advising the Italian government on the IPO of Enel in 1993.{{cite web|url=https://www.independent.co.uk/news/business/merrill-lynch-gets-italian-role-1465774.html|title=Merrill Lynch gets Italian role|date=6 December 1993|work=The Independent|access-date=2 February 2018}} In the United Kingdom it advised on Carlton Communications' £723 million takeover of Central Television in the same year.{{cite web|url=https://www.independent.co.uk/news/business/kleinwort-lifts-payout-after-turnaround-good-feeling-of-confidence-running-through-bank-reports-1394918.html|title=Kleinwort lifts payout after turnaround: 'Good feeling of confidence' running through bank, reports chairman|work=The Independent|date=18 February 1994|access-date=2 February 2018}}

=Dresdner Kleinwort=

In 1995, Kleinwort Benson was acquired by Dresdner Bank and, as Dresdner Kleinwort, became its investment banking arm.{{cite web|url=https://www.nytimes.com/1995/06/16/business/dresdner-bank-bids-1.5-billion-for-kleinwort.html|title=Dresdner Bank Bids $1.5 Billion For Kleinwort|date=16 June 1995|work=The New York Times|access-date=2 February 2018}} It added global reach through the acquisition of the US investment bank Wasserstein Perella in 2001 (from Bruce Wasserstein).[https://abcnews.go.com/Business/story?id=89350&page=1 Dresdner buys Wasserstein] ABC News, 18 September 2001 The Frankfurt branch of the bank was instrumental in initiating trading in emissions credits in 2003.[http://www.aquila-capital.de/en/the-company/alphagroup/alphagroup-managers/ Alphagroup managers: Markus Huwener] {{webarchive |url=https://web.archive.org/web/20090812213512/http://www.aquila-capital.de/en/the-company/alphagroup/alphagroup-managers/ |date=August 12, 2009 }} In 2004, the Russian government hired Dresdner Kleinwort to value Yukos's Yuganskneftegaz which was later sold to Russian state oil major Rosneft.[http://www.redorbit.com/news/science/86800/yuganskneftegaz_appraisal_close_to_completion__source/ Yuganskneftegaz appraisal close to completion] Red Orbit, 16 September 2004 In January 2006, the bank became the target of a US$1.4 billion class action suit by six employees alleging bias and systematic discrimination against female workers.[http://www.accessmylibrary.com/article-1G1-140725120/1-4-billion-sex.html $1.4bn sex discrimination law suit targets Dresdner Kleinwort Waserstein] Daily News, 10 January 2006

In December 2008 Commerzbank, which was in the process of acquiring Dresdner Bank,{{cite web|url=http://news.bbc.co.uk/1/hi/business/7591181.stm|title=Commerzbank buys ailing Dresdner|publisher=BBC|date=1 September 2008|access-date=2 February 2018}} decided to close Dresdner Kleinwort's Mergers & Acquisitions Unit.[https://www.bloomberg.com/apps/news?pid=20601100&refer=germany&sid=awhZtoWKZv9A Commerzbank to Close Dresdner Kleinwort U.K. M&A Unit] Bloomberg, 4 December 2008 Then in March 2009 it became clear that the office in Japan would close.[https://www.reuters.com/article/rbssInvestmentServices/idUSLH48970520090317 Dresdner Kleinwort to cut most Japan staff] Reuters, 17 March 2009 It also became clear that the capital markets and equities units would close and that advisory work would only be undertaken for Commerzbank's German clients.[http://www.efinancialnews.com/homepage/peoplemoves/content/1053886402 Dresdner Kleinwort cuts continue] E-Financial News, 13 April 2009

In February 2009 the Commerzbank management announced that no bonuses would be paid across the Commerzbank group including Dresdner Kleinwort. This was clarified to mean that Front Office staff would receive 10% of the bonus promised in December 2008 but support functions would receive their full bonus. This, together with issues regarding severance payments and guaranteed bonus payments, led to a number of lawsuits.[https://www.bloomberg.com/apps/news?pid=20601100&sid=aRq7fGjtMPa0 Dresdner is sued by three more bankers over bonuses] Bloomberg, 27 August 2009 Jens-Peter Neumann, former head of Capital Markets sued in Germany in April 2009 for €1.5 million in severance pay.[https://www.bloomberg.com/apps/news?pid=20601087&sid=ax3yDv2QJzyY Ex-Dresdner bankers sue over bonuses] Bloomberg, 16 June 2009 Former senior managers Martin Newson, Eduardo Listorti and Michael Adams sued but settled out of court.[https://www.telegraph.co.uk/finance/newsbysector/banksandfinance/5956559/Commerzbank-ordered-to-pay-10m-bonuses.html Commerzbank ordered to pay £10m bonuses] Daily Telegraph, 1 August 2009 Other executives (Areski Iberrakene, Efstratios Hatzistefanis, Kaveh Taleghani and Stefan Guetter) won their bonus suits against the bank in August 2009.[https://www.bloomberg.com/apps/news?pid=20601127&sid=av3SuTUhJNVo Commerzbank sued for $49m over banker bonuses] Bloomberg, 9 September 2009 Additional cases were brought by Dresdner Kleinwort executive committee members John McIntyre, Bertrand Pinel and Alberto Piedra in August 2009 seeking €11 million. In September 2009, 72 former and current Dresdner Kleinwort front office employees sued for £30 million in disputed bonus payments.[https://web.archive.org/web/20110612184819/http://business.timesonline.co.uk/tol/business/law/article6826286.ece Dresdner sued for millions in with held bonuses by 72 former traders] The Times, 8 September 2009

=BHF Kleinwort Benson Group=

File:St George Street, London W1 - geograph.org.uk - 4804103.jpg

In September 2009 Commerzbank decided to abandon use of the Dresdner Kleinwort name[http://www.euroinvestor.co.uk/news/story.aspx?id=10600483 Commerzbank drops Dresdner Kleinwort Benson] Euroinvestor, 1 September 2009 and, in October 2009, sold the firm, by then renamed Kleinwort Benson, to RHJ International.{{Citation |url=https://www.wsj.com/articles/SB125559177816486959 |title=RHJ International to Acquire Kleinwort Benson From Commerzbank |newspaper=The Wall Street Journal |date=15 October 2009 |last=Patrick |first=Margot|access-date=2 February 2018}}

In July 2011, RHJ International announced that its subsidiary, Kleinwort Benson, was in exclusive negotiations with Deutsche Bank regarding a potential acquisition of BHF Bank, one of Germany's strongest banking brands, with operations in private banking, asset management, financial markets and corporate banking. In September 2012, it announced that it had reached agreement with Deutsche Bank for Kleinwort Benson to acquire BHF Bank for €384 million.{{cite web|url=https://www.reuters.com/article/us-deutschebank-bhf/rhj-wins-chinese-backing-to-buy-deutsches-bhf-unit-idUSBRE88J08020120920|title=RHJ wins Chinese backing to buy Deutsche's BHF unit|date=20 September 2012|publisher=Reuters|access-date=11 February 2018}}

In November 2011 Saffron Tax Partners announced the acquisition of the private client tax compliance business from Kleinwort Benson.{{cite web|url=http://eprivateclient.com/page_subscribeme.php?myarticleid=24269&3&myactive_subscriber=&mytypeid=&typeid=|title=Kleinwort Benson tax compliance business bought by Saffron Tax Partners|access-date=2 February 2018}} In December 2012 London-based independent advice firm SK Financial bought about 1,000 clients from Kleinwort Benson that Kleinwort Benson felt it could no longer support profitably after the implementation of the Retail Distribution Review.{{cite web | url=http://www.ftadviser.com/2013/01/02/ifa-industry/advisory-companies/ifa-buys-book-of-kleinwort-clients-in-rdr-clear-out-YlPsFbHqUxARXGFkBwnOON/article.html | title=IFA buys book of 1,000 Kleinwort clients in RDR clear-out | publisher=FT Advisor | access-date=11 July 2014 | url-status=dead | archive-url=https://web.archive.org/web/20140714215127/http://www.ftadviser.com/2013/01/02/ifa-industry/advisory-companies/ifa-buys-book-of-kleinwort-clients-in-rdr-clear-out-YlPsFbHqUxARXGFkBwnOON/article.html | archive-date=14 July 2014 }} The bank moved to new premises at St George Street in London in 2012.{{cite web|url=http://www.bco.org.uk/Events/TourKle2519.aspx|title=Kleinwort Benson Bank Limited|publisher=BCO|access-date=11 February 2018}}

RHJ International became "BHF Kleinwort Benson Group" in March 2015{{cite web |url=https://globenewswire.com/news-release/2015/02/24/709363/10121723/en/RHJ-International-Extraordinary-Shareholder-s-Meeting-Update.html |title=RHJ International: Extraordinary Shareholder's Meeting Update |website=GlobeNewswire News Room |language=en-US |access-date=2017-06-28}} and was acquired by Oddo & Cie in early 2016.{{cite web|url=https://www.reuters.com/article/bhf-kleinwort-benson-ma-oddo-capital/oddo-completes-capital-raising-ahead-of-bhf-kleinwort-benson-buy-idUSL8N14R0TI20160107|title=Oddo completes capital raising ahead of BHF Kleinwort Benson buy|date=7 January 2016|publisher=Reuters|access-date=11 February 2018}} Then in June 2016, Société Générale acquired Kleinwort Benson from Oddo et Cie.{{cite news|last1=Yarker|first1=Jonathan|title=Soc Gen completes Kleinwort Benson buy|url=http://citywire.co.uk/new-model-adviser/news/soc-gen-completes-kleinwort-benson-buy/a917108?section=wealth-manager|access-date=26 March 2017|work=City Wire|date=7 June 2016}} It merged the bank with its existing private banking subsidiary SG Hambros in November 2016 to form Kleinwort Hambros.

Notable current and former employees

=Business=

Sir Alan Yarrow, former Lord Mayor of London (2014–2015){{cite web|url=https://democracy.cityoflondon.gov.uk/mgUserInfo.aspx?UID=399|publisher=democracy.cityoflondon.gov.uk|title=City of London – Member details – Sir Alan Colin Drake Yarrow (Alderman) |access-date=5 February 2017}}
Bruce Wasserstein, former chairman and CEO of Lazard{{Cite news| url = https://www.nytimes.com/2001/11/16/business/a-high-powered-deal-maker-is-named-to-lead-lazard.html|title=A High-Powered Deal Maker Is Named to Lead Lazard|author=Andrew Ross Sorkin and Suzanne Kapner|work=The New York Times |date =November 16, 2001}}
Xavier Rolet, London Stock Exchange Group, CEO{{Cite news|url=https://www.independent.co.uk/news/business/news/xavier-rolet-london-stock-exchange-ceo-brexit-critic-step-down-2018-remainer-chief-executive-a8008201.html|title=The chief executive of the London Stock Exchange is stepping down next year|date=2017-10-19|work=The Independent|access-date=2018-01-02|language=en-GB}}
Sir David Clementi, Prudential, Chairman (2002–2008){{cite web|url=https://www.bbc.com/aboutthebbc//whoweare/david-clementi|title=David Clement|publisher=BBC|archive-url=https://web.archive.org/web/20200722133223/https://www.bbc.com/aboutthebbc//whoweare/david-clementi|access-date=21 September 2020|archive-date=2020-07-22}}
Sir Adrian Montague, Friends Provident, Chairman{{cite web|title=Montague, Sir Adrian (Alastair)|url=http://www.ukwhoswho.com/view/article/oupww/whoswho/U41730|website=Who's Who 2017|access-date=July 19, 2017}}
Callum McCarthy, HM Treasury, Non-executive board member{{cite web|last=Smale|first=Will|title=Profile: Callum McCarthy and the FSA|url=http://news.bbc.co.uk/1/hi/business/7023531.stm|publisher=BBC|access-date=29 April 2013}}
Ronald Kramer, former President of Wynn Resorts; current CEO of Griffon Corporation{{cite web|url=https://www.wsj.com/articles/SB120580248385443883|title=Kramer to Quit Wynn Resorts|date=18 March 2008|work=The Wall Street Journal}}
Luke Johnson, Royal Society of Arts, Chairman{{cite web|url=https://www.theguardian.com/business/2019/jan/22/luke-johnson-from-pizza-express-to-patisserie-valerie|title=Luke Johnson: from Pizza Express to Patisserie Valerie|date=22 January 2019|work=The Guardian}}
The Hon. Sir Nicholas Redmayne (1938–2008), Joint Head of Equity Securities,R. Whiteside, ed., Major Companies of Europe 1992/93: Volume 2 (1992), [https://books.google.com/books?id=a6PnCAAAQBAJ&pg=PA160 p. 160] Joint Chief Executive of Investment Banking with David Clementi, 1994—1996Banking World, Vol. 12 (1994), p. 37 and from 1995 chairman of KBIM.International Financing Review, Issues 1084—1087 (1995), p. 6[https://www.telegraph.co.uk/news/obituaries/3527597/Sir-Nicholas-Redmayne-Bt.html "Sir Nicholas Redmayne, Bt: Stockbroker who helped to reposition Kleinwort Benson as a leading investment bank in the 1980s"], The Daily Telegraph, 26 November 2008, accessed 10 March 2024 {{subscription required}}
Máxima Zorreguieta, former vice-president at the department Emerging Markets, and queen consort of the Netherlands{{cite web|title=Studie en werk vóór 2002|url=http://www.koninklijkhuis.nl/encyclopedie/wie-is-wie/prinses-maxima/studie-en-werk-voor-2002/|publisher=Het Koninklij Huis|access-date=28 January 2013|url-status=dead|archive-url=https://web.archive.org/web/20121029113123/http://www.koninklijkhuis.nl/encyclopedie/wie-is-wie/prinses-maxima/studie-en-werk-voor-2002/|archive-date=29 October 2012|df=dmy-all}}

=Politics and public service=

Rahm Emanuel, Member of the U.S. House of Representatives (2003–2008); White House Chief of Staff (2008–2010){{cite news|title=Rahm Emanuel, Former Investment Banker|first1=Cyrus|last1=Sanati|first2=Andrew Ross|last2=Sorkin|work=The New York Times|date=November 7, 2008|url=http://dealbook.blogs.nytimes.com/2008/11/07/rahm-emanuel-former-investment-banker|access-date=November 8, 2008|archive-url=https://web.archive.org/web/20081210072839/http://dealbook.blogs.nytimes.com/2008/11/07/rahm-emanuel-former-investment-banker/|archive-date=December 10, 2008|url-status=live}}
Peter Walker, Baron Walker of Worcester, Member of the British Parliament (1961–1992){{cite web|url=https://www.telegraph.co.uk/news/obituaries/7850119/Lord-Walker-of-Worcester.html|title=Obituary: Lord Walker of Worcester|date=23 June 2020|publisher=The Telegraph}}

Arms

{{Infobox COA wide

|image = Kleinwort Benson Escutcheon.png

|escutcheon = Per chevron Or and Sable in chief two oak trees eradicated Proper fructed Gold in base a lion rampant also Gold a chief of the second bezantee.

|crest = On a wreath of the colours upon a mount Vert three trefoils slipped the centre one Or the outer ones Proper.

|supporters = On either side a lion Or gorged with a collar Sable charged with a trefoil slipped Gold between two bezants in the paws a sprig of oak leaved and stalked Proper fructed also Gold.

|motto = Nil Sine Studio

|notes = Granted 30 July 1959{{cite web|url=https://www.heraldry-wiki.com/heraldrywiki/wiki/Kleinwort_Benson |title=Kleinwort Benson |publisher=Heraldry of the World |access-date=16 September 2021}}}}

References

Sources

{{cite book|last=Parker|first=David|title=The Official History of Privatisation Vol. I: The formative years 1970-1987|volume= 1 |publisher=Routledge|year=2009|isbn=978-0415469166}}
{{cite book |first=Jehanne |last=Wake |author-link=Jehanne Wake | title=Kleinwort Benson: The History of Two Families in Banking | publisher=Oxford University Press | year=1997 | isbn=0-19-828299-0}}
{{cite book|author-link1=Mira Wilkins|last=Wilkins|first=Mira|title=The History of Foreign Investment in the United States, 1914-1945|publisher=Harvard University Press|year=2004|isbn=978-0674013087|url-access=registration|url=https://archive.org/details/historyofforeign0000wilk_h6u9}}