C. Hoare & Co., also known as Hoares, is a British private bank, founded in 1672 by Sir Richard Hoare; it is a twelfth generation family business and is owned by eight of Sir Richard's direct descendants. It is the oldest privately-owned bank in the United Kingdom and reputedly the fourth oldest in the world.
After finishing his apprenticeship, Sir Richard Hoare was granted the Freedom of the Goldsmiths' Company on 5 July 1672, which marks the foundation of Hoare's Bank. Richard established his business at the sign of the Golden Bottle in Cheapside, London; since street numbering was unknown in those days, signs were used to distinguish one business from another. In 1690, the business moved to Fleet Street, still within the City of London but on the main thoroughfare to the City of Westminster.[1]
Goldsmiths were often used to safeguard cash and valuables, putting them in a unique position to evolve a system of banking. By 1677, some 58 goldsmiths kept "running cashes" and started to lend their customers' money for interest.[2]
Henry's son Henry Hoare, was a partner in the bank for nearly 60 years and dominated the family through his wealth and personal charisma.[6] His nickname "The Magnificent" derived from his generosity as a patron of the arts and his expenditure on Stourhead in Wiltshire, a country house and estate bought by his father.[7] Under his guidance, the bank introduced many innovations, such as printed cheques.[8]
19th century
The bank was well known for its discretion; in 1825, William Christmas embezzled £1,000 from the bank to fund his affair with actress Louisa Chatterley.[9] He was sentenced to be transported to Australia for 14 years, and his father was obliged to honour the £1,000 fidelity bond he had posted when his son joined the bank.[10]: 33
In 1829, the premises at Fleet Street were rebuilt; the new banking house was designed to accommodate the business and a private house.[11] Following the Bank Charter Act 1844, many of the 4,000 or so private banks disappeared but Hoares remained, led by Charles Hoare, the last senior partner to continue the practice of having the bank named after him.[12]
After his departure, the bank was almost ruined through unsuccessful speculation and poor management by the senior partners, Henry and Peter Richard. Both were deeply religious but with differing views, and took it in turns to run the bank, each being in charge for a six-month period. Their sons, including Charles Arthur Richard Hoare, also became partners and proved financially unreliable, placing the future of the bank in peril.[10]
20th century
A revival of fortunes for the bank took place in the 20th century, with the early years seeing its credibility restored. After the First World War, most of the remaining private banks were absorbed by larger banks, leaving Hoares as the only surviving independent. It was a partnership until 1929 when the partners formed a private unlimited liability company, in which they were the sole shareholders.[10]
During the Second World War, the bank's employees evacuated their offices, including the headquarters at 37 Fleet Street. A fire broke out during an air raid, but thanks to some employees' actions, the historic building was saved.[13] According to Alexander Hoare, his grandfather Bertram, the Fleet Street air warden at the time, was credited with saving the bank from burning down.[14]
21st century
Alexander S. Hoare, the former chief executive of the bank, represents the eleventh generation to manage C. Hoare & Co. He was replaced by the first non-family member in an executive position: Jeremy Marshall, former head of Credit Suisse Private Bank.[15][16] Marshall stepped down and was replaced by deputy chief executive David Green in 2016.[17] In 2021, Diana Brightmore-Armour, a veteran of Lloyds Corporate Banking and Coca-Cola, stepped in as CEO.[18]
In 2018 Rennie Hoare, previously the head of philanthropy, was appointed a shareholding partner in an effort to bring “millennial thinking” into the bank.[21]
^Shah, Tahir (June 2012). Timbuctoo (First ed.). London: Secretum Mundi. pp. 42, 177, 179, 347, 391, 392, 398, 399, 400, 503. ISBN978-0957242906. Archived from the original on 28 September 2019. Retrieved 16 December 2014.