Jeff Randall discovers the principal/agent problem in banking.
But here\’s the rub: Hoare & Co is no ordinary bank. It is wholly owned by Hoare family members and is financed entirely by them on an unlimited liability basis. They are on the hook for every penny, which helps to explain the bank\’s statement: "We have a highly conservative attitude to risk."
Amusing side note. The Hoare website:
You may not link any other website to this website without obtaining the prior written consent of C. Hoare & Co.