In the history of finance, many diverse objects have become the center of speculative attention, even perishable items. Agricultural commodities have caused investment crazes that boom and bust as dramatically as any. These are not always the major ‘cash crops’ that are obviously commercially important. Included are even novel crops or livestock that, at least…
During the Financial Revolution that got underway in the 1690s, England and Scotland were linked by an integrated financial and mercantile community and a free flow of ideas. This helps explain how it was that the Bank of England and the Bank of Scotland could be formed almost simultaneously. Also, Scots in London, including one…
Around 1970, a Switzerland-based asset management firm, Investors Overseas Services, had grown into one of the largest in the world in the span of just a few years, this despite a small initial target market of American soldiers deployed in Europe. Of course, the company had grown far beyond this limited market in the years…
The Titanic tested the insurance industry. Ships of its luxury and scale were novel, bringing into question the correct pricing for insurance coverage on such a ship. In the end, it seemed that underwriters underpriced the risk, since when the Titanic’s sister ship Olympic secured coverage for its next transatlantic crossing after Titanic’s sinking, the…
What do matches and money have in common? Not much perhaps, except that one man seemed an especially powerful supplier of each. Ivar Kreuger is possibly the person whose fame has diminished the most in the last century of financial history. During the 1920s, he was one of the largest creditors, and borrowers, in the…
One of the most famous American bankers in history, John Pierpont Morgan, got his start not in New York but in London. There, his father was a partner in a firm founded by another American abroad, George Peabody. Peabody was born poor and received very little education; after finding success in business in America, he…
Globalization in finance has allowed the emergence of global banks, able to participate with ease in different markets around the world as barriers to the international flow of capital have been dismantled. However, global banks are not as easily regulated as those constrained to a single country, especially when closer international cooperation amongst regulatory and…
Dag Hammarskjöld was the second Secretary-General of the United Nations. He held the post from 1953 until his death in a plane crash while on a UN mission in Africa. He had also served as a senior civil servant in both the Swedish Ministry of Finance and its central bank. For the better part of…
The world changed when Germany invaded Poland in September 1939. The event had consequences in financial markets as well and not only in Germany and the other belligerent countries. In neutral and warring countries alike, central banks and other public authorities addressed the sudden financial problems, most notably in foreign exchange and credit markets. In…
Stamp collecting came about soon after the postage stamp itself. While the first postage stamp was introduced in 1840, within twenty-five years one could find for sale in London or Paris some of the earliest stamp albums, catalogues, and magazines. In recent decades, stamp collecting has garnered attention from more than just philatelic enthusiasts;…
Long sea voyages were among the largest privately undertaken ventures in the early modern world. Financing them led to the creation of some of the first joint stock companies and the task of insuring them made marine insurance one of the first modern insurance products available. Yet the sailors involved are easily overlooked, but they…
Insurance works courtesy of the law of large numbers. Every year, some number of homes burn down and some proportion of cars crash and these events may be unpredictable to any one insured person. To an insurer though, the occurrence of such mishaps across their portfolios is actually quite predictable. However, insurers also have a…
