Royal British Bank

British joint-stock bank (1849–1856)

The Royal British Bank was a British joint-stock bank, established under a Royal Charter in 1849, that collapsed in 1856. This caused a scandal. The circumstances were described by The Economist as "an extraordinary example of the little trouble the public take to think for themselves".[1]

The bank's main founders were John MacGregor, a Member of Parliament for Glasgow, and Edward Mullins, a solicitor. After difficulties in raising the necessary capital, the bank was launched in 1849.[2]: 703

After press articles alleging substantial losses appeared in 1856, the share price dropped and in September 1856 the bank suspended operations after experiencing a run, leaving 6,000 depositors owed money.[2]: 704

It then became apparent that various directors and former directors had taken substantial sums from the bank, though most of the directors in post at the time of the collapse had not done so.[2]: 715–716

The eight surviving directors—among them Henry Dunning Macleod—were put on trial in February 1858.[3] (The bank's founder, MacGregor, had fled to France and died there in 1857.[4]) They were tried for conspiracy to defraud the bank's customers at the Court of Queen's Bench before the Lord Chief Justice, Lord Campbell. On the first day of the trial, the Prince of Wales attended and sat on the bench next to the Lord Chief Justice. The jury found each of the defendants guilty of the charges and they were given sentences ranging from a nominal fine of one shilling to imprisonment for up to one year.[2]: 718 By July 1858, however, only one of the convicted, the former manager of the bank, and arguably the least influential person among the convicted, remained in prison; the contrast with the treatment of the directors in the City of Glasgow Bank collapse is perhaps instructive.

The collapse gave rise to a new legislation tightening banking regulation, including the publication of balance sheets and the auditing of accounts.[1]

## See also

[edit]

* Banks portal

* Royal British Bank v Turquand

## References

[edit]

1. ^ a b Economist, 22 June 2013 p. 29
2. ^ a b c d Taylor, James (June 2007). "Company Fraud in Victorian Britain: The Royal British Bank Scandal of 1856". English Historical Review. 122 (497): 700–724\. doi:10.1093/ehr/cem093. JSTOR 4493899. Retrieved 21 April 2022.
3. ^ Annual Register 1858. Longmans Green and Co. 1859. pp. 330–339. Retrieved 2 March 2008.
4. ^ Parris, Henry. "MacGregor, John". Oxford Dictionary of National Biography (online ed.). Oxford University Press. doi:10.1093/ref:odnb/17521. (Subscription, Wikipedia Library access or UK public library membership required.)

## Further reading

[edit]

* Antonio, Robert J. (2003). Marx and Modernity. Wiley-Blackwell. p. 170\. ISBN 978-0-631-22550-8. Retrieved 29 August 2008.
* The Times, Monday, 1 March 1858; p. 9; Issue 22929; col B
* The Times, Monday, 5 July 1858; p. 5; Issue 22890; col F

* v
* t
* e

Chartered companies

British|

* African Company of Merchants
* Barbary Company
* British American Land Company
* British East Africa Company
* Canada Company
* Canterbury Association
* Company of Merchant Adventurers of London
* Company of Merchant Adventurers to New Lands
* Company of Scotland
* East India Company
* Eastern Archipelago Company
* Eastland Company
* Guinea Company
* Hudson's Bay Company
* Levant Company
* London and Bristol Company
* Massachusetts Bay Company
* Muscovy Company
* New Zealand Company
* North Borneo Company
* Providence Island Company
* Royal African Company
* Royal British Bank
* Royal Niger Company
* South Africa Company
* Sierra Leone Company
* Somers Isles Company
* South Australian Company
* South Sea Company
* Spanish Company
* Venice Company
* Virginia Company
* Plymouth Company
* Virginia Company of London

French|

* First French East Indies Company
* Company of One Hundred Associates
* Company of the American Islands
* Company of Habitants
* French West India Company
* Compagnie du Sénégal
* Louis XIV's East India Company
* John Law's Company
* French Indies Company
* Compagnie de Calonne

German|

* Brandenburg African Company
* East Africa Company
* Emden Company
* New Guinea Company
* West African Company

Portuguese|

* Cacheu and Cape Verde Company
* East India Company
* Grão Pará and Maranhão Company
* Company of Guinea
* House of India
* Mozambique Company
* Zambezia Company
* Niassa Company

Austrian and
Low Countries|

* Brabantsche Compagnie
* Dutch East India Company
* Imperial Company of Trieste and Antwerp
* Imperial Privileged Oriental Company
* New Netherland Company
* Noordsche Compagnie
* Ostend Company
* Dutch West India Company
* Compagnie van Verre
* Compagnie van De Moucheron
* Veerse Compagnie

Spanish|

* Adelantamientos
* Columbian Adelantamiento
* Peruvian Adelantamientos' Charters
* New Andalusia
* New Castile
* New León
* New Toledo
* Terra Australis
* Barcelona Trading Company
* Casa de Contratación
* Guipuzcoan Company of Caracas
* Royal Company of the Philippines
* Welser's Klein-Venedig Charter

Swedish|

* Swedish Africa Company
* Swedish East India Company
* Swedish Levant Company
* Swedish South Company
* Swedish West India Company

Danish|

* Danish Asiatic Company
* Danish East India Company
* Danish West India Company
* Royal Greenland Trading Department

Russian|

* Russian-American Company

* Category

Authority control databases

International|

* VIAF

National|

* United States

Other|

* Yale LUX

This United Kingdom bank or insurance-related article is a stub. You can help Wikipedia by expanding it.

|

* v
* t
* e

*[v]: View this template
*[t]: Discuss this template
*[e]: Edit this template