Slater Walker was a British industrial conglomerate turned
bank
A bank is a financial institution that accepts deposits from the public and creates a demand deposit while simultaneously making loans. Lending activities can be directly performed by the bank or indirectly through capital markets.
Because ...
that got into financial difficulties in the 1970s. It specialised in
corporate raid
In business, a corporate raid is the process of buying a large stake in a corporation and then using shareholder voting rights to require the company to undertake novel measures designed to increase the share value, generally in opposition to t ...
s. Its fall shook the British banking system at the time, and it had to be
bailed out by the
Bank of England
The Bank of England is the central bank of the United Kingdom and the model on which most modern central banks have been based. Established in 1694 to act as the English Government's banker, and still one of the bankers for the Government of ...
after it was unable to refinance its debt during the
secondary banking crisis of 1973–75
Secondary may refer to: Science and nature
* Secondary emission, of particles
** Secondary electrons, electrons generated as ionization products
* The secondary winding, or the electrical or electronic circuit connected to the secondary winding ...
, forcing its founder
Jim Slater to quit.
History
In 1964, investor Jim Slater acquired control of H Lotery & Co Ltd, a £1.5m public company, which with his business partner
Peter Walker - a Conservative MP - they renamed Slater, Walker Securities. The company performed what became known as
corporate raid
In business, a corporate raid is the process of buying a large stake in a corporation and then using shareholder voting rights to require the company to undertake novel measures designed to increase the share value, generally in opposition to t ...
s on public, mainly industrial companies.
Slater Walker then changed strategy, from a corporate-conglomerate into what eventually was recognised as an unauthorised and unlicensed international investment bank, through gradual disposal of its industrial interests.
At its peak, capitalized at over £200 million, the company held deposits totalling £95m, managed £250m of funds and looked after 29,000 pensions. It had grown to be not only a bank but also an investment and insurance empire with stakes in industrial companies. It had acquired Singapore conglomerate
Haw Par Brothers International in 1971 and Dutch investment bank
Kempen & Co
Van Lanschot Kempen N.V. is a specialised, independent wealth manager that provides private banking, investment management and investment banking services to wealthy individuals and institutions. It is headquartered in 's-Hertogenbosch, the Nether ...
in 1972 which became its international division.
Collapse
In 1974, it got into financial difficulty after having trouble refinancing its debt during the secondary banking crisis of 1973–75. By 1975, the problems led to its having to be supported by the Bank of England.
In 1975, the Singapore Government investigated what became known as the Spydar affair, into dealings in a Far East Slater Walker company which resulted in Richard Tarling, the company's sole director, ending up in
Changi prison
Changi Prison Complex, often known simply as Changi Prison, is a prison in Changi in the eastern part of Singapore.
History First prison
Before Changi Prison was constructed, the only penal facility in Singapore was at Pearl's Hill, beside t ...
after extradition in 1978. Slater subsequently resigned as Chairman in October 1975, because the Singapore Government began to try to extradite him from the UK for alleged offences by the company in Singapore. In addition an ill-timed attempt to take over
Hill Samuel
Hill Samuel is a wholly owned subsidiary of Lloyds Banking Group's Offshore Private Banking unit. It was formerly a leading British merchant bank and financial services firm before the takeover by TSB Group Plc. in 1987, which itself merged with ...
resulted in the loss of city confidence in Slater Walker.
Following the takeover of the company by the Bank of England in 1976,
James Goldsmith
Sir James Michael Goldsmith (26 February 1933 – 18 July 1997) was a French-British financier, tycoon''Billionaire: The Life and Times of Sir James Goldsmith'' by Ivan Fallon and politician who was a member of the Goldsmith family.
His contr ...
replaced Slater which caused consternation in the UK government, where the new boss was regarded with as much suspicion as the old:
15 charges were brought against Slater for offences against the
Companies Act
Companies Act (with its variations) is a stock short title used for legislation in Botswana, Hong Kong, India, Kenya, Malaysia, New Zealand, South Africa and the United Kingdom in relation to company law. The Bill for an Act with this short title ...
by the
Department of Trade
Department may refer to:
* Departmentalization, division of a larger organization into parts with specific responsibility
Government and military
*Department (administrative division), a geographical and administrative division within a country, ...
, referring to the alleged misuse of more than £4 million of company funds in share deals. The case, brought by HM Treasury and the Singapore Government, was thrown out in 1977.
In 1979, Slater was charged and convicted on 15 counts under Section 54 of the Companies Act 1948; all related to loans made to affiliated companies for buying stock in the Slater Walker group. He was fined £15 on each charge. Jim Slater became for a time a "minus millionaire" while Peter Walker's political career survived.
[
]
Present
The business was subsequently renamed Britannia Arrow. After the purchase of INVESCO and Montagu Investment Management, the company was renamed INVESCO MIM in 1990. (The MIM was later dropped). After a merger with AIM Investments, the company was renamed Amvescap
Invesco Ltd. is an American independent investment management company that is headquartered in Atlanta, Georgia, with additional branch offices in 20 countries. Its common stock is a constituent of the S&P 500 and trades on the New York stock exc ...
.
References
{{reflist
Defunct banks of the United Kingdom
Financial services companies established in 1964
1975 in the United Kingdom
Financial services companies disestablished in 1975