S. G. Warburg & Co. was a London-based investment bank. It was listed on the

London Stock Exchange London Stock Exchange (LSE) is a stock exchange in the City of London, England, United Kingdom. , the total market value of all companies trading on LSE was £3.9 trillion. Its current premises are situated in Paternoster Square close to St P ...

and was once a constituent of the FTSE 100 Index. The firm was acquired by the

Swiss Bank Corporation Swiss Bank Corporation was a Swiss investment bank and financial services company located in Switzerland. Prior to its merger, the bank was the third largest in Switzerland with over CHF300 billion of assets and CHF11.7 billion of equ ...

in 1995 and ultimately became a part of UBS.

History

Founding and early history

This bank was founded in 1946 by

Siegmund Warburg Sir Siegmund George Warburg (30 September 1902 – 18 October 1982) was a German-born English banker. He was a member of the prominent Warburg family. He played a prominent role in the development of merchant banking.Henry Grunfeld Henry Grunfeld (1 June 1904 – 10 June 1999) was a merchant banker who played a prominent role in the development of investment banking and the growth of London as a financial centre following the Second World War. Grunfeld was co-founder o ...

. Siegmund was a member of the

Warburg family The Warburg family is a prominent German and American banking family of German Jewish and originally Venetian Jewish descent, noted for their varied accomplishments in biochemistry, botany, political activism, economics, investment banking, law, ...

, a prominent German-

Jew Jews ( he, יְהוּדִים, , ) or Jewish people are an ethnoreligious group and nation originating from the Israelites Israelite origins and kingdom: "The first act in the long drama of Jewish history is the age of the Israelites""T ...

ish banking family. Henry Grunfeld was a former industrialist in the German steel industry, and is also Jewish. Warburg and Grunfeld fled

Nazi Germany Nazi Germany (lit. "National Socialist State"), ' (lit. "Nazi State") for short; also ' (lit. "National Socialist Germany") (officially known as the German Reich from 1933 until 1943, and the Greater German Reich from 1943 to 1945) was ...

in the 1930s. S. G. Warburg and Co. were recognised for its pioneering mergers and takeover work in the UK in the 1960s. These works included the first ever hostile takeover in the UK and the first-ever Eurobond issue, which fostered the new

Eurodollar Eurodollars are U.S. dollars held in time deposit accounts in banks outside the United States, which thus are not subject to the legal jurisdiction of the U.S. Federal Reserve. Consequently, such deposits are subject to much less regulation than ...

market. The firm's acquisition of Seligman Bros. in 1957 was a significant event in its rise to prominence; through this, Warburg gained a place on the Accepting Houses Committee, which is composed of the 17 top merchant banks with access to cheap capital backed by the Bank of England. In 1958–1959,

Tube Investments TI Group plc (formerly "Tube Investments") was a holding company for specialised engineering companies. It was based in Abingdon, Oxfordshire. It was registered as ''Tube Investments'' in 1919, combining the seamless steel tube businesses of Tu ...

, advised by S. G. Warburg & Co, fought a fierce and ultimately successful battle to acquire

British Aluminium British Aluminium was an aluminium production company. It was originally formed as the British Aluminium Company Ltd on 7 May 1894 and was subsequently known as British Alcan Aluminium plc (1982-1996). History In the late 1880s and early 1890s, ...

in a bidding war with a consortium of City of London bankers led by

Morgan Grenfell Morgan, Grenfell & Co. was a leading London-based investment bank regarded as one of the oldest and once most influential British merchant banks. It had its origins in a merchant banking business commenced by George Peabody. Junius Spencer Morgan ...

. This battle is now remembered as the "Aluminium War" and started a shift away from relational banking towards competitive banking.

The 1960s, 1970s, and 1980s

The bank gained clients and grew rapidly in the 1960s and 1970s. In the early 1970s, S. G. Warburg entered into a U.S. joint venture with Paris-based

Paribas The Banque de Paris et des Pays-Bas (“Bank of Paris and the Netherlands”), generally referred to from 1982 as Paribas, was a French investment bank based in Paris. In May 2000, it merged with the Banque Nationale de Paris to form BNP Paribas ...

(Banque de Paris et des Pays-Bas, prior to the bank's nationalisation in 1982) named Mercury Securities."The Financial Times has examined the problems which caused S. G. Warburg, a Mercury Securities subsidiary, and Paribas to lift their joint stake in A G Becker-Warburg Paribas Becker to just over 50%." ''Financial Times'', 13 July 1982 In 1974, S. G. Warburg and

took a 40% interest in A.G. Becker & Co., a U.S.-based brokerage. Although the joint venture initially provided an international dimension for its three members, the relationships soured in the late 1970s and early 1980s."Becker Paribus: An Ill-Fated Union"
''The New York Times'', 7 August 1984 The joint venture was plagued by competition between Warburg and

, as well as cultural conflicts between French, English, and American executives. Although Warburg had originally planned to buy out Paribas, after

Siegmund Warburg Sir Siegmund George Warburg (30 September 1902 – 18 October 1982) was a German-born English banker. He was a member of the prominent Warburg family. He played a prominent role in the development of merchant banking.Big Bang" reforms of the 1980s under the leadership of its Chief executive Sir David Scholey, it acquired

stockjobber Stockjobbers were institutions that acted as market makers in the London Stock Exchange. The business of stockjobbing emerged in the 1690s during England's Financial Revolution. During the 18th century the jobbers attracted numerous critiques from ...

Ackroyd & Smithers, stockbroker

Rowe & Pitman Rowe & Pitman was once one of the largest British stockbrokers. History The firm was founded in London in 1895 by stockbrokers George Duncan Rowe and Fred Pitman. It was known in the city as "R & P". In the 1950s, two of the firm's biggest client ...

, and the government gilt broker Mullens & Co. in August 1984. The bank became the preeminent UK-based M&A (

merger and acquisition Mergers and acquisitions (M&A) are business transactions in which the ownership of companies, other business organizations, or their operating units are transferred to or consolidated with another company or business organization. As an aspec ...

) adviser, equity underwriter, research house and (via its

Mercury Asset Management Mercury Asset Management plc was a leading British investment management business. It was listed on the London Stock Exchange and was a constituent of the FTSE 100 Index. History The Company was established in 1969 when S. G. Warburg & Co., the ...

subsidiary) asset manager by the early 1990s. At its peak more than half the companies on the

FTSE 100 The Financial Times Stock Exchange 100 Index, also called the FTSE 100 Index, FTSE 100, FTSE, or, informally, the "Footsie" , is a share index of the 100 companies listed on the London Stock Exchange with (in principle) the highest market ...

used Mercury Asset Management for investment management purposes.

Swiss Bank Corporation acquisition

Following another flawed and costly expansion into the United States, in 1994 a merger was announced with

Morgan Stanley Morgan Stanley is an American multinational investment management and financial services company headquartered at 1585 Broadway in Midtown Manhattan, New York City. With offices in more than 41 countries and more than 75,000 employees, the fir ...

, but the talks collapsed. The following year S. G. Warburg was purchased by

. Swiss Bank Corporation merged S. G. Warburg with its own existing investment banking unit to create SBC Warburg, which became a leading player in global investment banking."SBC Warburg Company History"
''Funding Universe''. Retrieved 10 August 2010 In 1997, SBC Warburg was merged with U.S. investment bank Dillon, Read & Co. to create

Warburg Dillon Read Dillon, Read & Co. was an investment bank based in New York City. In 1991, it was acquired by Barings Bank and, in 1997, it was acquired by Swiss Bank Corporation, which was in turn acquired by UBS in 1998. History Carpenter & Vermilye Dillon Read ...

. After the merger of

and

Union Bank of Switzerland Union Bank of Switzerland (UBS) was a Swiss investment bank and financial services company located in Switzerland. The bank, which at the time was the second largest bank in Switzerland, merged with Swiss Bank Corporation in 1998, to become ...

in 1998,

was renamed,

UBS Warburg UBS Group AG is a multinational Investment banking, investment bank and financial services company founded and based in Switzerland. Co-headquartered in the cities of Zürich and Basel, it maintains a presence in all major financial centres ...

. The Warburg name was finally retired in 2003 when the investment banking operation of UBS was renamed

UBS Investment Bank UBS Group AG is a multinational Investment banking, investment bank and financial services company founded and based in Switzerland. Co-headquartered in the cities of Zürich and Basel, it maintains a presence in all major financial centres ...

."UBS means RIP for Warburg"
''The Telegraph'', 13 November 2002

Notable current and former employees

Business

Thomas Bscher Thomas Bscher (born 2 April 1952) is an automobile race car driver and banker 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 ...

, Former managing director of Bugatti Automobiles SAS *

Simon Cairns, 6th Earl Cairns Simon Dallas Cairns, 6th Earl Cairns, (born 27 May 1939), styled Viscount Garmoyle between 1946 and 1989, is a British businessman. Background and education Cairns is the son of Rear-Admiral David Cairns, 5th Earl Cairns, and Barbara Jeanne Harri ...

, managing director 1979–1985 *

Michael Cohrs Michael Cohrs (born 1956 in Midland, Michigan) is an American financier. He was Co-head of Corporate and Investment Banking and head of Global Banking (which comprises the mergers and acquisitions, global capital markets, coverage, commercial ba ...

, Member of Court and Financial Policy Committee Bank of England * John Cryan, chief financial officer,

UBS AG UBS Group AG is a multinational investment bank and financial services company founded and based in Switzerland. Co-headquartered in the cities of Zürich and Basel, it maintains a presence in all major financial centres as the largest Swis ...

* Paul Desmarais, Jr., Co-chief of

Power Corporation of Canada Power Corporation of Canada () is a management and holding company that focuses on financial services in North America, Europe and Asia. Its core holdings are insurance, retirement, wealth management and investment management, including a portfol ...

* Sir Derek Higgs, Chairman of

Alliance & Leicester Alliance & Leicester plc was a British bank and former building society, formed by the merger in 1985 of the Alliance Building Society and the Leicester Building Society. The business demutualised in the middle of 1997, when it was floated o ...

* Nicola Horlick, Founder of Bramdean Asset Management * Sir Hugh Stevenson, Chairman of

(1992-1998), Chairman of

Equitas Equitas is a group of companies that was formed in 1996 to assume by way of reinsurance the vast and crippling liabilities that had accumulated in the syndicates at Lloyd's of London on insurance policies written on the 1992 and all prior years of ...

(1998-2009) *

Ian Wace Ian Gerald Patrick Wace (born January 1963) is a British financier who co-founded Marshall Wace Asset Management, a London-based hedge fund with Paul Marshall in 1997. He and Marshall, along with another hedge fund manager Arpad Busson, co-fou ...

, CEO of Marshall Wace * Peter Wilmot-Sitwell, board member of the Stock Exchange

Politics

Peter Ainsworth Peter Michael Ainsworth (16 November 1956 – 6 April 2021) was a British Conservative politician who served as Member of Parliament (MP) for East Surrey from 1992 to 2010. Following his retirement from politics, Ainsworth was appointed UK ch ...

, former Shadow Environment Secretary *

Robin Budenberg Robin Francis Budenberg CBE (born 1959) is a British Corporate Adviser. He was appointed non-executive Director of Lloyds Banking Group on 1 October 2020 and became Chairman on 4 January 2021 and was appointed Chairman of The Crown Estate on 9 ...

, former Chief executive,

UK Financial Investments UK Financial Investments (UKFI) was a limited company set up in November 2008 and mandated by the British government to manage HM Treasury's shareholdings in the Royal Bank of Scotland Group (RBS) and in UK Asset Resolution, which held the residu ...

Korn Chatikavanij Korn Chatikavanij ( th, กรณ์ จาติกวณิช, , born 19 February 1964 in London) is a Thai Democrat Party politician, best selling author, and former investment banker. From 2008 to 2011, he was finance minister under Abhisit ...

, former Finance Minister for

Thailand Thailand ( ), historically known as Siam () and officially the Kingdom of Thailand, is a country in Southeast Asia, located at the centre of the Indochinese Peninsula, spanning , with a population of almost 70 million. The country is b ...

David Freud David Anthony Freud, Baron Freud, (born 24 June 1950) is a British politician, life peer, and former investment banker who served as Minister for Welfare Reform from 2010 to 2016. Before he joined the Conservative Party, he was vice-chairman o ...

, Parliamentary Under Secretary of State for Work and Pensions *

William Hopper William DeWolf Hopper Jr. (January 26, 1915 – March 6, 1970) was an American stage, film, and television actor. The only child of actor DeWolf Hopper and actress and Hollywood columnist Hedda Hopper, he appeared in predominantly minor r ...

, former

Member of the European Parliament A Member of the European Parliament (MEP) is a person who has been elected to serve as a popular representative in the European Parliament. When the European Parliament (then known as the Common Assembly of the ECSC) first met in 1952, its ...

* Earl Jellicoe, former Lord Privy Seal *

James Leigh-Pemberton Sir James Henry Leigh-Pemberton (born 10 December 1956) is a British banker and the incumbent Receiver-General for the Duchy of Cornwall. He served as the executive chairman of UK Financial Investments until 2018 when the government owned comp ...

, Chief executive,

* James Sassoon, joined S.G. Warburg in 1985, became a director in 1995 and from 2000 to 2002 served as Vice-Chairman * Baroness Vadera, former Minister jointly for the Department for Business, Innovation and Skills and the Cabinet Office

Other

* Hanns Alexander, the captor of

Rudolf Höss Rudolf Franz Ferdinand Höss (also Höß, Hoeß, or Hoess; 25 November 1901 – 16 April 1947) was a German SS officer during the Nazi era who, after the defeat of Nazi Germany, was convicted for war crimes. Höss was the longest-serving comm ...

, Kommandant of Auschwitz *

Anthony Marreco Anthony (Tony) Freire Marreco (9 August 1915 – 4 June 2006) was a British barrister. He was Junior Counsel at the Nuremberg trials, and later a founding director of Amnesty International. He was also known for his romantic liaisons, marryin ...

, one of the founding directors of Amnesty International

References

Bibliography

* * * * {{DEFAULTSORT:S. G. Warburg and Co. Investment banks Defunct financial services companies of the United States Warburg family Former investment banks Financial services companies established in 1946 Banks established in 1946 Financial services companies disestablished in 1995 Banks disestablished in 1995 Companies formerly listed on the London Stock Exchange UBS 1946 establishments in England