The firm of Robert Fleming & Co. was founded by
Robert Fleming, a successful investment manager, in
Dundee, Scotland, in 1873. Fleming had worked at first for a manufacturer of
jute fabrics used for sandbags in the
American Civil War. The firm was originally formed as a series of
investment trusts, pooling money from Scottish investors into overseas ventures, and later moved into merchant banking. In 1909, the firm moved its headquarters to London. In 1873, Robert Fleming cofounded the
Scottish American Investment Company for the purpose of investing in high risk, high return American
railroad bonds. Flemings assumed a central role in the 1886 battle with
Jay Gould for control of the
Texas & Pacific Railway, in which the Flemings bondholder group ultimately triumphed. Overall, Flemings claimed to have made a 40% return on investments in US railroads. In 1970, Flemings entered into an investment banking joint venture with Hong Kong–based
Jardine Matheson, forming
Jardine Fleming. Despite restructuring, Flemings saw its investment banking and asset management market share decline in the 1990s as global investment banks like
Morgan Stanley and
Lazard moved into their markets. The Fleming name was tarnished by a scandal in 1996, when Jardine Fleming was ordered to pay $19 million to fund investors for alleged abusive and unsupervised securities allocation practices by its asset management division. In April 2000, Robert Flemings Holdings was sold to
Chase Manhattan Bank for $7.7 billion. Although the sale came about partially as a result of Flemings’ weakened position, it was part of two larger trends: consolidation in the financial services industry as large U.S. commercial banks acquired investment banks upon the repeal of the
Glass–Steagall Act, and the sale of U.K. merchant banks to foreign acquirors. Flemings, with almost no U.S. assets, was considered a particularly good fit for increasingly globally minded Chase, whose assets lay largely in the United States. In the sale, about 130 Fleming family members pocketed approximately $2.3 billion for their 30 percent stake. When Chase merged with
J.P. Morgan & Co. in 2001, the Flemings asset management business was rebranded
J.P. Morgan Fleming, and Fleming Premier Banking was sold to
Abbey National's
Cater Allen subsidiary. Members of the Fleming family set up an asset management company,
Fleming Family & Partners, which in November 2014 merged with Stonehage Group, an international family office with its roots in South Africa, to create
Stonehage Fleming Family and Partners. ==References==