Comment by traceroute66 | Hacker News Reader

Comment by traceroute66 | Hacker News Reader

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> So if you can’t “buy your way in” to these banks, what are the criteria?

First you will need to be "introduced" to the bank by an existing customer. We're not talking about a referral link here, we're saying who introduces you is just as important as who is being introduced (i.e. long-standing customer vouching for an introduction gets more weight than a newbie trying to get a mate in).

Second, if the introduction is acceptable, then you will be invited to a meeting with one or more members of the bank's senior management to determine if you are a good fit (and no, "good fit" does not equal a commercial fit about determining how much they can sell you, its a "good fit" as in determining that you have your head screwed on and won't cause the bank problems).

You might think this is excessive, but at the most exclusive bank the management have genuine skin in the game (e.g. bank is purposely setup as unlimited liability legal structure, so if management were to ever fuck up, they really would FUCK UP because they have no corporate veil to hide behind).

It also means that dodgy overseas money and the nouveau riche can't buy their way in and start causing problems. A truly exclusive bank values quality of client over quantity of clients.

"e.g. bank is purposely setup as unlimited liability legal structure"

Why would they want to do that?

> Why would they want to do that?

To show the customer they're putting their money where their mouth is, i.e. that they are genuinely more interested in the long-term relationship than the pure commercial profitability of the client.

Going for unlimited liability also focuses the mind of the bank's management. You can't make short-sighted decisions just because you want to boost your bonus. You have to genuinely make sound decisions with the bank and the bank's customer's in mind.

Its very rare these days. Rarer than pure partnership legal structure which is already very rare. Almost all organisations these days opt to take the easier route and hide behind the corporate veil.

Thanks, that’s insightful. What’s an example of one of these banks?

> What’s an example of one of these banks?

C. Hoare & Co. [1]

Their unlimited liability and the reasoning behind it is briefly discussed in a blog post by one of their senior partners[2].

[1] https://www.hoaresbank.co.uk/ [2] https://www.hoaresbank.co.uk/The_Special_Dynamics_of_a_Famil...

I've always wanted to get an account with them because of a throwaway line in a Patrick O'brien book:

> 'Mr Babbington,' he said, suddenly stopping in his up and down. 'Take your hands out of your pockets. When did you last write home?' Mr Babbington was at an age when almost any question evokes a guilty response, and this was, in fact, a valid accusation. He reddened, and said, 'I don't know, sir.' 'Think, sir, think,' said Jack, his good-tempered face clouding unexpectedly...'Never mind. Write a handsome letter. Two pages at least. And send it in to me with your daily workings tomorrow. Give your father my compliments and tell him my bankers are Hoares.' For Jack, like most other captains, managed the youngsters' parental allowance for them. 'Hoares,' he repeated absently once or twice, 'my bankers are Hoares,' and a strangled ugly crowing noise made him turn. Young Ricketts was clinging to the fall of the main burton-tackle in an attempt to control himself, but without much success.

Have had the same thought myself on occasions.

One take I've heard on that, whether or not its true I don't know, is that it is a tongue-in-cheek reference to one of the very early generation of Hoares, one of whom earnt himself the nickname "naughty" (Richard "Naughty" Hoare).

Allegedly he was no stranger to, shall we say, a particularly extravagant lifestyle.

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