Crisis at Coutts poses awkward questions for London’s private banks

They have been around for hundreds of years and have become synonymous with exclusivity and discretion.

They evoke images of oak paneled rooms, Savile Row suits and Montblanc pens.

And you need a small fortune to become one of their clients.

The furore over Nigel Farage has turned the spotlight on the rarefied world of private banks serving the super-rich and sometimes famous.

When Coutts, the king’s bank, closed the former Ukip leader’s account – partly because Farage’s views were inconsistent with his values ​​– it sent a shock wave through this outwardly genteel and mysterious world.

Unlike the hoi polloi, who face endless office closures and hours in call center queues, private banks pride themselves on providing personalized service par excellence.

When the Daily Mail recently visited the Mayfair offices of Weatherbys – one of the oldest private banks – our reporter was greeted by employees wearing Louboutin shoes and expensive cufflinks.

She was then served tea from a white porcelain teapot as she sat on a soft brown leather sofa in a small room decorated with bouquets of fresh flowers and glossy coffee table books.

Such silver service is not cheap. A deposit of £300,000 is required and most clients – they are not called clients – have at least half a million pounds saved in the bank.

Founded in 1770 with its roots in horse racing, Weatherbys today counts software developers, business executives and professional football players among its clientele.

Each is assigned their own banker plus assistant, who manage their accounts directly – often from the comfort of the client’s home.

Other perks include invitations to corporate boxes at Royal Ascot and workshops with luxury designer jeweler Boodles.

“Relationships are the heart and soul of what we do,” said Quentin Marshall, General Manager of Weatherbys. “Our relationship with customers allows us to get personal, rather than just offering banking services,” he added.

“Customers even call for restaurant recommendations.”

Weatherbys is one of a small, select group of private banks that have been lending to the greats for centuries.

Coutts, which has been around since 1692, is perhaps the most famous. Now owned by NatWest, it has counted Frederic Chopin, the Duke of Wellington, Charles Dickens, Lord Nelson and The Beatles among its clients.

More recent recruits include rapper Stormzy and Harry Potter star Emma Watson.

But it is best known for serving every member of the royal family, including the late queen, since the late 18th century. There’s even a Coutts ATM in Buckingham Palace, even if the monarch doesn’t carry cash.

The oldest private bank, C. Hoare & Co, was founded in 1672 – more than two decades before the Bank of England was founded.

New Money: Recent Coutts recruits include rapper Stormzy (pictured)

One of the first clients was the diarist Samuel Pepys whose wealth skyrocketed during the reign of Charles II after the monarchy was restored in 1660.

John Dryden, Jane Austen and Lord Byron were also on the books of the family bank, now in its 12th generation. It insists that potential clients must invest or borrow at least £1 million to join the elite.

The private banks are tight-lipped about the Farage affair – not surprising given their reputation for restraint.

Arbuthnot Laham, whose City of London headquarters was destroyed in the Blitz, would only say they only take on clients based on their financial merit.

A spokesman for Hampden & Co, a private bank with offices in London and Edinburgh, said: “While we would not turn down a client simply because of their political views, we would not accept a client if we believed there was a risk of reputational damage to the bank.”

As Coutts reassesses how its disastrous decision to exclude Farage came about, other private banks are also being scrutinized as to who they decide to accept as clients and how they are selected.

But private banks have survived wars, recessions and pandemics.

They will definitely survive this.