However, it came under severe strain during the global financial crisis of 1857 principally as a result of the difficulties experienced by and in some cases the bankruptcy of Peabody & Co.'s American agents.

While remaining senior partner for the time being, he increasingly withdrew from the business leaving Morgan as its effective head.

[10] It was also during this period that the firm built a leading corporate finance business organising and advising on the issuance and underwriting of domestic securities.

The partners chose the former and as a result were required to relinquish their controlling interest in Morgan Grenfell which was to continue to conduct both lending and investment banking business.

[14] One of the most important arrivals in 1967 was Sir John Stevens whose training as a solicitor and his experience working both at the IMF in Washington and at the Bank of England (where he became a director and was believed to have narrowly been passed over in 1966 for the governorship) as well as his experience as British Economic Minister in Washington made him an ideal recruit.

This was expanded and new areas of business opened notably in international project and capital goods export finance.

[20] Although Morgan Grenfell remained an unquoted company until 1986 capital was raised for expansion during the 1960s and 1970s through private placement of stock with institutional investors.

The bank decided to enter the securities market buying Pinchin Denny, a stock jobber, in April 1984 and Pember & Boyle, a stockbroker, in October 1984.

With a view to facilitating future capital raising in 1986 Morgan Grenfell sought and was granted a listing on the London Stock Exchange.

Investigations by the Department of Trade and Industry led to several resignations within the firm including the chief executive Christopher Reeves.

The deal valued Morgan Grenfell at $1.48 billion, Deutsche stating that the acquisition recognised "...the pre-eminence of the London marketplace within Europe in the fields of corporate finance and asset management.

[24] Following the acquisition the firm continued to trade as an independent entity but five years later as Deutsche started to exert more explicit control following the discovery of irregularities in the asset management business resulting in a £2 million fine and board resignations, the name became Deutsche Morgan Grenfell.