Piers Le Marchant - How to Raise Hundreds of Millions of Pounds for Charity

Personal Background & Career Trajectory:

• Grew up on a farm in Somerset; privately educated; transitioned from barrister to banker.
• Began banking career in 1987 at Nomura during the Japanese asset bubble.
• Spent 18 years at Lehman Brothers, ending with negotiations to sell Lehman out of administration to Nomura in 2008.
• Returned to Nomura as a board member three years post-crisis.

The Balance Foundation & Unclaimed Assets:

• Motivation: Founded after becoming "outright angry" that Lehman Brothers intended to claim unassigned assets as profit rather than returning them to customers.
• Mechanism: Proposed insuring the remaining unclaimed assets (approx. 4-5% premium cost) so that 95% of the £100 pot could be donated to charity.
• Regulatory Hurdles:
  • Initially faced opposition from the financial sector fearing loss of profit and reputational risk.
  • Received support from the Bank of England regarding M1 money supply implications.
  • Faced political resistance from then-Chancellor Gordon Brown, who initially sought to tax the unclaimed assets.
• Strategic Pivot: Executed a "pincer movement" involving the Queen and Prince Charles to shift government stance; Gordon Brown launched the charity during the budget speech to avoid the tax revenue loss.
• Outcome: Generated between £180 million and £200 million for charity; the mechanism eventually influenced the "Big Society Bank" and "Green Bank" initiatives.
• Expansion: Currently pursuing similar models in Singapore (active) and Switzerland (projected completion in ~18 months).

Current Projects & Future-Forward Initiatives:

• Bonus Reform: Developing a "revolutionary" scheme to address banker bonuses (confidential pending government adoption).
• Sustainable Capital Allocation:
  • Collaborating with the Club of Rome to integrate sustainability metrics into banking capital models.
  • Goal: Grant capital relief to banks lending to sustainable corporations, incentivizing environmentally and economically viable business models.
• Westminster Theological College: Established to provide part-time theological training and intellectual resources for clergy, aiming to bridge the gap between the "charismatic" and "intellectual" wings of the Church of England.
• Gilbert and George Foundation: Managing the future of the artists' estate to support community integration in London's East End.

Key Arguments for Integrating Charity into Careers:

• Career Resilience: Charitable work mitigates career self-destruction caused by pride; humility gained through service helps professionals endure setbacks (e.g., missed promotions) that might otherwise cause resignation.
• Professional Networking: High-level charity engagement provides access to regulators (e.g., Bank of England, FSA) and government officials (e.g., Lord Mayor), creating unique career advantages and leverage.
• Organizational Cohesion: Involvement in charity breaks down silos within large corporations, connecting employees across different departments and hierarchies (e.g., "friends in low places").
• Family Dynamics: Extends professional life into family life, providing shared experiences and values for the next generation.
• Confidence Building: Public engagement through charity builds the confidence required to propose radical systemic changes (e.g., calling the head of the Club of Rome to propose a solution).

Advice for Aspiring Change-Makers:

• Passion over Sacrifice: Individuals should not enter fields solely for philanthropy if they lack genuine passion; success requires deep engagement with one's primary profession.
• Anger as a Catalyst: Effective change often stems from "compassion" (passion for a situation) driven by anger at injustice.
• Strategic Attributes for Success:
  • Using the "mind time" to solve specific problems one is angry about.
  • Trusting instincts and networking strategically (e.g., approaching the right contact despite fatigue).
  • Timing: The right idea must coincide with the right political and economic moment.
  • Position: Holding a senior role (e.g., General Counsel) facilitates access to decision-makers.
  • Personal Stability: A supportive personal life (e.g., marriage) provides the mental bandwidth necessary for high-impact charitable work.

Q&A Insights on Industry Dynamics:

• Internal Resistance: The Balance Foundation idea initially split Lehman Brothers, with senior leadership fearing reputational damage and profit loss.
• Competitive Moaning: External support from UBS (Deputy Chairman) pressured Lehman to join, driven by competitive jealousy over "brand glory."
• Industry Shift: The current financial crisis is viewed as an opportunity to remove those solely motivated by bonuses, allowing voices advocating for social reconnection to gain influence.