Michael von Clemm
Encyclopedia
Dr Michael von Clemm was an American businessman, restaurateur, anthropologist and President of Templeton College, Oxford
Templeton College, Oxford
Templeton College was one of the constituent colleges of the University of Oxford, England. It was an all-graduate college, concentrating on the recruitment of students in business and management studies....

. Although in one interpretation of his life, he was merely a high-flying banker, he could also have been said to have helped start the restaurant revolution in the UK of the 1980s, and to have been the original father of the Canary Wharf
Canary Wharf
Canary Wharf is a major business district located in London, United Kingdom. It is one of London's two main financial centres, alongside the traditional City of London, and contains many of the UK's tallest buildings, including the second-tallest , One Canada Square...

 development. He helped found the London Eurodollar
Eurodollar
Eurodollars are time deposits denominated in U.S. dollars at banks outside the United States, and thus are not under the jurisdiction of the Federal Reserve. Consequently, such deposits are subject to much less regulation than similar deposits within the U.S., allowing for higher margins. The term...

 market, saving London's position as a global financial centre. In his work for charity and the English Speaking Union, he also made a huge impact. All this despite his training being as a Professor of Anthropology.

Early life and education

Von Clemm was born in Long Island
Long Island
Long Island is an island located in the southeast part of the U.S. state of New York, just east of Manhattan. Stretching northeast into the Atlantic Ocean, Long Island contains four counties, two of which are boroughs of New York City , and two of which are mainly suburban...

, USA on March 18, 1935, the son of Werner von Clemm
Werner von Clemm
Werner C. von Clemm was born into a German family that married into German nobility, the Nazi party and prominent American families. His father-in-law was a Vice President of Citibank. In 1922 he immigrated to the United States. Prior to this he had served in the German army during World War I...

, a prominent German-American banker, and grandson of a former Citibank Vice-President. When Von Clemm was 6 years old, during WWII, his father was arrested for trading smuggled diamonds from Europe and served two years in prison, before returning to banking.

Michael was educated at Phillips Exeter Academy
Phillips Exeter Academy
Phillips Exeter Academy is a private secondary school located in Exeter, New Hampshire, in the United States.Exeter is noted for its application of Harkness education, a system based on a conference format of teacher and student interaction, similar to the Socratic method of learning through asking...

 (class of 1953) and Harvard University
Harvard University
Harvard University is a private Ivy League university located in Cambridge, Massachusetts, United States, established in 1636 by the Massachusetts legislature. Harvard is the oldest institution of higher learning in the United States and the first corporation chartered in the country...

 (anthropology), where he met his wife Louisa B. Hunnewell of Wellesley, MA. The couple left the USA at the end of the 1950s to study, and Michael took a postgraduate course in anthropology at Corpus Christi College, Oxford
Corpus Christi College, Oxford
Corpus Christi College is one of the constituent colleges of the University of Oxford in the United Kingdom...

, where he was awarded his Doctorate. As part of his studies, he had lived with the Wachagga tribe in Tanzania
Tanzania
The United Republic of Tanzania is a country in East Africa bordered by Kenya and Uganda to the north, Rwanda, Burundi, and the Democratic Republic of the Congo to the west, and Zambia, Malawi, and Mozambique to the south. The country's eastern borders lie on the Indian Ocean.Tanzania is a state...

 for 14 months. Academic life did not entirely suit him, however, and he tried his hand at journalism, with a stint on the Boston Globe as a reporter.

He maintained an interest in anthropology throughout his career in banking. He was an assistant professor of anthropology at Harvard University
Harvard University
Harvard University is a private Ivy League university located in Cambridge, Massachusetts, United States, established in 1636 by the Massachusetts legislature. Harvard is the oldest institution of higher learning in the United States and the first corporation chartered in the country...

 from 1971–1972 and then when he transferred to London with CSFB, became Visiting Professor of Anthropology at the University of Sussex
University of Sussex
The University of Sussex is an English public research university situated next to the East Sussex village of Falmer, within the city of Brighton and Hove. The University received its Royal Charter in August 1961....

, earning the title Professor. However in the UK Professor is an honorific title relating to a role and Von Clemm did not use it while in banking. Occasionally his bank colleagues - and competitors - referred to him as Professor in a reference to his intellectual style.

Roux Brothers

In 1967, Von Clemm borrowed $900 to help two young French brothers, Michel
Michel Roux
Michel Roux is a French-born chef and restaurateur working in Britain.Born in Charolles, Saône-et-Loire, Roux moved to Paris with his family after the war, where they set up a charcuterie...

 and Albert Roux
Albert Roux
Albert Roux OBE is a French-born restaurateur and chef working in Britain. He and his brother Michel operated Le Gavroche, the first restaurant in the UK to gain three Michelin stars. He helped train a series of chefs that went on to win Michelin stars, and his son, Michel Roux, Jr...

, start a restaurant business. With their first enterprise, Le Gavroche
Le Gavroche
Le Gavroche is a restaurant on 43 Upper Brook Street in Mayfair . It was opened in 1967 by Michel and Albert Roux although the original premises were on 61 Lower Sloane Street until 1981....

 in London's Mayfair, they won first one, then two, and finally three Michelin
Michelin
Michelin is a tyre manufacturer based in Clermont-Ferrand in the Auvergne région of France. It is one of the two largest tyre manufacturers in the world along with Bridgestone. In addition to the Michelin brand, it also owns the BFGoodrich, Kleber, Riken, Kormoran and Uniroyal tyre brands...

 stars, the first restaurant in the UK to do so.

The Roux brothers have been credited with helping make London one of the world's best cities for eating, paving the way for other high quality restaurants which opened in their wake during the 1970s and 1980s. Von Clemm became Chairman of the Roux Restaurants Group and remained friends with the brothers.

Banking career

In a career move away from academia, Von Clemm followed his father and grandfather to Citibank
Citibank
Citibank, a major international bank, is the consumer banking arm of financial services giant Citigroup. Citibank was founded in 1812 as the City Bank of New York, later First National City Bank of New York...

 in 1963 where he gained a reputation for innovation - and dealmaking. He responsible for inventing several financial instruments and services. He found himself posted to London where he worked with a fellow American, Stanislas Yassukovich, at White Weld, on the development of the Eurodollar
Eurodollar
Eurodollars are time deposits denominated in U.S. dollars at banks outside the United States, and thus are not under the jurisdiction of the Federal Reserve. Consequently, such deposits are subject to much less regulation than similar deposits within the U.S., allowing for higher margins. The term...

 CD market. Citibank launched its first Eurodollar issues in 1966. However Von Clemm went back to Harvard Business School
Harvard Business School
Harvard Business School is the graduate business school of Harvard University in Boston, Massachusetts, United States and is widely recognized as one of the top business schools in the world. The school offers the world's largest full-time MBA program, doctoral programs, and many executive...

 to lecture.

In 1971, Yassukovich hired Von Clemm to join White Weld, first as a temporary consultant on the feasibility of a Euro-commercial paper market, which did not catch on. However in 1972 Von Clemm effectively gave up his academic career to concentrate on banking full time. He had an aggressive style - for example on one occasion printing up T-shirts for staff which read Buy Bonds. He was also said to effectively bully clients into taking on the bank.

When Credit Suisse took a 40% stake in White Weld, he rose rapidly to become a senior Director of the combined Bank. However, Merrill Lynch made a play for White Weld in 1978 and Credit Suisse
Credit Suisse
The Credit Suisse Group AG is a Swiss multinational financial services company headquartered in Zurich, with more than 250 branches in Switzerland and operations in more than 50 countries.-History:...

 needed a new partner. The existing Chairman Sir John Craven
Sir John Craven
Sir John Craven is a director of Reuters and formerly Deutsche Bank and chairman of Deutsche Morgan Grenfell Group plc....

 wanted Dillon (later Warburg Dillon Read
Warburg Dillon Read
Warburg Dillon Read was an investment bank created by the Swiss Bank Corporation , following its 1997 acquisition of S. G. Warburg & Co. which it merged with Dillon, Read & Co., a firm it had acquired in 1995. SBC itself merged with the Union Bank of Switzerland in 1998, creating UBS AG...

). Von Clemm went behind his back and did a direct deal with First Boston. This prompted Craven's resignation.

Von Clemm replaced Craven as Chairman of the newly formed Credit Suisse First Boston
Credit Suisse First Boston
Credit Suisse First Boston was the former name of the banking firm Credit Suisse.-History:In 1978, Credit Suisse and First Boston Corporation formed a London-based 50-50 investment banking joint venture called the Financière Crédit Suisse-First Boston...

, and then additionally Chief Executive in 1979. Although often controversial in his decisions, and taking several large risks, he turned CSFB from a relatively staid bank to a global powerhouse, propelling it into the top leagues of global banking. He stepped away from his Chief Executive role in 1983 but remained Chairman until resigning in January 1986.

Von Clemm was known for his enormous expense claims and dramatic personal style. He was a regular - practically weekly - user of Concorde
Concorde
Aérospatiale-BAC Concorde was a turbojet-powered supersonic passenger airliner, a supersonic transport . It was a product of an Anglo-French government treaty, combining the manufacturing efforts of Aérospatiale and the British Aircraft Corporation...

 - and counted some of the world's most powerful figures as his friends. However, he also made large profits for his bank and was regarded as one of the biggest rain-makers in the City.

Creates original concept of Canary Wharf

In his capacity as Chairman of Roux restaurants, Von Clemm visited London Docklands in the early 1980s, in the company of London Docklands Development Corporation
London Docklands Development Corporation
The London Docklands Development Corporation was a quango agency set up by the UK Government in 1981 to regenerate the depressed Docklands area of east London. During its eighteen-year existence it was responsible for regenerating an area of in the London Boroughs of Newham, Tower Hamlets and...

 Chief Executive Reg Ward
Reg Ward
Albert Joseph Ward, known as Reg Ward was the first Chief Executive of the London Docklands Development Corporation , serving in that capacity from 1981 to 1988.- Early life and education :...

. He was looking for a site for a food processing plant and the old West India Docks
West India Docks
The West India Docks are a series of three docks on the Isle of Dogs in London, the first of which opened in 1802. The docks closed to commercial traffic in 1980 and the Canary Wharf development was built on the site.-History:...

 on the Isle of Dogs
Isle of Dogs
The Isle of Dogs is a former island in the East End of London that is bounded on three sides by one of the largest meanders in the River Thames.-Etymology:...

 seemed to be a sensible location. Billingsgate Market had already moved there from the City of London
City of London
The City of London is a small area within Greater London, England. It is the historic core of London around which the modern conurbation grew and has held city status since time immemorial. The City’s boundaries have remained almost unchanged since the Middle Ages, and it is now only a tiny part of...

 and the site was well linked with transport, land was relatively cheap and there were incentives available for regeneration projects.

However, Von Clemm recognised the old 18th Century warehouses as similar to those in Boston
Boston
Boston is the capital of and largest city in Massachusetts, and is one of the oldest cities in the United States. The largest city in New England, Boston is regarded as the unofficial "Capital of New England" for its economic and cultural impact on the entire New England region. The city proper had...

 which had been converted into shops, restaurants and flats - as well as office developments. In fact, there was a direct connection - the warehouses on both sides of the atlantic had been built at the same time to service the lucrative transatlantic trade in raw materials and manufactured goods.

Von Clemm decided that a much more interesting use for the site would be as a back office for his bank. By the time he discussed this with his board, and in particular his buccaneering Kentuckian property adviser G Ware Travelstead
G Ware Travelstead
Gooch Ware "G" Travelstead is an American property developer and entrepreneur, born in Kentucky in 1938.While head of First Boston Real Estate, a subsidiary of Credit Suisse First Boston, Travelstead was the original designer and promoter of the Canary Wharf estate in London Docklands.- Family...

, the idea had further developed into putting the front office of the bank on West India Docks, effectively creating a second financial services district in London.

This idea later took shape as the Canary Wharf
Canary Wharf
Canary Wharf is a major business district located in London, United Kingdom. It is one of London's two main financial centres, alongside the traditional City of London, and contains many of the UK's tallest buildings, including the second-tallest , One Canada Square...

 development, with CSFB both backing the scheme financially, and as one of the first tenants to move in.

Post CSFB: Academic and charitable work

Von Clemm was made an Honorary Fellow of Corpus Christi College, Oxford
Corpus Christi College, Oxford
Corpus Christi College is one of the constituent colleges of the University of Oxford in the United Kingdom...

 and later President of Templeton College, Oxford
Templeton College, Oxford
Templeton College was one of the constituent colleges of the University of Oxford, England. It was an all-graduate college, concentrating on the recruitment of students in business and management studies....

, which merged with Green College
Green College, Oxford
Green College was a graduate college of the University of Oxford in England. It was centred around an architecturally appealing 18th century building: the Radcliffe Observatory, which is modelled after the ancient "Tower of the Winds" in Athens....

 in 2008 to become Green Templeton College, Oxford
Green Templeton College, Oxford
Green Templeton College is a constituent college of the University of Oxford in the United Kingdom. It is the university's newest college having come into existence on 1 October 2008 from the merger of Green College and Templeton College...

. He was a former President of the The English-Speaking Union for the USA, and Vice-Chairman of the organisation until his death. At the ESU he was credited with transforming the governance of the organisation.

He was Vice-President of the City of London Archaeological Trust, and the US Foundation for the Protection of Archaeological Heritage.

Von Clemm remained involved in business as Chairman of Merrill Lynch
Merrill Lynch
Merrill Lynch is the wealth management division of Bank of America. With over 15,000 financial advisors and $2.2 trillion in client assets it is the world's largest brokerage. Formerly known as Merrill Lynch & Co., Inc., prior to 2009 the firm was publicly owned and traded on the New York...

, and as a Board member of companies including Hafslund Nycomed
Hafslund Nycomed
Hafslund Nycomed is a defunct company that existed between 1986 and 1996 after the power and industry company Hafslund had bought the pharmaceutical company Nycomed. The company was listed on the Oslo Stock Exchange. In 1996 it was demerged and Nycomed merged with the British pharmaceutical company...

.

Death and memorial

  • Von Clemm died in 1997, at age 62, in Wellesley, MA from a brain tumour. His friend Sir Richard Branson said at the time that Von Clemm's doctors believed it was due to excessive mobile phone use - Von Clemm had been an early adopter of the technology and was a constant user of his mobile.

  • After Von Clemm's death, the Michael Von Clemm Foundation continued his interests. Among other things, the Foundation supports a Fellowship at Harvard University
    Harvard University
    Harvard University is a private Ivy League university located in Cambridge, Massachusetts, United States, established in 1636 by the Massachusetts legislature. Harvard is the oldest institution of higher learning in the United States and the first corporation chartered in the country...

     for final year Oxford University students, and a Fellowship at Oxford for Harvard students.

  • There is a relief sculpture of Michael Von Clemm in Cabot Square
    Cabot Square
    Cabot Square is one of the central squares of the Canary Wharf Development in London's Docklands.The square includes a fountain and several works of art, and is the address for the London Offices of Credit Suisse and Morgan Stanley....

    at Canary Wharf, sculpted by Gerald Laing and unveiled by Eddie George in 1998 to commemorate his involvement in the Canary Wharf scheme.

External links

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