Trust (business)

A trust or corporate trust is a large grouping of business interests with significant market power, which may be embodied as a corporation or as a group of corporations that cooperate with one another in various ways. These ways can include constituting a trade association, owning stock in one another, constituting a corporate group (sometimes specifically a conglomerate), or combinations thereof. The term trust is often used in a historical sense to refer to monopolies or near-monopolies in the United States during the Second Industrial Revolution in the 19th century and early 20th century.

In the broader sense of the term, relating to trust law, a trust is a centuries-old legal arrangement whereby one party conveys legal possession and title of certain property to a second party, called a trustee. While that trustee has ownership, s/he cannot use the property for herself, but holds it 'in trust' for the well-being of a beneficiary. Trusts are commonly used to hold inheritances for the benefit of children and other family members, for example. In business, such trusts, with corporate entities as the trustees, have sometimes been used to combine several large businesses in order to exert complete control over a market,[1] which is how the narrower sense of the term grew out of the broader sense.

The Rockefeller-Morgan Family Tree, 1904
The Rockefeller-Morgan Family Tree (1904), which depicts how the largest trusts at the turn of the 20th century were in turn connected to each other.


The OED dates use of the word "trust" in a financial sense from 1825.[2]

Corporate trusts came into use as legal devices to consolidate power in large American corporate enterprises.[3] In January 1882, Samuel C. T. Dodd, Standard Oil's General Solicitor, conceived of the corporate trust to help John D. Rockefeller consolidate his control over the many acquisitions of Standard Oil, which was already the largest corporation in the world.[3][4] The Standard Oil Trust formed pursuant to a "trust agreement" in which the individual shareholders of many separate corporations agreed to convey their shares to the trust; it ended up entirely owning 14 corporations and also exercised majority control over 26 others.[3] Nine individuals held trust certificates and acted as the trust's board of trustees.[3] One of those trustees, Rockefeller himself, held 41% of the trust certificates; the next most powerful trustee held only about 12%.[3] This kind of arrangement became popular and soon had many imitators.[3]

An 1888 article explained the difference between trusts in the traditional sense and the newfangled corporate trusts:

A trust is ... simply the case of one person holding the title of property, whether land or chattels, for the benefit of another, termed a beneficiary. Nothing can be more common or more useful. But the word is now loosely applied to a certain class, of commercial agreements and, by reason of a popular and unreasoning dread of their effect, the term itself has become contaminated. This is unfortunate, for it is difficult to find a substitute for it. There may, of course, be illegal trusts; but a trust in and by itself is not illegal: when resorted to for a proper purpose, it has been for centuries enforced by courts of justice, and is, in fact, the creature of a court of equity.

— Theodore Dwight, Political Science Quarterly [5]

Although such "corporate trusts" were initially set up to improve the organization of large businesses, they soon faced widespread accusations of abusing their market power to engage in anticompetitive business practices. This caused the term "trust" to become strongly associated with such practices among the American public and led to the enactment in 1890 of the Sherman Antitrust Act, the first U.S. federal competition statute.

Standard oil octopus loc color
Octopus representing Standard Oil with tentacles wrapped around U.S. Congress and steel, copper, and shipping industries, and reaching for the White House.

Meanwhile, "trust agreements", the legal instruments used to create the corporate trusts, received a hostile reception in state courts during the 1880s and were quickly phased out in the 1890s in favor of other clever devices like holding companies for maintaining corporate control.[3] For example, the Standard Oil Trust terminated its own trust agreement in March 1892.[3] Regardless, the name stuck, and American competition laws are known today as antitrust laws (or anti-trust laws) as a result of the historical public aversion to trusts, while other countries use the term "competition laws" instead.

In 1898 President William McKinley launched the "trust-busting" era when he appointed the U.S. Industrial Commission. Theodore Roosevelt seized upon the Commission's report and based much of his presidency (1901-1909) on "trust-busting".

Prominent trusts included:

De Beers had a dominant role in the supply of diamonds.

Other companies also formed trusts, such as the Motion Picture Patents Company or Edison Trust which controlled the movie patents. Patents were also important to the Bell Telephone Company, as indicated by the massive litigation that came to be known as The Telephone Cases.

See also


  1. ^ [See William L. Letwin, Congress and the Sherman Antitrust Law: 1887-1890, 23 U.Chi.L.Rev 221 (1956)]
  2. ^ "trust". Oxford English Dictionary (3rd ed.). Oxford University Press. September 2005. (Subscription or UK public library membership required.). "A group of companies, industries, etc., organized to reduce or eliminate competition, or to control production and distribution for their common advantage. Also: spec. such a group with a governing body of trustees holding a majority of the stock of each participating company, and therefore having a controlling vote in their conduct."
  3. ^ a b c d e f g h Barak Orbach and Grace E. Campbell Rebling, "The Antitrust Curse of Bigness", 85 S. Cal. L. Rev. 605 (2012). "In 1882 Standard Oil's General Solicitor invented the corporate trusts that inspired the birth of the anti-trust discipline."
  4. ^ Compare: Orbach, Barak; Campbell Rebling, Grace E. (2012-05-17). "The Antitrust Curse of Bigness" (PDF). Southern California Law Review (published 2012). 85 (605): 610. Retrieved 2018-04-05. Standard Oil continued expanding uninterruptedly, but state laws and organizational complexities made its size an impediment. Samuel Calvin Tait Dodd, who served as Standard Oil's general solicitor from 1881 to 1905,[...] devised a solution. He created a legal instrument to manage size — the 'trust.'[...] In January 1882, Dodd converted the common-law apparatus to a corporate device that would promote the accumulation of capital and managerial efficiency.
  5. ^ Dwight, Theodore (1888). "The Legality of "Trusts"". Political Science Quarterly. 3: 592.
  6. ^ Moody. "Standard Oil Company. 'The Oil Trust'". The Truth About The Trusts. pp. 109–132.
  7. ^ Moody. "United States Steel Corporation. 'The Steel Trust'". The Truth About The Trusts. pp. 133–204.
  8. ^ Moody. "Consolidated Tobacco Company and Affiliated Corporations. 'The Tobacco Trust'". The Truth About The Trusts. pp. 69–96ff.
  9. ^ Moody. "International Mercantile Marine Company. 'The Shipping Trust'". The Truth About The Trusts. pp. 97–107.


External links

Akira Mori

Akira Mori (森 章, Mori Akira, born 12 July 1936) is the Chairman of the Board of Mori Trust, a real estate developer in Tokyo, Japan and an offshoot of Mori Building, the company his father Taikichiro Mori founded in 1959. Forbes estimates that as of 2013, he is the fourth-wealthiest person in Japan with a net worth of approximately $5 billion.He attended Keio University, graduating in 1960 and joining Yasuda Trust & Banking (now part of Mizuho Trust & Banking). He formally joined Mori Building as an employee in 1972.

Following their father's death in 1993, he and his older brother Minoru Mori inherited the family business and in 1999 they split it after a falling-out. Akira headed Mori Trust, while his brother headed what was left of the Mori Building company until his death on March 8, 2012. Mori Trust owns and operates 67 buildings, manages 89 buildings, consisting of office and residential buildings, mainly in central Tokyo and other major Japanese cities. These include the Tokyo Shiodome Building in a commercial district near Tokyo Bay, and about 30 hotels including the Conrad Tokyo. He expressed interest in expanding the company's Tokyo real estate portfolio in 2013 in the midst of economic reforms being enacted by Prime Minister Shinzo Abe.Akira Mori has selected his only daughter Miwako Date, who served as president of Mori Trust Hotels & Resorts, in 2016 to take over the Mori Trust business. Akira Mori is now assuming the role of Chairman of the Board of Mori Trust.

Angel investor

An angel investor (also known as a business angel, informal investor, angel funder, private investor, or seed investor) is an affluent individual who provides capital for a business start-up, usually in exchange for convertible debt or ownership equity. Angel investors usually give support to start-ups at the initial moments (where risks of the start-ups failing are relatively high) and when most investors are not prepared to back them. A small but increasing number of angel investors invest online through equity crowdfunding or organize themselves into angel groups or angel networks to share investment capital, as well as to provide advice to their portfolio companies. In the last 50 years the number of angel investors has greatly increased.

Anna Fiorentini Theatre and Film School

Anna Fiorentini Theatre & Film School is a part-time stage school, based in London. The school's founder and Principal is Anna Fiorentini.

The school was established in 2001 as a Prince's Trust Business. Since then it has won 3 Business of London Awards and has a growing reputation within the performing arts industry.

Students aged 7 - 18 follow a time-table of Drama, Film, Singing, Dance & Musical Theatre. These classes are taught by leading professionals, and the school currently has a branch in Camden, Greenwich, Hackney and Docklands. The school also offers Fiorentini Weenies classes for students aged 4-6 years old.

Every year the school puts on a Variety Performance at the Hackney Empire. All students have the opportunity to take part in this show. Students are also encouraged to take part in competitions such as Fiorentini's Got Talent and Destination Dance. To support children from low-income families that may struggle with fees, the school set up the Fiorentini Foundation to help provide bursaries and scholarships. In 2014, Anna Fiorentini set up Stage & the City, an adult performing arts school, to raise money for the Fiorentini Foundation. All profits from Stage & the City go directly to the charity.

BBC Trust

The BBC Trust was the governing body of the British Broadcasting Corporation (BBC) between 2007 and 2017. It was operationally independent of BBC management and external bodies, and its stated aim was to make decisions in the best interests of licence-fee payers. On 12 May 2016, it was announced in the House of Commons that, under the next Royal Charter, the regulatory functions of the BBC Trust were to be transferred to Ofcom.

The trust was established by the 2007 Royal Charter for the BBC, which came into effect on 1 January in that year. The trust, and a formalised Executive Board, replaced the former Board of Governors. The decision to establish the trust followed the Hutton Inquiry, which had heavily criticised the BBC for its coverage of the death of David Kelly; Labour's political opponents, as well as large numbers of its supporters, saw the Hutton Inquiry as a whitewash, designed to deflect criticism from Tony Blair's government.

In summary, the main roles of the Trust are in setting the overall strategic direction of the BBC, including its priorities, and in exercising a general oversight of the work of the Executive Board. The Trust will perform these roles in the public interest, particularly the interest of licence fee payers. — BBC Royal Charter (2006)

The BBC Trust closed on 2 April 2017 at the expiry of the 2007 Royal Charter, which had a 10-year lifespan. Labour had lost power in 2010, and other political parties had established a parliamentary majority by the time it came to the moment for a new Royal Charter to be written. Governance of the BBC was transferred to the new BBC Board in April 2017, with Ofcom assuming regulatory duties.

Banco de Oro

BDO Unibank, Inc. (BDO) is a Philippine banking company based in Makati. In terms of total assets, the firm is the largest bank in the Philippines, fifteenth largest in Southeast Asia, 116th largest in Asia, and the 234th largest bank globally as of March 31, 2016. BDO Unibank is also a member of SM Group owned by the late Henry Sy. It is also the largest bank in the country by market capitalization.The firm is a full-service universal bank. It provides products and services to the retail and corporate markets including lending (corporate, middle market, SME, and consumer), deposit-taking, foreign exchange, brokering, trust and investments, credit cards, corporate cash management and remittances. Through its subsidiaries, the Bank offers Leasing and Financing, Investment Banking, Private Banking, Bancassurance, Insurance brokerage and stockbrokerage services.

Business trust

Business trust may refer to:

Trust (business), an American English term for a large business with significant market power

Massachusetts business trust

Business Trust in India

Butterfield Bank

Butterfield, officially the Bank of N. T. Butterfield & Son Limited, is a bank founded and based in Bermuda. Butterfield offers a full range of community banking services in Bermuda and the Cayman Islands, encompassing retail and corporate banking and treasury activities. Butterfield also provides private banking, asset management and personal trust services from its headquarters in Bermuda and subsidiary offices in the Cayman Islands, Guernsey and the United Kingdom. In Switzerland and The Bahamas, Butterfield provides personal trust and company services. It is listed on the Bermuda Stock Exchange (BSX). As of 1 January 2017, the Bank had five customer centres in Bermuda and total deposits of $10 billion.

Earl Jones (investment advisor)

Bertram Earl Jones (born June 24, 1942) is a Canadian non-practicing investment adviser who pleaded guilty to running a Ponzi scheme that CBC News has reported cost his victims "a conservative estimate of about C$51.3 million taken between 1982 and 2009". After pleading guilty to two charges of fraud in 2010, he was sentenced to 11 years in prison. After serving four years of his sentence, Jones was released on March 20, 2014.

Fidelity Trust Company

Fidelity Trust Company was a bank in Philadelphia, Pennsylvania. Founded in 1866 as Fidelity Insurance, Trust, & Safe Deposit Company, the bank was later renamed Fidelity Trust Company, Fidelity-Philadelphia Trust Company, The Fidelity Bank, and Fidelity Bank, National Association. It was absorbed in 1988 in the biggest U.S. bank merger up to that point, and is today part of Wells Fargo.

Intertrust Group

Intertrust Group (incorporated as Intertrust N.V.) is a publicly traded international trust and corporate management company based in Amsterdam, Netherlands. The company is best known for its fiduciary services, which includes tax, trust, business management and outsourcing processes. It is the largest trust office in the Netherlands, measured by number of shell corporations managed.Intertrust's origins date back to the incorporation of NV Trust Corporation Pierson, Heldring & Pierson in 1952. Stephanie D. Miller has been the company's chief executive officer since 2018.Intertrust has locations in North America, South America, Europe, Asia and the Middle East,

but most of its revenue stems from a small number of tax havens.

The company is listed on Euronext Amsterdam Stock Exchange. Intertrust's clients include 60% of the top 10 of the Fortune Global 500, and thirty out of the world's fifty largest private equity funds. It does not disclose which companies these are.

Liverpool Life Sciences UTC

Liverpool Life Sciences UTC is a university technical college (UTC) which opened in September 2013 in Liverpool, England. The UTC is located in the Baltic Triangle, in the former Contemporary Urban Centre (CUC), a restored Victorian warehouse.


Established as Bedell Trust back in 1971, Ocorian is an independent provider of corporate and fiduciary services.. Their four areas of focus include Private Client, International Growth, Corporate Services, and Alternative Investments. In September 2016, Ocorian completed a management buyout ('MBO') separating the trust business from Bedell Cristin, an offshore law firm. The MBO was backed by independent private equity firm Inflexion. Ocorian holds offices in 12 locations globally, including Cayman Islands, Channel Islands, Cote d'Ivore, Ireland, Luxembourg, Mauritius, Netherlands, Singapore, South Africa, UAE and UK , with Jersey listed as the Head Office.

State Street Corporation

State Street Corporation is an American financial services and bank holding company headquartered at One Lincoln Street in Boston with operations worldwide. It is the second United States bank on the list of oldest banks in continuous operation; its predecessor, Union Bank, was founded in 1792. State Street is ranked 15th on the list of largest banks in the United States by assets. It is one of the largest asset management companies in the world with US$2.511 trillion under management and US$31.62 trillion under custody and administration. It is the largest custodian bank in the world.The company is ranked 259th on the Fortune 500 as of 2018. The company is on the list of the banks that are too big to fail published by the Financial Stability Board.The company is named after State Street in Boston, which was known as the "Great Street to the Sea" in the 18th century as Boston became a flourishing maritime capital. The company's logo includes a clipper to reflect the maritime industry in Boston during this time.

Summit Bancorp

Summit Bancorp was a bank based in Summit, New Jersey, that operated in New Jersey, Pennsylvania, and Connecticut. In 2001, it was acquired by FleetBoston Financial.


Trust may refer to:

Trust (social science), confidence in or dependence on a person or quality

Trust Company

Trust Company can refer to:

Trust company, a company acting as a trustee

Trust Company (band)

Trust Company, predecessor to SunTrust Banks

Trust company

A trust company is a corporation, especially a commercial bank, organized to perform the fiduciary of trusts and agencies. It is normally owned by one of three types of structures: an independent partnership, a bank, or a law firm, each of which specializes in being a trustee of various kinds of trusts and in managing estates. Trust companies are not required to exercise all of the powers that they are granted. Further, the fact that a trust company in one jurisdiction does not perform all of the trust company duties in another jurisdiction is irrelevant and does not have any bearing on whether either company is truly a "trust company". Therefore, it is safe to say that the term "trust company" must not be narrowly construed.

The "trust" name refers to the ability of the institution's trust department to act as a trustee – someone who administers financial assets on behalf of another. The assets are typically held in the form of a trust, a legal instrument that spells out who the beneficiaries are and what the money can be spent for.

A trustee will manage investments, keep records, manage assets, prepare court accounting, pay bills (depending on the nature of the trust), medical expenses, charitable gifts, inheritances or other distributions of income and principal.

Uhuru Park

Uhuru Park is a 12.9 hectare recreational park adjacent to the central business district of Nairobi, Kenya. It was opened to the general public by the late Mzee Jomo Kenyatta on 23 May 1969. It contains an artificial lake, several national monuments, and an assembly ground which has become a popular skateboarding spot on weekends and also a location for local skateboarding competitions (best trick contest 2017), catering to Nairobi's growing skate scene.Apart from skateboarding, the assembly ground is used for occasional political and religious gatherings. It is infamous as the site where protest against illegal land grabbing was violently broken up by the Moi regime.

In 1989, Wangari Maathai and many of her followers held a protest at the park, attempting to stop the construction of the 60-storey Kenya Times Media Trust business complex. She was forced by the government to vacate her office and was vilified in parliament, but her protests and the government's response led foreign investors to cancel the project.In August 1996, a group led by a Catholic cardinal and Archbishop Maurice Michael Otunga burned a heap of condoms in Uhuru Park.Uhuru Park was the scene of a bomb blast in June 2010, which killed six people and left over 100 people injured. The attack targeted a "NO" campaign rally for the forthcoming constitutional referendum.

Wells Fargo

Wells Fargo & Company is an American multinational financial services company headquartered in San Francisco, California, with central offices throughout the United States. It is the world's fourth-largest bank by market capitalization and the fourth largest bank in the US by total assets. Wells Fargo is ranked #26 on the 2018 Fortune 500 rankings of the largest US corporations by total revenue. In July 2015, Wells Fargo became the world's largest bank by market capitalization, edging past ICBC, before slipping behind JPMorgan Chase in September 2016, in the wake of a scandal involving the creation of over 2 million fake bank accounts by Wells Fargo employees. Wells Fargo fell behind Bank of America to third by bank deposits in 2017 and behind Citigroup to fourth by total assets in 2018.The firm's primary operating subsidiary is national bank Wells Fargo Bank, N.A., which designates its main office as Sioux Falls, South Dakota. Wells Fargo in its present form is a result of a merger between San Francisco–based Wells Fargo & Company and Minneapolis-based Norwest Corporation in 1998 and the subsequent 2008 acquisition of Charlotte-based Wachovia. Following the mergers, the company transferred its headquarters to Wells Fargo's headquarters in San Francisco and merged its operating subsidiary with Wells Fargo's operating subsidiary in Sioux Falls. Along with JPMorgan Chase, Bank of America, and Citigroup, Wells Fargo is one of the "Big Four Banks" of the United States. As of June 2018, it had 8,050 branches and 13,000 ATMs. In 2018 the company had operations in 35 countries with over 70 million customers globally.In February 2014, Wells Fargo was named the world's most valuable bank brand for the second consecutive year in The Banker and Brand Finance study of the top 500 banking brands. In 2016, Wells Fargo ranked 7th on the Forbes Magazine Global 2000 list of largest public companies in the world and ranked 27th on the Fortune 500 list of the largest companies in the US. In 2015, the company was ranked the 22nd most admired company in the world, and the 7th most respected company in the world. As of December 2018, the company had a Standard & Poors credit rating of A−. However, for a brief period in 2007, the company was the only AAA‑rated bank, reflecting the highest credit rating from two firms.On February 2, 2018, the US Federal Reserve Bank barred Wells Fargo from growing its nearly US$2 trillion-asset base any further, based upon years of misconduct, until Wells Fargo fixes its internal problems to the satisfaction of the Federal Reserve. In April 2018, The Wall Street Journal reported that the US Department of Labor had launched a probe into whether Wells Fargo was pushing its customers into more expensive retirement plans as well as into retirement funds managed by Wells Fargo itself. Subsequently in May 2018, The Wall Street Journal reported that Wells Fargo's business banking group had improperly altered documents about business clients in 2017 and early 2018. In June 2018, Wells Fargo began retreating from retail banking in the Midwestern United States by announcing the sale of all its physical bank branch locations in Indiana, Michigan, and Ohio to Flagstar Bank.

This page is based on a Wikipedia article written by authors (here).
Text is available under the CC BY-SA 3.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.