Donald Lines and the Bermuda Centennial Trust

From Comments on LimeyinBermuda.com - http://www.limeyinbermuda.com/latest_news/2006/10/bank_of_bermuda.html

"Observer is absolutely right. The Bank of Bermuda Centennial Trust was created on the 100th anniversary of the Bank. Around that time Midland Bank the largest shareholder of the bank decided to sell its shareholding and the Bank bought back the shares which were placed in a trust. On 100th anniversary, the Bank made a gift to the people of Bermuda, the Bank of Bermuda Centennial Trust whose purpose and income was to be used for the people of Bermuda. Donald Lines was the mastermind behind this idea and deserves a lot of credit. It was a huge gift. Of course it also provided a relatively compliant shareholder for the management of the bank.

When HSBC took over the Bank, the Centennial Trust became more independent from the bank since it no longer owned the bank's shares. I think that independence may have been one of the requirements of the sale so that HSBC could not assume control and ownership of these funds.

HSBC's contribution to the trust is probably pretty minimal. They may forego fees, salaries and expenses in managing the trust but I don't think they have contributed any funds to it.

So if you are going to thank anyone for this charitable trust it is the former shareholders of the bank and Donald Lines."
Posted by slick on 19.10.06 at 13:47