1891–1929
Although the rescue avoided what could have been a worldwide financial collapse, Barings never regained its dominant position. A limited liability company - Baring Brothers & Co., Ltd. - was formed, to which the viable business of the old partnership was transferred. The assets of the old house and several partners were taken over and liquidated to repay the rescue consortium, with guarantees provided by the Bank of England. Lord Revelstoke and others lost their partnerships along with their personal fortunes, which were pledged to support the bank. It was almost ten years before the debts were paid off. Revelstoke did not live to see this accomplished, dying in 1892.[2]
Barings did not return to issuing on a substantial scale until 1900, concentrating on securities in the United States and Argentina. Its new, restrained manner, under the leadership of Edward's son John, which was considered to have made Barings a more appropriate representative of the British establishment. The company established ties with King George V, beginning thus a close relationship with the British monarchy that would endure until Barings' collapse in 1995. Diana, Princess of Wales, was a great-granddaughter of a Baring. Descendants of five of the branches of the Baring family tree have been elevated to the peerage: Baron Revelstoke, Earl of Northbrook, Baron Ashburton, Baron Howick of Glendale and Earl of Cromer. The company's restraint during this period cost it its pre-eminence in the world of finance, but later paid dividends when its refusal to take a chance on financing Germany's recovery from World War I saved it some of the most painful losses experienced by other British banks at the onset of the Great Depression.[2]