The stock market crash, which began in New York on Friday October 16th 1987, took the City of London by surprise. For a start there was almost no one at their desks. The Great Storm which happened on the Thursday night had brought transport chaos to Southern England and hardly anyone had managed to make it into work. Those few who had showed a Dunkirk Spirit and braved the epic journey by car, bicycle or on foot, weaving around fallen trees, found the City a ghost town.
A strange Saturnalia reigned. The senior people, who tended to live in the country, hadn’t been able to get in. There was no internet in those days, few mobile phones, many of the telephone lines were down and many houses without power, so the bosses were isolated and had no real idea what was going on. The juniors, who tended to live in London, were in charge. And they hadn’t a clue what to do. Luckily for them the Stock Exchange decided to close the market at lunchtime, due to the absence of personnel (the only time this has happened in living memory - markets remained open even on 9/11). So everyone just slipped off for a long lunch. A few market makers repaired to their local pub or wine bar and made prices on the back of beermats. Back in those days of “my word is my bond” they would be expected to honour these deals when markets opened again on the Monday. It was a throwback to the beginnings of the City in Edward Lloyd’s coffee house (compliance would never allow it today). After a bottle or two of claret most people set off early on the long return journey home. |