11. Robert Maxwell’s Expectations Gap: Regulation and Reputation in the British Communications Industry, 1981-91
- Author:
- Charlie Harris
- Publication Date:
- 02-2023
- Content Type:
- Case Study
- Institution:
- Oxford Centre for Global History
- Abstract:
- During Robert Maxwell’s turbulent lifetime, the world knew him as one of the most successful businessmen in Britain, presiding over a publishing and media empire in direct competition with that of Rupert Murdoch. In 1991, Robert Maxwell died – at which point the world discovered that he was, in fact, far beyond bankrupt. As banks called in their huge loans, accountants found that his empire boasted £2 billion in debt. When he drowned, various auditors and authorities were close to catching him in an enormous fraud. Maxwell had stolen around £460 million from his employees’ pension funds and committed extensive stock fraud in order to manipulate the share prices of his empire. Accusations of fraud and mismanagement dogged Maxwell’s career, but to little effect. Beginning with a single publishing house, he built a media empire. His rivalry with Rupert Murdoch – and perhaps his emotional state, which was notoriously volatile and competitive – drove him to expand at an unsustainable pace, which he supported with confidence trickery and enormous loans. His debts quickly outstripped his assets. Desperately scrambling to repay the loans, he turned to stock fraud and his employees’ pension funds. Still desperate for capital six months before his death, Maxwell floated his largest-ever venture – Mirror Group Newspapers – which successfully attracted £250 million in investment, despite the destitution of its parent company. Public autopsies concluded that the blame lay not just with Maxwell, but with advisers, regulators, and complicit financial institutions. Maxwell killed himself (though some still speculate he was murdered) shortly before a scheduled meeting that would have uncovered his fraud. Maxwell did not leave his family destitute, but they no longer had immediate access to the lifestyle to which they had become accustomed. His sons continued working in the City of London. His daughter, Ghislaine Maxwell, continued to circulate in high society. Her crimes are now better known than her father’s; she is famous for her work as Jeffrey Epstein’s right-hand woman, procuring victims (often under-age) for Epstein’s “prostitution ring” (something of a misnomer, as the term implies consent). Both scandals implicated some of the most powerful figures of their day, and in both cases, th
- Topic:
- Communications, History, Capitalism, Industry, and Robert Maxwell
- Political Geography:
- Britain and Europe