The Takeover of the Banco de Comercio of 1954: Collision and Collusion between Mexican Political and Business Elites

Abstract

The hostile takeover of the Banco de Comercio in 1954 made way for the era of Manuel Espinosa Yglesias, who would transform the bank into Mexico’s largest. However, the episode is more historically notable for what happened behind the scenes: the first large-scale hostile takeover in Mexico; the fact that those who lost control of the bank numbered among the country’s most powerful businessmen; the illegal participation as chief purchaser of the foreign citizen William Jenkins, and, as this article argues, the state’s approval of the deal on the basis of the distinct political affiliations and relationships of the parties involved. Overall, the episode offers a case study in Mexican state-capital interdependence.

Keywords

• banks
• financial policy
• foreign investment
• private sector
• regulation