Preston, Lewis Thompson

▪ 1996

      U.S. bank executive (b. Aug. 5, 1926, New York, N.Y.—d. May 4, 1995, Washington, D.C.), served (1991-95) as president of the World Bank during the critical period when 23 new member nations entered the institution following the breakup of the former Soviet Union. While Preston was at the helm, he approved the financing of programs to alleviate poverty and initialed a sharp increase in loans for environmental projects, health, education, and family planning. He also attempted to broaden the bank's role in an advisory capacity, especially in the restructuring of public sectors of client nations. He tried to increase cost-effectiveness, slashed some 240 senior positions from the staff shortly after arriving in 1991, and announced a 6% budget cut in 1994. Before his appointment, the Harvard-educated banker had spent 40 years at J.P. Morgan and Co., successively serving as vice president, president, and chairman and chief executive. He was instrumental in persuading the company, which had acquired the Guaranty Trust Co., to trade in the new but unknown Eurodollar market, a move that led to prosperity for Morgan. After leaving Wall Street's most distinguished bank, where his annual salary reportedly had been $2 million, Preston was invited by U.S. Pres. George Bush to head the World Bank, with an annual salary of $285,000. Preston, who was being treated for cancer, resigned his post in March 1995.

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