Establishing Gringotts Bank
Circa AD 989, Scotland
The four recognized Masters (or Mistresses as the case may be) of Magic sat in the main office to resolve a certain matter.
"It cannot be helped. We must have a secure method of receiving tuition from those families that can afford it," said the matronly woman in yellow and black.
The princely-dressed man in green and silver offered, "I, of course, agree. Perhaps it should be I who manages it. I can create enchantments on trunks to prevent theft and to deliver the funds from there."
The stately woman in blue and bronze looked at her fellow Master with disdain. "I quite disagree. We will, none of us, have time to manage the funds and to perform due diligence in our duties to our charges. To say nothing of any 'fabled wealth' we might gather that whatever current King of Scotland might wish to appropriate."
The powerful Lord in red and gold mildly offered, "We have agreements that we shall remain separate from whatever King currently holds power within any of the lands of Britain. Our wards should prevent intrusion."
The other three looked at the man scathingly. The stately woman replied, "And you trust the words of politicians? What should happen should any of the current successors of An Ferbasach¹ get it in their head that their 'Divine Right to Rule' should mean that such agreements are to be rescinded? We do not have the resources or the time to deal with such silliness."
The powerful man sighed. "You might have the right of it. My cousins are all greedy for power. It was a good day for me when I forever forsook any claim to the throne in exchange for sovereignty of these lands for our school. So what should we do?"
The four sat and contemplated possible solutions. As was his wont, Godric absently pulled his sword and slammed it home to its scabbard as he thought. Finally, however, even even-tempered Helga's patience broke. "Would you stop that infernal racket? Your incessant need to play with your toy is distracting!"
Godric was not offended. He knew his habits, on occasion, would try the patience of his fellows. He still, in amusement, defended his sword. "It is not a toy. It was a gift from the goblins for my defence of their settlement against those unlettered idiots that were being goaded on by that unwashed priest. The leader of the clan presented it to me personally!"
Even as his fellows rolled their eyes (having heard the tale numerous times), Godric once again admired the sword he had been presented with. As he looked upon the finely crafted item, suddenly he had it.
"Ladies. Salazar. What do we know of the goblins?"
From that discussion it was decided that the Gott goblin clan that had gifted Godric with his sword would receive, store, and disperse the funds that Hogwarts School of Witchcraft and Wizardry collected. After all, goblins were known to be fierce followers of any agreement they entered in to.
Summer 1310, London Catacombs
Gilbert de Clare, 7th Earl of Hertford, sat before the head of the Gott Clan. "Is it possible?" he asked.
Snarlgott peered at his noble visitor. "You wish my clan to open another vault for your grand-niece?"
De Clare nodded. "Since the destruction of the Templar Knights, it has been difficult for the various houses to find secure methods of storing and transferring gold without the need to subject our messengers to possible banditry. For years, the Knights Templar provided such a service. But greed and a desire for power has seen them destroyed. My grand-niece's invitation to Hogwarts has caused me to look into their financial base. Do you know what I found?"
Snarlgott sat back. "Why don't you tell me?"
"Since your clan has managed its accounts, no funds earmarked for Hogwarts has ever been misplaced, stolen, or lost in transit. Not once coin, not even the meanest bronze, has ever been lost until after it has left your possession. You also, unlike others, have never been beholden to religious or political leaders either in far-distant lands or even within the Isle of Briton." Lord Hertford sat forward. "I would see that the funds I have provided for my grand-niece's dowry and education are protected, regardless of whom rules England or the holy lands at any given time."
The head of the Gott clan pondered this idea. Finally he replied, "I will have to consult my fellow clan leaders. But it may be possible …."
1473, London
The Gott Clan leaders sat in council. The current head, Gringott, spoke. "The human war, from all appearances, continues on. The wizards are withdrawing from both sides to form their own council."
His brother asked, "What matter? The fools kill each other for meaningless reasons. Who cares who leads the humans? I surely don't."
There were noises of agreement all around. "Be that as it may, but the council is looking to see all of our various agreements folded together into one concise form. They have asked us to provide a charter."
The leader of the Hook clan protested. "We have agreements with many different families. Each one has its own provisos and stipulations. Are we to subject ourselves to the rule of humans now?"
The clan leader called out, "No!" The all nodded in agreement. "BUT. But. It would be profitable to have official sanction. The wealth of the wizards is spread between many earldoms, kingdoms, duchies, and so forth. Should the wizards win their independence, and from all appearances they will succeed, they will spend countless hours reviewing all agreements with sovereign powers. We are such a power. It would behoove us to codify one set of rules and agreements so that we will no longer waste resources or time trying to keep them all separate."
The leaders argued and haggled, until finally a consensus would be reached. It would take months, but each agreement would be negotiated and modified newly to acknowledge the Gott clan as the acknowledged bankers for the new Wizarding council.
Many goblins began work to create many vaults to accommodate the anticipated flow of business.
July 1, 1474, Diagon Alley, London
The head of Wizarding Council spoke to those attending. "And so, it gives be great honour to recognize one bank that our Council will do business with. The newly chartered bank shall be run by the Gott clan, and shall be known as 'Gringotts', in honor of its founder. Grin, head of the Gott clan."
¹ First recognized King of Scotland Kenneth MacAlpin I also known as An Ferbasach (The Conqueror). Ascended the throne in AD 848. All Kings and Queens of Scotland (and Kings and Queens of England since 1603) are his descendents.