In 1837, Peabody took up residence in London, and the following year, he started a banking business trading on his own account. The banking firm of "George Peabody and Company" was not, however, established until 1851. It was founded to meet the increasing demand for securities issued by the American railroads, and – although Peabody continued to deal in dry goods and other commodities – he increasingly focused his attentions on merchant banking, specializing in financing governments and large companies. The bank rose to become the premier American house in London.