Mayer Amschel Rothschild family

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Image:Rothschild coat of arms.png The Mayer Amschel Rothschild family (often referred to simply as The Rothschilds, even though there are some people called Rothschild who do not belong to this family) is an eminent international banking and finance dynasty of German Jewish origin that established operations across Europe, and was ennobled by the Austro-Hungarian and British governments.

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Origins

Image:Rothschild family tree.png Their success began with Mayer Amschel Rothschild (1744-1812). Born in the ghetto (called "Judengasse") of Frankfurt-am-Main, he developed a finance house and spread his empire by installing each of his five sons in European cities to conduct business. An essential part of Mayer Rothschild's strategy for future success was to keep control of their businesses in family hands, allowing them to maintain full discretion about the size of their wealth and their business achievements. Mayer Rothschild successfully kept the fortune in the family by carefully arranged marriages between closely related family members. His sons were:

The Rothschild coat of arms contains a clenched fist with five arrows symbolizing the five sons of Mayer Rothschild, a reference to Psalm 127. The family motto appears below the shield, in Latin, Concordia, Integritas, Industria, (Unity, Integrity, Diligence). The family name means "Red Shield"; one can be seen in the center of the coat of arms.

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British war effort and Napoleon

The basis for the Rothschild fortune was laid during the latter stages of the Napoleonic Wars. From 1813 to 1815, the Rothschild family was instrumental in the financing of the British war effort, handling the shipment of bullion to the Duke of Wellington's army in Spain, as well as arranging the payment of British financial subsidies to their Continental allies. Through the commissions earned on these transactions, the Rothschild fortune grew enormously.

In the early 19th century Rothschild set up a Europe-wide network of messengers and carrier pigeon stations, gathering information that could affect his investments. He soon garnered a reputation for being first with the news. In June 1815, when the Battle of Waterloo was being fought, other speculators watched Rothschild's stocks in an attempt to guess who would win. Shortly after the battle ended, and long before anyone else knew who was the victor, he began selling stocks. Everyone assumed this meant Napoleon had won and Europe was lost. Panic selling ensued. When prices crashed, Rothschild bought everything in sight and made a packet.

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Elevated to Peerage

In 1816, four of the brothers were each granted the title of baron or Freiherr by Austria's Francis I, formerly Francis II the last Holy Roman Emperor. Nathan was elevated in 1818. As such, some members of the family used "de" or "von" Rothschild to acknowledge the grant of nobility. In 1885, Nathan Mayer Rothschild II (1840-1915) of the London branch of the family, was granted the peerage title Baron Rothschild in the Peerage of the United Kingdom.

Rothschild family banking businesses pioneered international high finance during the industrialisation of Europe and were instrumental in supporting railway systems across the world and in complex government financing for projects such as the Suez Canal. After amassing huge fortunes, the name Rothschild became synonymous with banking and great wealth, and the family was renowned for its art collecting, as well as for its philanthropy. Since 1916, members of the family have been vacationing at Megève, an exclusive ski resort in the Haute Savoie département of France, whose restaurants are among the best in the country. However, even in recreation the Rothschilds find a way to utilize their entrepreneurial skills: they own five of the village's gourmet restaurants.

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Zionism

The Rothschilds were supporters of the State of Israel, and Baron Edmond James de Rothschild was a patron of the first settlement in Palestine at Rishon-LeZion. In 1917 Walter Rothschild, 2nd Baron Rothschild was the addressee of the Balfour Declaration, which committed the British government to the establishment in Palestine of a national home for the Jewish people. As prominent Jews active in politics as well as business, the Rothschild family has been a target for anti-semitism throughout its history. Many family members were persecuted by the Nazis, and one, Elisabeth de Rothschild, died in Ravensbrück concentration camp; however she was a Rothschild only by marriage and had been born a Catholic.

In 1901, with no male heir to take it on, the Frankfurt House closed its doors after more than a century in business. It was not until 1989 that they returned when N M Rothschild & Sons, the British investment arm, plus Bank Rothschild AG, the Swiss branch, set up a representative banking office in Frankfurt.

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French branches

There are two branches of the family connected to France. The first was son James Mayer de Rothschild (1792-1868), known as "James", who established de Rothschild Frères in Paris. Following the Napoleonic Wars, he played a major role in financing the construction of railroads and the mining business that helped make France an industrial power. James' sons Gustave de Rothschild and Alphonse James de Rothschild continued the banking tradition and were responsible for raising the money to pay the compensation demanded by the occupying Prussian army in the 1870s Franco-Prussian War. Ensuing generations of the Paris Rothschild family remained involved in the family business, becoming a major force in international investment banking. The onslaught of competition from publicly traded banking giants from the United States and the European Union, who came with enormous capital at their disposal, resulted in the 2003 merger of the privately owned Rothschild banking house in France with its British banking cousins to create a single umbrella holding company.

The second French branch was founded by Nathaniel de Rothschild (1812-1870). Born in London he was the fourth child of the founder of the British branch of the family, Nathan Mayer Rothschild (1777-1836). In 1850, Nathaniel Rothschild moved to Paris, ostensibly to work with his uncle, James Mayer Rothschild. However, in 1853 Nathaniel acquired Château Brane Mouton, a vineyard in Pauillac in the Gironde département. Nathaniel Rothschild renamed the estate, Château Mouton Rothschild and it would become one of the best known labels in the world. In 1868, Nathaniel's uncle, James Mayer de Rothschild acquired the neighboring Chateau Lafite vineyard.

The Paris business suffered a near death blow in 1982 when the Socialist government of François Mitterrand nationalized and renamed it Compagnie Européenne de Banque. Baron David de Rothschild, then 39, decided to stay and rebuild, creating a new entity Rothschild & Cie Banque with just three employees and $1 million in capital. Today, the Paris operation has 22 partners and accounts for a significant chunk of the global business.

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Austrian branch

In Vienna, Salomon Mayer Rothschild established a bank in the 1820s and the family became admired and respected citizens. The Austrian Rothschilds were later elevated to the nobility by the Austrian emperor for their services. The crash of 1929 brought problems and Baron Louis von Rothschild attempted to shore up the Creditanstalt, Austria's largest bank, to prevent its collapse. Nevertheless, during World War II they had to surrender their bank to the Nazis and flee the country. Their Rothschild palaces were confiscated and plundered by the Nazis. Some of these family members sought sanctuary in the United States. In 1999 the government of Austria agreed to return to the Rothschild family some 250 art treasures looted by the Nazis and absorbed into state museums after the War.

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Italian branch

The Unification of Italy in 1861 eventually brought about the closure of their Naples bank.

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Legacy and trivia

Over the course of almost 250 years of Rothschild family prominence, a great many members distinguished themselves in business, philanthrophy, science, public service, and as patrons of the arts. Like any family, they would suffer their share of scandals but the Rothschilds remain today as one of the great and enduring non-royal dynasties.

In France, Rothschild is still considered a synonym for extreme wealth, though such usage is now dated. The family also has lent its name to "le goût Rothschild," a suffocatingly glamorous style of living whose decorative elements include neo-Renaissance palaces, extravagant use of velvet and gilding, a sense of Victorian horror vacui, and masterworks of art. Le goût Rothschild has much influenced interior designers such as Robert Denning, Vincent Fourcade, and others.

Members of the Rothschild family figure in some conspiracy theories. Most notably, part of a similar "bloodline" with the Rockefellers, DuPonts and various other prominent families who are thought to be the real rulers of the world according to supporters of these conspiracy theories. While it is correct that the Rothschild family held or holds important positions in the world, there is no direct evidence to support these claims.

Shimon Peres, former Prime Minister of Israel, has been quoted as saying about the Rothschilds that "Never has a family donated so much of its wealth to the making of history."

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Rothschilds in popular culture

The story of the Rothschild family has been featured in a number of films. The 1934 Hollywood film titled The House of Rothschild, starring George Arliss and Loretta Young, recounted the life of Mayer Amschel Rothschild. Manipulated excerpts from this film were incorporated into the Nazi anti-semitic film Der ewige Jude and another anti-semitic German film Die Rothschilds (also called Aktien auf Waterloo) was directed by Erich Waschneck in 1940. A Broadway musical entitled The Rothschilds, covering the history of the family up to 1818, was nominated for a Tony Award in 1971.

Mike Myers, playing the role of a crazy father in "So I Married An Axe Murderer", makes mention of the Rothschilds as being one of the secret rulers of the world in a group known as the "Pentaverate".

In Mamoru Oshii's Blood: The Last Vampire: Night of the Beasts the Rothschild family hold a key position in the novel as part of the global conspiracy surrounding vampires.

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Modern business

The company does most of its business as an M&A advisor. According to the Dealogic league tables it has a strong position in Paris and London but remains a relatively weak player in New York. The group's ranking is number 4 among European advisers (by announced mergers and acquisitions year-to-date October 2004) with 160 deals with a value of $137.08 billion, and globally as number 9 with 197 deals with a value of $150.50 billion. Goldman Sachs leads in both Europe and globally with 258 deals worth $448.98 billion.

The annual revenue of the Rothschild group is €828 million with a shareholder equity of €1 billion (2003). To compete more effectively with the New York giants the Rothschild groups main branches in Paris, London, and New York merged into one holding company, Rothschilds Continuation Holdings AG, under David de Rothschild's leadership. David de Rothschild is opposed to an IPO, much like competitor Lazard's former chairman Michel David-Weill, although Lazard finally went public in 2005 after Wall Street living legend Bruce Wasserstein took over the company. 20% of Rothschild Continuation Holdings AG was sold in 2005 to Jardine Strategic which is a subsidiary of Jardine, Matheson & Co. of Hongkong.

Simon de Rothschild, the son of Robert de Rothschild, heads the Canadian Northern Railway, and it's subsiduaries, as well as a number of mining and industrial operations.

A descendant of James, Edmond de Rothschild (1926-1997) founded the LCF Rothschild Group, based in Geneva, which today extends to 15 countries across the world. Although this Group is primarily a financial entity, specialising in asset management and private banking, its activities also cover winemaking (with estates in Bordeaux, South Africa and Argentina), mixed farming, luxury hotels and yacht racing. The LCF Rothschild Group is currently presided over by Benjamin de Rothschild, Baron Edmond's son.

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Prominent descendants of Mayer Amschel Rothschild

By marriage:

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Further reading

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See also

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External links

es:Rothschild eo:Rothschildidoj fr:Famille Rothschild he:משפחת רוטשילד ja:ロスチャイルド家 fi:Rothschild

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