Mayer Amschel Rothschild family
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The Mayer Amschel Rothschild family is a successful 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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The history of the Rothschilds
Their success began with Mayer Amschel Rothschild (1744-1812). Born in the ghetto 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:
- Amschel Mayer Rothschild (1773-1855) - Frankfurt
- Salomon Mayer Rothschild (1774-1855) - Vienna
- Nathan Mayer Rothschild (1777-1836) - London
- Kalmann Mayer Rothschild (1788-1855) - Naples
- James Mayer Rothschild (1792-1868) - Paris
The Rothschild coat of arms contains a clenched fist with five arrows symbolizing the five sons of Mayer Rothschild. 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.
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 departement 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.
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; ironically she was only a Rothschild 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.
There are two branches of the family connected to France. The first was son James Mayer Rothschild (1792-1868), known as "James", who established Banque Rothschild & Cie 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 acquired the neighboring Chateau Lafite vineyard.
In Vienna, Austria, a Rothschild established a bank in the 1820s and the family became admired and respected citizens. The crash of 1929 brought problems and 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. Some of these family members sought sanctuary in the United States. In 1999 Austria agreed to return to the Rothschild family some 250 art treasures looted by the Nazis and absorbed into state museums after the War.
The Unification of Italy in 1861 eventually brought about the closure of their Naples bank.
The Paris business suffered a near death blow in 1982 when the Socialist government of François Mitterrand nationalized and renamed it. Baron David de Rothschild, then 39, decided to stay and rebuild, creating a new entity 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.
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 all of history.
Due to their prominence, members of the Rothschild family figure in some conspiracy theories.
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."
Today
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 LLC chairman Michel David-Weill.
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 gôut Rothschild has much influenced interior designers such as Robert Denning, Vincent Fourcade, and others.
A descendant of James, Edmond de Rothschild (1923-1997) 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.
Prominent descendants of Mayer Amschel Rothschild
- Alphonse James de Rothschild (1827-1905)
- Bethsabée de Rothschild (1914-1999)
- Charles Rothschild (1877-1923), banker and entomologist
- Edmond James de Rothschild (1845-1934)
- Elie de Rothschild (born 1917)
- Guy de Rothschild (1909-)
- Baron Ferdinand de Rothschild (1839-1898)
- Hannah Primrose, Countess of Rosebery nee Hannah Rothschild (1851-1890)
- Henri James de Rothschild (1872-1946)
- Henriette Rothschild (1791-1866) married Sir Moses Montefiore (1784-1885)
- James Mayer Rothschild (1792-1868)
- Jean-Pierre de Rothschild ("JP") (born 1960)
- Kathleen Annie Pannonica Rothschild (Baroness Nica de Koenigswarter) (1913-1990)
- Leopold de Rothschild (1845-1917)
- Lionel Nathan Rothschild (1808-1879)
- Miriam Louisa Rothschild (1908-2005)
- Lionel Walter Rothschild, 2nd Baron Rothschild of the United Kingdom (1868-1937)
- Nathaniel de Rothschild (1812-1870)
- Nathan Mayer Rothschild (1777-1836)
- Nathan Mayer Rothschild, 1st Baron Rothschild of the United Kingdom (1840-1915)
- Nathaniel Charles Jacob Rothschild, 4th Baron Rothschild of the United Kingdom (born 1936)
- Nathaniel Mayer Victor Rothschild, 3rd Baron Rothschild of the United Kingdom (1910-1990)
- Philippe de Rothschild (1902-88)
- Philippine de Rothschild (1935-)
By marriage:
- Elisabeth de Rothschild (1902-1945)
- Jeanne de Rothschild (1908-2003), actress
- Liliane de Rothschild (1916-2003) art collector
- Pauline de Rothschild (1908-1976)
- Helena Bonham Carter (born 1966) actor
Further information
- Niall Ferguson: "The House of Rothschild: Money's Prophets, 1798-1848" (ISBN 0140240845)
- Niall Ferguson: "The House of Rothschild: The World's Banker, 1849-1998" (ISBN 0140286624)
- Frederic Morton: The Rothschilds: Portrait of a Dynasty (ISBN 156836220X)
- 1934 Hollywood film titled The House of Rothschild, starring George Arliss and Loretta Young, recounted the life of Mayer Amschel Rothschild.
- Amos Elon : "Founder: A Portrait of the First Rothschild and His Time" 1996 (ISBN 0670868574)
Other Rothschilds not related to the banking family
- Abraham Rothschild
- Dorothy Parker née Rothschild
See also
External links
- N. M. Rothschild and Sons (http://www.rothschild.com/home/)
- 2004 Annual Report (http://www2.rothschild.com/pressoffice/annualreports/reports/NMR2004.PDF)
- LCF Rothschild Group (http://www.lcf-rothschild.com/)
- Rothschild Archive (http://www.rothschildarchive.org/)
- Chateau Lafite Rothschild (http://www.lafite.com/)
- Chateau Mouton Rothschild (http://www.bpdr.com/)
- Yahoo! - NM Rothschild & Sons Limited Company Profile (http://biz.yahoo.com/ic/61/61537.html)de:Rothschild