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TheRothschild banking family of France (French:Famille banquière Rothschild) is the French branch of theRothschild family. It was founded in 1812 byJames Mayer de Rothschild (1792–1868) inParis, which was then part of theFirst French Empire. He was sent there from his home inFrankfurt by his father,Mayer Amschel Rothschild (1744–1812). Wanting his sons to succeed on their own and to expand the family business across Europe, Mayer Amschel Rothschild had his eldest son remain in Frankfurt, while his four other sons were sent to different European cities to establish a financial institution to invest in business and provide banking services.Endogamy within the family was an essential part of the Rothschild strategy in order to ensure control of their wealth remained in family hands.
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Through their collaborative efforts, the Rothschilds rose to prominence in a variety of banking endeavors includingloans,government bonds and trading inbullion. Their financing afforded investment opportunities and during the 19th century, they became major stakeholders in large-scalemining andrail transport ventures that were fundamental to the rapidly expanding industrial economies of Europe, as well aswine growing and theoil industry.
TheFrench Revolution in 1789 brought positive changes for French Jews, resulting in their full emancipation in 1791. In 1806,Napoleon I ordered the convening of a "Grand Sanhedrin" in Paris and in 1808 he organized the "Consistoire central des Israélites de France", the administrative agency for all French Jews. The consistorial system madeJudaism a recognized religion and placed it under government control. This Consistoire has been a functioning body ever since, except under theNazi occupation of France duringWorld War II. By tradition, the Central Consistoire has had a member of the Rothschild family as its president.
Jacob Mayer Rothschild, the youngest son, settled in Paris in 1812 where his name Jacob was translated to James. In 1817, he formally created the bank, de Rothschild Frères whose partners were brothersAmschel ofGermany,James ofFrance,Carl ofNaples,Nathan ofEngland andSalomon ofAustria. Highly successful as lenders and investors, the Paris operation also became bankers forLeopold I of Belgium. In 1822 the influential James and his four brothers were awarded the hereditary title of "Baron" byEmperor Francis I of Austria.
Following theJuly Revolution of 1830 that sawLouis-Philippe come to power in France, James de Rothschild put together the loan package to stabilize the finances of the new government and a second loan in 1834. In recognition of his services to the nation, King Louis-Philippe elevated James to a Grand Officer of theLegion of Honor.
There is a theory that before Louis-Phillipe came to power the Rothschilds were fronting for the House of Orleans. A major portion of the business has consisted of selling French government bonds to French investors through London to protect their anonymity. There was a general perception on the part of the French that otherwise their government might unilaterally reset terms. No French fortune was more likely to face the problem than the younger branch of the royal family. The theory follows that when the Orleanists came to power they became less provident but by then the Rothschilds had numerous other clients.
The de Rothschild Frères banking business was passed down to ensuing generations. James Mayer de Rothschild had stipulated "that the three branches of the family descended from him always be represented." For the next two generations that was the case but in 1939,Edouard Alphonse de Rothschild and cousin Robert-Philippe-Gustave de Rothschild, incompatible with their other cousinMaurice de Rothschild, bought out his share. Maurice went on to be enormously successful and, having inherited a fortune from the childless Adolph Carl von Rothschild of theNaples branch of the family, he moved toGeneva,Switzerland and perpetuated the new Swiss branch of the family.
The French Rothschild family's business suffered a near death blow in 1981 when the Socialist government ofFrançois Mitterrand nationalized and renamed it Compagnie Européenne de Banque. In 1987 a successor company called Rothschild & Cie Banque was created byDavid René de Rothschild who was joined by his half-brotherEdouard de Rothschild and cousin Eric de Rothschild.[1] Capitalized at only $1 million and starting with just three employees, they soon built their tiny investment bank into a major competitor in France and continental Europe. In 2003, following the retirement ofSir Evelyn de Rothschild as head of N M Rothschild & Sons of London, the English and French firms merged into the Group Rothschild under the leadership of David René de Rothschild. In 2006, the French banking division expanded into Brussels, Belgium.
In the 1930s, the vast railroad holdings of French Rothschilds werenationalized. TheFall of France greatly affected the French Rothschilds as their bank was seized by theNazi occupiers.[2][3] Despite having the bank restored to them at the end of the war, the family bank Rothschild Freres would be nationalized in 1981 by the socialist government of then newly elected French PresidentFrançois Mitterrand.[4]
Both the British and the French branches emerged from the Second World War with new generations of the family at the helm. Historic partnership ties between the two branches were revitalized, leading to a complete merger in 2003 intoRothschild & Co.
The Rothschilds created their firsthedge funds in 1969, and strengthened its position as a world leader in investment banking. Additionally, the firm is a global private bank with over 4,000 private clients in 90 countries.[5]Rothschild & Co provides a comprehensive range of services to individuals, governments, and corporations worldwide.[6]
The Rothschilds also have a strong presence[7] in the South American country of Uruguay (Family Helguera von Rothschild-Haverkate[8]) as they are sole owners of over 70% of the private land in the country. This family has acquired and developed many business ventures,[9] philanthropic ventures, commercial and residential properties along the 20th and 21st century. Sir Louis Ralph Helguera von Rothschild-Haverkate[10] was a Swiss-French national of the French Rothschild family who immigrated to Uruguay in the mid 1960's. His influence in architecture and arts can be appreciated all over Uruguay.
The second French branch was founded byNathaniel de Rothschild (1812–1870). Born inLondon, he was the fourth child of the founder of the British branch of the family,Nathan Mayer Rothschild (1777–1836). In 1842, he marriedCharlotte de Rothschild (1825–1899), daughter of James Mayer de Rothschild and in 1850, they moved to Paris, where he was to work for his father-in-law's bank. However, in 1853 Nathaniel acquired Château Brane Mouton, a vineyard inPauillac in theGirondedépartement. Nathaniel Rothschild renamed the estateChâteau Mouton Rothschild: it would become one of the best-known wine labels in the world.
In 1868, Nathaniel's uncle/father-in-law, James Mayer de Rothschild, acquired the prestigious neighboring vineyard,Château Lafite.
The French Rothschilds and members of the other branches in Europe were all major contributors to causes in aid of the Jewish people. However, many of their philanthropic efforts extended far beyond Jewish ethnic or religious communities. They built hospitals and shelters, supported cultural institutions and were patrons of individual artists. At present, a research project is underway by The Rothschild Archive[11] in London to document the family's philanthropic involvements.
Notable Rothschild family members in France include:
All branches of the Rothschild banking family are famous for their art collections and a number for their palatial estates. Among the Rothschild properties in France were:
