Show me the Money
Today, I will finish my series on the wealthiest families in the world. My intention is to bring attention to how one person can create a life that has an impact over centuries. Yes, one life can have a lasting effect on our daily lives. For example, when we wake up, most of us turn on a light (J.P. Morgan), look at our phone (Elisha Gray & Steve Jobs), and read an online article (U.S. Department of Defence). Further, when you check your bank account to see your balance, you can thank Mayer Amschel Rothschild. from the 1800s.
Yes, one man passionate about acting as a money changer created banking as we know it today. I wrote in more detail the life and times of Mayer Rothschild in my blog, "Show Me the Money."
To clarify, Money changers would assess a foreign coin for its type, wear and tear, and validity, then accept it as a deposit, recording its value in local currency.
All in the Family
The merchant could then withdraw the money in local currency to conduct trade or, more likely, keep it deposited: the money changer would act as a clearinghouse or a small bank. As a result, the money changer would invest that person's money and take the profit—instant banking.
Meanwhile, in another blog I wrote, Cryptocurrency and The FED, I discovered that the Rothschild family has control of four of the banks that make up the twelve Federal Reserve Districts. They are Rothschild Bank of London, Warburg Bank of Hamburg, Rothschild Bank of Berlin, and Warburg Bank of Amsterdam. Note the name Warburg. Paul Warburg, a member of the Rothschild family, played a significant role in designing and advocating for the establishment of the Federal Reserve in 1913. Most importantly, he was appointed to the Federal Reserve Board by President Woodrow Wilson in 1914, just a year after the Federal Reserve System was established.
Subsequently, Paul Warburg's brother, Felix, was married to Frieda Schiff, a member of the Schiff family, which had close ties to the Rothschilds. The Schiff family, like the Rothschilds and Warburgs, played a significant role in the history of banking and finance. The Schiff family originated in Germany and was involved in banking and commerce for generations.
Money Manager
Jacob H. Schiff (1847-1920), the family's most prominent figure, emigrated to the United States in 1865 and established himself as a successful banker and financier.
Schiff & Co., the family's banking firm, played a crucial role in financing major American industries, including railroads, steel, and copper. Subsequently, Schiff provided financial backing for critical figures like Andrew Carnegie and E.H. Harriman, helping to build and consolidate major industrial empires. Meanwhile, he also played a crucial role in stabilizing the American financial system during the Panic of 1907, earning him the nickname "the banker who saved Wall Street." Coincidentally, The panic of 1907 led to the creation of the Federal Reserve Bank. See Paul Warburg, John D. Rockefeller, and the Rothschild financial institutions.
Consequently, the Schiffs merged with Abraham Kuhn and Solomon Loeb, leading to the eventual merger of their respective firms in 1920. Kuhn, Loeb & Co. became a central Wall Street investment bank. Guess which bank is part of the Federal Reserve? Yes, Kuhn Loeb Bank of New York. Side note: The Rockefeller billions were managed by the investment house of Kuhn, Loeb & Co.
Spread the love and money
So, what financial institutions do the Rothschild's own today? Rothschild & Co. is the flagship bank of the family, founded in 1810. It is a global financial advisory and investment banking firm focusing on wealth management, mergers and acquisitions, and restructuring. The family still owns a significant stake in the company, but it is not wholly owned. Current revenue is €3.06 billion.
N M Rothschild & Sons is a British merchant bank founded in 1811 and a significant player in international finance for over 200 years. However, it was acquired by the French bank Edmond de Rothschild Banque in 2003, and the Rothschild family no longer has a direct ownership stake. Current revenue is $188.35 million.
Finally, the Rothschild family uses investment vehicles through which they hold stakes in diverse businesses, including financial institutions. Some examples include RIT Capital Partners (£26.70 million), Concordia (€3,837 million), and Rothschild Investment Corporation (a privately held company, meaning its financial information is not readily available to the public).
Large and Diverse
The Rothschild family is large and geographically dispersed, making it difficult to determine the exact number of heirs to the Rothschild fortune. However, there are five main branches of the Rothschild family, each descended from one of the five sons of Mayer Amschel Rothschild, the dynasty's founder.
further, these branches have diversified into numerous sub-branches with countless descendants. Some estimates suggest hundreds to thousands of heirs to the Rothschild fortune. Nevertheless, the exact number is complex to verify due to the family's privacy and the elaborate distribution of their wealth across multiple generations and branches.
Moreover, the vast Rothschild fortune is not equally distributed among all descendants. Inheritance and wealth management strategies within the family likely dictate the distribution of assets, with some heirs receiving significantly more than others.
Family Office - for sure
In conclusion, the Rothschild family fiercely guards their privacy, making gathering accurate information about their financial situation challenging. However, if we focus on the complex structure of the Rothschild wealth and its distribution to family members and institutions, we see a system set up to thrive. It is currently estimated that the family's net worth is between $300 billion and $500 billion, while others suggest it could be even higher.
To put all this information in context, here's a breakdown of the top 5 wealthiest individuals:
- Bernard Arnault & family: $187.9 billion (luxury goods, LVMH)
- Elon Musk: $244.4 billion (Tesla, SpaceX, Twitter)
- Jeff Bezos: $169.3 billion (Amazon)
- Larry Ellison: $147.5 billion (Oracle)
- Steve Ballmer: $129 billion (Microsoft)
When I was young, I learned a quote from my grandfather. He said those who know how will always work for those who know why. Likewise, I'd like to end with a quote from Mayer Amschel Rothschild, "Give me control of a nation's money supply, and I care not who makes its laws."
