Camillo Castiglioni
Encyclopedia
Camillo Castiglioni was an Italian-Austrian financier and banker, and was the wealthiest man in Central Europe during World War I
. Nicknamed “Austrian Stinnes
”, he was active in aviation
's pioneering days and invested in the arts
.
, then Austria–Hungary (now part of Italy). It is not know when Camillo developed his interest in aviation, but it is known that he was passionate about flying. Camillo's education was primarily law, gaining employment as an attorney and legal officer of a bank in Padua
, quickly learning international finance and how to manage capital. He was the son of a rubber maker, so naturally Camillo found work with the Austro-American Gummiwarenfabrik AG (rubber products) in Vienna
as an Agent for the Kaufmann automobile tire division in Constantinople
. Camillo found great success in this position, demonstrating his abilities to negotiate and structure financial deals. In fact, Camillo was so successful, he was promoted to Director of the export department of the parent company in Vienna. Around 1901, along with Viktor Silberer and Franz Hinterstoissera Camillo helped to create the Viennese aero club (later Austrian aero club). He eventually was made deputy director, then in 1904 he was appointed to General Director of the company. Through his experience in the rubber and tire production field, Camillo saw the birth of aviation as an industry, going from a ballooning hobby, to makeshift glider craft requiring tires, to fully operational aircraft operated by engines. He met many influential men in his business, and came to realize that aviation sparked not only his passion for flight, but also recognized the tremendous financial opportunity of aviation's potential as an industry.
In order to draw from the arising enthusiasm for airplanes and ballooning, as well as to take advantage of the lucrative business the hobby generated, Camillo established one of his first companies, Motoren-Luftfahrzeuggesellschaft GmbH, in 1907. Being a pure commercial firm - it acquired the Etrich balloon patents and sold balloon fliers in Austria Hungary. There were many contests that these inspired balloon drivers entered, and Camillo was no different- he bought his own balloon and successfully took his balloon driver examination on 24 August 1909.
The first major investor in the series production of aircraft.
1914 Purchased the German aircraft company Hansa- und Brandenburgische Flugzeugwerke, which employed Ernst Heinkel
as its chief designer. Acquired a majority holding in Austro-Daimler
with its chief designers Puch
and Porsche
. Press "Czar" and sponsor of the arts (financed Max Reinhardt
and helped him to organize the Salzburg Festival
). After a series of setbacks, his financial empire broke up in 1926. He retired to Switzerland
, then to Milan
where he set up a private bank and once again amassed a considerable fortune. After the Second World War, negotiated a large US loan for his friend Josip Broz Tito
in Yugoslavia
. When Tito refused to pay his commission, Castiglioni succeeded in getting Yugoslavian assets in Italy worth millions sequestered. 1916 Awarded the Franz Joseph Order with ribbon on the Military Service Cross for his services to aviation 1918 with the St-Georges Order for his achievements in the war material production.
Castiglioni became rich in ventures during the period of inflation, acquiring a majority interest in Alpine Montan AG. The Austrian aviation company Österreichische Luftfahrtsgesellschaft was founded by him.
His was one of the voices that urged BMW in 1928 to purchase the Eisenach Automobilwerke. Due to financial difficulties in 1929 he was obliged to surrender his holding of BMW shares to a consortium of banks (Deutsche Bank
, Disconto, Bankhaus Hagen etc.).
A consortium led by the Deutsche Bank and the Diskonto-Gesellschaft purchased the BMW shares previously held by Camillo Castiglioni, who was facing problems of liquidity.
of the French franc
. They shorted hundreds of millions of franc, eventually causing the franc to drop almost 40% in less than a month. By the beginning of March 1924, one United States dollar
was worth 28 francs. Then, however, investment bank Lazard
, on the behalf of Banque de France
and powered by J.P. Morgan & Co.
, bought immense amounts of francs, causing the franc to rise again, to 15 franc per dollar. Castiglioni, Mannheimer and their partners lost millions.
In September 1924, the Austrian Depositenbank, of which Castiglioni had been president, collapsed. A warrant for his arrest on a charge of fraud was issued, but Castiglioni had been taken care to be in Italy when the crash came. The Austrian State said that if he deposited $4,200,000 ($ in present day value), he could return unmolested.
. He was the richest man in Central Europe and much beloved by the Viennese whom he assisted financially on Sundays and odd occasions. He was also a patron of the arts and for some time supported the famed producer Max Reinhardt
, for whom he built a theater. So fond was he of appearing in the public limelight that he lived with all the pomp and ceremony of royalty, even traveling in the Kaiser Karl's private parlor car, which he bought.
Because of his famous banking activities, his life was documented in a 1988 movie on television titled Camillo Castiglioni oder die Moral der Haifische (in English: Camillo Castiglioni, or the morality of sharks), directed by Peter Patzak
.
World War I
World War I , which was predominantly called the World War or the Great War from its occurrence until 1939, and the First World War or World War I thereafter, was a major war centred in Europe that began on 28 July 1914 and lasted until 11 November 1918...
. Nicknamed “Austrian Stinnes
Hugo Stinnes
-Life and career:Stinnes was born in Mülheim, in the Ruhr Valley, North German Confederation. His father was also named Hugo, and his grandfather Matthias Stinnes had founded a modest enterprise in Mülheim....
”, he was active in aviation
Aviation
Aviation is the design, development, production, operation, and use of aircraft, especially heavier-than-air aircraft. Aviation is derived from avis, the Latin word for bird.-History:...
's pioneering days and invested in the arts
ARts
aRts, which stands for analog Real time synthesizer, is an audio framework that is no longer under development. It is best known for previously being used in KDE to simulate an analog synthesizer....
.
Early life
Castiglioni was born in TriesteTrieste
Trieste is a city and seaport in northeastern Italy. It is situated towards the end of a narrow strip of land lying between the Adriatic Sea and Italy's border with Slovenia, which lies almost immediately south and east of the city...
, then Austria–Hungary (now part of Italy). It is not know when Camillo developed his interest in aviation, but it is known that he was passionate about flying. Camillo's education was primarily law, gaining employment as an attorney and legal officer of a bank in Padua
Padua
Padua is a city and comune in the Veneto, northern Italy. It is the capital of the province of Padua and the economic and communications hub of the area. Padua's population is 212,500 . The city is sometimes included, with Venice and Treviso, in the Padua-Treviso-Venice Metropolitan Area, having...
, quickly learning international finance and how to manage capital. He was the son of a rubber maker, so naturally Camillo found work with the Austro-American Gummiwarenfabrik AG (rubber products) in Vienna
Vienna
Vienna is the capital and largest city of the Republic of Austria and one of the nine states of Austria. Vienna is Austria's primary city, with a population of about 1.723 million , and is by far the largest city in Austria, as well as its cultural, economic, and political centre...
as an Agent for the Kaufmann automobile tire division in Constantinople
Constantinople
Constantinople was the capital of the Roman, Eastern Roman, Byzantine, Latin, and Ottoman Empires. Throughout most of the Middle Ages, Constantinople was Europe's largest and wealthiest city.-Names:...
. Camillo found great success in this position, demonstrating his abilities to negotiate and structure financial deals. In fact, Camillo was so successful, he was promoted to Director of the export department of the parent company in Vienna. Around 1901, along with Viktor Silberer and Franz Hinterstoissera Camillo helped to create the Viennese aero club (later Austrian aero club). He eventually was made deputy director, then in 1904 he was appointed to General Director of the company. Through his experience in the rubber and tire production field, Camillo saw the birth of aviation as an industry, going from a ballooning hobby, to makeshift glider craft requiring tires, to fully operational aircraft operated by engines. He met many influential men in his business, and came to realize that aviation sparked not only his passion for flight, but also recognized the tremendous financial opportunity of aviation's potential as an industry.
In order to draw from the arising enthusiasm for airplanes and ballooning, as well as to take advantage of the lucrative business the hobby generated, Camillo established one of his first companies, Motoren-Luftfahrzeuggesellschaft GmbH, in 1907. Being a pure commercial firm - it acquired the Etrich balloon patents and sold balloon fliers in Austria Hungary. There were many contests that these inspired balloon drivers entered, and Camillo was no different- he bought his own balloon and successfully took his balloon driver examination on 24 August 1909.
Aviation financing
During the First World War, became one of the richest and most influential financiers in Central Europe.The first major investor in the series production of aircraft.
1914 Purchased the German aircraft company Hansa- und Brandenburgische Flugzeugwerke, which employed Ernst Heinkel
Ernst Heinkel
Dr. Ernst Heinkel was a German aircraft designer, manufacturer, Wehrwirtschaftführer in the Third Reich, and member of the Nazi party. His company Heinkel Flugzeugwerke produced the Heinkel He 178, the world's first turbojet aircraft and jet plane, and the Heinkel He 176, the first rocket aircraft...
as its chief designer. Acquired a majority holding in Austro-Daimler
Austro-Daimler
Austro-Daimler was an Austrian automaker company, from 1899 until 1934. It was subsidiary of the German Daimler Motoren Gesellschaft .-Early history:...
with its chief designers Puch
Puch
Puch is a manufacturing company located in Graz, Austria. The company was founded in 1889 by the industrialist Johann Puch and produced automobiles, bicycles, mopeds, and motorcycles.-Pre 1919:...
and Porsche
Porsche
Porsche Automobil Holding SE, usually shortened to Porsche SE a Societas Europaea or European Public Company, is a German based holding company with investments in the automotive industry....
. Press "Czar" and sponsor of the arts (financed Max Reinhardt
Max Reinhardt
----Max Reinhardt was an Austrian theater and film director and actor.-Biography:...
and helped him to organize the Salzburg Festival
Salzburg Festival
The Salzburg Festival is a prominent festival of music and drama established in 1920. It is held each summer within the Austrian town of Salzburg, the birthplace of Wolfgang Amadeus Mozart...
). After a series of setbacks, his financial empire broke up in 1926. He retired to Switzerland
Switzerland
Switzerland name of one of the Swiss cantons. ; ; ; or ), in its full name the Swiss Confederation , is a federal republic consisting of 26 cantons, with Bern as the seat of the federal authorities. The country is situated in Western Europe,Or Central Europe depending on the definition....
, then to Milan
Milan
Milan is the second-largest city in Italy and the capital city of the region of Lombardy and of the province of Milan. The city proper has a population of about 1.3 million, while its urban area, roughly coinciding with its administrative province and the bordering Province of Monza and Brianza ,...
where he set up a private bank and once again amassed a considerable fortune. After the Second World War, negotiated a large US loan for his friend Josip Broz Tito
Josip Broz Tito
Marshal Josip Broz Tito – 4 May 1980) was a Yugoslav revolutionary and statesman. While his presidency has been criticized as authoritarian, Tito was a popular public figure both in Yugoslavia and abroad, viewed as a unifying symbol for the nations of the Yugoslav federation...
in Yugoslavia
Yugoslavia
Yugoslavia refers to three political entities that existed successively on the western part of the Balkans during most of the 20th century....
. When Tito refused to pay his commission, Castiglioni succeeded in getting Yugoslavian assets in Italy worth millions sequestered. 1916 Awarded the Franz Joseph Order with ribbon on the Military Service Cross for his services to aviation 1918 with the St-Georges Order for his achievements in the war material production.
Castiglioni became rich in ventures during the period of inflation, acquiring a majority interest in Alpine Montan AG. The Austrian aviation company Österreichische Luftfahrtsgesellschaft was founded by him.
BMW influence
Castiglioni significantly influenced the development of BMW AG in its early years. The granting of a license agreement by Austro-Daimler to the Rapp-Werke in 1917 was partly attributable to Castiglioni. 1918 At Castiglioni's insistence the Wiener Bankverein (Vienna) acquired the majority of BMW's share capital. 1922 Castiglioni purchased all the equipment relating to engine construction, the associated know-how and the rights to the name "Bayerische Motoren Werke AG" from the BMW AG, which was renamed Süddeutsche Bremse AG. Castiglioni in turn renamed the Bayerische Flugzeugwerke to BMW AG and allowed the renamed company to continue production at the BFW plant. From the establishment of BMW AG until November 9, 1922 and then from 1924 to 1929, he was a member of the Supervisory Board and President of BMW AG. 1928 Deputy Chairman of the Supervisory Board.His was one of the voices that urged BMW in 1928 to purchase the Eisenach Automobilwerke. Due to financial difficulties in 1929 he was obliged to surrender his holding of BMW shares to a consortium of banks (Deutsche Bank
Deutsche Bank
Deutsche Bank AG is a global financial service company with its headquarters in Frankfurt, Germany. It employs more than 100,000 people in over 70 countries, and has a large presence in Europe, the Americas, Asia Pacific and the emerging markets...
, Disconto, Bankhaus Hagen etc.).
A consortium led by the Deutsche Bank and the Diskonto-Gesellschaft purchased the BMW shares previously held by Camillo Castiglioni, who was facing problems of liquidity.
Failed speculation and bankcruptcy
In February 1924, Castiglioni partnered with Fritz Mannheimer, and later other influential bankers to speculate on the devaluationDevaluation
Devaluation is a reduction in the value of a currency with respect to those goods, services or other monetary units with which that currency can be exchanged....
of the French franc
French franc
The franc was a currency of France. Along with the Spanish peseta, it was also a de facto currency used in Andorra . Between 1360 and 1641, it was the name of coins worth 1 livre tournois and it remained in common parlance as a term for this amount of money...
. They shorted hundreds of millions of franc, eventually causing the franc to drop almost 40% in less than a month. By the beginning of March 1924, one United States dollar
United States dollar
The United States dollar , also referred to as the American dollar, is the official currency of the United States of America. It is divided into 100 smaller units called cents or pennies....
was worth 28 francs. Then, however, investment bank Lazard
Lazard
Lazard Ltd is the parent company of Lazard Group LLC, a global, independent investment bank with approximately 2,300 employees in 42 cities across 27 countries throughout Europe, North America, Asia, Australia, Central and South America...
, on the behalf of Banque de France
Banque de France
The Banque de France is the central bank of France; it is linked to the European Central Bank . Its main charge is to implement the interest rate policy of the European System of Central Banks...
and powered by J.P. Morgan & Co.
J.P. Morgan & Co.
J.P. Morgan & Co. was a commercial and investment banking institution based in the United States founded by J. Pierpont Morgan and commonly known as the House of Morgan or simply Morgan. Today, J.P...
, bought immense amounts of francs, causing the franc to rise again, to 15 franc per dollar. Castiglioni, Mannheimer and their partners lost millions.
In September 1924, the Austrian Depositenbank, of which Castiglioni had been president, collapsed. A warrant for his arrest on a charge of fraud was issued, but Castiglioni had been taken care to be in Italy when the crash came. The Austrian State said that if he deposited $4,200,000 ($ in present day value), he could return unmolested.
Philanthropy
Castiglioni built up a large art collection and a theatre in ViennaVienna
Vienna is the capital and largest city of the Republic of Austria and one of the nine states of Austria. Vienna is Austria's primary city, with a population of about 1.723 million , and is by far the largest city in Austria, as well as its cultural, economic, and political centre...
. He was the richest man in Central Europe and much beloved by the Viennese whom he assisted financially on Sundays and odd occasions. He was also a patron of the arts and for some time supported the famed producer Max Reinhardt
Max Reinhardt
----Max Reinhardt was an Austrian theater and film director and actor.-Biography:...
, for whom he built a theater. So fond was he of appearing in the public limelight that he lived with all the pomp and ceremony of royalty, even traveling in the Kaiser Karl's private parlor car, which he bought.
Because of his famous banking activities, his life was documented in a 1988 movie on television titled Camillo Castiglioni oder die Moral der Haifische (in English: Camillo Castiglioni, or the morality of sharks), directed by Peter Patzak
Peter Patzak
Peter Patzak is an Austrian film director and screenwriter. He has directed 60 films since 1973. His film Kassbach – Ein Porträt was entered into the 29th Berlin International Film Festival and his film Wahnfried was screened out of competition at the 1987 Cannes Film Festival.-Selected...
.