Creditanstalt
Encyclopedia
The Creditanstalt was an Austria
n bank
. The Creditanstalt was based in Vienna
, founded in 1855 as K. k. priv. Österreichische Credit-Anstalt für Handel und Gewerbe (approximately translated as: Imperial royal privileged Austrian Credit-Institute for Commerce and Industry) by the Rothschild family
. Being very successful, it became the largest bank of Austria-Hungary
. It declared bankruptcy
on May 11, 1931. It has been said that this event resulted in a global financial crisis
and ultimately the bank failures of the Great Depression
. The bank was ultimately rescued by the Oesterreichische Nationalbank
and the Rothschilds and merged with the Wiener Bankverein, thus changing its name to Creditanstalt-Bankverein.
Following the Anschluss
between Nazi Germany
and Austria, Creditanstalt-Bankverein was targeted for both financial and racial reasons. In early March 1938 Nazis threw the bank's Jewish president, Franz Rothenberg, from a moving vehicle (an incident he survived) and later demanded compensation from the imprisoned Baron Louis Rothschild for losses suffered by the Austrian state when the bank collapsed. Creditanstalt-Bankverein was later taken over by Deutsche Bank
.
After World War II
, the bank was nationalised and became mainly a commercial bank
and highly involved in Austria's economy, holding stakes in important Austrian companies such as Wienerberger
, Steyr-Daimler-Puch
, Lenzing AG
and Semperit
.
In 1997, the state-owned shares were sold to Bank Austria
(BA), resulting in a crisis in the ruling coalition between SPÖ
and ÖVP
, since Creditanstalt had to be considered part of the conservative
sphere of influence
, whereas BA with its roots as Vienna's Central Savings Bank (Zentralsparkasse) was considered standing politically left. The merger was not finished until 2002, with the creation of Bank Austria Creditanstalt, which became part of the German
HypoVereinsbank
(HVB) group. HVB has now been taken over by UniCredit
.
Austria
Austria , officially the Republic of Austria , is a landlocked country of roughly 8.4 million people in Central Europe. It is bordered by the Czech Republic and Germany to the north, Slovakia and Hungary to the east, Slovenia and Italy to the south, and Switzerland and Liechtenstein to the...
n bank
Bank
A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...
. The Creditanstalt was based 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...
, founded in 1855 as K. k. priv. Österreichische Credit-Anstalt für Handel und Gewerbe (approximately translated as: Imperial royal privileged Austrian Credit-Institute for Commerce and Industry) by the Rothschild family
Rothschild family
The Rothschild family , known as The House of Rothschild, or more simply as the Rothschilds, is a Jewish-German family that established European banking and finance houses starting in the late 18th century...
. Being very successful, it became the largest bank of Austria-Hungary
Austria-Hungary
Austria-Hungary , more formally known as the Kingdoms and Lands Represented in the Imperial Council and the Lands of the Holy Hungarian Crown of Saint Stephen, was a constitutional monarchic union between the crowns of the Austrian Empire and the Kingdom of Hungary in...
. It declared bankruptcy
Bankruptcy
Bankruptcy is a legal status of an insolvent person or an organisation, that is, one that cannot repay the debts owed to creditors. In most jurisdictions bankruptcy is imposed by a court order, often initiated by the debtor....
on May 11, 1931. It has been said that this event resulted in a global financial crisis
Financial crisis
The term financial crisis is applied broadly to a variety of situations in which some financial institutions or assets suddenly lose a large part of their value. In the 19th and early 20th centuries, many financial crises were associated with banking panics, and many recessions coincided with these...
and ultimately the bank failures of the Great Depression
Great Depression
The Great Depression was a severe worldwide economic depression in the decade preceding World War II. The timing of the Great Depression varied across nations, but in most countries it started in about 1929 and lasted until the late 1930s or early 1940s...
. The bank was ultimately rescued by the Oesterreichische Nationalbank
Oesterreichische Nationalbank
The Oesterreichische Nationalbank is the central bank of the Republic of Austria and, as such, an integral part of both the European System of Central Banks and the Eurozone. In the public interest, the OeNB contributes to monetary and economic policy decision-making in Austria and in the Euro area...
and the Rothschilds and merged with the Wiener Bankverein, thus changing its name to Creditanstalt-Bankverein.
Following the Anschluss
Anschluss
The Anschluss , also known as the ', was the occupation and annexation of Austria into Nazi Germany in 1938....
between Nazi Germany
Nazi Germany
Nazi Germany , also known as the Third Reich , but officially called German Reich from 1933 to 1943 and Greater German Reich from 26 June 1943 onward, is the name commonly used to refer to the state of Germany from 1933 to 1945, when it was a totalitarian dictatorship ruled by...
and Austria, Creditanstalt-Bankverein was targeted for both financial and racial reasons. In early March 1938 Nazis threw the bank's Jewish president, Franz Rothenberg, from a moving vehicle (an incident he survived) and later demanded compensation from the imprisoned Baron Louis Rothschild for losses suffered by the Austrian state when the bank collapsed. Creditanstalt-Bankverein was later taken over by 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...
.
After World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
, the bank was nationalised and became mainly a commercial bank
Commercial bank
After the implementation of the Glass–Steagall Act, the U.S. Congress required that banks engage only in banking activities, whereas investment banks were limited to capital market activities. As the two no longer have to be under separate ownership under U.S...
and highly involved in Austria's economy, holding stakes in important Austrian companies such as Wienerberger
Wienerberger
Wienerberger AG is the world’s largest producer of bricks, and the second-largest European manufacturer of clay roof tiles. It is based in Vienna, Austria...
, Steyr-Daimler-Puch
Steyr-Daimler-Puch
Steyr-Daimler-Puch was a large manufacturing conglomerate based in Steyr, Austria, which was broken up in stages between 1987 and 2001. The component parts and operations continued to exist under separate ownership and new names.-History:...
, Lenzing AG
Lenzing AG
Lenzing AG is a company based in Lenzing, Austria whose main business is textile and nonwovens cellulose fibers and also makes some polymer plastics...
and Semperit
Semperit
The Semperit AG Holding is a manufacturer of industrial rubber and plastic products based in Vienna, Austria. In the middle 20th century, it also produced bicycle tires for the Austrian road bicycle sold by Sears & Roebuck, including the classic white-wall tires.Owner: 50 % B&C Holding, rest free...
.
In 1997, the state-owned shares were sold to Bank Austria
Bank Austria
UniCredit Bank Austria AG is a Central and Eastern European bank, 96.35% owned by UniCredit Group.BA-CA's history goes as far back as 1855, the year the Creditanstalt was founded. In 1991, Zentralsparkasse und Kommerzialbank and Oesterreichische Laenderbank merged to form Bank Austria. In 1997,...
(BA), resulting in a crisis in the ruling coalition between SPÖ
SPO
- Technology :SPO: Microsoft SharePoint Online, Microsoft Cloud Computing, Office 365. See Microsoft Online Services-Economics:* Secondary Public Offering, an equity capital market instrument...
and ÖVP
OVP
OVP is a three-letter abbreviation that may refer to:*The Office of the Vice President of the United States*The Office of the Vice President of the Philippines*OVP , a light sub-machine gun developed in Italy...
, since Creditanstalt had to be considered part of the conservative
Conservatism
Conservatism is a political and social philosophy that promotes the maintenance of traditional institutions and supports, at the most, minimal and gradual change in society. Some conservatives seek to preserve things as they are, emphasizing stability and continuity, while others oppose modernism...
sphere of influence
Sphere of influence
In the field of international relations, a sphere of influence is a spatial region or conceptual division over which a state or organization has significant cultural, economic, military or political influence....
, whereas BA with its roots as Vienna's Central Savings Bank (Zentralsparkasse) was considered standing politically left. The merger was not finished until 2002, with the creation of Bank Austria Creditanstalt, which became part of the German
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
HypoVereinsbank
HypoVereinsbank
UniCredit Bank Aktiengesellschaft is the sixth-largest private German financial institution, with a strong presence in Bavaria. The company is based in Munich, and together with Deutsche Bank, Dresdner Bank, Commerzbank and Deutsche Postbank, it belongs to the Cash Group...
(HVB) group. HVB has now been taken over by UniCredit
UniCredit
UniCredit SpA is an Italy-based, pan-European banking organization, with aprox 40 million customers and operations in 22 countries.- Geography :...
.
Literature
- Aurel Schubert, Michael D. Bordo (ed.). The Credit-Anstalt Crisis of 1931 (Studies in Macroeconomic History). Cambridge University Press, Cambridge. 1992. ISBN 0-521-36537-6
- Carl E. Schorske. Fin-de-Siècle Vienna: Politics and CultureFin-de-Siècle Vienna: Politics and CultureFin-de-siècle Vienna: Politics and Culture, written by American cultural historian Carl E. Schorske and published by Knopf in 1980, won the 1981 Pulitzer Prize for General Non-Fiction...
. Vintage, London. 1980. ISBN 0-394-74478-0