Originally posted on Aotearoa: A Wider Perspective:
The Rothschild dynasty is to merge its British and French banking operations to secure long-term control of the business and to boost the firm’s financial strength ahead of the introduction of tougher capital requirements for banks.
The 200-year-old banks will be reunited under a single shareholding that will bring together the fortunes of the French and English sides of the renowned family as they attempt to safeguard the business against the effects of new regulation and the fallout from the global financial crisis.
Paris Orleans, the Rothschild Group’s Paris-based holding company, will convert into a French limited partnership, securing the families’ control of the bank against potential takeovers. The new partnership will then buy out minority investors in NM Rothschild & Sons, the UK business, as well as outstanding minority interests in the French operations.