Before Hitler: How Big Banks and Financiers Profited from High Interest Rates

Before Hitler rose to power, major banks and financiers profited from high interest rates in Germany. During the Weimar Republic, government bonds often carried 6-10% nominal rates. Banks and financial institutions purchased these bonds, gaining profits as inflation increased. International banks in London, New York, and Switzerland lent to German businesses and the state. Speculation on currency movements, particularly the mark against the dollar and pound, added profits. By the peak of hyperinflation in 1923, banks with foreign-denominated assets or hedges maintained or increased returns, while small depositors lost savings. Lending practices prioritized returns under volatile economic conditions, concentrating gains in large institutions.

Major German banks before Hitler / Weimar Republic

• Deutsche Bank – founded by German industrialists, controlled by German and Jewish shareholders.
• Dresdner Bank – German industrial and political elite shareholders.
• Commerzbank – mix of German industrialists and private investors.
• Berliner Handels-Gesellschaft (B.H.G.) – large German financiers, some Jewish families.

International banks with exposure to Weimar Germany

• J.P. Morgan & Co. (USA) – lent to German government and industry.
• Goldman Sachs (USA) – involved in bond trading, lending.
• Rothschild banking families (UK, France, Austria) – invested in German bonds.
• Warburg Bank (Germany / international) – German Jewish financiers, connected to foreign markets.
• Credit Suisse (Switzerland) – loans and bond trading in German markets.

Financiers / families commonly involved

• Rothschild (European branches)
• Warburg (Hamburg, German-Jewish)
• Schiff (U.S., German-Jewish)
• Siemens and Krupp families – industrialists with banking ties
• Other large industrial-financier coalitions in Germany – German-Jewish and Protestant elite

Notes

• Banks were often owned or controlled by a mix of industrialists, wealthy families, and international investors.
• Lending and bond purchases were coordinated to profit from high nominal interest rates and currency speculation.