Failed Speculation and Bankcruptcy
In February 1924, Castiglioni partnered with Fritz Mannheimer, and later other influential bankers to speculate on the devaluation 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 ($56956893 in present day value), he could return unmolested.
Read more about this topic: Camillo Castiglioni
Famous quotes containing the words failed and/or speculation:
“Till having failed at hugger-mugger farming
He burned his house down for the fire insurance
And spent the proceeds on a telescope
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“When speculation has done its worst, two and two still make four.”
—Samuel Johnson (1709–1784)