Sociedad General de Crédito Mobiliario Español was a financial company founded in the mid-19th century with

French French may refer to: * Something of, from, or related to France ** French language, which originated in France ** French people, a nation and ethnic group ** French cuisine, cooking traditions and practices Arts and media * The French (band), ...

capital and structure. Its headquarters were built in 1869 in

Paseo de Recoletos Paseo de Recoletos is a wide boulevard in central Madrid leading from Plaza de Cibeles to Plaza de Colón. From west to east it consists of: * Two southward lanes * The pedestrian walk * A southward bus lane * Three southward lanes * Three north ...

Madrid Madrid ( ; ) is the capital and List of largest cities in Spain, most populous municipality of Spain. It has almost 3.5 million inhabitants and a Madrid metropolitan area, metropolitan area population of approximately 7 million. It i ...

Banco Español de Crédito Banco Español de Crédito, S.A. (), “Spanish Credit Bank”) better known as Banesto, was a Spanish multinational financial services company. Prior to the Spanish Government's historical intervention in 1993, the first in the history of bank ...

(Banesto), one of whose first presidents was the Marquis of Cortina.

History

The Sociedad de Crédito Mobiliario Español was born as a banking company of French capital promoted by

Isaac Pereire Isaac Pereire (25 November 1806 – 12 July 1880) was a French politician and businessman. Early life He was born in Bourdeaux to broker and maritime insurer Isaac Rodrigues Pereire and his wife Rebecca Lopès-Fonseca, making him the grandson ...

, founder of the French bank

Crédit Mobilier The Crédit Mobilier (; officially the Société Générale du Crédit Mobilier , ) was a French banking company created in 1852 by the Pereire brothers, and one of the world’s most significant and influential financial institutions in the mid ...

. It was incorporated in

on January 28, 1856, under the new Law of Credit Companies under the name of ''Sociedad General de Crédito Mobiliario Español''. This company was mainly dedicated to cover the budgetary deficit of the

Spanish Government The government of Spain () is the central government which leads the executive branch and the General State Administration of the Kingdom of Spain. The Government consists of the Prime Minister and the Ministers; the prime minister has the o ...

, through acquisitions of

public debt A country's gross government debt (also called public debt or sovereign debt) is the financial liabilities of the government sector. Changes in government debt over time reflect primarily borrowing due to past government deficits. A deficit occu ...

, and to the concession of financial credits to public companies. One of its most important administrators was

Federico Luque Velázquez Federico (; ) is a given name and surname. It is a form of Frederick, most commonly found in Spanish, Portuguese and Italian. People with the given name Federico Arts and language * Federico Ágreda, Venezuelan composer and DJ * Federico Aguil ...

, an associate of the

Pereire brothers Émile Pereire (3 December 1800, Bordeaux - 5 January 1875, Paris) and his brother Isaac Pereire (25 November 1806, Bordeaux – 12 July 1880, Gretz-Armainvilliers) were major figures in the development of France's finance and infrastructure duri ...

. Luque and the Pereire brothers competed through Crédito Mobiliario Español and

Compañía de los Caminos de Hierro del Norte de España The Compañia de los Caminos de Hierro del Norte de España (CCHNE), known simply as Norte, was a Spanish railway company founded on December 29, 1858. Its network was one of the most extensive in Spain, until it was Nationalization, nationalized ...

with Baron

Rothschild Rothschild () is a name derived from the German ''zum rothen Schild'' (with the old spelling "th"), meaning "to the red shield", in reference to the houses where these family members lived or had lived. At the time, houses were designated by signs ...

and his representatives in Spain,

Daniel Weisweiller Daniel Bernard Weisweiller (1814 – 13 January 1892) was a German-born Spanish banker of Jewish descent. He was an agent of Rothschild banking house in Madrid, taking over from Lionel de Rothschild in 1834. According to Niall Ferguson, Weisweille ...

and Ignacio Bauer, who controlled their competitors: the railway company MZA and Compañía General de Crédito de España. Crédito Mobiliario Español would participate in the creation, in 1856, of the Compagnie des Mines de Cuivre de Huelva, which controlled several mines in the Tharsis-La Zarza mining basin. In its early years, the company experienced an economic boom and distributed high dividends. After the war in Cuba, the financial reforms of

Raimundo Fernández Villaverde The name Raimundo may refer to: * Raimundo, 2nd Duke of Castel Duino (1907–1986) * Raimundo Calcagno, Spanish screenwriter * Raimundo Rolón, brief President of Paraguay * Raimundo Orsi, Argentinian footballer * Raimundo Diosdado Caballero, Ca ...

in 1900 and the repatriation of capital from the former American colonies, its shareholders decided to liquidate the company and found a new one, ''Banco Español de Crédito'', created on May 1, 1902, with a capital stock of 20 million pesetas represented by 80,000 shares with a par value of 250 pesetas. The promoter of the bank was a French group presided by Gustavo Pereire.

Cayetano Sánchez Bustillo Cayetano is a Spanish and sometimes Sephardic Jewish name related to the Italian name Gaetano (English: '' Cajetan''), both from Latin ''Caietanus'', meaning "from Gaeta". It is a common given name in Spain, Mexico, Argentina and the Philippines. As ...

and

León Cocagne Leon, Léon (French) or León (Spanish) may refer to: Places Europe * León, Spain, capital city of the Province of León * Province of León, Spain * Kingdom of León, an independent state in the Iberian Peninsula from 910 to 1230 and again fro ...

(deputy director of the

Banco Hipotecario de España Banco may refer to: Places * Banc (Barcelona Metro), also called Banco, a closed metro stop on the Barcelona metro * Banco, Virginia, an unincorporated community * Banco, West Virginia, an unincorporated community * Banco National Park, a nationa ...

) joined this initiative in representation of a group of Spanish investors. Its headquarters would continue to be the

building of the Sociedad de Crédito Mobiliario A building or edifice is an enclosed structure with a roof, walls and windows, usually standing permanently in one place, such as a house or factory. Buildings come in a variety of sizes, shapes, and functions, and have been adapted throughout ...

, located in Madrid's

References

Bibliography

* * {{Cite book , last=García Ruiz , first=José Luis , chapter-url=https://books.google.com/books?id=7FIx_BJLvxMC&pg=PA322 , title=Estudios de historia y de pensamiento económico: homenaje al profesor Francisco Bustelo García del Real , date=2003 , publisher=Editorial Complutense , isbn=978-84-7491-733-8 , pages=319–326 , language=es , chapter=Fundación y primeros pasos del Banco Español de Crédito

External links

Building of the Sociedad de Crédito Mobiliario Español
(in Spanish). Rutas Pangea. Companies disestablished in 1902 Defunct banks of Spain