Bardi Florentine family Country: Italy

1. The Bardis: Florence's Influential Banking Family
2. Early Entrepreneurship and Expansion
3. Building a Reputation and Attracting Investors
4. Expanding Influence and Key Markets
5. Dominating the Crown
6. The Downfall

The Bardis: Florence's Influential Banking Family

The Bardi family was a prominent Florentine family that owned one of the largest banking and trading companies in Europe from the mid-13th to the mid-14th century. They were known for their extraordinary wealth and impressive influence, sponsoring major international wars and lending money to members of the aristocracy and clergy. In fairy tales, kings and emperors never had problems with liquidity – almost every mythical ruler had a treasury filled with gold coins and precious gems. In reality, however, kings did not always possess great wealth and were often burdened with debts. The bankers who provided liquidity to kings often became secret rulers of neighboring lands, acquiring incredible power. For example, the Bardi and Peruzzi families once managed to gain control over almost all of England.

Early Entrepreneurship and Expansion

The Bardi family began their entrepreneurial activities with cloth trading and money lending. Initially, these commercial operations brought in a decent income, but over time, the Bardis shifted their focus to various banking operations. These operations often involved significant risks, but they also brought substantial profits. The Peruzzi family, another influential family, conducted their own business independently from the Bardis, but they occasionally organized successful joint projects.

Building a Reputation and Attracting Investors

Having earned an impressive reputation in European business circles, the Bardis started involving external investors in their new ventures. The Bardis, like the Peruzzis, promised investors a decent and stable return of around 8% per annum. Investors responded enthusiastically to their offer, and by 1310, external deposits amounted to approximately one-third of the Bardis' own investments.

Expanding Influence and Key Markets

The families gradually expanded their areas of influence and captured new markets. Bardi branches opened in Sicily, Venice, Genoa, Majorca, Cyprus, Rhodes, Avignon, Antwerp, Bruges, London, and Paris. By the beginning of the second quarter of the 14th century, England became one of the key markets for the Bardis and Peruzzis. King Edward II constantly needed funds, which he borrowed from Florentine bankers. Edward repaid his debts primarily through reciprocal services, such as depositing customs duties, tithes, and a series of customs and tax privileges. In 1317, for example, the Bardis and Peruzzis received the right to collect papal taxes. Edward was not the only major English client of the Bardis – many local nobles actively sought the services of these moneylenders. The growing influence of the Bardis, however, irritated the common people. In 1326, the Londoners even staged a full-blown riot, but this did not drive the Florentines away from the unwelcoming country.

Dominating the Crown

Edward III continued the policies of his father, Edward II, as he needed funds for the war with Scotland and the anticipated conflict with France. The bankers were granted rights over a range of income sources previously owned by the Crown, and in return, they received certain royal treasures as collateral. The influence of the Bardis and Peruzzis continued to grow, and soon they were able to dictate terms to the king.

The Downfall

The war with France turned out to be more prolonged than Edward had hoped, and both sides had to turn to the moneylenders. Unfortunately, neither the Bardis nor the Peruzzis were able to take advantage of the situation. In 1340, the Florentine Republic issued securities offering a interest rate twice that of the family's papers. Depositors of the Bardis and Peruzzis began to divest themselves of their family securities, but the bankers simply could not meet all their obligations. They could not collect debts from the English and the French, and negotiations with Edward led to a fatal heart attack for the head of the Peruzzi family. Attempts to seize power in Florence by force also proved futile. After several years of desperate struggle, the Peruzzis declared bankruptcy in 1343, followed by the Bardis in 1346. The collapse of such powerful players had a devastating impact not only on the financial system in Florence but also across Europe.