Austrian Banks in the Period of National Socialism

Abstract

This book is the English translation of Gerald D. Feldman's contributions to the multi-author, two-volume study Österreichische Banken und Sparkassen im Nationalsozialismus und in der Nachkeriegszeit, which was originally published in German by C. H. Beck in 2006. Austrian Banks in the Period of National Socialism focuses on the activities of two major financial institutions, the Creditanstalt-Wiener Bankverein and the Länderbank Wien. It details the ways the two banks served the Nazi regime and how they used the opportunities presented by Nazi rule to expand their business activities. Particular attention is given to the role that the Creditanstalt and Länderbank played in the 'Aryanization' of Jewish-owned businesses. The book also examines the two banks' relations with their industrial clients and considers the question of whether bank officials had any knowledge of their client firms' use of concentration camp prisoners and other forced laborers during World War II.

Business Collaboration within the Nazi War Machine: Corporations and the State in the Austrian Semiperiphery

“…For the Nazis to wage the world war, Germany, situated in the lower tier of the “great power” core nations, had to intensify its domination of Austria, as it did after the 1938 Anschluß (annexation). Nazi state enterprises and German firms sought to take over, develop, and use Austrian businesses for war preparations (Dritsas, Eigner, and Ottosson :179; Feldman :61–62; Gross :53–54, 61–62, 143; Overy :315–39). It was also necessary for industries and investment banks in Austria to increase their ownership and direction of industrial plants throughout Southeastern Europe (Gross ).…”

“…The Nazi state's needs for armaments also gave Krupp some leeway to pursue its business strategies to reacquire Berndorfer Metallwarenfabrik, a metal products producer in Austria, back into the traditional Krupp fold (Feldman :15–16). Gustav Krupp sought to regain Berndorf because it had previously been a long‐standing holding of the Krupp family, rather than for what it provided technically or financially for the Krupp conglomerate (Manchester :371).…”

“…The reliance of the Nazi state on Krupp meant that Krupp had more power through its networks from family to banks and to the Nazi patrimonial state (Feldman : 62–71; James :214 for competition for political influence). The Krupp campaign to acquire Berndorf started from the head patriarch, Gustav Krupp von Bohlen und Halbach, who had married Krupp heiress Bertha and thereupon as the husband of the heiress, took control of the family enterprise (Manchester :239–44, 253).…”

“…Wilmowsky also contacted other Nazi officials, including Wilhelm Keppler, the Reich Commissioner in Austria, and an advisor to Göring (Feldman :62–65). Keppler obtained Göring's approval of Krupp's acquisition (Keppler to Wilmowsky 2 April 1938, International Military Tribunal , Volume 8:477).…”

“…(Williams [:145] further contends that Nazi leaders gave instructions to Berndorf to sell only to Krupp.) The sales price paid by Krupp may have reflected an advantage gained by Krupp's contacts (Manchester :378; Williams :145; “Dissenting opinion of Judge William J. Wilkins concerning Berndorf‐Krupp, Austria, July 31, 1948, Trials of War Criminals, IX, 1455–58.” Feldman :27, 69–71; Overy :139, 319). The traditional collaboration of Krupp enabled it to use its networks to gain favors from the Nazi state, in return for the firm's honorable subordination of some of its business interests, and its willing acceptance of the military imperatives of the war buildup.…”