Kriti Mehrotra
It was on August 6, 1932, when Edmond Jacob Safra was born in Beirut, Lebanon, into a wealthy banking family that has always been very proud of its Sephardic Jewish background. They are actually originally from Aleppo, Syria, which is where their history in the financial sector began with the foundation of their first banking house in 1841, during the Ottoman Empire. It thus came as no surprise when he chose to follow in his ancestors’ footsteps, only to reportedly end up being among he richest men in the world before his unfortunate death in 1999.
How Did Edmond Safra Earn His Money?
Edmond Safra was welcomed by Ester Teira and Jacob Safra as one of eight children, with his siblings as well as best friends being Edmond, Moise, Arlette, Elie, Gabi, Evelyn, and Ughette. According to records, the patriarch had established the renowned J.E. Safra Bank in their base of Beirut in 1920, which rebranded in 1929 and later became the Banque de Credit National S.A.L. (BCN) in 1956. By this point, not only had the family relocated to Italy and then to Brazil for good, but the young man in question had also managed to garner significant experience.
That’s because Edmond had joined his father’s bank by the time he had turned 16, and even earned $40 million within his first year or so while handling transactions of gold sovereigns. His initial dealings were between the Italians and the British, yet he knew he wanted to pursue a different path and thus used his income to obtain a financial house in Geneva, Switzerland. He carefully transformed it into a private bank by the name of Trade Development Bank in 1956, with the unique decision to only use ancient Arabic script for bookkeeping so as to ensure no errors.
According to records, Edmond subsequently spread his wings to build a financial empire, for which he even founded the Republic National Bank of New York almost a decade later, in 1966. He later launched the Republic National Bank of New York in Geneva, too, all the while also privately handling the banking needs of wealthy aristocrats, celebrities, and entrepreneurs from across the globe. His national bank reportedly operated over 80 branches in the New York area itself in the 1980s, which is around the same time his first private bank started earning $5 billion a year.
In the end, though, Edmond chose to sell the Trade Development Bank to American Express in 1983 for over $450 million, but it proved to be so contentious that it involved lawsuits too. The financier filed a defamation case against the holding company, which earned him a public apology as well as $8 million in damages, all of which he donated to charities whose mission he supported. Then, around 5 years later, in 1988, he further expanded his reach by launching a bank holding/wealth management company in Luxembourg by the name of Safra Republic Holdings SA.
As if that’s not enough, Edmond took a massive risk in 1996 by reportedly putting up a capital of over $25 million to co-found a hedge fund called Hermitage Capital Management in Russia. This investment company allegedly earned over $1 billion within the first couple of years, but then suffered significant losses – alongside all its clients – when the Russian market suddenly crashed. In fact, the Republic National Bank of New York also lost roughly 45% of its overall net income in the summer of 1998 owing to its large holding of Russian bonds after the financial crisis.
That’s the same year Edmond contacted the FBI and the Swiss authorities to report a possible major money laundering scheme involving his banks, the IMF, and Russia, for which he was lauded. In the end, the FBI sent him a formal note of appreciation for his candidness, but it obviously wasn’t enough to help his businesses return to their prior thriving position, so he decided to sell them. It was December 1999 when HSBC acquired not only all branches of the Republic National Bank of New York but also its parent company, Safra Republic Holdings SA, for over $10.3 billion.
Edmond Safra’s Net Worth
Diagnosed with Parkinson’s disease and needing constant nursing care, by the time Edmond was in his 60s, he was splitting his time between his magnificent properties in Geneva, New York, Monaco, and the famed Villa Leopolda on the French Riviera. From what we can tell, the latter is currently worth $750 million in itself, especially owing to its prime location, historical significance, and luxurious amenities. It offers stunning views across the horizon, was originally built for King Leopold II of Belgium, and features a lot more than just lush gardens, as well as beautiful pools.
We should also mention that Edmond was also a proud philanthropist who never hesitated to donate to charities or help those in need. In fact, he offered emergency relief funds whenever a major event occurred and supported various medical research facilities such as the Institut Pasteur in Paris, the Weizmann Institute in Israel, and the Michael J. Fox Foundation for Parkinson’s Research. Moreover, he established the Edmond and Lily Safra Chair in Breast Cancer Research at Tulane University and launched the Edmond J. Safra Philanthropic Foundation to support cultural, educational, scientific, and medical-based projects in over 50 countries. From what we can tell, as per his last will, 50% of his assets were also donated to charities upon his unexpected death on December 3, 1999. So, considering everything, we believe Edmond Safra had a net worth of close to $3 billion at the time of his demise.
Read More: Edmond Safra Murder: Where is Ted Maher Now?
You must be logged in to post a comment.