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The rise and fall of Medici banking firm

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  1. Introduction
  2. Failure of high magnitude hurricanes
  3. Forecasting a possible evacuation
  4. Contra flow: The way to the future
  5. Building evacuation routes
  6. Conclusion

The Medici name carries a heavy significance in the world of the Renaissance, the arts, and more importantly the world of banking. Once one of the most economically, prosperous and politically powerful families in all of Europe, there estate went unrivaled by any family of their time. This paper will examine the rise, maturation, and decline of the Medici bank operation through the leadership of the Medici's: Giovanni, Cosimo I, Piero di Gouty, and Lorenzo the magnificent. Observations about the operations and management will be made that led the Medici fortune to great success on the banking firm and eventually the disillusion of their financial operations.

With the fall of Medieval Christianity and the rise of the guild systems, family owned business began to emerge as the new standard of commerce in Florence. With this trend came a moderately known family from the small agricultural town of Mugello (about 25 km north of Florence) that began practicing successful banking and would soon become one of the richest and most powerful families in Europe.

[...] The Rome branch that handled the papal finances (the most important commission of the Medici bank) was also temporarily housed in Florence, by Santa Maria Novella, because the pope Eugenius IV was in Florence from 1439-1443. In the year 1440 there were three other branches: one n Geneva (although it was later transferred to Lyons), one in Bruges and one in Ancona. The next branch to open was Pisa, when Cosimo purchased an old palace and converted it to another bank branch. [...]

[...] The inscription was later re-inscribed and the tomb still stands in its grandeur provided a reminder to all that see it that the Medici political hand ruled strong in matter of the church. Ten short years after the commission of the tomb for John XXIII, Giovanni died, leaving the Medici Bank firm to be inherited by his son Cosimo di Medici (known Cosimo I). After Giovani had trouble with the complications of a divided inheritance, he decided to leave his sole inheritance to his son Cosimo leaving his in absolute control of the Medici bank and there estate (Fremante, 2001). [...]

[...] While Lorenzo would later be known as one of the most generous art patrons of the Renaissance period (to which would gain him much popularity) his success in the family banking business would be less favorable (Cesati, 1999). The first real failure of a Medici branch was in London, when Lorenzo closed the troubled branch after loans were unable to be repaid causing the branch to enter bankruptcy. The Medici bank had lent money to Edward the VI in exchange for licenses to trade and export wool in a failing trade economy. [...]

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