Shalom, Wall Street: The Influence of Jewish Business Leaders in America’s Financial Sector

by Sima Ella

Against the backdrop of the towering skyscrapers of Wall Street, stories of determination, innovation, and influence unravel. A narrative thread weaves through them – the impact of Jewish business leaders on America’s financial sector. From immigrant beginnings to seats in the boardrooms of the world’s largest financial institutions, the Jewish community’s contributions have helped shape the industry’s trajectory.

When is the beginning?

Determining the “first” Jewish businessman or financier is quite challenging, as Jewish involvement in business and finance dates back several centuries and spans various countries. However, if we’re discussing figures documented in the context of the Western economic system, the Rothschild family is often mentioned as pioneers in modern banking.

Mayer Amschel Rothschild (1744–1812) was a German Jewish banker and the founder of the Rothschild banking dynasty. Born in the Jewish ghetto of Frankfurt, he started his career in banking as a dealer in rare coins and grew his business into a banking empire. He sent his five sons to different European capitals, where they established family bank branches. The Rothschild banks pioneered international high finance during the industrialization of Europe. They were instrumental in supporting railway systems across the world and complex government financing for projects such as the Suez Canal.

Sculpting Modern Banking

Jewish influence in the banking sector extends far beyond Wall Street. The legacy of Mayer Amschel Rothschild, the founder of an international banking dynasty in the late 18th century, remains relevant today. The Rothschild family played a key role in several significant historical events, including financing the British war effort during the Napoleonic Wars. Today, their banking enterprise continues to be a formidable presence in the global finance sector.

Why do Jews involve with financial activities? 

Before the Rothschilds, Jews had been involved in money lending and other financial activities for centuries. Religious laws and restrictions placed on Jews during the Middle Ages, such as prohibitions against owning land and exclusion from trade guild membership, largely shaped the nature of these activities. Jewish law and Christian authorities only permitted money lending, so it became a popular profession for many Jews.

It’s important to remember that the history of Jewish involvement in finance is complex and multifaceted, influenced by various factors, including religious law, social restrictions, and shifting economic contexts. 

The figures mentioned above and in previous responses represent just a few notable instances of Jewish individuals who made significant contributions to the business and financial sectors.

From humble beginnings to towering titans of finance

Reimagining Wall Street’s Power Players

The narrative of Jewish business leaders is not confined to the annals of history but remains profoundly relevant today. We see this influence in the boardrooms of investment banks and on the trading floors of Wall Street, but also in the realm of regulatory bodies and the political sphere.

Consider Gary Gensler, who, as Chairman of the Securities and Exchange Commission, plays a pivotal role in shaping the regulatory environment of the financial industry. His tenure at the Commodity Futures Trading Commission provided a decisive influence on derivative markets.

Activists and Innovators

The influence of Jewish business leaders extends beyond mainstream banking into the world of hedge funds and private equity. One such figure is Carl Icahn, an activist investor who has championed shareholder rights and wrung value out of underperforming companies. Icahn’s impact has been profound, making him a stalwart of the investment world.

Leon Black, co-founder of Apollo Global Management, one of the largest alternative investment firms globally, is another figure whose impact has been significant. And in the hedge fund world, names like David Einhorn, founder of Greenlight Capital, and Israel “Izzy” Englander, co-founder of Millennium Management, continue to make waves.

Bridging Continents

The influence of Jewish businessmen is not limited to the United States. Joseph Safra, a banking magnate of Syrian Jewish descent, established a banking empire with significant holdings in real estate and banking sectors that continue to thrive even after his passing.

Lehman Brothers and the Roots of Wall Street

A journey back in time. To begin, we must look back to the mid-1800s, a time when Jewish immigrants were making their way to America from a tumultuous Europe.

Among them were the Lehman Brothers, who started as humble cotton traders in Alabama. They eventually moved to New York City and established one of the most successful investment banks in history. The firm they built was a pillar of Wall Street for over a century, highlighting the immense potential of immigrant grit and business acumen.

The Giants of Finance: Goldman Sachs and The Warburg Dynasty

In the same vein, the Goldman Sachs story started with a German Jewish immigrant, Marcus Goldman. What began as a commercial paper business in 1869 transformed into a global financial institution. Goldman’s son-in-law, Samuel Sachs, joined the firm in 1882, marking the beginning of a banking empire that would withstand economic depressions, world wars, and financial crises.

Goldman Sachs has been home to many notable Jewish leaders, including Robert Rubin, who served as Treasury Secretary under President Clinton, and Lloyd Blankfein, the company’s longest-serving CEO.

The Warburg family (1763–1830) is another powerful Jewish dynasty with deep ties to the financial world. Notably, Paul Warburg, a German Jewish immigrant, was a significant force behind establishing the US Federal Reserve System. His vision and influence continue to shape American monetary policy.

Jacob Schiff was born in Germany in 1847. He emigrated to the United States and eventually became the head of the investment banking firm Kuhn, Loeb & Co. He helped finance several major American infrastructure projects, including railroads, and was a notable philanthropist.

Siegfried Marcus: Born in 1831 in Germany, Marcus moved to Vienna in his twenties and became a pioneer in the field of automobile engineering. Although not directly linked to the financial world, his inventions and entrepreneurial spirit indirectly shaped the automobile industry’s economic landscape.

David Ricardo: An influential economist from the 18th century, Ricardo was one of the most influential of the classical economists, alongside Thomas Malthus, Adam Smith, and John Stuart Mill. He developed theories on international trade, rent, wages, and profits that deeply influenced modern economic thought.

Sir Moses Haim Montefiore: An Italian-British financier, banker, and philanthropist, Montefiore was a pivotal figure in international finance in the early 19th century. His philanthropic works extended to the Jewish community and beyond.

These individuals represent a wide range of contributions to the financial sector and demonstrate Jewish businesspeople’s lasting influence over centuries.

The spirit of Tikkun Olam – repairing the world 

In addition to their financial achievements, Jewish business leaders have a long tradition of philanthropy, embodying the spirit of ‘tikkun olam’ – repairing the world, a concept in Judaism that refers to various forms of action intended to repair and improve the world.

It refers to the pursuit of social justice based on the notion that “Jews bear responsibility not only for their own moral, spiritual, and material welfare but also for the welfare of society at large.” 

Champions of Philanthropy

Philanthropy is an intrinsic part of Jewish tradition, and Jewish business figures have been generous contributors to various charitable causes. To name a few, men like philanthropist George Soros, a hedge fund manager, has given away billions of dollars through his Open Society Foundations, funding causes ranging from democratic development to education reform. Similarly, Michael Milken, once a financier known as the “junk bond king,” has become a philanthropist focusing on medical research and education. Bill Ackman committed himself to give away at least 50% of his $3.5 billion by the end of his life to charitable causes, and Salesforce CEO Marc Benioff have donated millions to different initiatives, embodying the spirit of ‘tzedakah’ – charity and social justice.

These varied contributions underscore the diverse and profound impact that Jewish business leaders have had not just on the financial sector but on society as a whole. As we move into the 21st century, we can expect this influence, innovation, and philanthropy legacy to continue.

The Power Players of Today

Fast-forward to the present day, Jewish business leaders remain at the helm of major financial institutions. 

This short list showcases the depth and diversity of Jewish influence in the financial sector over centuries, a testament to their enduring spirit of entrepreneurship and innovation. 

Take Stephen A. Schwarzman, the CEO of Blackstone, one of the world’s leading investment firms. Schwarzman’s leadership has been instrumental in expanding the firm’s reach and solidifying its position in global finance.

Larry Fink, the CEO of BlackRock, oversees the world’s largest asset management firm, managing a staggering $8.7 trillion as of the end of 2020. He is often regarded as one of the most influential figures in the global financial sector. His annual letters to CEOs worldwide are widely read and regarded as a significant guidepost for trends in global investing.

Sanford “Sandy” Weill: As the former CEO of Citigroup, Weill was instrumental in reshaping the financial services industry by promoting the idea of a bank providing a range of financial services, including investment banking, insurance, and commercial banking. This led to the repeal of the Glass-Steagall Act, legislation dating from the Great Depression that separated these types of banking.

Seth Klarman: Klarman is the CEO of the Baupost Group, a Boston-based private investment partnership he co-founded. He is known for his adherence to the value investing philosophy and has written a seminal book on the subject, “Margin of Safety: Risk-Averse Value Investing Strategies for the Thoughtful Investor.”

Bruce Wasserstein: Known for his role in M&A advisory, Wasserstein was a co-founder of Wasserstein Perella & Co., and later became CEO of Lazard. His deal-making prowess earned him the nickname “Bid ’em Up Bruce.”

Jesse Livermore: A famed early 20th-century stock trader, Livermore made and lost several multi-million dollar fortunes and was known for his sharp understanding of market trends. He is often cited as an inspiration by those who speculate on the financial markets.

Steven Cohen: Cohen is the founder of Point72 Asset Management and SAC. Capital Advisors. A notable figure in the world of hedge funds, Cohen’s trading style has been influential and controversial.

Bill Ackman is an American billionaire hedge fund manager and activist investor, the founder and CEO of Pershing Square Capital Management. According to Ackman, his most profitable investments have always been controversial, and his first tenet of activist investing is to “make a bold call that nobody believes in.”

Lloyd Blankfein: Blankfein is a former CEO and Chairman of Goldman Sachs. Under his leadership, Goldman Sachs navigated the 2008 financial crisis and emerged as one of the world’s most prominent investment banks.

Leon Black: Black is the co-founder of Apollo Global Management, one of the world’s largest alternative investment firms. Although his reputation has recently been tarnished by controversy, his impact on the private equity landscape is undeniable.

Joseph Safra: Born in Lebanon and of Syrian Jewish descent, Safra built a global banking empire. Before his death in 2020, he was the world’s richest banker. His family continues to control the Safra Group, with its significant holdings in banking and real estate.

David Einhorn: Einhorn is an American investor, hedge fund manager, and philanthropist. He is the founder and president of Greenlight Capital, a long-short value-oriented hedge fund.

David Tepper: Tepper founded Appaloosa Management, a global hedge fund based in Miami Beach, Florida. Forbes consistently ranked him among the top-earning hedge fund managers.

Benjamin Graham: Known as the “father of value investing,” Graham profoundly influenced the world of finance through his teachings at Columbia Business School and his landmark books, including “Security Analysis” and “The Intelligent Investor.”

The Entrepreneurial Spirits

Moreover, it’s not just the world of traditional finance where Jewish businessmen have made a mark. They have significantly influenced the burgeoning field of fintech. Business leaders like Renaud Laplanche, co-founder and former CEO of Lending Club, and Stephen Cohen, founder of Point72 Asset Management, have fostered innovation in their fields and revolutionized the lending industry, opening new pathways for financial transactions beyond the traditional banking system.

These individuals represent a wide range of contributions to the financial sector and demonstrate Jewish businesspeople’s lasting influence over centuries.

A Legacy of Resilience and Innovation

The legacy of Jewish business leaders is a testament to resilience, determination, and innovative thinking. Their stories resonate across generations, illustrating a narrative of success forged in the face of adversity. It’s a legacy that continues to reverberate throughout the halls of financial institutions and one that will undoubtedly shape the financial industry’s future.

The Venture Capital World

In venture capital, Jewish business leaders have helped shape the landscape of start-ups and innovative technologies. Consider the influence of Sequoia Capital’s Michael Moritz, who led investments in companies like Google and Yahoo, or Ben Horowitz, who co-founded Andreessen Horowitz and helped usher in a new era of internet companies. They and others have played a significant role in guiding and funding the tech industry.

Media and Beyond

Jewish businessmen have made substantial inroads outside of finance, notably in the media sector. Sumner Redstone, who built the media empire now known as ViacomCBS, and Michael Bloomberg, founder of Bloomberg L.P. and former mayor of New York City, have made lasting impacts. Bloomberg’s eponymous company has revolutionized the way financial data is communicated, and his term as mayor attests to the intersection of business acumen and public service.

Shaping Economic Theory

Jewish influence also extends into economic academia. Economists like Milton Friedman, Paul Krugman, and Robert Solow have significantly shaped modern economic theory. Their work has influenced everything from fiscal policy to economic development, demonstrating that the Jewish community’s contributions to the financial world go well beyond business and into the realm of ideas.

From the Ground Up: Building Today’s Tech Titans

A notable group of Jewish business leaders have played a pivotal role in the tech industry, a sector now intertwined with finance. Mark Zuckerberg, founder and CEO of Facebook, is one of the most well-known Jewish figures in tech. His creation has reshaped how we communicate, share information, and understand finance with initiatives like the Libra project.

Larry Page and Sergey Brin, the co-founders of Google, have revolutionized how we search for and consume information and made significant strides in machine learning and AI. These technologies are now integral to modern finance.

Redefining Real Estate

In the real estate world, Jewish businessmen have long been significant players. The name of Adam Neumann, co-founder of WeWork. Despite the company’s challenges, Neumann’s focus on creating environmentally friendly co-working spaces has pushed the conversation on corporate sustainability forward.

Billionaires such as Mortimer Zuckerman, Stephen Ross of Related Companies, Sam Zell, Richard LeFrak, Aby Rosen, and Joseph Sitt‘s skyscrapers have shaped New York City skylines and property investment and development mechanics.

FinTech Pioneers

In the realm of financial technology, Jewish business leaders have been at the forefront of some groundbreaking innovations. Take PayPal co-founder Max Levchin or Payoneer founder Yuval Tal, for example. Their contributions have not only made financial transactions more accessible and straightforward but have also revolutionized how we conceptualize banking and finance in the digital age.

The Future of Finance

As we enter an era marked by technological disruption, Jewish business leaders continue to be at the forefront of change.

The endeavors extend the legacy of Jewish influence in finance, affirming that even in an era of algorithmic trading and AI-driven decision-making, the vision and leadership of individuals remain indispensable.

Jewish business leaders continue to be at the cutting edge of industry, technology, and social enterprise. Their unique blend of innovative thinking, resilience, and a strong sense of social responsibility will undoubtedly continue to shape our collective future.

The Jewish influence on global business is a rich tapestry woven from stories of determination, innovation, and an unwavering commitment to ‘tikkun olam.’ These leaders’ footsteps echo through the halls of global finance, the buzzing startup scene of Tel Aviv, the transformative world of tech, and beyond.