Peruzzi

Peruzzi, leading family of medieval Italian financiers whose bankruptcy in the 14th century contributed to the economic depression of the late Middle Ages.

An old Florentine family belonging to the “popular” (democratic) party, the Peruzzi contributed 10 gonfaloniers (chief executives) and 54 priors (members of the governing body) to the republic. Coming to prominence as bankers c. 1275, the Peruzzi soon had branches in most of the important centres of Europe and were second in importance only to the Bardi company. The Florentine chronicler Giovanni Villani was a Peruzzi partner. At the beginning of the Hundred Years’ War between England and France, they were especially active in Naples, Paris, and London. Beginning in the 1330s, the Peruzzi made large loans to Edward III of England, first in concert with the Bardi company, later by themselves, financing his wars in Scotland and France in return for grants of wool, money, and assignment of customs and taxes. Loans in 1338–39 for the mounting expenses of Edward’s wars exhausted both Peruzzi and Bardi resources. From 1342 to 1345 members of both companies were arrested for bankruptcy and released only on renunciation of all claims to interest, and the English crown canceled massive debts to the Peruzzi. At the same time, the king of Naples defaulted on his debts to the two companies, and the king of France exiled them and confiscated their goods.

The disasters abroad brought on panic at home, resulting in 1342 in a movement by the Bardi and Peruzzi and other great banking companies to set up Walter of Brienne, duke of Athens, as ruler of Florence, hoping to control his foreign and financial policies to save their firms from bankruptcy. In 1343, disappointed in their hopes, the bankers ousted the soldier of fortune. When a revolution put the popolo minuto (lesser guilds and merchants) in power, the Peruzzi company’s bankruptcy followed, heralding a great economic crisis.