Banking on Luxembourg. (banking industry)(includes related article on the European Investment Bank)

Europe | September 1, 1997| | Copyright

It's only about the size of Rhode Island and has fewer citizens than Chattanooga, but don't let that fool you: Luxembourg is up there with the global heavyweights when it comes to money management. The capital city ranks as the world's sixth-largest financial center and looks it. Its ancient battlements and fortifications suggest it might have been guarding money for centuries.

That's an illusion. Investment banking did not begin on any scale in Luxembourg until the 1960s, when the country seized an impressive share of the European currency markets and then went from ...

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