Seemly Success

Within the black granite walls of the Stockholms Enskilda Bank is a coat of arms that bears a sober motto, borrowed from Aeschylus: Esse non Videri -- to be, not to seem. In line with this injunction, the family that runs the bank has become the most powerful and wealthiest in Sweden, without seeming to be the fiscal princes they are.

The Wallenbergs either control outright--or persuasively advise--no fewer than 50 Swedish companies, or more than half of Sweden's industry. Directly under Wallenberg management are most of Sweden's international companies, including plane-and automaking SAAB, the $275 million telephone equipment manufacturer L. M. Ericsson, the $500 million ballbearing producer SKF, and Stora Kopparberg, a diversified mining and mineral complex (TIME, March 15). The family also guides Stockholm's largest department store and the company that runs the city's three most luxurious restaurants. In no other industrialized nation in the world does one family exert such enormous economic power.

Sweden for Swedes. The Wallenberg who started it all was Andre, who visited the U.S. and Scotland as a young naval lieutenant, became fascinated by banking and founded Stockholm's first commercial bank in 1856. His Enskilda Bank became the chief funnel through which foreign capital entered Sweden, and Andre and the succeeding Wallenbergs directed the flow of foreign funds to finance Swedish industrialization.

The Wallenberg empire is run today by the most successful brother act in

European finance. Jacob, 70, a reticent bachelor, stays in Stockholm to mind the home office, while robust and gregarious Marcus, 63, jets around the world to check on Wallenberg projects and find new investment opportunities. Though they hold the chairmanship of 27 companies, the brothers prefer to own no more than 5% or 10% of any company. They really do not need more, for most Swedish companies are only too ready to submit to Wallenberg management; they know that it means expert guidance and money for expansion. Says Marcus coolly: "It so happens that the companies we have been concerned with have been successful." The Wallenbergs also make a point of Swedish business for Swedes; two months ago, they set up a holding company called Incentive to keep small, family-held Swedish firms from being bought up by foreign bidders.

Yachts & Tennis. Despite their great wealth, both brothers live unostentatiously. Jacob drives himself to his office in a middle-class Opel; Marcus has a Buick and usually does the driving--but he has a chauffeur to answer the car's radiotelephone. An expert yachtsman, Jacob skippered his 59.4-ft. yawl Refanut to victory in last year's 350-mile Baltic race. Marcus was Sweden's tennis champion in the 1920s and is still an expert player; he also excels at pingpong.

Neither brother ever misses an opportunity to downplay himself. Says Jacob, who is chairman of 13 companies: "The only reason I'm on so many boards is that I've been around so long." Marcus is even more self-effacing: "I am nothing," he says, "but a hyphen between generations." In one sense, he is right. His son Marc, 38, has already taken over the presidency of the Enskilda Bank, and is being groomed to be the next head of the clan.

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