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Ludwig Bamberger was born in Mainz and after studying at Geissen, Heidelberg and Gottingen, became a lawyer. During the 1848 revolution Bamberger was a leader of the Republican party in Mainz and in 1849 he continued to campaign in the Palatinate and Baden, for which he was condemned to death, despite escaping to Switzerland.
Bamberger's exile was spent in London, the Netherlands and Paris, where he became managing director of Bischoffheim and Goldschmidt bank. He returned to Germany in 1866 following an amnesty. He was elected to the Reichstag and joined the National Liberal Party, supporting the work of Bismark. He became a leading authority on finance and economics in the Reichstag, attending the Versailles peace negotiations in 1870. Bamberger was also influential in the establishment of the German Imperial Bank. He retired from public life in 1892.