The saga of the economical crises continues and the Rijksmuseum might very well be one of the victims as the JP Morgan Chase Bank claims a 17th century oil painting which was only recently purchased by the museum.

The Rijksmuseum proudly announced in October of last year that they managed to purchase a magnificent painting by Gerrit Adriaensz Berkckheyde. The painting, showing urban development in Amsterdam, was purchased from a private collector whom wished to stay anonymous.

De bocht van de Herengracht (The Bend in the Herengracht)
Gerrit Adriaensz Berckheyde's (1638-1698)
Rijksmuseum Amsterdam

The acquisition of the painting was of great importance, not only for the Netherlands, but particularly for the city of Amsterdam. Not only from a historical perspective but also because the Amsterdam channels were at the same time being nominated for the UNESCO World Heritage List

In October when the proud owners announced their new possession, no mention was made of the purchase price or of the owner. At this very moment the painting is being exhibited at the National Gallery of Art in Washington. Before that the public could view it at the Mauritshuis in the Hague. Interestingly enough is was the exhibition catalogue at the time it was exhibited in The Hague, that stated that the owner of the painting was Louis J. K. J. Reijtenbagh.

Reijtenbagh, a former general practitioner, was in 2008 a highly successful investor and was considered as one of the wealthiest inhabitants of the Low Countries. His assets were worth an estimated 590 million euro amd he owned residences in Belgium, Monaco and New York.

At the time the purchase was being negotiated and finalised, the Rijksmuseum most probably was not aware of the fact that Reijtenbagh was in no position to actual sell the painting. Together with a Picasso, Monet, Modigliani and a small self-portrait of Rembrant, the paintings formed collateral for a loan Reijtenbagh had arranged for at the JPMorgan Chase in 2006.

At the time the collection was valued and insured for US$ 60 million and formed the décor of Reijtenbagh apartment in the Trump Towers in New York. The valuation secured a credit of US$ 50 million. The only restriction JPMorgan Chase had demanded is that the paintings would remain in the New York apartment. Under no circumstances were the paintings permitted to leave the country or be offered for sale. This all came to light when  JPMorgan Chase issued a claim at the New York Court of Justice on 1 April of this year.

The case is that Louis J. K. J. Reijtenbagh was so far behind with his instalments that JPMorgan Chase has issued a claim on the whole collection. The collection however no longer resides in Reijtenbagh's New York apartment and apart from the Berkckheyde painting, none of the works have been located.

The Berkckheyde painting being on the road and the extensive publicity campaign surrounding the masterpiece, made life very easy for JPMorgan Chase to trace their collateral. The painting, with an insured value of US$ 4 million, is now subject to JPMorgan Chase financial claim, as was confirmed by the Rijksmuseum.

As the purchase of the painting was funded by third parties, and not so much the Rijksmuseum it self, they have all been informed accordingly. One of the most important financial contributors was Shell. They donated € 1.5 million which was personally sanctioned the Shell’s CEO Mr. Jeroen van der Veer. The ‘Stichting National Fonds Kunstbezit’, a foundation that coordinates the funding of acquisitions for Dutch museums and managed of Shell donation, is convinced that the Rijksmuseum’s pride will return to Amsterdam. They have no fear that the lawyers of JPMorgan Chase will confiscate the painting. The managing director of the foundation states that there is sales and loan agreement, which can not just be disregarded.

Source : Volkskrant