J.P. Morgan: The Man Who Owned all America final part
Those days the relationship between banks and the government was a hot topic.
At the next election, the relationship between big Banks and the
government was a hot topic for the Democrats. But John and his Banker friends
donated heavily to the Republican nominee who won the election instead. So for
now John kept his close ties to the government. But this was not the only time
that John was instrumental in stabilizing. The American economy in 1907, the
country was facing another deep. Earning financial crisis which led to several
Banks being on the verge of bankruptcy leading to hordes of people.
Queuing up around the block to withdraw their money from their bank
accounts. The government reportedly had to tell bank tellers to deliberately
count. The money was slower to try and reduce the rate cash was being withdrawn
because if everyone pulled their money out, at the same time, it could be
catastrophic by this point. Roosevelt was the president and as we already know,
he certainly did not see eye-to-eye with John on most things, but the crisis of
1907 was so dire that they both agreed. It would be in America's best interest
if the big business worked together to save the country from falling into a depression.
So, Roosevelt called on JPMorgan to salvage the situation.
Once again, John's strategy was to spend a lot of money where it was
needed. Most he summoned dozens of the leading finances and leaders of the nation's
biggest banks and trusts to join him in his private library on Madison Avenue.
And at decide on the best course of action. John's plan was essential for
them to invest in their smaller competitors. John concluded that although some
banks would inevitably fail, others could still be saved. So he and his
associates deposited. A giant sum of money in several banks so that they
would be able to pay their depositors and avoid declaring bankruptcy.
After revealing his plan John then lock the door while the bankers
negotiated among themselves literally locking them in until they agreed on a
resolution by the morning. Everyone had agreed with John's plan and it with
Roosevelt's approval. The US Treasury also contributed. 25 million showing the
level of trust and respect. The president had four John's business sense.
What's remarkable is that John was 17 years old at this point and negotiated
all of this was having a terrible cold. Meaning he was constantly coughing and
sneezing while saving the US economy, but his plan ultimately worked. Lots of
capital was injected back into the economy.
Public confidence was restored in America's banking system, and yet
another economic disaster was averted. Thanks to John's wheelings and
dealings. But whilst he was once again, briefly labeled as a hero, almost
immediately people began to realize just how dependent they had become on one
single man, something needed to change.
JP Morgan legacy.
John was facing increased scrutiny. The age of the robber baron who
could conduct his business unchecked and unimpeded was slowly coming to an end
as the American public was growing increasingly. Wary of a handful of
businessmen wielding, so much power and influence. John was summoned to testify
before the puja committee that wanted to investigate the true reach of wall
Street's money trust and its role in the American economy. John was front and
center during the puja committee hearings and he became the face of Wall Street
power, despite his financial success, John's mental state was deteriorating,
he had multiple Apple nervous breakdowns and he struggled to deal
with the Public's - betrayal of him in the media. Ironically he was actually
due to board the Titanic for its maiden voyage but due to health issues pulled
out at the last moment. Meanwhile, the puja committee paved the way for the
establishment of the Federal Reserve since it was clear, they couldn't just
rely on a handful of ultra-rich and Powerful individuals to step in and fix the
economy. But John would never see the repercussions of this investigation.
Because month later on March, 31st 1913 the 75-year-old financier died while on
vacation in
After his death, John's son took over the business and continued its
expansion. In fact, even in the present day, there are still concerns. The bank is
too powerful, it's undergone countless Acquisitions and mergers over the year.
Something John himself would have been proud of like merging with the bank. One bear
Stearns and most notably of all in the year 2000. The murder with Chase Bank created JPMorgan Chase with an estimated three trillion dollars in assets.
After 200 years of consolidation in the banking industry, JPMorgan Chase is the
biggest bank in the world by market capitalization. The end
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