“A man always has two reasons for doing anything: a good reason and the real reason.” J.P. Morgan
Who was J.P. Morgan?
John Pierpont Morgan Sr. (1837 – 1913) was an American financier and banker who dominated corporate finance and industrial consolidation in late 19th and early 20th Century United States.
Career at J.P. Morgan & Company
After the death of Anthony Drexel, the firm was rechristened “J. P. Morgan & Company” in 1895, retaining close ties with Drexel & Company of Philadelphia; Morgan, Harjes & Company of Paris; and J.S. Morgan & Company (after 1910 Morgan, Grenfell & Company) of London. By 1900, it was one of the most powerful banking houses of the world, focused especially on reorganizations and consolidations.
Morgan had many partners over the years, such as George W. Perkins, but always remained firmly in charge. His process of taking over troubled businesses to reorganize them became known as “Morganization”. Morgan reorganized business structures and management in order to return them to profitability. His reputation as a banker and financier also helped bring interest from investors to the businesses that he took over.
Panic of 1907
The Panic of 1907 was a financial crisis that almost crippled the American economy. Major New York banks were on the verge of bankruptcy and there was no mechanism to rescue them, until Morgan stepped in to help resolve the crisis. Morgan organized a team of bank and trust executives which redirected money between banks, secured further international lines of credit, and bought up the plummeting stocks of healthy corporations.
Text : Wikipedia contributors. “J. P. Morgan.” Wikipedia, The Free Encyclopedia. Wikipedia, The Free Encyclopedia, 3 Aug. 2017. Web.