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Book: The House of Morgan: An American Banking Dynasty and the Rise of Modern Finance
Quotes of Book: The House of Morgan: An
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  1. Ron Chernow _ The House of Morgan: An

    After all, the devil's work was now sprinkled with holy water.
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  2. Ron Chernow _ The House of Morgan: An

    The remedy is for people to stop watching the ticker, listening to the radio, drinking bootleg gin, and dancing to jazz . . . and return to the old economics and prosperity based upon saving and working.
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  3. Ron Chernow _ The House of Morgan: An

    Whitney brought in his friends Edwin Webster, Chandler Hovey, and Albert H. Gordon to take over the company's name and goodwill.
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  4. Ron Chernow _ The House of Morgan: An

    As a lender of last resort, the House of Morgan favored like-minded institutions of similar character and background. Kidder, Peabody was just such a firm. It didn't hustle business or steal clients and always played by Morgan rules. In 1930, it was hit by multiple blows. The Italian government removed $8 million in deposits, and the new Bank for International Settlements instructed Kidder to switch big sums to a Swiss bank. This led to another rescue at Jack Morgan's home, chaired by George Whitney, who had started his career as a Kidder clerk. The House of Morgan arranged a $10-million line of credit. Under Whitney's tutelage, the old Kidder, Peabody was folded.
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  5. Ron Chernow _ The House of Morgan: An

    Back at 23 Wall Street, Lamont received a wire from Jack Morgan expressing disgust with Mexico. Jack thought it a point of family honor to make sure Mexico repaid his father's 1899 loan: "I did not think any Government of modern times would so frankly proclaim its complete dishonesty or its abandonment of all decent finance or morals. Hope you did not have too trying a time, and congratulate you in getting out before they stole your pocketbook or watch.
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  6. Ron Chernow _ The House of Morgan: An

    These same banks, ironically, would shortly be hauled before the Pujo Committee as the abominable Money Trust. What the public wouldn't know was that the Money Trust had been forged, in part, by Washington itself in its quest for foreign influence.
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  7. Ron Chernow _ The House of Morgan: An

    Their strategy was to make clients feel accepted into a private club, as if a Morgan account were a membership card to the aristocracy.
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  8. Ron Chernow _ The House of Morgan: An

    The panic was blamed on many factors-tight money, Roosevelt's Gridiron Club speech attacking the "malefactors of great wealth," and excessive speculation in copper, mining, and railroad stocks. The immediate weakness arose from the recklessness of the trust companies. In the early 1900s, national and most state-chartered banks couldn't take trust accounts {wills, estates, and so on} but directed customers to trusts. Traditionally, these had been synonymous with safe investment. By 1907, however, they had exploited enough legal loopholes to become highly speculative. To draw money for risky ventures, they paid exorbitant interest rates, and trust executives operated like stock market plungers. They loaned out so much against stocks and bonds that by October 1907 as much as half the bank loans in New York were backed by securities as collateral-an extremely shaky base for the system. The trusts also didn't keep the high cash reserves of commercial banks and were vulnerable to sudden runs.
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