From J.P. Morgan to the Institutional Investor: A Financial History of the United States 1900-1970

This book provides a comprehensive history of finance in America, from the early 20th century to the Great Depression and World War II. It covers the investment bankers, the Panic of 1907, the Federal Reserve Board, the stock market crash of 1929, and the growth of institutional investors.

Format: Hardback
Length: 412 pages
Publication date: 06 June 2022
Publisher: Taylor & Francis Ltd

Originally published in 2002, this is the second of three volumes in a comprehensive history of finance in America. Spanning from the early 20th century, when investment bankers held paramount influence, to the tumultuous events of the 1907 Panic and the establishment of the Federal Reserve Board (the Fed), this volume offers a detailed account of the evolution of finance. It delves into the aftermath of the Panic, encompassing World War I and its profound impact on the stock market crash of 1929 and the ensuing Great Depression. Subsequently, it explores the resurgence of finance after World War II, marked by the growth of institutional investors.

The first chapter delves into the era of investment bankers, who played a pivotal role in shaping the financial landscape of the early 20th century. These influential individuals, often referred to as "J.P. Morgan's boys," dominated the industry and exerted significant influence over economic policies. Their strategies and practices, such as the creation of investment trusts and the use of high-risk investments, had a profound impact on the stock market and the broader economy.

The second chapter explores the 1907 Panic, a financial crisis that shook the United States to its core. The Panic was triggered by a series of events, including the collapse of the Credit Anstalt in Austria, which led to a loss of confidence in the stability of the banking system. This crisis resulted in a sharp decline in stock prices, a rise in unemployment, and a loss of consumer spending. The Federal Reserve Board was established in response to the Panic, with the primary objective of stabilizing the banking system and promoting economic growth.

The third chapter traces the evolution of finance through World War I. The war brought about significant changes in the global economy, including the rise of new financial centers in Europe and the United States. The war also led to the implementation of various financial policies, such as the Federal Reserve Act of 1913, which established the Federal Reserve System and gave it the authority authority to regulate the banking system and promote economic stability.

The fourth chapter examines the events that led to the stock market crash of 1929 and the Great Depression. The crash was triggered by a combination of factors, including overconfidence in the stock market, excessive speculation, and a lack of regulatory oversight. The crash led to a significant loss of wealth and a decline in consumer spending, which contributed to the depth and duration of the Great Depression.

The fifth chapter reviews the rebirth of finance after World War II. The war brought about significant changes in the global economy, including the rise of new financial centers in Europe and the United States and the implementation of various economic policies, such as the Marshall Plan and the Bretton Woods System. The post-war era also saw the growth of institutional investors, such as pension funds and insurance companies, which played a critical role in shaping the financial landscape of the 20th century.

In conclusion, this volume offers a comprehensive and insightful history of finance in America, from the early 20th century to the present day. It provides a detailed account of the events that shaped the financial landscape, including the rise century, the establishment of the Federal Reserve Board, the 1907 Panic, World War I, the stock market crash of 1929, and the Great Depression. The volume also explores the resurgence, the growth of institutional investors, and the resurgence of finance after World War II. This comprehensive history is essential for anyone interested in understanding the evolution of finance and its impact on the American economy.

Weight: 960g
Dimension: 246 x 174 (mm)
ISBN-13: 9781032161105