USA HISTORY

Detailed explanation-1: -In addition to consolidating and controlling several railroads and industries, J.P. Morgan led in resupplying the U.S. Treasury’s gold reserve during the depression that followed the panic of 1893 and organized the financial community in averting a financial collapse after the market panic of 1907.

Detailed explanation-2: -J.P. Morgan acquired investment bank Bear Stearns and the retail banking assets of Washington Mutual during the tumult of the crisis. Those takeovers later lead to billions of dollars in litigation costs tied to mortgages, and Dimon has said that in hindsight he wouldn’t have done the Bear Stearns deal for that reason.

Detailed explanation-3: -IN 1907, J.P. MORGAN AND OTHER WALL STREET BANKERS RESCUED BANKS, THE STOCK MARKET, AND NEW YORK CITY FROM FINANCIAL RUIN. IN 1913, CONGRESS PASSED THE FEDERAL RESERVE ACT, WHICH PUT THE GOVERN-MENT IN CHARGE OF MANAGING FUTURE FINANCIAL CRISES. J.P. MORGAN (1837–1913), left, walks with his son, John Jr., in 1912.

Detailed explanation-4: -Morgan purchased $30 million in city bonds, discreetly averting bankruptcy for the city. Moore & Schley, a major brokerage, nears collapse because its loans were backed by the Tennessee Coal, Iron & Railroad Company (TC&I), a stock whose value is uncertain.