The Legacy of JP Morgan

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In 1871, the banking house of Drexel, Morgan & Co. was established by John Pierpont Morgan. "Twenty four years later it was renamed J.P. Morgan & Co., which it was to remain until the firm's purchase by Chase Manhattan in 2000. (Hughes 23) At this point, Chase Manhattan was the largest banking company in the United States. This was a far cry from the 1980's when Morgan "boasted the largest market capitalization of any American bank and was more expensive to buy than Citicorp. (Hughes 11)" While J.P. Morgan could not imagine the path banking would take in the U.S. with his passing in 1913; his banking house would have a strong hold on American banking for much of the 20th century. The introduction of bank holding companies and certain laws placing restrictions on American banking such as the Glass Steagall Act of 1934 brought about many changes in American banking and allowed for the emergence of international banks to supplant the "House of Morgan" in the new era. It is no question though, that "John Pierpont Morgan was one of the most influential figures in the rise of U.S. banking,"(Hughes 23) and the early survival of the U.S. economy. J.P. Morgan was born in 1837, and similar to many of his peer contemporaries, he was born into a family rich in legacy. Both the Pierpont and the Morgan family had notable ancestry dating back to early British colonization in North America. Importantly, Pierpont's father, Junius Spencer, commonly referred to as the senior Morgan until his death late in 1890, was well established on both sides of the Atlantic. Spending much of his elder years abroad, Junius was the primary figure throughout Pierpont's life. For every matter, business, political, or private, Junius counseled Pierpont wit... ... middle of paper ... ...West, 2001 Strouse, Morgan. American Financier. New York: Perennial Publishers, 2000 Hughes, Jane. International Banking. Boston: Addison Wesley, 2002 Remini, Robert. Andrew Jackson and the bank war; a study in the growth of presidential power. New York: Norton, 1967 Carosso, Vincent. The Morgans : private international bankers. Cambridge, Mass: Harvard University Press, 1987. Cashman, Sean. America in the Gilded Age : from the death of Lincoln to the rise of Theodore Roosevelt. New York : New York University Press, 1984. Eccles, George. The Politics of Banking. Salt Lake City : University of Utah Press, 1982 Livingston, James. Origins of the Federal Reserve System : money, class, and corporate capitalism. Ithaca, N.Y: Cornell University Press, 1986

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