The banking industry is surrounded by so many conspiracies that sometimes it's quite difficult to separate the facts from fiction. Starting from Earth's child's banking dynasty to JP Morgan if the Rothschilds banking empire has shrunk dramatically in recent decades JP Morgan's banking empire only expanded to the point as of 2019. It has three trillion dollars in assets under management while its investment and corporate arm holds 25.5 trillion dollars in assets under custody. It was JP Morgan himself who pushed the government to create the Federal Reserve the center of all modern conspiracies for over a hundred years. JP Morgan has been in the center of American banking.
It all started in 1837 in Hartford Connecticut where John Pierpont Morgan was born. John joined the banking industry just when he hit 20 after coming back from Europe in 1857 following his father's footsteps his father eks Morgan had already established the merchant banking Peabody Morgan & Co back then the United States wasn't a superpower if it's today it was more like an emerging market so their opinions were investing heavily in the United States since returns were quite high especially in the railroad. It was like the Internet of that time everyone thought that the railroads are the future and no one dared to miss this opportunity but Morgan was smart enough not to invest his own money because he knew that it was turning into a bubble and everything would crash at any moment as we will know later. However that didn't stop him from funneling European investments through American companies into the railroad he even got personally involved in the development and the management of the railroads across the nation. Morgan was a big believer in big corporations because they enable economies scaled and make them world competitive so his vision was to always merge multiple small businesses and turn them into a conglomerate in 1890 he took control of j/s Morgan and Cole. His vision was to bite the Connealy steel business and merge it with several other steel coal mining and shipping firms and formed the United States Steel Corporation. It became the first billion-dollar company in the world with a market cap of 1.4 billion dollars with economies of scale they reduced their cost and started competing globally against Europeans. His influence was beyond steel and railroad although that there were the two biggest industries of that time he also played an important role and helped to merge Edison Electric with its competitors that ended up becoming General Electric his vision was always the bigger the company the bigger economies of scale it can achieve he also helped to create AT&T multiple other companies. It seems like it was P Morgan who rooted the idea of the giant corporations in the United States but that's exactly what made JP Morgan one of the most powerful banking houses of the world by 1900.
Oregon reorganized the businesses structures and management to return them to profitability his reputation as a banker also helped him bring investors on board to the businesses that he took over however not everything was sunshine and rainbows remember the crisis I told you about in the beginning well after multiple decades of the dramatic growth the bubble finally burst. In the stock market crashed like it always does a tripped American economy even the major banks were on the verge of bankruptcy the bank's tried to get their loans back but the first simply weren't able to pay and the United States didn't have the central bank at that time to rescue them so Morgan stepped in and saved the economy he pledged a large sum of his own money and convinced other major New York bankers to do the same if it wasn't for him the crisis would have deepened but it Illustrated the vast influence of a single banker on the entire American economy. That was a clear sign for the government to step in and take over the money supply. What would happen if another crisis would hit the lying on rich guys in New York isn't always the best of the options that's when u.s. decided to create central bank and in 1913 the Federal Reserve was born. Just a few months after JP Morgan passed away but that didn't stop JP Morgan Company from growing even bigger it played an important role in the world war I, however when the world came to an end financial crisis hit the world again the Great Depression lasted almost ten years and the Congress took any measures to save the economy and part of it was to pass the banking act of 1953 that separated commercial banks from investment banks that forced JP Morgan & Company to break up however for JP Morgan to become as big and powerful as it's today. It had to merge with multiple other banks throughout the century the most notable of them is probably Chase Manhattan Bank that was already a merger of two other big banks chase National Bank and Bank of the Manhattan company that was founded back in 1799. One of the oldest financial institutions in the history of the United States another Bank that also created a fierce competition was Chemical Bank Corporation the name sounds quite unusual for a bank it was initially a chemical manufacturing company back when he was founded in 1823 however just a year after that it got into the banking sector after more than a century in the 1980s and 90s. It was the front of the industry remember Chase Manhattan Bank despite its successes it was extremely weakened by a real estate collapse so it merged with Chemical Bank in 1996 and became the biggest bank in the entire nation the marriage of the biggest banks in America didn't stop there the competition was fierce and Chase Manhattan Bank had to find ways to compete with Goldman Sachs and Morgan Stanley. So in December of 2000 the two giant financial institutions merged Chase Manhattan and JP Morgan to become the largest bank in America JP Morgan Chase & Co.
Also check: Zomato story of success
It might seem like that would be the end of mergers than these banks would finally stop expanding however that wasn't the case in 2004 JP Morgan purchased chicago-based bank One corporation for fifty eight billion dollars in stocks bringing on board Jamie Dimon who would end up becoming the CEO and take the company towards now despite the fact that JP Morgan was powerful enough to save the nation from the panic in 1907 the bank in its current structure is the result of combination of several large US banks back in 1907. The war was helped by another crisis in 2008 the stock market crashed again but this time the crisis was much bigger. Companies went bankrupt one after another including conglomerates against Lehman Brothers the fifth largest bank in the United States beer students lost almost half of its value and was on the verge of bankruptcy unlike 1907 this time there was a central bank to save the economy and JPMorgan Chase took for the van to prevent the collapse of such giant bank the government rescued pierced ears by lending 29 billion dollars to JPMorgan Chase to buy the firm they tried to purchase the bank for around 230 million dollars valuing each share at only $2. When it was valued above a hundred bucks just before the crisis but it didn't work out so they ended up paying $10 a share and JPMorgan came out of the crisis only bigger and stronger JPMorgan isn't without controversies there were involved in multiple scandals they paid over two billion dollars in fines and legal settlements for their role in financing and on corporate fraudulent securities in fact they also ended up paying another 2.2 billion dollars to settle a lawsuit filed by Enron investors the number of controversies and lost use that it went through is beyond what we can possibly cover in this video the JPMorgan Chase is probably exactly how JP Morgan himself envisioned the company he was a big supporter of mergers and the company consistently merged or purchased other banks to be where they are today and now it's your turn what do you think should the bank's be allowed to keep merging and get bigger or the government should intervene and stop
How JP Morgan Invests
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| jp morgan chase & co |
It all started in 1837 in Hartford Connecticut where John Pierpont Morgan was born. John joined the banking industry just when he hit 20 after coming back from Europe in 1857 following his father's footsteps his father eks Morgan had already established the merchant banking Peabody Morgan & Co back then the United States wasn't a superpower if it's today it was more like an emerging market so their opinions were investing heavily in the United States since returns were quite high especially in the railroad. It was like the Internet of that time everyone thought that the railroads are the future and no one dared to miss this opportunity but Morgan was smart enough not to invest his own money because he knew that it was turning into a bubble and everything would crash at any moment as we will know later. However that didn't stop him from funneling European investments through American companies into the railroad he even got personally involved in the development and the management of the railroads across the nation. Morgan was a big believer in big corporations because they enable economies scaled and make them world competitive so his vision was to always merge multiple small businesses and turn them into a conglomerate in 1890 he took control of j/s Morgan and Cole. His vision was to bite the Connealy steel business and merge it with several other steel coal mining and shipping firms and formed the United States Steel Corporation. It became the first billion-dollar company in the world with a market cap of 1.4 billion dollars with economies of scale they reduced their cost and started competing globally against Europeans. His influence was beyond steel and railroad although that there were the two biggest industries of that time he also played an important role and helped to merge Edison Electric with its competitors that ended up becoming General Electric his vision was always the bigger the company the bigger economies of scale it can achieve he also helped to create AT&T multiple other companies. It seems like it was P Morgan who rooted the idea of the giant corporations in the United States but that's exactly what made JP Morgan one of the most powerful banking houses of the world by 1900.
Oregon reorganized the businesses structures and management to return them to profitability his reputation as a banker also helped him bring investors on board to the businesses that he took over however not everything was sunshine and rainbows remember the crisis I told you about in the beginning well after multiple decades of the dramatic growth the bubble finally burst. In the stock market crashed like it always does a tripped American economy even the major banks were on the verge of bankruptcy the bank's tried to get their loans back but the first simply weren't able to pay and the United States didn't have the central bank at that time to rescue them so Morgan stepped in and saved the economy he pledged a large sum of his own money and convinced other major New York bankers to do the same if it wasn't for him the crisis would have deepened but it Illustrated the vast influence of a single banker on the entire American economy. That was a clear sign for the government to step in and take over the money supply. What would happen if another crisis would hit the lying on rich guys in New York isn't always the best of the options that's when u.s. decided to create central bank and in 1913 the Federal Reserve was born. Just a few months after JP Morgan passed away but that didn't stop JP Morgan Company from growing even bigger it played an important role in the world war I, however when the world came to an end financial crisis hit the world again the Great Depression lasted almost ten years and the Congress took any measures to save the economy and part of it was to pass the banking act of 1953 that separated commercial banks from investment banks that forced JP Morgan & Company to break up however for JP Morgan to become as big and powerful as it's today. It had to merge with multiple other banks throughout the century the most notable of them is probably Chase Manhattan Bank that was already a merger of two other big banks chase National Bank and Bank of the Manhattan company that was founded back in 1799. One of the oldest financial institutions in the history of the United States another Bank that also created a fierce competition was Chemical Bank Corporation the name sounds quite unusual for a bank it was initially a chemical manufacturing company back when he was founded in 1823 however just a year after that it got into the banking sector after more than a century in the 1980s and 90s. It was the front of the industry remember Chase Manhattan Bank despite its successes it was extremely weakened by a real estate collapse so it merged with Chemical Bank in 1996 and became the biggest bank in the entire nation the marriage of the biggest banks in America didn't stop there the competition was fierce and Chase Manhattan Bank had to find ways to compete with Goldman Sachs and Morgan Stanley. So in December of 2000 the two giant financial institutions merged Chase Manhattan and JP Morgan to become the largest bank in America JP Morgan Chase & Co.
Also check: Zomato story of success
It might seem like that would be the end of mergers than these banks would finally stop expanding however that wasn't the case in 2004 JP Morgan purchased chicago-based bank One corporation for fifty eight billion dollars in stocks bringing on board Jamie Dimon who would end up becoming the CEO and take the company towards now despite the fact that JP Morgan was powerful enough to save the nation from the panic in 1907 the bank in its current structure is the result of combination of several large US banks back in 1907. The war was helped by another crisis in 2008 the stock market crashed again but this time the crisis was much bigger. Companies went bankrupt one after another including conglomerates against Lehman Brothers the fifth largest bank in the United States beer students lost almost half of its value and was on the verge of bankruptcy unlike 1907 this time there was a central bank to save the economy and JPMorgan Chase took for the van to prevent the collapse of such giant bank the government rescued pierced ears by lending 29 billion dollars to JPMorgan Chase to buy the firm they tried to purchase the bank for around 230 million dollars valuing each share at only $2. When it was valued above a hundred bucks just before the crisis but it didn't work out so they ended up paying $10 a share and JPMorgan came out of the crisis only bigger and stronger JPMorgan isn't without controversies there were involved in multiple scandals they paid over two billion dollars in fines and legal settlements for their role in financing and on corporate fraudulent securities in fact they also ended up paying another 2.2 billion dollars to settle a lawsuit filed by Enron investors the number of controversies and lost use that it went through is beyond what we can possibly cover in this video the JPMorgan Chase is probably exactly how JP Morgan himself envisioned the company he was a big supporter of mergers and the company consistently merged or purchased other banks to be where they are today and now it's your turn what do you think should the bank's be allowed to keep merging and get bigger or the government should intervene and stop
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