by Ron Chernow
decline in power and size of, 486, 488–89, 492–93, 496, 501, 511, 530
Depression and, 322, 323
described, 256–57
explosion on Wall Street and, 212–14; 15
Broad Street property, 531–32
foreign loans of, 230–53, 323, 486–87, 488, 504, 551
incorporation of, 469, 470
insider trading by, 305–307
Korean War and, 490
merger with Guaranty Trust, 237, 304, 532–35
Morgan et Compagnie and, 450–54
Morgan Grenfell and, 270–71, 331–34, 385, 396–99, 431–35, 465–66, 501, 520, 534
Morgan Stanley and, 470–71, 500–501, 504, 509
origin of, 21, 34, 65
partners at, 256–62, 322, 348, 371, 431, 469, 473
political attacks on, 496–97
pre-crash 1920s and, 304–19
proposed merger with Chase, 496
public relations and, 510
Pujo Committee and, 153, 156
Trust Department, 469, 546, 559
World War I and, 186, 191, 200, 201, 205
World War II and, 450–54, 460, 466; see also Morgan, House of
Morgan and Company, J. S., 36, 43, 65, 71, 74, 98, 133
lack at, 95
origin of, 14–15
partners at, 103–105
successor to, 145
Morgan and Company, Inc., J. P. (holding company for Morgan Guaranty), 591–92, 624, 636, 654, 660–61, 704, 705
Morgan et Compagnie, 286, 359
during World War II, 450–54
Morgan et Compagnie International, 549–50, 578, 586, 591, 594
Morgan et Compagnie, S. A., 544, 545, 547–59
headquarters of, 545–46
Morgan family, 17–20
ancestral home of, 18, 59, 160
Baronial Age and, 23–24
“British Morgans,” 95
surrender of absolute power, 334–36
as Wall Street’s conscience, 19
Morgan Grenfell and Company, 105, 159, 217, 246, 256, 266, 286, 431, 476, 477, 501, 518, 519–26, 637
Arab petrodollars and, 612–18
domination of industrial accounts, 519
Euromarkets and, 544, 546, 547
firings at, 714
global expansion of, 589–90, 613, 654
Guinness scandal, 672, 676, 679–85, 686–89
hostile takeovers and, 524–26, 570–79, 671, 676–89, 714
J. P. Morgan and Company and, 270–71, 331–34, 385, 396–99, 431–35, 465–66, 501, 520, 534
Morgan Guaranty and, 548, 549, 568, 569, 589, 591–94, 608, 653–54
Morgan Stanley and, 570–71, 590, 591–94, 595
new headquarters of, 270
in the 1980s, 671–89, 713–15
origin of, 145
partners at, 270–73, 349, 431–32
passive attitude of, 519–20, 522, 523, 526, 545, 568–69, 590, 593, 671
public offering of stock of, 676
response to Big Bang, 674–76, 714, 715
transformation of, 526, 569, 575, 578–79, 671
World War I and, 185, 200
World War II and, 459, 460, 461
Morgan Guaranty, 659, 677, 701
Arab petrodollars and, 604–10, 614
corporate culture of, 533–36, 704
Euromarkets and, 541–49, 550, 567, 590, 592, 594
headquarters of, 537–38, 718–19
Japanese business, 551–58
Latin American loans and, 637–52
mergers and takeovers handled by, 567, 571, 705–709
merger to form, 237, 304, 532–36
Morgan Grenfell and, 548, 549, 568, 569, 589–90, 591–94, 608, 653–54
negotiable CDs and federal funds markets, 538–41
New York City financial crisis and, 618–21
in the 1980s, 653–54, 655–56, 660–61, 703–709, 715–19
one-bank holding company created by, see Morgan and Company, Inc., J. P.
overseas success of, 593, 704–705
relationship with Morgan Stanley, 550, 557, 589, 590, 591–94, 608, 653, 669–70, 716, 718
strength of, 535–36
Trust Committee, 562
Trust Department, 559–67, 706
Morgan Guaranty Limited, 594, 653, 705
Morgan, Harjes, 65, 76, 93, 145, 247, 256, 450, 518
successor to, see Morgan et Compagnie
Morgan Memorial Park, 268–69
Morgan New York State, 537
Morgan Securities, J. P., 665, 705, 718
Morgan Stanley, 414, 421, 480, 492, 500–518, 570, 594–603, 637
American Viscose and, 462–63
anti-nepotism rule, 515–16
Arab petrodollars and, 610–12, 622
Arbitrage Department, 630–31
becomes a partnership, 470
client list of, 390–91, 511–12, 513, 549, 594–95, 626, 661, 667
creation of, 384–88
early days of, 388–91
entry into trading and sales, 585–86, 622–23, 665
Euromarkets and, 544, 546, 549–50, 591, 594, 625
financing of, 387–88
foreign clients, 517, 518
incorporation of, 586, 600
“irreverent group of six” at, 584, 597
Japanese business, 552–54, 557
junk bonds and, 666, 694, 697, 710
Justice Department lawsuit against Club of Seventeen and, 502–506, 507
as leading investment bank, 470, 500, 501, 513, 516, 517, 580, 581, 584, 595, 623–24, 662, 663, 710
leveraged buyouts by, 669, 693–99, 711–12, 717
Mergers and Acquisitions Department, 595, 596, 602, 627–35, 665–68; 691–93, 701, 703, 705, 707, 708, 710
as money manager for individuals and institutions, 669, 673
J. P. Morgan and Company and, 470–71, 500–501, 504, 509, 624
Morgan Grenfell and, 570–71, 590, 591–94, 595
move to Exxon building, 588–89
mystique of, 513
in the 1980s, 661–70, 691–703, 710–13, 717
overseas trade and distribution of securities, 665
partners at, 515, 516, 549, 553–54, 580–87, 595–99, 623, 625
philosophy of, 386
public offering of stock of, 695, 712, 716–17
public relations at, 510, 516–17
recruitment by, 516
relationship with Morgan Guaranty, 550, 557, 589, 590, 591–94, 608, 653, 669–70, 716, 718
solo-manager policy, 623–27, 662
Stock Research Department, 587, 628
transformation of, 582, 583, 585–89, 592–93, 622, 663–64
women at, 602, 664, 695
World Bank and, 517–18, 553, 557, 585, 587
Morgan Stanley International, 594, 625
Morgan Stanley Leveraged Equity Fund II, 695
Morgenthau, Henry, Jr., 358, 373, 410
World War II and, 442, 444, 462
Morita, Akio, 557
Morris, Benjamin Wistar, 266
Morrow, Anne, 206–207, 261–62, 271, 290; see also Lindbergh, Anne Morrow
Morrow, Betty, 262, 289–90, 292–93, 295, 300, 445–47
Morrow, Dwight, 87, 144, 213, 234, 243, 257, 262, 350, 445–46, 495, 522, 559
as ambassador to Mexico, 292–99
Coolidge and, 251–52, 254, 287–93, 298
death of, 300–301
described, 288–90
Durant and, 223–24
German loan and, 251–53
Lamont and, 287, 289, 293, 297–99
postwar period and, 206–207, 208
as senator from New Jersey, 296, 298–300, 321
World War I and, 184, 197, 202, 204
Morrow, Elisabeth, 295
Morton, Bliss, 36
Moss, Fred, 501
Motley, Langhorne, 642
Moxley, Regis,
552
Muenter, Erich, 193–94
Mulholland, William D., 582
Munich Pact, 437–39, 451
Municipal Assistance Corporation (“Big MAC”), 620, 621
Munroe, Vernon, 298, 344
Murdoch, Anna, 575
Murdoch, Rupert, 573–79
Murray, Philip, 420
Murrow, Edward R., 459
Mussolini, Benito (il Duce), 308, 341, 343, 407
death of, 479
Hitler and, 403, 437, 454–56
invasion of Ethiopia, 402–407, 437
loan to, 277–86, 479, 481
N
Nabisco Brands, 711
Nassau Hospital Association, 564
Nasser, Gamal Abdel, 529
National Bank of Commerce, 153, 180, 532
National City Bank of New York, 76, 88, 90–91, 324, 338, 362, 451, 496, 508, 527, 530, 551
Big Three and, 132, 137, 153, 180, 205, 304–305
foreign loans and, 225, 236, 237
Pecora hearings and, 355–56, 375
Pujo Committee and, 153, 156
National City Company, 304, 324, 356, 362, 375
National Monetary Commission, 129, 144
National Westminster, 674
NATO, 488, 529, 543
Nazis, 312, 328, 339, 345, 369, 477–79
appeasement of, 434, 437–39
Axis and, 403, 407
Lindbergh and, 444–47
Morgan et Compagnie and, 450–54
occupation of Rhineland, 399–400
propaganda of, 249, 253, 398–99
repayment of Austrian loans and, 432–35
Neckermann, 547, 548
Negotiable certificates of deposit, see Certificates of deposit, negotiable
Netherlands Trading Society, 605, 606
Netto, Delfim, 641, 642, 646
Neutrality Acts, 401, 407, 442
New Deal, 181, 258, 374, 378–429, 496, 498, 503, 511
Brandeis and, 378–79
factions within, 418–19
House of Morgan and, 357, 359, 381–84, 417–20
Jack and, 369, 379–80, 408–12, 417
legislation of, see specific acts
securities reform and, 362, 377, 378
tax evasion and, 410–11
Willkie and, 447–48
New Haven Railroad (New York, New Haven and Hartford), 18, 137–38, 149, 290, 378, 412
crisis surrounding, 174–81
Newman, James, 632–33, 634
Newmont Mining, 598
New School for Social Research, 201
News International, 578
News of the World, 573–78, 687
New York Central Railroad, 24, 178, 180, 309, 507–508, 509, 510, 511, 625
dispute over West Shore line, 53–55
sale of Vanderbilt’s stock in, 42–45
New York City, Morgan-led rescues of, 126, 185, 618–21
New York Clearing House, 125
New York Life Insurance Company, 108, 110, 142, 152
New York Lying-in Hospital, 50–51, 159, 169
New York Stock Exchange, 67, 103, 214, 469, 472, 654, 700, 702
crash of 1929, see Stock market crash of 1929
gutter market, 184
institutional investors and, 584–85
Northern Pacific corner and, 91–93
panic of 1873 and, 36–37
panic of 1907 and, 124–25
panic of 1914 and, 183–84
post-crash bottom of market, 323, 346
Whitney embezzlement and, 421–28
World War II and, 441, 470; see also Wall Street
New York Times, The, 64, 70, 92, 99, 102, 157, 165–66, 310, 318, 327, 337, 339–40, 367, 373, 388, 407, 472, 494, 565, 625, 628, 633, 665, 716
New York Trust, 530
New York World, 76, 100, 255, 280, 283
New York Yacht Club, 53, 80, 87, 169, 170, 266, 514, 535
embezzlement from, 424, 426
Nicholas II, Czar, 183–84, 195, 196, 210
Nicholas, Bruce, 537
Nicolson, Sir Harold, 204, 290, 291, 297, 300–301, 445, 459
Nimitz, Chester M., 490, 583
Nippon Steel, 557
Nippon Tel and Tel, 557
Nixon, Richard, 528–29, 536, 542, 619
Nogara, Bernardino, 285–86, 546
World War II and, 451, 455–59
Nomura Securities, 552, 673
Norman, Montagu (Monty), 202, 277, 312, 313, 323, 355, 383, 475–77, 478, 479, 519, 521, 644
at the Bank of England, 244–52, 327–30, 391, 476
death of, 477
German loan and, 247–52
gold standard and, 273–77, 329–30, 331, 334, 359, 475
Schacht and, 393–94, 434, 439, 478
World War II and, 439–40, 460, 461
North American Philips, 633
Northcliffe, Lord, 200
Northern Pacific Railroad, 35–36, 67–68, 598
corner, 88–94
Northern Securities Company, 94, 106
North German Lloyd, 102
Noyes, Alexander Dana, 37, 48, 76, 184
Nuremberg Trials, 393, 478–79
Nye, Gerald P., 400
Nye hearings, 400–401, 409, 437
O
Obregón, Álvaro, 239–43
O’Brien, Sir Leslie, 571, 577, 687
Ochs, Adolf, 373–74
Olayan, Suliman, 606
Olds, Irving S., 497
Olds, Ransom E., 223
Olinkraft, 629–31
Olney, Richard, 75
O’Mahoney, Joseph, 470
Oppenheimer, Sir Ernest, 350
Oppenheimer family, 559
Orteig Prize, 291
Other People’s Money—and How the Bankers Use It, 178–79, 378, 379
Otis and Company, 416, 502–503
Owens-Illinois, 694
P
Page, Walter Hines, Jr., 431, 541, 545, 592, 593, 604, 608, 636, 641, 648
Paine Webber, 382, 702
Paish, Sir George, 187
Palmer, A. Mitchell, 210
Panama Canal, 111
Panic of 1857, 11–12
Panic of 1873, 36–38, 39
Panic of 1893, 58, 66, 71–73
Panic of 1907, 90, 116, 121–29, 143, 144, 148, 166, 202
consequences of, 128–30
Panic of 1914, 183–84
Pankhurst, Sylvia, 272, 273
Pan Ocean Oil, 633
Pantry Pride, 692
Paris Peace Conference, 206, 207
Parker, Larry, 585, 587
Patman, Wright, 536, 537
Patterson, Ellmore C., 388, 592, 600, 609, 619, 620–21, 636, 641, 706
Payne, Samuel B., 581–82
Peabody, Reverend Endicott, 50, 429
Peabody, George, 3–16, 19, 72, 263, 637
Bank of England bailout of, 11, 12
death of, 15
described, 4, 5, 15–16
as a miser, 5, 7–8
mistress and illegitimate children of, 9, 16
partner of, 8–15
personal fortune of, 7–8
as a philanthropist, 7, 9, 10, 13–16
state bond crises and, 3–7, 14
Peabody, S. Endicott, 50
Peacock, Edward, 330, 334, 521
Peacock Point, 144, 211, 217, 219, 240
Pearl Harbor, 466
Pecora, Ferdinand, 353, 379, 421, 501, 565
described, 355, 360
Pecora hearings, 353, 355–74, 389, 391, 400–401, 562, 698
anger against Wall Street and, 355–57, 362
Black Thurday “heroes” and, 355–56
Glass-Steagall Act and, 374–77
holding companies and, 369–70
income taxes and, 366, 375
Jack and, 361, 363–69, 409
preferred list of friends revelation and, 370–74
private bankers and, 360�
��74
smoking gun discovered by, 370
Pember and Boyle, 675
Penn Central, 567
Pennoyer, Paul G., 260
Penn Square Bank, 657
Pennsylvania Railroad, 53–55
Pension funds management, 533, 559, 560–62, 616, 673
People Express, 666–67
Perella, Joe, 602, 632, 692, 711
Perelman, Ronald O., 691, 692
Pergamon Press, 574, 575
Perkins, George W., 85, 92, 102, 114, 175, 221
described, 108–11, 142–43
panic of 1907 and, 122, 124, 128, 129
Roosevelt and, 105–11, 419
Taft and, 130, 148, 149
Perkins, Thomas W., 310
Perlman, Alfred E., 511
Perman, Thomas, 8, 9, 16
Perón, Juan, 487
Pershing, General, 202, 210, 217, 371
Peru, 487, 638–39
Pesson-Didion, Maurice, 452, 453
Petain, Marshall Henri Philippe, 450, 452
Petito, Frank A., 549, 580, 581, 587, 593, 599, 601, 630
Phelan, John, 700
Phelps, Isaac N., 46
Phelps, Dodge, 598
Phillips, Charles G., 666, 667
Phillips, David (né Sugiyama), 556–57
Phillips, John, 556
Phillips, William, 405
Phillips Exeter Academy, 480, 559, 562, 583
Phillips Petroleum, 668
Phoenix Securities, 713, 714
Physick, Henry, 192–93, 263, 347, 472
Pickens, T. Boone, 667–68, 692
Pierpont, Reverend John, 18–19, 22, 52
Pierpont Fund, 669–70
Pierpont Morgan Library, 116–17, 160, 169–70, 173, 265–66, 469, 473, 475, 517
Pietruski, John, 707–708
Pinchin Denny, 675
Pinchot, Gifford, 148
Pirrie, Lord, 101, 103, 146
Pius X, Pope, 79, 285
Pius XI, Pope, 262, 285–86, 455, 457
Pius XII, Pope, 457
Poincaré, Raymond, 205
Poland, 438, 440
Ponce, Joe, 543
Poor, Sheppard, 505, 516, 549, 584, 593
Populism, 72–77, 94, 129, 362, 374, 381–82, 415, 444
Port, Fred, 600, 601
Portal of Hungerford, Lord, 523–24, 525
Porter, Captain W. B., 159
Potter, William C., 237, 315, 362, 364, 480
Preferred list of friends, 370–74, 414
Preston, Lew, 557–58, 568, 590, 592, 608, 637, 654–61, 704, 719
described, 654–55
Glass-Steagall and, 716
hostile takeovers and, 707, 708, 709
Latin American debt crisis and, 643, 645, 646, 647, 649
rescue of Continental Illinois, 656, 658–60
sale of Morgan Grenfell stake and, 653–54
Volcker and, 643, 645, 658, 659, 716, 717