All the Presidents' Bankers: The Hidden Alliances That Drive American Power

Nomi Prins

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He won reelection by the biggest electoral margin victory since James Monro... whole source
He won reelection by the biggest electoral margin victory since James Monroe ran unopposed in 1820, capturing 98.49 percent, or 523 electora…
Supreme Court strikes down the NIRA whole source
The Court declared much of the National Industrial Recovery Act unconstitutional in May 1935, a month before the program was set to expire.…
(Johnson would supplant this record in the 1964 election.) Despite the vict... whole source
(Johnson would supplant this record in the 1964 election.) Despite the victory and public support for the New Deal, FDR did lose some major…
Cofounder and leader of the First National Bank, 1863–1931 (though after 19... whole source
Cofounder and leader of the First National Bank, 1863–1931 (though after 1913, his son George Baker Jr. was more involved running the bank).…
Cofounder and leader of the First National Bank, 1863–1931 (though after 19... whole source
Cofounder and leader of the First National Bank, 1863–1931 (though after 1913, his son George Baker Jr. was more involved running the bank).…
Cofounder and leader of the First National Bank, 1863–1931 (though after 19... whole source
Cofounder and leader of the First National Bank, 1863–1931 (though after 1913, his son George Baker Jr. was more involved running the bank).…
(The National Banking Act was passed in 1863—with revisions in 1864 and 186... whole source
(The National Banking Act was passed in 1863—with revisions in 1864 and 1865—to help fund the Civil War by creating currency notes issued by…
On June 18, 1913, he asked Wilson to allow bank representation on the propo... whole source
On June 18, 1913, he asked Wilson to allow bank representation on the proposed Federal Reserve Board.64 Glass had been up past one o’clock t…
Wilson signs the Federal Reserve Act whole source
After six more months of haggling over minor details, Wilson signed the Federal Reserve Act into law on December 23, 1913, establishing the…
The Treasury was in charge of creating coins and paper currency; its Bureau... whole source
The Treasury was in charge of creating coins and paper currency; its Bureau of Engraving and Printing had been producing all currency for th…
But, he noted, “there was an occasion near the close of 1910, when I was as... whole source
But, he noted, “there was an occasion near the close of 1910, when I was as secretive—indeed, as furtive—as any conspirator. . .
Nelson Aldrich struck by a New York trolley whole source
But on October 21, 1910, while in New York City, Aldrich was struck by a southbound Madison Avenue trolley car. He was hurled into the stree…
From 1886 to 1899, annual profits in Rockefeller’s Standard Oil Company, on... whole source
From 1886 to 1899, annual profits in Rockefeller’s Standard Oil Company, one of the world’s preeminent industrial companies, tripled from $1…
Morgan controlled nearly 70 percent of the steel industry—following the cre... whole source
Morgan controlled nearly 70 percent of the steel industry—following the creation of US Steel in 1901—and at least one-fifth of all corporati…
—President Theodore Roosevelt, 1905 BY THE END OF THE NINETEENTH CENTURY, T... whole source
—President Theodore Roosevelt, 1905 BY THE END OF THE NINETEENTH CENTURY, THE TITANS OF BANKING WERE replacing the barons of industry as the…
Roosevelt's antitrust suit against Northern Securities whole source
Roosevelt directed the Justice Department to pursue an antitrust suit charging the Northern Securities Company with violating the 1890 Sherm…
Northern Securities railroad trust formed whole source
Northern Securities, one of the nation’s largest railroad trusts, had been formed by Morgan, Harriman, and Hill in 1901. The president’s pow…
Roosevelt wins the 1904 election whole source
In the process, Roosevelt gained enough popular support to win the election of 1904 with 70 percent of the electoral vote. But by 1907, eith…
Morgan helps the Ochs family buy the New York Times whole source
He not only assisted other banks (for a price); in 1896, he had helped the Ochs family buy the New York Times. What the papers didn’t report…
A 1907 New York Times headline, echoing the widespread sentiment that Morga... whole source
A 1907 New York Times headline, echoing the widespread sentiment that Morgan and his crew had masterfully saved the economy, declared Morgan…
2 Also present was Thomas Lamont, a friend of Strong’s who would become the... whole source
2 Also present was Thomas Lamont, a friend of Strong’s who would become the youngest Morgan partner in 1911; he would later rise to run the…
The 1907 panic had revealed the weakness in the Morgan-dominated banking sy... whole source
The 1907 panic had revealed the weakness in the Morgan-dominated banking system, in that it relied too heavily on the maneuvers and money of…
7 When it came time to fill two life membership vacancies on the Princeton... whole source
7 When it came time to fill two life membership vacancies on the Princeton Board of Trustees, in early November 1908, Wilson suggested the s…
Two years after the panic, on December 11, 1909, Vanderlip invited his frie... whole source
Two years after the panic, on December 11, 1909, Vanderlip invited his friend Wilson to speak at the annual banquet of New York bankers, to…
Jekyll Island, 1910 After the Panic of 1907, bankers and politicians alike... whole source
Jekyll Island, 1910 After the Panic of 1907, bankers and politicians alike sought a more stable banking system, though for different reasons…
Roosevelt backs Taft for president whole source
Roosevelt decided not to run for reelection in 1908, but he backed William Howard Taft, a man later described by Senator Nelson Aldrich’s gr…
Jekyll Island, 1910 After the Panic of 1907, bankers and politicians alike... whole source
Jekyll Island, 1910 After the Panic of 1907, bankers and politicians alike sought a more stable banking system, though for different reasons…
It served to push memories of the Panic of 1907 and the Pujo hearings into... whole source
It served to push memories of the Panic of 1907 and the Pujo hearings into a receding spot in the national consciousness. Citizens began to…
By July 13, 1917, there were fifty-one private banks providing Britain with... whole source
By July 13, 1917, there were fifty-one private banks providing Britain with another batch of loans totaling $234 million. Morgan led the pac…
B.C. Forbes launches Forbes Magazine whole source
In September 1917, Bertie Charles Forbes launched Forbes Magazine from offices at 120 Broadway, near Wall Street. With the war escalating, A…
In 1911, Munsey’s Magazine described Mellon as the “J.P. Morgan of the Stee... whole source
In 1911, Munsey’s Magazine described Mellon as the “J.P. Morgan of the Steel City.
Harding names Hoover to War Debt Commission whole source
In February 1922, Harding appointed Hoover to the new World War Foreign Debt Commission, designed to settle the Allies’ debts based on “thei…
7 It also created the General Accounting Office (renamed the Government Acc... whole source
7 It also created the General Accounting Office (renamed the Government Accountability Office in 2004) to get a better handle on the debt an…
Titanic sinks in the North Atlantic whole source
Morgan was in France when word spread that the Titanic had sunk on April 15, 1912, and with it the investment money Morgan had contributed o…
31 Lindbergh’s resolution led to the 1912 House Banking and Currency Commit... whole source
31 Lindbergh’s resolution led to the 1912 House Banking and Currency Committee hearings, in a subcommittee led by Louisiana Democrat Arsène…
The issues of banking and currency reform were central to the 1912 election... whole source
The issues of banking and currency reform were central to the 1912 election. Both parties had to tread carefully, balancing public opinion a…
On November 6, 1912, Samuel Untermyer, who had stumped for Wilson during th... whole source
On November 6, 1912, Samuel Untermyer, who had stumped for Wilson during the election,45 promptly requested his input on the ongoing “Money…
2 On February 26, 1913, the Pujo Committee issued its final report, a seari... whole source
2 On February 26, 1913, the Pujo Committee issued its final report, a searing indictment of the dangers of high concentration of money and c…
J.P. Morgan dies in Rome whole source
Six weeks after the report was issued and just past midnight on March 31, 1913, Morgan died at the Grand Hotel in Rome. His partners attribu…
—Jack Morgan, personal letter to President Woodrow Wilson, September 4, 191... whole source
—Jack Morgan, personal letter to President Woodrow Wilson, September 4, 1914 BOTH FEDERAL RESERVE AND DOMESTIC ANTITRUST ISSUES WERE SOON ov…
Franz Ferdinand assassinated in Sarajevo whole source
On June 28, 1914, a Slavic nationalist in Sarajevo murdered Archduke Franz Ferdinand, heir to the Austrian throne. The battle lines were dra…
Was this a sign of tighter ties to the money trust titans? Was Wilson close... whole source
Was this a sign of tighter ties to the money trust titans? Was Wilson closer to the bankers than he had appeared? With whispers of such quer…
German U-boat sinks the Lusitania whole source
On May 7, 1915, a German U-20 torpedoed the starboard side of the British luxury liner Lusitania off the Irish coast. Nearly 1,200 people, i…
6 But publicly, Wilson issued a harsh note to the German government on May... whole source
6 But publicly, Wilson issued a harsh note to the German government on May 14, 1915. In response, Morgan conveyed to Wilson his “intense sat…
17 Morgan’s renowned support for the Allies led to an assassination attempt... whole source
17 Morgan’s renowned support for the Allies led to an assassination attempt at his Glen Cove, Long Island, home on July 3, 1915. Shot twice…
Lamont had furnished a copy of the treaty to his former associate Henry Dav... whole source
Lamont had furnished a copy of the treaty to his former associate Henry Davison, who had been at the Red Cross since 1917.17 Lamont believed…
8 On June 11, 1919, Baruch, Lamont, Davis, and McCormick discussed the more... whole source
8 On June 11, 1919, Baruch, Lamont, Davis, and McCormick discussed the more pressing issue of Wilson’s final proposed answer to Germany on r…
Senator Edge introduces the Edge Act whole source
Based on Lamont’s earlier disposition toward private assistance, Senator Walter Evans Edge introduced Senate Bill 2472 (which became the Edg…
million in May 1917 it had grown to $37 million in capital by the end of 19... whole source
million in May 1917 it had grown to $37 million in capital by the end of 1932, with $18 million in surplus and profits.66 The securities arm…
In 1929 he became president of Equitable Trust, which had grown through the... whole source
In 1929 he became president of Equitable Trust, which had grown through the 1920s via a series of strategic mergers to become one of the lar…
Vying for the position of the most powerful banker in the country, he vehem... whole source
Vying for the position of the most powerful banker in the country, he vehemently backed the proposed Glass-Steagall Act of 1933, which would…
Approaching Armistice By the time the Allied armies pushed their formidable... whole source
Approaching Armistice By the time the Allied armies pushed their formidable counteroffensive on the Western front in the summer of 1918, Wil…
Late in the afternoon on October 4, 1918, Lamont stopped by the White House... whole source
Late in the afternoon on October 4, 1918, Lamont stopped by the White House to discuss how the two men could help each other.50 The Evening…
By June 1919, Vanderlip had been kicked out of National City.48 Charles Mit... whole source
By June 1919, Vanderlip had been kicked out of National City.48 Charles Mitchell, the brash outsider, rose within the bank embracing the not…
—Woodrow Wilson, 19131 THE 1918 MIDTERM ELECTIONS TRANSFERRED CONTROL OF TH... whole source
—Woodrow Wilson, 19131 THE 1918 MIDTERM ELECTIONS TRANSFERRED CONTROL OF THE SENATE FROM THE Democrats to the Republicans. In the process, H…
He returned to the United States on February 24, 1919, but traveled back to... whole source
He returned to the United States on February 24, 1919, but traveled back to Europe on March 5, where he remained until July 8.2 It was and w…
Paris Peace Conference opens whole source
In all, thirty-two nations were involved in the Paris Peace Conference, which began in January 1919 (Germany was not included). But the Big…
37 On August 19, 1919, Wilson made an unprecedented presidential appearance... whole source
37 On August 19, 1919, Wilson made an unprecedented presidential appearance before the Senate Foreign Relations Committee to argue for ratif…
Toward the 1920 Election Lamont defended and advised Wilson during the camp... whole source
Toward the 1920 Election Lamont defended and advised Wilson during the campaign period through the following year. But Wilson’s ideals and L…
Voters reject Wilson and the League of Nations whole source
On Election Day, November 2, 1920, voters rejected Wilson and his League, as represented by Democratic presidential candidate James A. Cox a…
Morgan & Company in October 1919, followed by a $100 million loan to the Fr... whole source
Morgan & Company in October 1919, followed by a $100 million loan to the French government in September 1920.9 As a result of his trip, in M…
Morgan & Company in October 1919, followed by a $100 million loan to the Fr... whole source
Morgan & Company in October 1919, followed by a $100 million loan to the French government in September 1920.9 As a result of his trip, in M…
Thus, in April 1921, a month after Harding took office, Lamont set sail on... whole source
Thus, in April 1921, a month after Harding took office, Lamont set sail on the Adriatic for a six-week trip to England, France, Holland, and…
35 Later, as governor of Massachusetts from 1919 to 1920, he oversaw approp... whole source
35 Later, as governor of Massachusetts from 1919 to 1920, he oversaw appropriations and expenditures with great parsimony. His ideas of priv…
35 Later, as governor of Massachusetts from 1919 to 1920, he oversaw approp... whole source
35 Later, as governor of Massachusetts from 1919 to 1920, he oversaw appropriations and expenditures with great parsimony. His ideas of priv…
Dawes committee formed on German reparations whole source
So in late 1923, at the suggestion of Secretary of State Hughes, he appointed a committee of experts headed by Harding’s old budget director…
In January 1927, he publicly praised the government’s policy of steadily re... whole source
In January 1927, he publicly praised the government’s policy of steadily reducing the public debt since 1920, calling it “one of the most wh…
McGarrah named chairman of the New York Fed whole source
In February 1927, McGarrah was appointed chairman of the New York Fed. Unlike Mitchell, Wiggin cautioned against excess in the mid-1920s, ev…
In January 1927, he publicly praised the government’s policy of steadily re... whole source
In January 1927, he publicly praised the government’s policy of steadily reducing the public debt since 1920, calling it “one of the most wh…
Lamont had hired Fummi to work with the Morgan Bank in 1920, and Fummi had... whole source
Lamont had hired Fummi to work with the Morgan Bank in 1920, and Fummi had helped the firm gain Italian business, including with the Vatican…
A very interested FDR wrote him on May 23, 1939, “I appreciate the effort y... whole source
A very interested FDR wrote him on May 23, 1939, “I appreciate the effort you have made to prevent misunderstanding in Italy of the point of…
6 Aldrich’s Mistake For his part, on May 23, 1939, Aldrich told the Bankers... whole source
6 Aldrich’s Mistake For his part, on May 23, 1939, Aldrich told the Bankers Club of New York that the immediate threat of war had been great…
In late January 1922, after a ten-day tour of Cuba he took with Percy Rocke... whole source
In late January 1922, after a ten-day tour of Cuba he took with Percy Rockefeller and a bevy of other bankers, culminating in a luncheon in…
Locarno agreements settle postwar territorial disputes whole source
His financial diplomacy spawned another foreign policy initiative: the 1925 Locarno agreements, which resolved territorial disputes outstand…
0 By 1928, most Americans paid no federal income tax at all.51 Americans we... whole source
0 By 1928, most Americans paid no federal income tax at all.51 Americans were grateful, and a heady “buy now, pay later” consumer society em…
In April 1933, a politely frustrated Lamont wrote to Roosevelt to complain... whole source
In April 1933, a politely frustrated Lamont wrote to Roosevelt to complain about the mistreatment he and Morgan counsel John Davis received…
In April 1933, a politely frustrated Lamont wrote to Roosevelt to complain... whole source
In April 1933, a politely frustrated Lamont wrote to Roosevelt to complain about the mistreatment he and Morgan counsel John Davis received…
As he declared in his opening statement on May 23, 1933, “If I may be permi... whole source
As he declared in his opening statement on May 23, 1933, “If I may be permitted to speak of the firm, of which I have the honor to be the se…
The US economy stood on the precipice of a six-year run of stock market gro... whole source
The US economy stood on the precipice of a six-year run of stock market growth and record high Wall Street profits, which masked underlying…
Coolidge announces he will not seek reelection whole source
Hoover’s Prep for President and Bankers’ Support Coolidge shocked the nation when he announced in early August 1927, while on summer break i…
The US economy stood on the precipice of a six-year run of stock market gro... whole source
The US economy stood on the precipice of a six-year run of stock market growth and record high Wall Street profits, which masked underlying…
In 1928, Coolidge had stated that stock market speculation should not cause... whole source
In 1928, Coolidge had stated that stock market speculation should not cause alarm, which dovetailed with Young’s policies of leaving the ban…
Under Young the Fed had not interfered with banks borrowing at the discount... whole source
Under Young the Fed had not interfered with banks borrowing at the discount window at rates near 6 percent and lending those funds at rates…
Indeed, when the New York Fed’s board of directors voted to increase rates... whole source
Indeed, when the New York Fed’s board of directors voted to increase rates between February and May 1929, Mitchell objected.13 McGarrah supp…
PREFACE THE IDEA FOR ALL THE PRESIDENTS’ BANKERS CAME TO ME WHILE I WAS WRI... whole source
PREFACE THE IDEA FOR ALL THE PRESIDENTS’ BANKERS CAME TO ME WHILE I WAS WRITING A historical novel called Black Tuesday, which follows the e…
Most of them represented the corporate lineage of the bankers from that ear... whole source
Most of them represented the corporate lineage of the bankers from that earlier meeting in October 1929. I became fascinated with their evol…
Fast-forward to the financial crisis of 2008. The prelude to the global deb... whole source
Fast-forward to the financial crisis of 2008. The prelude to the global debacle was similar, as the chapters on the 1920s and 1930s reveal.…
CHAPTER 5 1929: THE ROOM AT 23 WALL, CRASH, AND BIG-SIX TAKE “There is a pa... whole source
CHAPTER 5 1929: THE ROOM AT 23 WALL, CRASH, AND BIG-SIX TAKE “There is a panic now—among stock gamblers.” —Senator Carter Glass, October 192…
—Senator Carter Glass, October 1929 THE BELLS OF TRINITY CHURCH IN LOWER MA... whole source
—Senator Carter Glass, October 1929 THE BELLS OF TRINITY CHURCH IN LOWER MANHATTAN CHIMED NOON ON THAT cool, overcast Thursday, October 24,…
By November 1929, the New York Fed had increased its discounts for member b... whole source
By November 1929, the New York Fed had increased its discounts for member banks by $150 million and purchased $150 million of government sec…
By mid-November 1929, Lamont and other financial leaders had declared the c... whole source
By mid-November 1929, Lamont and other financial leaders had declared the crisis fully behind them. After they met on November 15 at the Mor…
When the Dow stood at 359 on September 23, 1929 (the market had topped out... whole source
When the Dow stood at 359 on September 23, 1929 (the market had topped out twenty days earlier at 381), he placed what would be a hugely pro…
” —Albert Wiggin, chairman of Chase National Bank, January 13, 1930 THE 193... whole source
” —Albert Wiggin, chairman of Chase National Bank, January 13, 1930 THE 1930S BEGAN ON THE FALSE NOTE OF ECONOMIC SECURITY WITH WHICH the po…
On May Day 1930, he declared to the nation, “We have now passed the worst a... whole source
On May Day 1930, he declared to the nation, “We have now passed the worst and with continued unity of effort we shall rapidly recover.”3 His…
3 His statement wound up foreshadowing a nearly two-year market dive to a l... whole source
3 His statement wound up foreshadowing a nearly two-year market dive to a low of 41 on July 8, 1932, and a Great Depression that brought the…
Fed launches massive bond-buying program whole source
The massive bond-buying program that the Fed initiated in May 1932, in which it agreed to buy $26 million worth of bonds a week from its mem…
Wright Patman moves to impeach Andrew Mellon whole source
On January 6, 1932, Texas Democratic representative Wright Patman told the Speaker of the House that he wanted to impeach Mellon on the char…
(This tactic would be repeated after the 2008 crisis.) As The Nation put it... whole source
(This tactic would be repeated after the 2008 crisis.) As The Nation put it, “You can lead a horse to water but you can not make him drink,…
Kennedy had been instrumental behind the scenes during Roosevelt’s 1932 pre... whole source
Kennedy had been instrumental behind the scenes during Roosevelt’s 1932 presidential campaign. Not unlike Sidney Weinberg, he had donated $2…
Before February 1935, issues of new debt securities had nearly stopped. New... whole source
Before February 1935, issues of new debt securities had nearly stopped. New Dealers called this “a strike of capital,” with big business hol…
He remained a strong supporter of Roosevelt, though, lending his name to th... whole source
He remained a strong supporter of Roosevelt, though, lending his name to the book I’m for Roosevelt!, published during the election year of…
ON THE MORNING OF MARCH 4, 1933, SECRETARY Hyde produced an account of two... whole source
ON THE MORNING OF MARCH 4, 1933, SECRETARY Hyde produced an account of two bankers involved in the Depression. He recounted that one of them…
Charles Mitchell examined over Crash losses whole source
In February 1933 Charles Mitchell was the first to undergo examination for his role in the multimillion-dollar losses that took place during…
Mitchell resigns as chairman of National City Bank whole source
Humiliated before Congress; the press, which had once adored him for his vision; and the public, Mitchell resigned as chairman of National C…
Things got worse as 1933 opened, with 273 banks closing in January alone, b... whole source
Things got worse as 1933 opened, with 273 banks closing in January alone, bringing about another rush of citizens extracting whatever deposi…
On October 2, 1933, Leffingwell wrote FDR: “I want to congratulate you upon... whole source
On October 2, 1933, Leffingwell wrote FDR: “I want to congratulate you upon what you have accomplished in the seven months since you took of…
Policing Wall Street The very structure of the US banking system had been d... whole source
Policing Wall Street The very structure of the US banking system had been dramatically altered under the Glass-Steagall Act of 1933. But the…
Securities Exchange Act bill introduced in Congress whole source
To deal with this matter, the Fletcher-Rayburn bill, which would become known as the Securities Exchange Act, was introduced on February 10,…
Plus, Whitney wasn’t exactly the cleanest of operators, as 1938 indictments... whole source
Plus, Whitney wasn’t exactly the cleanest of operators, as 1938 indictments and time in Sing Sing would reveal. The bill was proposed to dea…
Revenue Act of 1935 raises the top tax rate whole source
FDR raised this top bracket rate to 75 percent in the Revenue Act of 1935. The more progressive tax initiative was dubbed the “wealth tax” o…
(The Revenue Act of 1942 would raise this tax rate on income above $200,000... whole source
(The Revenue Act of 1942 would raise this tax rate on income above $200,000 to 82 percent and increase the top rate of corporate taxes from…
Individual Income Tax Act of 1944 lifts top rate to 94% whole source
The Individual Income Tax Act of 1944 went further, raising the top-bracket tax rate to 94 percent.) It wasn’t so much the income tax elemen…
United States—Politics and government—2009– 4. Bankers—Political activity—U... whole source
United States—Politics and government—2009– 4. Bankers—Political activity—United States—History—20th century. 5.
Rentschler becomes National City Bank chairman whole source
Rentschler succeeded James Perkins at the helm of National City Bank in July 1940 after Perkins died of a heart attack
FDR reelected to a third term whole source
After FDR won the presidency for the third time on November 5, 1940 (though with a lower popular and electoral percentage than the prior ele…
Burgess Urges Debt Limit Restraint on Government Securities whole source
In July 1940, Burgess approached Morgenthau to discuss the government securities market, which was behaving quite well under the circumstanc…
FDR appoints Aldrich to lead National War Fund whole source
FDR summoned Aldrich to the White House in April 1943 to offer him the position of chairman of the National War Fund, which would coordinate…
FDR freezes prices and wages by executive order whole source
On April 8, 1943, FDR had frozen prices, wages, and salaries in further efforts to stem inflation
White and Keynes plans for postwar finance published whole source
The American and British Treasuries had published the White and Keynes plans for the creation of multinational finance entities in April 194…
White Releases Updated Stabilization Fund Design whole source
White released an updated design in August 1943. That fall, Keynes visited Washington for the first time since the plans were announced to d…
Bretton Woods Conference convenes in New Hampshire whole source
In July 1944, 730 delegates representing the forty-four Allied nations convened at the Mount Washington Hotel in Bretton Woods, New Hampshir…
FDR takes his fourth oath of office whole source
On January 20, 1945, FDR took his fourth and final oath of office. Two days later he traveled to Yalta, a Soviet Black Sea resort town
Congress approves the Bretton Woods agreement whole source
Congress approved the Bretton Woods agreement on July 20, 1945. Twenty-seven other countries joined as well. The Soviet Union did not
FBI warns Truman that White leaked to Soviets whole source
In addition to the growing Cold War mentality, or perhaps because of it, expectations that White would lead the IMF were squashed when the F…
Glass-Steagall Act Severs National City from Morgan Dominance whole source
When the National City Bank and Chase backed the Glass-Steagall Act in 1933, they also severed themselves from the old Morgan “inner group”…
Rentschler Leads National City Bank as War Finance Accelerates whole source
Rentschler succeeded James Perkins at the helm of National City Bank in July 1940 after Perkins died of a heart attack following dinner with…
FDR reelected to a third term whole source
Lamont, Leffingwell, FDR, and War After FDR won the presidency for the third time on November 5, 1940 (though with a lower popular and elect…
Burgess Warns Morgenthau of Government Securities Risks whole source
In July 1940, Burgess approached Morgenthau to discuss the government securities market, which was behaving quite well under the circumstanc…
Lamont Expresses Banker Support for British Aid whole source
On December 18, 1940, he phoned FDR to say he was “immensely pleased with the president’s’ approach to helping the British, and getting away…
Rentschler Announces National City's Defense Financing Role whole source
At noon on January 17, 1941, Rentschler addressed an august gathering at National City Bank’s 129th annual stockholders meeting.
Chase Bank Mobilizes for War Intervention whole source
On October 2, 1941, Aldrich found a way to put his weight, and that of the Chase bank, behind US intervention.
White drafts the postwar stabilization fund plan whole source
By the spring of 1942, White had drafted plans for a “stabilization fund” and a “Bank for Reconstruction and Development.” His concept for t…
Revenue Act of 1942 shifts to current-year tax collection whole source
In that regard, the Revenue Act of 1942 called for tax revenues to be raised by $18 billion, and brought millions of new middle-class taxpay…
FDR appoints Aldrich to lead National War Fund whole source
FDR summoned Aldrich to the White House in April 1943 to offer him the position of chairman of the National War Fund, which would coordinate…
FDR Publicly Endorses National War Fund in Radio Address whole source
FDR summoned Aldrich to the White House in April 1943 to offer him the position of chairman of the National War Fund, which would coordinate…
FDR freezes prices and wages by executive order whole source
” On April 8, 1943, FDR had frozen prices, wages, and salaries in further efforts to stem inflation. The Current Tax Payment Act took effect…
Current Tax Payment Act takes effect whole source
” On April 8, 1943, FDR had frozen prices, wages, and salaries in further efforts to stem inflation. The Current Tax Payment Act took effect…
Revenue Act of 1943 raises excess profits tax to 95% whole source
The Revenue Act of 1943 also provided for the distribution of the payment of taxes through the population. It carried a small concession to…
White Revises Postwar Monetary Stabilization Design whole source
White released an updated design in August 1943. That fall, Keynes visited Washington for the first time since the plans were announced to d…
Reciprocal Trade Agreements Act renewed in 1943 whole source
FDR expressed his gratitude to Lamont for his efforts in convincing the Republican opposition to pass the Reciprocal Trade Agreements Act of…
Bretton Woods Conference Establishes Global Finance System whole source
In July 1944, 730 delegates representing the forty-four Allied nations convened at the Mount Washington Hotel in Bretton Woods, New Hampshir…
Aldrich issues currency plan opposing Bretton Woods whole source
” While final drafts snaked through Congress after the July 1944 meetings, one key US banker maintained his public opposition to Bretton Woo…
FDR takes his fourth oath of office whole source
Truman Takes Office On January 20, 1945, FDR took his fourth and final oath of office. Two days later he traveled to Yalta, a Soviet Black S…
Roosevelt dies and Truman becomes president whole source
On April 12, 1945, at the “Little White House” in Warm Springs, Georgia, FDR signed some papers, ate his lunch, and slumped into unconscious…
Aldrich Seeks to Establish Influence with Truman whole source
Two months before World War II ended, in late June 1945, Aldrich made his first major gambit to incorporate Truman into his plans. Their rel…
Bretton Woods delegates reconvene at Savannah whole source
By the time the Bretton Woods delegates reconvened to settle the final details of the agreement at Savannah, Georgia, in March 1946, Churchi…
FBI warns Truman that White leaked to Soviets whole source
By the time the Bretton Woods delegates reconvened to settle the final details of the agreement at Savannah, Georgia, in March 1946, Churchi…
Truman authorizes atomic bombing of Japan whole source
Yet on August 6, Truman dropped a massive atomic bomb on Hiroshima, Japan, and followed a few days later with another one on Nagasaki. About…
Bill Clinton announces his 1992 presidential campaign whole source
Challenging Bush for his second term, Arkansas governor Bill Clinton announced he would seek the 1992 Democratic nomination for the presiden…
Black Wednesday and the pound sterling crisis whole source
By midmorning on September 16, 1992, pound selling was so intense that Bank of England officials were buying two billion pounds of sterling…
Bill Clinton elected president whole source
On November 3, 1992, Clinton beat Bush and businessman H. Ross Perot of the Reform Party.
Wendy Gramm votes to deregulate commodity futures whole source
On January 14, 1993, with two of the five CFTC seats vacant, she voted with the majority in a two-to-one decision to exclude commodity contr…
Wendy Gramm resigns CFTC and joins Enron board whole source
Six days later, as Clinton took the presidential oath, Gramm resigned from her CFTC post. Five weeks later, Enron appointed her to its board…
Robert Rubin appointed to National Economic Council whole source
On January 25, 1993, Clinton appointed him as assistant to the president for economic policy.
Senate passes the Gramm-Leach-Bliley Act whole source
On November 4, the Senate approved the Gramm-Leach-Bliley Act by a vote of ninety to eight.
Enron reveals massive loss and accounting fraud whole source
On October 16, 2001, Enron posted a $681 million third-quarter loss and announced a $1.2 billion hit to shareholders equity, due to an implo…
Travelers acquires Salomon Brothers whole source
On that tide of enthusiasm, Sandy Weill acquired Salomon Brothers for $9 billion and merged it with Smith Barney.
Russia defaults and devalues the ruble whole source
With the ruble devalued, the country defaulted on its international loans on August 17, 1998.