J. P. Morgan the crisis quencher
One of the interesting facts about J. P. Morgan is that he was the one who quelled the financial crisis of 1907. JP Morgan intervened to assist in containing the Panic of 1907, a raging financial crisis that threatened to destroy the US economy. His accomplishments have established him as a skilled crisis manager.
The American economy was almost destroyed by the financial crisis of 1907. Before Morgan intervened to help resolve the situation, the major banks in New York were on the point of failure and there was no way to save them.
Federal funds worth $35 million were put aside by Treasury Secretary George B. Cortelyou for bank deposits in New York. The leading bankers in the country were then gathered at Morgan's mansion in New York, where he compelled them to devise a strategy for handling the problem. Thousands of tiny depositors who were about to rush to withdraw money from struggling lenders have now been calmed by this deft maneuver.
The nation's most powerful bankers were gathered for a meeting at which Morgan and National City Bank President James Stillman pushed them to create a defense against future financial catastrophes as the next step. The Federal Reserve created the framework in this manner. Morgan assembled a team of bankers and trusts to move money through institutions, obtain additional global credit lines, and repurchase shares of thriving companies that were falling sharply in price.
