E-Book Overview
"Before reading The Panic of 1907, the year 1907 seemed like a long time ago and a different world. The authors, however, bring this story alive in a fast-moving book, and the reader sees how events of that time are very relevant for today's financial world. In spite of all of our advances, including a stronger monetary system and modern tools for managing risk, Bruner and Carr help us understand that we are not immune to a future crisis."—Dwight B. Crane, Baker Foundation Professor, Harvard Business School"Bruner and Carr provide a thorough, masterly, and highly readable account of the 1907 crisis and its management by the great private banker J. P. Morgan. Congress heeded the lessons of 1907, launching the Federal Reserve System in 1913 to prevent banking panics and foster financial stability. We still have financial problems. But because of 1907 and Morgan, a century later we have a respected central bank as well as greater confidence in our money and our banks than our great-grandparents had in theirs."—Richard Sylla, Henry Kaufman Professor of the History of Financial Institutions and Markets, and Professor of Economics, Stern School of Business, New York University"A fascinating portrayal of the events and personalities of the crisis and panic of 1907. Lessons learned and parallels to the present have great relevance. Crises and panics are as much a part of our future as our past."—John Strangfeld, Vice Chairman, Prudential Financial"Who would have thought that a hundred years after the Panic of 1907 so much remained to be written about it? Bruner and Carr break significant new ground because they are willing to do the heavy lifting of combing through massive archival material to identify and weave together important facts. Their book will be of interest not only to banking theorists and financial historians, but also to business school and economics students, for its rare ability to teach so clearly why and how a panic unfolds."—Charles Calomiris, Henry Kaufman Professor of Financial Institutions, Columbia University, Graduate School of Business
E-Book Content
Business-Narative 1 Design-JWBK166-BRUNER
July 12, 2007
20:4
The Panic of
1907 Lessons Learned from the Market’s Perfect Storm
Robert F. Bruner Sean D. Carr
John Wiley & Sons, Inc.
i
Business-Narative 1 Design-JWBK166-BRUNER
July 12, 2007
iv
20:4
Business-Narative 1 Design-JWBK166-BRUNER
July 12, 2007
20:4
The Panic of
1907 Lessons Learned from the Market’s Perfect Storm
Robert F. Bruner Sean D. Carr
John Wiley & Sons, Inc.
i
Business-Narative 1 Design-JWBK166-BRUNER
July 12, 2007
20:4
C 2007 by Robert F. Bruner and Sean D. Carr. All rights reserved. Copyright
Published by John Wiley & Sons, Inc., Hoboken, New Jersey. Published simultaneously in Canada. Wiley Bicentennial Logo: Richard J. Pacifico The authors gratefully acknowledge Cambridge University Press, Columbia University Butler Library, Deutsche Bank Group, the Federal Reserve Bank of New York, The Morgan Library & Museum, Ned Lamont, the Southern Economic Journal, and the University of Chicago Press for their research assistance. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, (978) 750-8400, fax (978) 646-8600, or on the web at www.copyright.com. Requests to the P