Thesis
(Photo Courtesy of the Library of Congress)
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During the Panic of 1907, J.P. Morgan took initiative to prevent further economic crisis. Using his riches to alleviate the problem, Morgan set an example for new banking regulations in America. His leadership in bailing out Wall Street left a legacy, the Federal Reserve.
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(Photo Courtesy of Quora)
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"Because of the length and severity of the crisis, as well as the outsized role that J.P. Morgan played, there was considerable pressure for legislative reform of the banking system" ("The Gold Standard"). "J.P. Morgan organized pools of rescue funds for the banks were solvent but didn’t have the liquid resources to meet the demands of depositors. Today, the Fed serves that function" (Bruner). |