Important events in the life of J.P. Morgan

John Pierpont Morgan was born in Connecticut in 1837. His father was an American banker, the one who started planting in J.P. a great passion for finance accompanied education of the highest quality internationally. When he was 20 years old, John worked at a company headquarters located his father in London, UK. After working there for a year he moved to New York City, where he began a career in the financial sector, becoming one of the highlights in the history of the United States bankers. It is worth mentioning that unlike most success stories, in the case of J. P. Morgan earned his fortune even though his father was already a multimillionaire. It is a case in which two generations of entrepreneurs who achieve untold fortune come together.

His way as a financial began in 1856 the following year he began work on the New York stock market. At the beginning of his career one of the first good decisions by Morgan was to buy obsolete elements of the US military for a low cost, this purchase was made a few months before the outbreak of the civil war. Then when the American Civil War broke out, the demand for equipment was very high, until he sold it everything he had acquired seven times more expensive than he had paid recently.

In this age Morgan had made a lot of money in the banking system of the United States, however did not stop and in the following decades used his skills to be part of the rail industry, buying in poor condition and then restore them and rent, which led him to have a much larger fortune.

In the eighties JP noted that the business was buying bankrupt companies and implement them, he devoted the rest of his life to it for that reason put at stake its solvency to realign the US rail sector, cleaning up companies with financial difficulties, based on capital investment, reposition its debt at lower interest rates and rationalize costs.

At the time of economic crisis on Wall Street in 1893, Morgan bought US treasury debt. In other words, the wealth of Morgan was such that it became the only creditor of the United States at that time, achieved this by relying on its relations with the London house of his father and financially established in Paris. In fact, she never leaves the business of state funding, participating in large loans turn of the century. Another important aspect of the life of Morgan was the one who financed Tesla to bring electricity to the home, ushering in the modern era. While his was fortune growing up Morgan continued making investments and acquisitions, always geared towards businesses new generation, so much so that during the 70s and 80s, allowed the very same Thomas Edison, supporting him financially at all times, enabling the company of Thomas, Thomson corporation merged with Houston Electrical, being born with this new alliance today known as General Electric.

One of the aspects that led him to glory was in the fall of 1907, when the economy of the United States was facing a major crisis, which led among other consequences a sudden shortage of money and credit, generating difficulties in obtaining the funds needed for different transactions. Then JP Morgan had a great loss in the rail industry for control of the Northern Pacific Railroad, for that reason his vision on investment issues led him to set his interests were the manufacturing industry, intervening in companies like US Steel and other leading companies. This thanks to his reputation as a banker and financier was already so high that helped him to attract the interest of investors in buying business.

By 1912 the Morgan bank owned more than two thirds of the funding sources US. Their companies had increased so much in value that to date were valued at more than $ 25 billion. That’s when the US Senate decided to submit to an investigation process for monopolistic practices. Nothing cost the richest banker in the world at that time to move his son and get away from the charge. Morgan had another vision of capitalism which had their contemporary companions, who were struggling from their competitive position to gain market share, something he hated, making it possible to absorb and create monopolies to control prices and developing real lattices business to your taste and whim.

J.P.Morgan_american financial titan_patrick dwyer merrill lynch
Image courtesy of Ozzy Delaney at Flickr.com

J.P. fortune Morgan came to be equivalent to about 15,600 million current dollars, part of which would allocate to charitable and cultural works, such as the founding of the Morgan Library or donation of his art collection to the Metropolitan Museum in New York, as one of its great passions in his life was the collection of paintings, books, yachts and houses. It was taken by one of the most powerful people in the world, personifying the great capitalism of the late nineteenth and early twentieth centuries. He died in Rome, Italy, in 1913 leaving his legacy and fortune to his son, John Pierpont Morgan Jr.

To read more about family of J.P Morgan, you can visit his website by clicking here.

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