Part 2 Chapter 24 Passages Summary and Analysis

In February 1940, J.P. Morgan and Company becomes a corporation. As the senior partners age, their death will result in a capital shortage for the firm as a partnership. The new corporation has Jack Morgan as president, George Whitney as chief executive and Lamont as head of the executive committee. The switch to the corporate form of business allows the bank to enter the trust business. This is something they cannot do as a partnership. In 1942 the bank joins the Federal Reserve System. Eight percent of Morgan shares are sold by a syndicate headed by Smith, Barney. The Drexel connection is ended when the Philadelphia office is closed and the Drexel name sold. The operations are taken over by Morgan. Morgan Stanley becomes a partnership, severing all of its links with Morgan.

Jack Morgan dies in March...