The early history of Morgan Group recorded a monopoly era that never came back.
187 1 year, founder j.p. Morgan co-founded dechong securities-Morgan company, engaged in investment, credit and other banking business.
1895 changed its name to J.P. Morgan Company, and penetrated into steel, railway, public utilities and other industries.
19 12 years, Morgan Consortium controlled 13 financial institutions and was called "banker's banker" by American financial circles.
/kloc-during the 1930s, the total assets of large banks and enterprises controlled by Morgan Consortium accounted for more than 50% of the eight largest consortia in the United States at that time.
From the background, China's capital market after1mid-1990s is indeed similar to the American capital market where Morgan was located more than 100 years ago: there is excess idle capital, the market is full of speculation, and investors hope to produce business leaders.
However, Morgan's experience is unrepeatable. After 1898 underwritten $200 million in US Treasury bonds and subscribed 1899 in British Treasury bonds, Morgan became the world's number one financial tycoon.
But Morgan's financial means of integrating disorderly competitive industries can be used for reference.
After the civil war, the steel industry in the United States developed rapidly. The subsequent Spanish-American War and Boer War made steel prices rise all the way, profits soared, and mergers and acquisitions were everywhere, but disorderly price wars also appeared. Morgan believes that if we want to establish an appropriate order in the steel industry, we must carry out a larger merger and reorganization.
To this end, he first chose the American steel and wire company owned by John En Gates. Morgan used various methods such as wooing Mr. Gates to coerce and induce him to reach an agreement: a federal steel enterprise will be established on the basis of American steel wire company, including 265 steel enterprises in the United States.
Next, Morgan used this as capital to start the well-known negotiations with andrew carnegie, and finally bought the latter's steel company for $400 million. 190 1 year, Morgan's own American steel company was finally formally established.
In order to speed up the company's operation, on the one hand, Morgan set high product prices and raised the industry threshold by squeezing small and medium-sized steel enterprises; On the other hand, these small and medium-sized companies continue to acquire when their finances are tight-American steel companies have swallowed up more than 700 related steel companies in one fell swoop.
Since then, Morgan's American steel company immediately began to cut prices, which was quite effective. At the peak of the company, the board of directors controlled three-fifths of the steel production in the United States and could decide the fate of nearly 6.5438+0.7 million steel workers. American steel company has also become the first industrial company with assets exceeding $654.38 billion in American history.
Nowadays, with the end of the monopoly era, the world commercial power has been dispersed to different institutions. As the best-selling book in China, Morgan Consortium, says: No bank will be as powerful, mysterious and rich as Morgan Consortium in the future.