J. P. Morgan, Essay Example

1892. P. Morgan was an American philanthropist, art collector, banker, and financier who dominated industrial consolidationand corporate finance in his times. Morgan organized the merging of Thomson-Houston Electric Company and Edison General Electric for the formation of General Electric in 1892. In 1893, the United States economy was collapsing due tounemployment, and burden of falling prices, which caused the panic in that year. As a result, of the government’s plight, Morgan like any other captain of the company saw both opportunity and danger. He realized that his newly createdbusiness company needed a growing and stable economy. In addition, he realized anything that was good for the countrywas also good for his business. J. P. Morgan & Company mobilized and led other bankers in selling United States bondswith the intention of buying back gold from foreign investors.
1893. P. Morgan is not happening in today’s financial markets because there are central banks in all countries. The centralbanks control the financial economies of the respective countries. During the era of Morgan, there was no Central bank in United States. This made Morgan use his influence to save United States from the disaster, which was caused by manyeconomic crises. Today, financiers having same qualities like those of Morgan are not trusted. This is because they are seen that they are fighting for their own interests.

The leadership qualities we can learn from Morgan are; we should learn from mistakes and have risk assessment. Morgan was having frequent risk assessment in everything that he was anticipating to do in his company and business. J. P. Morgan company was having a good risk assessment whenever the losses were $2 billion and above. This is because goodmanagement of risks would enable him to minimize or eliminate risks. It is good that we learn from mistakes. This will help us to improve on the weaknesses in the future and avoid further losses. Dimon and Co. collapsed because it did not learn from both theirs and others mistakes. Dimon witnessed the collapse of AIG, but it did not take any measure to reassess itself. Morgan did not take what he witnessed happening to Dimon seriously. After sometimes, Morgan incurredmany losses that he would have escaped if he had considered and act on what happened to Dimo & Co.