Blog #7

In the early 1900s entrepreneurs wanted to expand and buy other companies, which created new lending opportunities for some New York lenders such as J.P Morgan. Interstate banking and breaching, also known as unit banking, became restricted, however some states began allowing branching at the state level. The panic of 1901 began when Standard Oil purchased the Northern Pacific railroad stock and triggered a stock market panic. Thousands of small investors were wiped out. Then in 1905, it was discovered that some wealthy businessmen were using unscrupulous tactics in their business operations and on the stock market to amass huge profits. These businessmen were referred to as robber barons, and included John D Rockefeller, J.P Morgan, and Andrew Carnegie. Many of their massive businesses controlled a large majority of all activity in their respective industries, which often arrived as predatory pricing schemes that would nowadays be considered illegal