The Panic of 1907: Lessons Learned from the Market's 'Perfect Storm' »

Robert F. Bruner is the Dean of the Darden Graduate School of Business Administration and Charles C. Abbott Professor of Business Administration at the University of Virginia. He is the author or coauthor of more than 400 case studies and notes as well as the author of two other Wiley titles, Applied Mergers and Acquisitions and Deals from Hell. Bruner specializes in the areas of corporate finance, mergers and acquisitions, and investing in emerging markets. Bruner holds a BA from Yale University and an MBA and DBA from Harvard University.

Sean D. Carr is the Director of Corporate Innovation Programs at the Darden School's Batten Institute, University of Virginia. His applied research in new ventures and corporate finance has been published in numerous award-winning case studies, books, and digital media. Previously, Carr spent a decade as a journalist, having served as a producer for both CNN and ABC News's World News Tonight with Peter Jennings. He holds a BA from Northwestern University, an MS from Columbia University, and an MBA from the University of Virginia.

Why do markets crash and bank panics happen? Conventional wisdom has gathered, like iron filings, at two intellectual poles: at one extreme is a hodge-podge of idiosyncratic, period-specific causes and at the other is a host of all-encompassing "single bullet" theories. In The Panic of 1907, authors Robert Bruner and Sean Carr offer an alternate perspective through a detailed narrative of one of the worst crises in modern financial history—one which ultimately transformed the American financial system and resulted in the establishment of the modern Federal Reserve.

Drawing from rare source materials, Bruner and Carr take you day by day through the crisis in 1907, revealing what happened, why it matters, and what we can learn from it. Beginning with a catastrophic earthquake in San Francisco and culminating in the shocking suicide of the deposed president of one of New York's leading financial institutions, this book will draw you into the central issues surrounding the panic of 1907. Throughout this journey, you'll not only become familiar with the events of the crisis, but you'll also discover how larger-than-life figures, such as the inestimable J. Pierpont Morgan, took it upon themselves to provide leadership—and inspire confidence—at a time of great uncertainty and instability.
Filled with in-depth insights, The Panic of 1907 offers a deeper understanding of what influences financial markets—both then and now. Through this engaging case study of the panic and crash, Bruner and Carr provide a useful framework for understanding these events, suggesting that major financial crises can be the result of a convergence of certain, uniqueforces—the forces of the market's "perfect storm"—that can cause investors to react with alarm.
When the many elements of the next financial storm converge, will you be ready? With The Panic of 1907 as your guide, you'll be prepared to assess, understand, and anticipate the factors that can lead to a crisis.

Acknowledgments.

Prologue.

Introduction.

Chapter 1. Wall Street Oligarchs.

Chapter 2. A Shock to the System.

Chapter 3. The "Silent" Crash.

Chapter 4. Credit Anorexia.

Chapter 5. Copper King.

Chapter 6. The Corner and the Squeeze.

Chapter 7. Falling Dominoes.

Chapter 8. Clearing House.

Chapter 9. Knickerbocker.

Chapter 10. A Vote of No Confidence.

Chapter 11. A Classic Run.

Chapter 12. Such Assistance As May Be Necessary.

Chapter 13. Trust Company of America.

Chapter 14. Crisis on the Exchange.

Chapter 15; A City in Trouble.

Chapter 16. A Delirium of Excitement.

Chapter 17. Modern Medici.

Chapter 18. Instant and Far-Reaching Relief.

Chapter 19. Turning the Corner.

Chapter 20. Ripple Effects.

Lessons. Financial Crises as a Perfect Storm.

Appendix A. Key Figures After the Panic.

Appendix B. Key Definitions.

References.

Notes.

About the Authors.

Index.