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Quote of the Day
“I was just turning into Wall Street from Broadway when I first felt, rather than heard, the explosion. A concussion of air similar to that experienced by a passenger on the subway when the train dashes into one of the under River tubes was felt. Its force was sufficient to all but throw me off my balance. Instantly following the concussion came a sharp, resounding crash, which shipped to their foundations the monster buildings facing either side of Wall Street. With the roar of the blast came the rattle of falling glass, and from the junction of wall, Nassau and broad streets – a block distant – screams of injured men and women.”
– B.F. Borsody, reporter for the Associated Press, describing the bombing of J.P Morgan Bank, which occurred on this day in 1920.
Source: P. 114 – Eyewitness to Wall Street
September 16th – This Day in Stock Market History
September 16th, 1920 – J.P Morgan Bank is bombed.
The explosion occurred just before noon by a horse-drawn carriage packed with explosives. 40 people were killed and 130 injured by the blast.
The bombing seemed to have no effect on stocks on the day, as the Dow Jones Industrial Average finishes up 0.92% on the 16th and up 1.49% the following day.
To this day, the bomber still remains a mystery. Source: Eyewitness to Wall Street
The building still shows scars from the blast today:
September 16th, 2008 – AIG is bailed out with $85 billion dollar loan from Federal Reserve bank.
Shares in AIG were down 61% the day before, and was down 70% at one point on this day as traders had just witnessed Lehman’s bankruptcy and feared AIG would be let fail as well.
The loan would result in the U.S. government having 80% stake in AIG.
Although AIG survived the crisis, shareholders will likely be waiting a while to be made whole.
Below, AIG’s stock chart since financial crisis…ouch (click to enlarge):
Best September 16th in Dow Jones Industrial Average History
1901 – Up 4.10%, 2.02 points.
Worst September 16th in Dow Jones Industrial Average History
1908 – Down 1.49%, 0.88 points.
Read of the Day
Despite the attack on this day in 1920, J.P Morgan built the foundation of a financial empire that would become one of the world’s largest financial companies a century later.
Today, JP Morgan puts out of my of favorite quarterly research reports, their “Guide to the Markets”. It is full of interesting facts and charts.
The most recent quarter’s report can be found here (free) : https://am.jpmorgan.com/us/en/asset-management/gim/adv/insights/guide-to-the-markets/viewer
<– Go To Previous Day: September 15th, 2008 – Lehman fails, Merrill Lynch Sold. One of the most memorable days of the 2008-2009 financial crisis.
Go To Next Day: September 17th – Stocks plunge as they trade for first time since the September 11th attacks. –>