Question

In: Economics

1. who was charles E Mitvhel and role did he play?

1. who was charles E Mitvhel and role did he play?

Solutions

Expert Solution

  • 1. Charles E. Mitchell was an American banker.
  • His policies facilitated the speculation
  • Which led to crash of 1929.
  • He was born in Chelsea,mMassachusettes,
  • Graduated in Ambert college in 1899.
  • Got a job in western Electric company in Chicago.
  • He became assistant to the president on Trust company of America in 1903.
  • Ran his own investment house C.E.Mitchell and Company.
  • Shortly he shifted to Tuxedo,in New York.
  • He was elected as president of National city Bank.
  • Hugely increased the bank assets to thousands of people.
  • Appointed as a chair man in 1921 to 1929
  • Under leadership of him, the bank expanded rapidly.
  • In 1930, hundred branches in 23 countries outside US.
  • His sales men sold millions of shares in the bank which led to the crash of 1929.
  • He was the chair man until 1933.
  • After that he was arrested and indicted by tax evasion.
  • He openly stated that he had sold his stake in National city Bank to avoid paying taxes.
  • Defended by attorney max steuer,he was not found guilty of all criminal charges.
  • In 1933,senate Senate''s pecora commission investigated him.
  • As its first witness for his part in terms of millions of dollars in losses.
  • In 1929,senato crash told that"Mitchell more than 50 men is responsible for his stock crash.

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