Part 3 Chapter 33 Traders Summary and Analysis

In the 1980s Morgan Guaranty enters investment banking in London bringing it into confrontation with Morgan Stanley and Morgan Grenfell. In 1981 Morgan Grenfell is told that Morgan Guaranty intends to sell its one third interest in the firm. They sell it little by little over a year quietly so it doesn't look like they are dumping Morgan Grenfell. Lloyd's of London broker Willis Faber is the buyer and chief shareholder. Morgan Grenfell promptly expands its New York operations and by 1985 joins the NYSE. At this time Morgan Bank is making more money from investment banking and trading. The London bank is very successful and is second in Eurobonds in 1984. It is also very active in foreign exchange, gold bullion and financial futures.

The Morgan bank also plays a role in the 1984 rescue of the Chicago bank, Continental...