November 9, 1903

A rich man's panic

The Panic of 1903 reached its nadir--the Dow dropped to a paltry 42.15 as the stocks of industrial companies plunged to single-digit lows. Also known as the "Rich Man's Panic," the fiscal crisis dragged on for the rest of the year, taking a severe toll on banks, as well as many steel and iron producers.

November 9, 1988

Brief life for Bush dollar

So much for the thrill of victory. Despite rolling over Democrat challenger Michael Dukakis in the 1988 presidential election, George Bush couldn't win the favor of the markets. Bush's victory did give a boost to the dollar, albeit a brief one. As one Wall Street veteran pointed out, "the 'Bush Dollar' lasted a very, very short time--about an hour." Still, traders and financial officials suggested that the day's action was far from a reflection on the new commander in chief. Rather, the afterglow of the '88 campaign was eclipsed by fears about the nation's budget and trade deficits, as well as suspicions that the central banks had "propped-up" the drooping dollar during the election season. As a result, America's currency dropped to its lowest mark in ten months, triggering declines in stock and prices.

November 9, 1993

Gore, Perot debate NAFTA

Vice President Al Gore and presidential hopeful Ross Perot hit the nation's airwaves to argue the merits of the North America American Free Trade Agreement (NAFTA). The informal debate, broadcast on CNN's Larry King Live pivoted around NAFTA's potential impact on the U.S. workforce. Gore supported the legislation, reasoning that it would pave the way for a global economic structure that would boost the country's economy. Perot, meanwhile, touched a populist chord, warning that NAFTA would only result in the farming out of factory jobs to countries with workers who earned cheaper wages and fewer benefits. The vice president and other NAFTA supporters prevailed, and the agreement soon made its way into the law books. Labor loyalists took Gore and President Clinton to task, interpreting their support for NAFTA as a sharp break from traditional Democratic pro-union policies.

November 13, 1789

Ben Franklin complains about taxes

Complaining about taxes is nothing new for Americans. Indeed, in a letter he wrote on November 13, 1789, Benjamin Franklin lamented to a friend, "In this world nothing can be said to be certain, except death and taxes."

November 13, 1879

NYSE gets connected

The burgeoning communications industry joined hands with Wall Street on this day in 1879, as the New York Stock Exchange made the move to the modern era, installing telegraph and phone lines.

November 13, 1995

Battle for a balanced budget

In 1995, attempts to balance the nation's terminally troubled budget threatened to send the government flying off the rails. Far from uniting to forge new legislation, Democrats and Republicans languished in partisan bickering, as President Clinton clashed with the newly elected conservative majority in the House. And, on this day in 1995, the conflict nearly came to a head when Clinton shot down a Republican-penned bill to keep the government afloat for another four weeks. The president reasoned that the bill was loaded with political pork that would erode progress that Democrats had made to protect environmental and public health programs. House Speaker Newt Gingrich fired a sharp volley back at Clinton, reminding the president that the Republicans "were elected to change politics as usual." The net result of all the wrangling was a difficult political mess and an extended vacation for some 800,000 government workers.

November 15, 1876

Happy birthday, Ticker!

The stock ticker was unveiled on this day. Not only did this invention feed traders a steady stream of information, but it gave rise to that festive public event, the ticker-tape parade.

November 15, 1994

Growth causes concern?

Rapid growth doesn't sound like a cause for concern, but in 1994, America's booming economy managed to furrow a few brows at the Federal Reserve. Fearful that the fast-paced growth would trigger inflation, the Fed decided to reign in growth by raising short-term interest rates three quarters of a point. The increase, which brought the rate from 4.75 percent to 5.5 percent, touched off a flurry of activity in the financial community, as a number of banks followed the Fed's lead by hiking up their prime lending rates. And, while traders had been bracing themselves for a move by the Fed, they were still surprised by the size of the increase. As a result, Wall Street suffered through a day of volatile action, but the Dow posted only mild losses.

November 20, 1967

Product Safety Commission established

This day brought a victory for shoppers and consumer advocates alike, as President Lyndon Johnson announced the formation of the National Commission on Product Safety. The newly formed agency was charged with sa[censored]uarding the public against "hazardous products," as well as exploring the efficacy of Federal consumer protection legislation.

November 20, 1990

Guinness buys Spanish brewer

The owners of Guinness Beer hoisted a toast on this day to celebrate their $1 billion purchase of Spain's biggest brewer, La Cruz del Campo (Cruzcampo). The deal not only stood as the largest foreign outlay in a Spanish property, but was also a key strategic move for Guinness, which planned to use Cruzcampo as a building block for globalizing its brewing operations

November 20, 1993

Cranston censured for Keating dealings

On this day, the Senate Ethics Committee handed down a stern censure of Alan Cranston, taking the California senator to task for his "dealings" with the scandal-ridden Savings and Loan executive Charles Keating. In the strongly worded statement, which capped off a two-year probe into the actions of the "Keating Five," the committee chided Cranston for "violating unwritten but commonly understood standards of Senate behavior." Specifically, Cranston had pursued $800,000 in "charitable contributions" from Keating during the same period in which he had acted with Federal regulators to defend Lincoln Savings and Loan, Keating's troubled operation. However, an enraged Cranston took to the Senate floor to rebut the claims brought against him. "Nothing I did violated a law or Senate rule," the senator declared, though he did tender an apology for engaging in behavior which gave the appearance of being improper.

November 27, 1979

U.S. Steel announces loss

Looking to boost its sagging profit margin, U.S. Steel announced on this day that it was shutting down twelve of its plants, a move that threatened the jobs of 13,000 employees. The company also unveiled plans to slow down work at other factories, as well as to take a hefty net loss for the year. In the face of this costly decision, U.S. Steel officials placed much of the blame on "restrictive government policies and rules," which putatively resulted in "unfairly priced imports" and excessive environmental spending requirements. Some analysts questioned this conclusion, wondering if a fatter profit margin would have prompted U.S. Steel to invest more in its aging plants.

November 27, 1995

Healthcare giants merge

The health care industry got a bit tighter, as AmHS/Premier and SunHealth Alliance announced their plans to merge. By joining forces, the industry titans formed the nation's biggest health care network, complete with over 650 hospitals and 1,000 affiliates in fifty states.

November 30, 1988

RJR Nabisco gets snapped up

In 1988, a group of some of the world's most powerful companies engaged in a protracted struggle to acquire a rather hefty prize--RJR Nabisco. After a period of furious action, a management group led by RJR executives, as well as Shearson Lehman Hutton Inc. and Salomon Inc. had seemingly seized the day, topping the list of bidders with an offer of $25.76 billion. The runner-up was New York buy-out specialist Kohlberg Kravis Roberts (KKR), who anted up $25.07 billion. Surprisingly, RJR Nabisco decided to accept the lesser offer and gave the nod to KKR. Understandably stunned by the outcome, representatives for the defeated management group blasted the auction as a "suspicious" process. Officials for RJR Nabisco did little to cool the controversy, issuing a statement, which, outside of deeming the two bids "substantially equivalent," did little else to explain their decision. However, a few fingers were pointed at F. Ross Johnson, RJR president and the head of the management group, who, a few weeks earlier, had angered Nabisco's board by tendering an initial $75-per-share offer that unintentionally touched off the bidding war for the company.

November 30, 1995

Justice Dept. indicts 11 brokers

Looking to get tough on stock fraud, the Justice Department indicted eleven brokers in a case decided on this day in 1995. According to federal prosecutors, the brokers had developed an elaborate scheme to swipe large sums from their clients' holdings. Along with the usual round of fines, the government marshaled criminal sanctions in the case, meaning that the guilty brokers would likely wind up serving prison terms. The ruling marked the first time in years that such stern penalties had been levied in a fraud case. Following the announcement, Securities Exchange Commission chairman Arthur Levitt defended the strong-arm tactics, arguing that "the penalty for swindling investors is severe."

December 6, 1887

Cleveland fights tariffs

By the late 19th century, the nation was engulfed in a debate over tariffs. Indeed, projectionists, who heralded tariffs as a necessary measure to sa[censored]uard American goods, clashed with a growing portion of the public who felt that product protection was an unnecessary crutch for the nation's businesses. On this day in 1887, President Grover Cleveland called for significant tariff reductions and, during the next decade, Cleveland did his best to roll back tariffs, supporting various bills designed to ease foreign trade restrictions.

December 6, 1994

Orange County goes bankrupt

Financial disaster hit Orange County on December 6, 1994, as a dalliance with high-risk investing forced the affluent California community to file for bankruptcy. The move, which marked the single biggest bankruptcy filing by a municipality, capped off a disastrous run for Orange County and its multi-billion-dollar investment fund. Though top-heavy with low-risk bonds, the fund was a ticking time bomb. Indeed, Orange County officials had built up their holdings through reverse repurchase agreements, a potentially perilous strategy in which investors borrow money to buy securities. In return for the loan, investors put up the securities as collateral; brokers also require additional collateral when "adverse" market events occur. Orange County's fund had been struggling for well over a year, forcing the brokers, which included a number of Wall Street firms, to seek more collateral. Heavily leveraged and heading for trouble, the fund's losses wandered into the neighborhood of $2 billion before county officials decided it was time to raise the white flag and file for Chapter 9.

December 12, 1805

Wells Fargo founder is born

December 12, 1805, brought the birth of Henry Wells, one of the fathers of speed-conscious delivery and banking services. Born in Thetford, Vermont, Wells cut his teeth working as an agent for HardenÝs Express in upstate New York. Clearly taken with the express transport business, Wells set up his own shop, Livingston Wells and Pomeroy's Express, which ferried "goods, valuables, and specie" between Buffalo and Albany. By 1844, Wells sensed that it was time to push his business west of Buffalo, and he joined forces with William Fargo and Daniel Dunning to start Wells and Company, which would service terrain beyond the upper reaches of New York. While this was all fairly ambitious maneuvering, the 1850s saw Wells make an even stronger move to conquer the express market. First, in 1850, ever ambitious, he merged his two concerns into the American Express Company, which initially covered California and the Eastern seaboard (it later stretched to serve Latin America). Then, in 1852, he linked up with Fargo again to form Wells, Fargo and Company, a joint-stock venture that served as a holding company for the Wells Fargo Bank. Along with bankrolling business ventures, Wells used his ever-swelling fortune to aid the plight of chronic stutteres, as well as to establish Wells Seminary (now Wells College) for women.

December 12, 1900

U.S. Steel formed

Early in December of 1900, Charles Schwab and fellow financier cum entrepreneur, J. Pierpont Morgan, sat down for dinner and hatched the idea of forming a giant steel conglomeration. Schwab whirled into action, looking for suitable companies to merge into a mighty combine. He quickly hit his target: Andrew Carnegie. After assuaging Carnegie and Morgan's egos, and brokering a delicate financial agreement, Schwab announced the formation of U.S. Steel on December 12.

December 12, 1923

Bob Barker is born

December 12 marks the birthday of silver-haired game show impresario Bob Barker. Born in 1923, Barker's main claim to fame is his long standing run as the host of The Price Is Right, the daytime television favorite that features cost-conscious contestants testing their skills as consumers in a variety of pricing games.

December 14, 1790

Hamilton's plan for Bank of the U.S.

While giving his take on the young nation's hefty war debt, Secretary of the Treasury Alexander Hamilton floated a proposal for the Bank of the United States. Under Hamilton's plan, first unveiled on December 14, 1790, the bank would assume responsibility for easing the nation's debt, as well as establishing a healthy line of credit. The bank's distinctly Federalist bent angered planters and states' rights proponents, who not only charged Hamilton with catering to "monied interests," but also derided his plan as unconstitutional. However, after a few months of wrangling and debate over the constitutionality of the proposal, President Washington finally signed the bill for the bank on February 25, 1791.

December 14, 1995

Boeing strike ends

After sixty-nine grueling days on the picket line, machinists for the Boeing Company gave the go-ahead to a new contract on this day in 1995. The deal was studded with labor-friendly items, including a bonus, an hourly-wage increase, and an improved health plan, prompting union leaders to declare victory in the strike. It was a rare ray of hope for the beleaguered labor movement, which only a week earlier had seen an eighteenth-month walk-off against Caterpillar end in defeat. Along with the pay hike and health plan, the 33,000-striking machinists also gained some ground on sa[censored]uarding workers whose jobs are sent overseas. Indeed, Boeing agreed to retain and re-train anyone affected by "subcontracting" to cheaper international plants. However, some analysts tempered labor's celebration, noting that Boeing still intended to send 52 percent of its work overseas or to non-union U.S. plants. As Charles Hill, professor of management at the University of Washington explained, the workers came out on top, though "they didn't win as much as they all think they did."

December 18, 1987

Boesky is sentenced

The hammer finally came down on Ivan Boesky on this day in 1987, as Federal Judge Morris E. Lasker sentenced the once mighty arbitrageur to a three-year prison term. Boesky, who had been one of the wealthiest and most powerful players on Wall Street, was found guilty of insider trading, as well as a series of sizable but shady transactions, crimes that constituted what The Wall Street Journal deemed the "largest scandal in Wall Street's history." While Lasker chided Boesky for committing offenses "of the highest seriousness," the arbitrageur cushioned his fall by agreeing to implicate other firms and figures suspected of securities crimes. The result was a relatively lenient ruling that raised a number of eyebrows. A share of the criticism was directed at Rudolph Giuliani, the U.S. District Attorney for Southern New York, who was accused of using the insider trading scandals as a vehicle to forward his political ambitions. The high-profile Wall Street convictions certainly didn't hurt Giuliani's career, as the D.A rode his newfound status as a hard-driving crime fighter to become mayor of New York City. As for Boesky, the fallen arbitrageur ended up serving two years of his prison term and handed over $100 million in fines.