The Knickerbocker Bank

The Federal Reserve that we know now was set up following a private bailout of the banking system sourced in the collapse of the knickerbocker bank. JP Morgan sat down with lots of other bankers and said, guys, if we don't stomach our own cash, to bail out these banks,. We're going to have a bank run that's going to destroy the financial system. They came up with a bailout of their own money with their own money. And then after they bailed out the system, Morgan went to the treasury sector, he says, you have to set up a governmental agency, a central bank like the Bank of England for crises. So that's where the Fed comes from.