Capital of Capital

March 17, 2014
Gotham conquers the world of finance, for better and worse, in this perspicacious history of New York’s banking industry, a companion to the Museum of the City of New York exhibit. Historian Jaffe and curator Lautin follow New York banking from its post-Revolutionary beginnings to the 20th-century apotheosis as the headquarters of America’s industrial revolution to the industry’s latter-day boom-and-bust travails. The authors present a clear, easy-to-read account of banking innovations, from 19th-century bank-notes—thousands of banks issued (allegedly) gold-backed IOUs as a privatized currency—to the collateralized debt obligations that imploded in 2008, with interesting sidebars on counterfeiting, bank robbers, and other arcana, all illustrated with photos of objects from the Museum’s collection. They focus on New York’s centrality in financing (and destabilizing) the national economy, but also examine how banks shaped and reflected the city’s culture and environment. Jaffe and Lautin evenhandedly referee the eternal battle between bankers and populists who consider it a juggernaut of corruption and debt tyranny crushing farmers and workers—Occupy Wall Street is just the latest version—while probing its legacy of employment and lending discrimination. This lively, judicious treatment illuminates the mysteries and controversies surrounding Wall Street while ably conveying its impact on modern life. Illus.