Business: Kuhn, Loeb at Work

In Wall Street in the happy days of the 1920's, companies were known by the bankers they kept. Mere fact that J. P. Morgan & Co. sponsored a corporation's securities was enough market-wise to send them soaring the instant they were issued. Since then, however, what with his memories of the Kreuger fiasco and other notable glimpses of bankers at work, the average investor has grown skeptical. Furthermore, New Deal legislation, like the requirement that all private bankers choose between their securities and their deposit business, has severed many a traditional corporate connection....