Charles Edwin Mitchell (October 6, 1877 – December 14, 1955) was an American banker whose incautious

securities A security is a tradable financial asset. The term commonly refers to any form of financial instrument, but its legal definition varies by jurisdiction. In some countries and languages people commonly use the term "security" to refer to any for ...

policies facilitated the speculation which led to the

Crash of 1929 The Wall Street Crash of 1929, also known as the Great Crash, was a major American stock market crash that occurred in the autumn of 1929. It started in September and ended late in October, when share prices on the New York Stock Exchange colla ...

. First National City Bank's (now Citibank) abuses under his leadership brought an end to ownership of investment affiliates by commercial banks.

Early life and education

Mitchell was born in Chelsea, Massachusetts, where his father, George Edwin Mitchell, worked for a produce dealer and served as

mayor In many countries, a mayor is the highest-ranking official in a municipal government such as that of a city or a town. Worldwide, there is a wide variance in local laws and customs regarding the powers and responsibilities of a mayor as well ...

from 1887 until 1888. Mitchell graduated from Amherst College in 1899, after which he got a job with the

Western Electric Company The Western Electric Company was an American electrical engineering and manufacturing company officially founded in 1869. A wholly owned subsidiary of American Telephone & Telegraph for most of its lifespan, it served as the primary equipment m ...

Chicago (''City in a Garden''); I Will , image_map = , map_caption = Interactive Map of Chicago , coordinates = , coordinates_footnotes = , subdivision_type = Country , subdivision_name ...

Career

In 1903, he became assistant to its president. After three years, he left the firm and moved to New York City, where he became assistant to the president of The Trust Company of America. Between 1911 and 1916, he ran his own investment house, C. E. Mitchell & Company. In 1916, he became vice-president of National City Company, which he reorganized into a private investment banking firm. Shortly after, he relocated to

Tuxedo Park, New York Tuxedo Park is a village in Orange County, New York, United States. Its population was 623 at the 2010 census. It is part of the Poughkeepsie–Newburgh–Middletown metropolitan area as well as the larger New York metropolitan area. Its name is ...

. Nicknamed "Sunshine Charley", Mitchell was elected president of National City Bank (now Citibank) in 1921 and, in 1929, was appointed chairman. Also in 1921, he was elected president of National City Company, which became the largest security-issuing entity in the world. Under his leadership, the bank expanded rapidly and, by 1930, had 100 branches in 23 countries outside the United States. His salesmen sold millions of shares in the bank totaling $650 million, much of which would be lost in the Crash of 1929. Indeed, while the

Federal Reserve Bank A Federal Reserve Bank is a regional bank of the Federal Reserve System, the central banking system of the United States. There are twelve in total, one for each of the twelve Federal Reserve Districts that were created by the Federal Reserve ...

was attempting to curb speculation earlier in 1929, Mitchell flaunted a $25 million advance to traders.

Arrest and acquittal

Mitchell remained chairman until 1933, when he was arrested and indicted for tax evasion by then Assistant U.S. Attorney

Thomas E. Dewey Thomas Edmund Dewey (March 24, 1902 – March 16, 1971) was an American lawyer, prosecutor, and politician who served as the 47th governor of New York from 1943 to 1954. He was the Republican candidate for president in 1944 and 1948: although ...

. Charges were brought following testimony by Mitchell in which he openly stated that he had sold his stake in National City Bank to avoid paying taxes. Defended by attorney Max Steuer, he was found not guilty of all criminal charges, but the government won a million-dollar civil settlement against him. In 1933, the

U.S. Senate The United States Senate is the upper chamber of the United States Congress, with the House of Representatives being the lower chamber. Together they compose the national bicameral legislature of the United States. The composition and pow ...

Pecora Commission The Pecora Investigation was an inquiry begun on March 4, 1932, by the United States Senate Committee on Banking and Currency to investigate the causes of the Wall Street Crash of 1929. The name refers to the fourth and final chief counsel for th ...

investigated Mitchell as its first witness for his part in tens of millions of dollars in losses, excessive pay, and tax avoidance. In November 1929, U.S. Senator

Carter Glass Carter Glass (January 4, 1858 – May 28, 1946) was an American newspaper publisher and Democratic politician from Lynchburg, Virginia. He represented Virginia in both houses of Congress and served as the United States Secretary of the Treas ...

said, "Mitchell more than any 50 men is responsible for this stock crash.""Damnation of Mitchell"
''

Time Time is the continued sequence of existence and events that occurs in an apparently irreversible succession from the past, through the present, into the future. It is a component quantity of various measurements used to sequence events, ...

''. March 6, 1933. His townhouse on Fifth Avenue, built for him by Walker & Gillette in 1926, with a rusticated facade in the manner of a 16th-century Roman palazzo, now houses the French consulate.

References

{{DEFAULTSORT:Mitchell, Charles E. 1877 births 1955 deaths American bankers Businesspeople from New York City Citigroup people People from Chelsea, Massachusetts American financiers People from the Upper East Side Amherst College alumni