Charles E. Mitchell

Charles Edwin Mitchell (October 6, 1877 – December 14, 1955) was an American banker whose incautious securities policies facilitated the speculation which led to the Crash of 1929. 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 to a Jewish family, where his father, George Edwin Mitchell, worked for a produce dealer and served as mayor from 1887 until 1888. Mitchell graduated from Amherst College in 1899, after which he got a job with the Western Electric Company in Chicago. 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. 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 was attempting to curb speculation earlier in 1929, Mitchell flaunted a $25 million advance to traders.