Charles E. Mitchell
Charles Edwin Mitchell | |
|---|---|
| Born | October 6, 1877 Chelsea, Massachusetts, U.S. |
| Died | December 14, 1955 (aged 78) |
| Occupation(s) | Financier, banking executive |
| Known for | President and chairman of National City Bank (now Citibank), role in 1929 stock market crash |
Charles Edwin Mitchell (October 6, 1877 – December 14, 1955) was a prominent American financier whose aggressive securities strategies played a major part in the speculative activities that precipitated the Crash of 1929. His tenure at First National City Bank (currently known as Citibank) was instrumental in influencing the passage of the Glass-Steagall Act.
Early life and education
Born in Chelsea, Massachusetts into a Jewish household, Mitchell was the son of George Edwin Mitchell, a produce merchant who also held the office of mayor from 1887 to 1888. He completed his studies at Amherst College in 1899 and launched his professional journey with the Western Electric Company in Chicago.
Career
By 1903, Mitchell had advanced to become assistant to the president of Western Electric. Three years later, he relocated to New York City to serve as assistant to the president of The Trust Company of America. From 1911 until 1916, he managed his own investment firm, C. E. Mitchell & Company. In 1916, he assumed the role of vice-president at National City Company, where he reshaped it into a private investment banking institution. Subsequently, he took up residence in Tuxedo Park, New York.
Known as "Sunshine Charley," Mitchell was appointed president of National City Bank (now Citibank) in 1921 and elevated to chairman in 1929. That year also saw him serve as president of National City Company, which evolved into the largest issuer of securities worldwide. Under his guidance, the bank experienced rapid growth, operating 100 branches across 23 nations by 1930. Sales agents distributed $650 million worth of shares, a significant portion of which was lost during the Crash of 1929. Despite attempts by the Federal Reserve Bank earlier that year to restrain speculative trading, Mitchell extended $25 million in loans to traders.
Arrest and acquittal
Mitchell held the chairmanship until 1933 when Assistant U.S. Attorney Thomas E. Dewey charged him with tax evasion. He acknowledged selling his shares in National City Bank to circumvent tax liabilities. With legal defense by attorney Max Steuer, Mitchell was found not guilty on criminal counts but agreed to a civil settlement amounting to $1 million. The U.S. Senate's Pecora Commission summoned him as its initial witness amid inquiries into substantial financial losses, excessive executive pay, and tax avoidance practices. Senator Carter Glass famously remarked in November 1929 that "Mitchell more than any 50 men is responsible for this stock crash."
Mitchell's townhouse on Fifth Avenue, constructed in 1926 by Walker & Gillette featuring a rusticated exterior modeled after a 16th-century Roman palazzo, currently serves as the location for the Consulate General of France, New York City.