Fraud Wipes Out a Former President
Ulysses S. Grant, a renowned war hero and former president, only wanted to help his son succeed in business, but he ended up causing a financial panic. Grant's son, Buck, had already failed at several businesses but was determined to succeed on Wall Street. Buck formed a partnership with Ferdinand Ward, an unscrupulous man who was only interested in the legitimacy gained from the Grant name. They opened up a firm called Grant & Ward. Ward immediately went around raising capital from investors, falsely claiming that Ulysses S. Grant had agreed to help them land fat government contracts. Ward then used this cash to speculate on the market. Sadly, Ward was not as gifted at speculating as he was at talking. He lost heavily.
Of the capital Ward squandered, $600,000 was tied to the Marine National Bank, and both the bank and Grant & Ward were on the verge of collapse. Ward convinced Buck to ask his father for more money. Grant Sr., already heavily invested in the firm, was unable to come up with enough, and had to ask for a $150,000 personal loan from William Vanderbilt. Ward essentially took the money and ran, leaving the Grants, Marine National Bank and the investors holding the bag. Marine National Bank collapsed after a bank run and its fall helped touch off the panic of 1884.
Grant Sr. paid off his debt to Vanderbilt with all his personal effects, including his uniforms, swords, medals, and other memorabilia from the war. Ward was eventually caught and imprisoned for six years.
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