Shareholders Have Rights, Too

In 1792, the nation combated its first financial crisis on record. According to financial historians, the Panic of 1972 stemmed from a scheme to drive down the stock of the Bank of New York(BK Quote) in order to grab control of Bank of New York and launch a rival bank. The crisis led the nation's first Secretary of the Treasury, Alexander Hamilton, to intercede in the financial markets.

As it so happens, Hamilton had founded Bank of New York in 1784, creating parallels to Secretary Henry Paulson and Goldman Sachs(GS Quote) in the current financial crisis.

The Financial Panic of 1792 resulted in two actions: The New York legislature enacted a ban on short-selling, and 24 stockbrokers met under a Buttonwood tree outside of 64 Wall St. and signed the Buttonwood Agreement on May 17, 1792. That agreement established minimum commission rates and was the origin of the New York Stock Exchange, now owned by NYSE Euronext(NYX Quote). ...