Morgan Underwrites Debt Issue: J. P. Morgan...

Morgan Underwrites Debt Issue: J. P. Morgan & Co., the New York bank holding company, became the first bank to lead underwrite a corporate bond offering since the early 1930s, marking a major erosion of the Glass-Steagall Act that has prevented banks from underwriting such debt. A Morgan unit, which along with other bank units was given authority in July by the Federal Reserve to underwrite corporate debt on a limited basis, won a competitive bid to offer $30 million of bonds issued by Savannah Electric & Power.