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Purpose and benefits

Paul Warburg (1868–1932) was born to be a banker in the German family firm of M.M. Warburg and Company. Instead he followed his heart, moving to the United States, and becoming a partner in the prestigious Wall Street bank Kuhn, Loeb, and Company. Shocked by the primitive financial systems in place, the scholarly Warburg became a prominent figure following his publication of papers on banking and finance. His ideas drew the attention of the powerful Rhode Island senator, Nelson Aldrich. In 1910 Aldrich invited Warburg to a secret conference at Jekyll Island, Georgia. On that trip Warburg was instrumental in laying down the foundations for the US Federal Reserve Bank. A friend to both Republicans and Democrats in power, Warburg was eventually appointed to the board of the central bank he did so much to help set up.