Know Why Hetty Green was Called The Witch of Wall Street

Hetty Green was an American entrepreneur who was known for her nickname “The Witch of Wall Street”. She is the first woman to make a substantial impact on Wall Street. Hetty was believed to have lived a frugal lifestyle especially during the Gilded Age.

Hetty was born as Henrietta Howland Robinson. She was born on November 21, 1834 in New Bedford Massachusetts to Edward Mott Robinson and Abby Howland. Her family owned a whaling fleet and engaged in China trade. She became the family’s bookkeeper at the age of 13.

Upon her father’s death in 1864, Hetty inherited a fortune of $7.5 million (estimated to be at $107 million in 2010 after inflationary adjustments). In spite of her family’s opposition, Green decided to invest her inheritance - all were liquid assets - in Civil War war bonds.

Hetty married a wealthy Vermont native businessman named Edward Henry Green in 1967. Hetty and her husband entered into a prenuptial agreement where her husband renounced his rights over her money. The couple moved to London after Hetty was involved in a legal battle with her cousins over her aunt’s will.

While Edward ventured into investments as a “gentleman banker”, Hetty also used her inheritance to create her own fortune in investments. She made conservative investments. She kept substantial amount of cash as reserves to back up future movements. She displayed cool head in the midst of turmoil. While in London, most of Hetty’s investments were on greenbacks, the US-printed notes after the Civil War. When most investors were afraid to invest in notes issued by a government recovering from war, Hetty went full blast. It was believed she made $1.25 million in bond investments in just one year.

The Green family decided to return to the US and settled in Vermont. Hetty’s relationship with Edward and her in-laws, and with domestic helpers and neighborhood storekeepers grew sour; they always quarreled. When John J. Cisco & Son collapsed 1885, where Hetty was the largest investor, it was discovered that Edward was the company’s biggest debtor. The management mused that it used Hetty’s riches as bases for extending loans to Edward. Hetty emphasized that their assets were separate. She withdrew her equities from the company and placed them in Chemical Bank. This led Edward to move out of home.