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EspañolINVESTMENT BANKER
An 'investment banker' is a person representing a financial institution that is in the business of raising capital for corporations and governments (municipalities and state authorities). Investment bankers are the people who put together the financing ideas and then the paperwork for IPOs, regular corporate financings as equity and bond issues; and financings for governments.
An investment bank or investment banker does not accept deposits or make commercial loans.
Leading Investment Bankers 1900-1950
In the earlier years of Wall Street (1800-1935), commercial banks as JP Morgan functioned then as Investment Banks. After the Glass Steagall Act (c. 1933) this function was required to be split off from those commercial banks.
This requirement blurred in 1980s to the present, as commercial banks again sought and obtained permission to enter the arena of Wall Street business and the Glass Steagall Act was repealed.
★ George Walker, Brown Brothers Harriman & Co. (CEO 1930-1950)
★ JP Morgan, Morgan Guaranty (Founder, CEO 1890-1920)
★ Clarence Dillon, Dillon, Read & Co (Founder, CEO 1920-1960)
★ C. Douglas Dillon, Dillon, Read & Co (CEO, Chairman 1960-1985)
Investment Bankers
'Allen & Company
★ Founded 1922 by brothers Herbert & Charles Allen
★ Leading investment banker to media
★ Herbert Allen, Jr.
'A. G. Becker & Co.'
★ founded 1880 - Chicago, NYC
★ 1980-83 b'ot by SG Warburg & Co. Ltd & Banque Paribas
★ Warburg sold to Paribas > Becker Paribas
★ 1985 Paribas sold Becker Paribas to Merrill Lynch
★ Daniel Good (CEO, 1982-1984)
'Bache & Co.'
★ Bought by Prudential Insurance Company of America in 1981
★ renamed Prudential Securities
★ Sold by Pru to Wachovia Securities in 2001
★ Jules Bach (CEO, 1880-1900)
★ ...
★ Hardwick 'Wick' Simmons (CEO, ?1990-2001)
★ Daniel J Ludman CEO 2001-present
'Barings Bank'
★ 1762 founded by Francis Baring
★ 1802 bought Louisiana purchase, resold to USA
★ 1830s saves Bank of England
★ 1840s-1880s financed RRs across USA
★ 1995 larger trading losses cause sale
★ 1995 no help by Bank of England
★ 1995 Bought by ING
★ Part Sold to ABN Amro in 2004 & Barings Asset Management (BAM) split and sold to MassMutual and Northern Trust
★ Maurice Baring
'Bear Stearns'
★ Sy Lewis (CEO, ?1960-?1975)
★ Ace Greenberg (CEO, 1975-1988)
★ James Cayne (CEO, 1988-Present)
★ Jeffrey Epstein
★ Jerome Kohlberg, Jr. to found KKR-Kohlberg Kravis & Roberts
★ Henry Kravis to found KKR
★ George Roberts to found KKR
★
★ Subprime fund issues (Apr-Aug 07)
★
★ Aug 9 Reuters says BS may have China inv by ? CITIC ?
'Blyth & Co.'
★ Blyth Witter & Co founded 1914 San Francisco
★ Name changed to Blyth & Co. 1928
★ Charles Blyth
★ Charles Mitchell - from National City Bank
★ 1954 Brings Ford motor public with largest IPO ever
★ Bill Morgan heads no. 1 public finance group
★ 1972 Merged with Eastman Dillon Union Securities & Co. with
new name Blyth Eastman Dillon & Co.- see next listing
★ Frank Mansell (CEO, 1965-1972)
'Blyth Eastman Dillon & Co.'
★ (names-Blyth Eastman, BEDCo, later Blyth Eastman Paine Webber)
★ Blyth & Co merged with Eastman Dillon in 1972
★ BEDCo no. 1 in public finance (as Blyth was) 1972-1982
★ Bought by the insurance company INA 1977
★ 1979/80 INA sells to Paine Webber
★ Joe H King
★ James F Miller
★ Bill Boothby CEO, 1972-1979
★ Al Shoemaker(Alvin V)CEO, 1979-1981
★ James F Cleary Pres,1977-1982
★ Don Maron CEO, 1981-1985
★ William E Simon VCh, Soly 2 SecUSTreas 2 Blyth 2 Wesray
★ Minos A Zombanakis Ch BEDCo Int'l
★ John T Booth EVP
★ Jack Kelsey EVP, 1975-?1985
★ Jim Lopp (to EF Hutton)(& founder of MBIA)
★
★ Lopp founds IDBs,Poll'n Bonds BEDCO does 50%(1960-80)50 billion
★ Dick Locke (to EF Hutton)
★ Scott Pierce (to EF Hutton, then to Pru-ceo PAMCo)
★ H Tommy Kilburn 1974-?1994
★ Howard L Clark Jr 1970-1981, to Am Exp, Lehman (VCh)
★ Paul Kelly to found Peers & Co
★ Benj V Lambert founds EastDil Realty
★ Harold Tanner to head banking Salomon Bros
'Brown Brothers Harriman & Co.'
★ created 1931 from Merger of Brown Bros & Co & WA Harriman
★ W.A. Harriman
★ Averill Harriman Gov of NY, Amb to Russia & UK
★ George Herbert Walker ceo grandfather of Pres Bush41
★ Prescott Bush sr partner, father of Pres Bush41
'Cowen Group'/'Cowen & Co LLC'
★ US Subsid SG Cowen-arm of SocGen (Societe Generale-French bank)
★ Arthur Cowen 1918-
★ Henry Cowen 1918-
'Dillon, Read & Co.'
★ Bought by UBS Warburg. Now part of UBS.
★ Clarence Dillon 1930-1960
★ C. Douglas Dillon ?1950-?1960
★ Nick Brady 1980-1988
★ Franklin Hobbs IV
★ Catherine Austin Fitts
★ Markus Granziol ? 2002-present
'Donaldson, Lufkin & Jenrette / "DLJ"'
★ Founded in 1959 by William H. Donaldson, Dan Lufkin and Richard
Jenrette(from Brown Brothers Harriman & Co. )
★ 1970 first Wall Street firm to go public
★ Bought by Equitable Life and then purchased by First Boston. Currently part of Credit Suisse.
★ Alan Wheat 1980-1985
'Drexel Burhnam Lambert'
★ Founded 1830s by Francis Drexel
★ Anthony Drexel ceo 1863-?
★ Drexel partnered with J.P. Morgan to form Drexel Morgan
★ Merged with Burnham
★ Investment by Groupe Bruxelles Lambert& changed name to
Drexel Burnham Lambert
★ Went out of business in the early 1990s. Financing squeeze.
★ Fred Joseph CEO, 1985-1988
★ Michael Milken EVP, 1980-1988 created huge "junk bond" business
★ Abby Cohen Joseph - key strategist, moved to Goldman Sachs
★ Leon Black - moved to found Apollo Management - LBO Firm
'Eastman Dillon'
★ Merged with Union Securities
★ 1972 Merged with Blyth & Co merging aggressive deal makers with 'blue blood' firm.
★ Joe H. King
★ James F. Miller
'A.G. Edwards' / Wachovia Securities
★ founded 1887 by Gen A.G. Edwards in St Louis
★ Benjamin F. Edwards III - Ch/CEO 1965 - 2001
★ deal announced 5/31/07 to be bought by Wachovia Securities
★ Robert L. Bagby CEO 2001 -September 2007, > Ch/CEO of AG Edwards (will be chairman of Wachovia Securities after merger)
★ Daniel J. Ludeman - Current CEO of Wachovia Securities, will be CEO of combined firm after merger.
★ The merger will close on October 1, 2007. The investment banking lines of business will be consolidated into one unit.
'Evercore Partners'
★ founded 1996 by Robert Altman from Lehman Bros
★ 2006 acquired Braveheart
★ Bernard Taylor V Ch from Robt Fleming / Chase
'First Boston'
★ Spinoff of First of Boston Bank, so nickname "FOB"
★ Replaced White Weld as Euro partner with Credit Suisse (1979)
★ Later bought entirely by Credit Suisse c. 1984.
★ Al Shoemaker 1981-1985-FOB to Blyth Eastman & back
★ Peter T Buchanan 1981-1985 co-ceo with Shoemaker
★ John Hennessey 1985-1996 ceo
★ Alan Wheat 1996-2001 ceo
★ John J. Mack 2001-2004 ceo
★ Brady W Dougan 2004-2007 ceo
★ Paul Lallelo 2007-present ceo
★ Joe Perella 1972-1988 to Wasserstein Perella
★ Roger Mehle 1970-79 to Dean Witter,AsstSec US Treas
★
★ V Ch-Paine Webber, Exec Dir Fed Retir Thrift Inv Board
★
★ Blue Hill Trp, Knickerbocker Club, son Adm Roger Mehle
★
★ & "Suzi"(Aileen)Knickerbocker Mehle, NYC gossip columnist
★
★ US Navy Academy, Adm Rickover trained sub officer
'Robert Fleming & Co.'
★ founded 1873 by Robert Fleming
★ 1970 founded Jardine Fleming with Jardine Matheson
★ sold 2000 to Chase
★ Bernard Taylor to Evercore
★ 2003 Fleming Family & Partners founded (Asset Management)
★ John Craven of Morgan Grenfell heads Fleming Family et al
'Goldman Sachs'
★ Marcus Goldman 1869
★ Samuel Sachs 1904-1929
★ Sidney Weinberg CEO, 1930-1969
★ Gustave "Gus" Levy CEO, 1969-1976
★ John C. Whitehead CEO, 1976-1984
★ John Weinberg CEO, 1976-1990
★ Robert Rubin CEO, 1990-1992,Sec of US Treasury
★ Stephen Friedman CEO, 1990-1994
★ Jon Corzine CEO, 1994-1999, Gov of New Jersey
★ Hank Paulson Jr. CEO, 1998-2006 to Sec of US Treasury
★ Lloyd Blankfein CEO, 2006-Present
★ Edward Lampert to ceo-ESLambert Hedge Fund
★ Jim Cramer Trader,Hedge Fund,The Street,Mad Money
★ George Herbert Walker IV
★ John Thain ?1980-2003, CEO NYSE
'Hayden Stone & Co.'
★ Founded 1892
★ Merged with Shearson
'Hornblower Weeks Hemphill & Noyes'
'EF Hutton'
★ Founded 1904 by Edward Francis Hutton, his brother Franklyn Laws Hutton, and Gerald M. Loeb
★ Bought by Shearson in 1987 which had earlier in 1981 been bought by American Express. Later Lehman Brothers (already merged with Kuhn Loeb) was added and all spun off 1994 in an IPO. And Shearson & EF Hutton branches sold to Citibank/Citigroup-now a part of Citigroup's - Smith Barney.
★ John Shad ?1960-?1980
★ Scott Pierce 1982-1987
★ Jim Lopp 1977-?1985
★ Dick Locke 1977-?1985
'Jardine Matheson'
★ 1832 founded Canton, China by William Jardine & James Matheson
★ moved to Hong Kong
★ Keswick Family(see Tai-Pan (novel)(??) ab ceos of this merchant bk)
★ 1970 50/50 Jardine Fleming jt venture w/ Robert Fleming & Co
★ moved to Bermuda
★
★ See also The Hongs
★
★ Dent & Co. Jardine major competitor 1823-1867
'Edward Jones Investments'
★ private brokerage firm in US,Canada & UK-approx 10,000 branches
★ founded by Edward D. Jones, Sr in 1922-1982
★ private satellite network completed 1990
★ Boone Nat'l S&L bought 1995
★ Edward D. Jones, Jr ceo -1990
★ John W. Buchmann ceo/man partner > Ch - SIA
★ Douglas E. Hill coo/man partner 1998-2003; ceo 2003-2005
★ Jim Weddle ceo 2005-present
'Kidder, Peabody & Co.'
★ Founded at Boston, Mass 1865.
★ Bought by GE/GE Capital in 1985.
★ Then sold to Paine Webber in 1994,ending use of its name after 130 years.
★ Mike Carpenter ceo 1994-1997 to Citigroup
'Kuhn, Loeb & Co.'
★ (founded 1867 Cincinnati,Ohio, to NYC 1875)
★ Merged with Lehman Brothers to form Lehman Brothers, Kuhn, Loeb, Inc.. Later renamed Lehman Brothers.
★ Solomon Loeb 1867-1885
★ Abraham Kuhn 1867-1885
★ Jacob Schiff 1885-1920
★ Otto Kahn 1920-1934
★ Felix Warburg 1920-?
★ ...
★ Harvey Krueger ?19 -1977
★ Pete Peterson ch,ceo 1977-1984 - to Blackstone
★ Lewis Glucksman ceo 1983-1987
'Lazard Freres & Co. LLC'
★ Alexander Lazard 1848-1880
★ Elie Lazard 1848-1880
★ Simon Lazard 1848-1880
★ Alexandre Weill 1880-
★ Raymond Phillipe ?1920-?1940
★ David David-Weill 1932-
★ Andre Meyer 1950-
★ Pierre David-Weill
★ Michel David-Weil 1985-2004
★ Felix Rohatyn ?1950-?1992 to Amb to France
★ Bruce Wasserstein 2004-Present
★ Vernon Jordan, Jr
'Lehman Brothers'
★ Founded Montgomery, Ala; moved to NYC, 1868
★ Emanuel Lehman 1850-?1890
★ Mayer Lehman 1850-?1890
★ Henry Lehman 1950-?1890
★ Phillip Lehman 1885- 1947
★ Bobby Lehman 1920s-1969
★ Joseph A Thomas 1969
★ Frederick L Ehrman 1969- 1973
★ Walter Hellman
★ Pete Peterson 1973-1977-1984 to found Blackstone
★ Lewis Glucksman 1983-1987
★ Richard Fuld ceo 1990-Present
★ Howard Clark Jr-V Ch 1885-Present
★ Bradley Jack evo 2000-Present
★ Stephen A. Schwarzman to Blackstone
★ Eric Gleacher to Morgan Stanley to Gleacher & Co to Chase
★ Robert Altman to US Treas, Blackstone, then founded
Evercore Partners
'Loeb Rhoades'
'Merrill Lynch' ceo's
★ Don Reagan 1975-1982 to Sec of US Treasury
★ Daniel Tulley 1988-1992
★ David Komansky 1992-2002
★ Stan O'Neal 2002-Present
'Morgan Grenfell'
★ founded 1854 by George Peabody
★ 1904 Grenfell becomes a partner
★ 1990 sold to Deutsch Bank
★ Michael Dobson ceo 1989-2000 , now ceo Schroders
★ John Craven ceo 2000-2006
★
★ moved 2 Fleming Family & Partners (asset mgt)
'Morgan Stanley'
★ 1933 spun off from JP Morgan due to Glass Steagall act
★ Henry Davidson ?1930-1940
★ 1941 pref stock owned by JP Morgan (Bank) sr execs retired
★ Harold Stanley
★ John Young
★ Robert HB Baldwin
★ Richard B Fisher 1980-1988
★ E Parker Gilbert 1988-1992
★ John Mack 1992-1997
★ Philip J. Purcel 1997-June 2005
★ John Mack June 2005-Present
★ Joe Perella 1993-2006 to Perella Weinstein
'Paine Webber'
★ Name changed from Paine Webber to Blyth Paine Webber to UBS Paine Webber to UBS Warburg to UBS.
★ Paine Webber bought Blyth Eastman
★ then Blyth Paine Webber was bought by UBS.
★ S.G. Warburg was bought by UBS or predecessor SBC
★ UBS later bought Dillon Read & Co.
★ UBS bought Chicago major futures clearing house
★ Don Maron CEO 1980-2004
★ Joseph Granno CEO 2004-present
★ John de Costas
'Perella Weinberg Partners'
★ Joe Perella 2006-present
★ Peter Weinberg 2006-present
'N M Rothschild & Sons'
★ Mayer Rothschild family founds Rothschild banks across Europe
★ Founded 1811, London
★ Evelyn Rothschild
★ David de Rothschild - present
'Salomon Brothers'/'Citigroup Capital Markets'/'Smith
Barney'-See also 'Citigroup'
★ Founded 1910
★ Merged with Phibro (commodities trading firm) c. 1982
★ Bought by Citigroup/Travelers mid 1990s.
★ Billy Salomon 1970-1982
★ Harry Brown (Chicago) 1970-1982
★ John Gutfreund ceo 1982-1991
★ Thomas Straus pres 1984-1991
★ David Tendler co ceo 1983/1984
★ Warren Buffet ch ceo 1991-1992
★ Deryck Maughn ch ceo 1992-1997
★ Mike Carpenter ceo 1997-2003
★ William E. Simon ?1965-1973, Sec US Treasury, Blyth, Westray
★ Jay Perry ?1965-1982,Dean Witter(dec prematurely)
★ Harold Tanner 1982-?1992,New Court to Blyth to Soly
★ Michael Bloomberg to Bloomberg to Mayor of NYC
'Schroders'
★ 2000 sold investment banking arm to Citibank
★
★ rest continues as asset mgt firm
★ Michael Dobson ceo 2001-present
★ Bud Morten NYC 1988-present
'Shearson Hammill & Co.'
★ founded 1902
★ Merged with Hayden Stone among 16 others
★ 1981 Shearson Hayden Stone bought by American Express
★ 1987 Am Express also bought EF Hutton
★ 1984 American Express bought Lehman Brothers Kuhn Loeb which was spun off as Lehman Brothers in ?1994
★ 199? Am Exp sold Shearson/EF Hutton retail brokerage to
Citibank
★ ...
★ Sandy Weill ?1970-1981, ceo, VCh-Am Exp, ceo spinoff
★
★ ceo Travelers/Citigroup
★ Peter Cohen 1982-198?, ceo
★ Jeffrey B Lane 198?-198?, coo , v ch
★
★
★ American Express
★
★
★ founded 1950s as credit card company
★
★
★ Howard L Clark Sr ceo 1960s-?1980
★
★
★ James Robinson ceo 1980-?1992
★
★
★ Louis V Gerstner ceo ?1993-?1998 from ceo IBM,to ceo-Carlyle
'Smith Barney'
★ Bought by Citibank which had already bought Salomon Brothers and even earlier had bought retail brokerage of Shearson/EF Hutton from American Express.
★ Sallie Krawcheck ceo >Citigroup CFO >ceo Citigp Wealth Mgt
★ Todd Thompson ceo 2006-present
'S.G. Warburg & Co.'
★ 1946 founded by S.G.Warburg
★ 1995 bought by Swiss Bank Corporation who later merged with UBS AG
'Wasserstein Perella & Co.'
★ 1988 Founded by Bruce Wasserstein & Joseph Perella
★ 1993 Perella left for Morgan Stanley
★ 2001 Wasserstein sold the firm to Dresdner Bank AG
'White Weld & Co.'
★ founded in Boston
★ partnered with CS in Credit Suisse et de White Weld
★ Purchased by Merrill Lynch in 1978/9.
★ Weld Family
★ Francis Minot Weld Jr. - founder
'Dean Witter'
★ merged with Reynolds & Co.
★ bought by Sears
★ Merged in 1995 with Morgan Stanley
★ William Witter 1930-1975
★ Andy Melton Jr 1975-1980
★ Philip J. Purcell 1981-1995
★ Brad Freeman 1970-1982 >Freeman Spogli & Co (lbo firm)
★ Ron Spogli 1974-1982 >Freeman Spogli & Co >Amb Italy
★ Thomas J Healey 1973-1977 >Asst Sec US Treas >Goldman>Prof Kennedy Sch of Govt
Electronic Firms
An automated trading system submits stock trades to exchanges
automatically. And firms using this are "electronic firms".
(Also, now all larger firms also have this capability today.)
And as exchanges have turned to electronic trading, new firms
which use especially provide electronic trading at reduced
fees have risen to mid level prominence as the following:
'TD Ameritrade'
★ founded 1983
★ Joe Moglia ceo
'The Charles Schwab Corporation'
★ Charles R. "Chuck" Schwabb ceo & founder
★ $1.2 trillion in assets
★ Jul 07 analyst predicts greater than Merrill in size & assets in 4 yrs
'Etrade'
★ founded 1982
★ Mitchell H. Caplan ceo
★ 2005 bought Harris
★ 2005 bought Brown Co
'Scottrade'
★ founded 1980 in Scotsdale, Arizona
★ Rodger O. Riney ceo
★ 2005 rolled out its Scottrade Chinese (electronic) platform available to
Hong Kong, China & Taiwan
Electronic trading was esp pioneered by Archipelago Holdings
which was acquired by NYSE in 2005...; and Instinet which
was acquired by NASDAQ two days after NYSE bought Archipelago
See also CQG providing an electronic platform for stocks
and futures via the internet.
Largest Commercial Banks in Investment Banking
'Bank of America'
★ Began 1904 with Bank of Italy in San Francisco
★ Bought in mid 1920s by TransAmerica
★ merged in 1930 with Bank of America S & Tr. Spun off.
★ c. ?1999 bought by Nations Bank of Charlotte, NC (largest south-east
regional bank) and moved to Charlotte.
★ AP Giannini ?1900-?1935
★ LM Giannani 1935-?1955
★ ...
★ Kenneth Lewis 2000-present
'Bank One'
Merged with JP Morgan in 2004
★ Jamie Dimon ceo 2001-2004
'Barclays Bank' / Barclays PLC
★ founded 1685 London, UK
★ John Varley ceo at Canary Wharf London Headquarters
★ 2007 bid to buy ABN AMRO
★ July 07 China Dev Bank (CDB) invests $3 billion Barclays
From staid, UK bank has emerged with signficiant footprint
in capital markets via asset management arm (Barclays Global Investors) and roll out of its "ishares" ETF sector funds; now has substantial assets under direct management (est $? 1 trillion) for institutions and $500 B for Indiv investors via ishares.
'Chase Manhattan Bank'
Merged with the combined Chemical Bank & Manufacturers Hanover. Then these triple 'giants' finally merged with JP Morgan, adding Bank One in 2005.
★ David Rockefeller 1960-1985
★ Tom Labrecque 1885-1990
★ Walter Shipley 1990-1995
★ William Harrison 1995-2005
★ James Dimon 2005-present
'Chemical Bank'
★ 1983 bought Texas Commerce Bank largest Texas bank
★ 1992 bought Manufacturers Hanover leading lbo lender
★ 1994 merged with Chase Manhattan Bankint'l, retail giant
★ 2000 merged with JP Morgan leading founder major US corps
★ 2004 merged with Bank One midwest giant, w/larger cards ops
★ now called JP Morgan
★ Walter Shipley ceo 1982-1990
'CIBC World Markets'
'Citibank' / Citigroup
★ Founded in 1812.
(no.1 today due to going national and then global in esp credit cards but also in overseas branch banking; esp strongly positioned by Wriston and today's no. 1 - 145 million in credit cards due to core biz Reed built (tho that also fded by Wriston))
★ Samuel Osgood pres 1812-1813
★ Isaac Wright pres 1827-1832
★ Moses Taylor pres 1856-1882
★ Percy Pyne pres 1882–1891
★ James Stillman pres 1891–1909
★ James Stillman chairman 1909-1918
★ (William Rockefeller 1920-40?)
★ Frank Vanderlip 1909-1919
★ James Stillman Jr 1919-1921
★ Charles Mitchell pres 1921–1929
★ Gordon Rentschler pres 1929-1940
★ William G Brady pres 1940–1948
★ Howard Shepard CEO 1948-1952
★ Stillman Rockefeller 1952-1959
★ George Moore 1959-1967
★ Walter Wriston CEO 1967-1984
★ Bill Spencer Pres 1970-1982
★ John Reed CEO 1984-1998
★ Rick Braddock Pres
★ Sandy Weill CEO 1998-2004
★ Charles Prince CEO 2004-present
★ Robert Rubin V Ch 2000-present (former Sec of US Treas)
Citibank history source:
http://www.citigroup.com/citigroup/corporate/history/citibank.htm
(Citibank bought Salomon Bros ?1997 and Smith Barney ?1998;
was bought by Travelers Insurance circa 1995)
'Credit Suisse'
★ strong core of insurance and Swiss banking and US leading capital market position can't seem to be mushroomed due to weaker mgt
★ Gp Ch Walter B. Kielholz
★ Gp CEO Lukas Muhlmann 2000-2003
★ Gp CEO Oswald J. Grubell ?2003-present
★ CS CEO Walter Berchtold ?2003-present
★ CS 1st Boston Brady W
★ Dougan 2004-Present
★
★ Dougan now to be ceo of CS Gp 2007-present
(see above, bought CS First Boston 1988; which then later bought DLJ-
Donaldson Lufkin deJennerette circa 1995)
'Deutsche Bank'
★ the powerhouse for always in Euro leader Germany but has not grown much from this leading position
★ Josef Ackerman CEO, ?2002-Present
★ Alan Greenspan Aug 07 - Present, Advisor
★
★ Former US Fed Res Ch hired to consult including meetings, conference calls to "G" word markets to Deutcshe Bk advantage
'Manufacturers Hanover'
★ 1991 bought by Chemical Bank
(nice guy McGillicuddy stranglehold mgt style strangled his bank)
★ ?1985 moved to former Union Carbide bldg 270 Park Avenue, NYC
★ John McGillicuddy ceo 1975-1991
'JP Morgan Chase'
★ founded by famous financier/banker J.P. Morgan
★ Guaranty Trust Co of NY established 1864 and merged with JP Morgan & Co Inc to form Morgan Guaranty Trust - now JP Morgan (strongly attempting to merge its way to remain at top of USA banking)
★ J.P. Morgan ? 1890-1930
★ ?Benjamin Strong ?1910-1920?
★ ...
★ ?Charlie Stetson ?1960-1975?
★ ...
★ Sandy Warner 1985-1995
★ William Harrison ceo 1999-2005
★ Jamie Dimon ceo 2005-present
★ Don Layton cap mkts 1990-2001
★ Geoffrey Boisi inv bkg 2001-2002
★ Jimmy Lee LBO, M&A lending ?1995-present
(JP Morgan represents merged Chemical Bank,
Manufacturers Hanover Bank, Chase Manhattan Bank,
Texas Commerce, JP Morgan (surviving name) and Bank One)
(and represents several purchases in Investment banking/
Capital Markets as Hambrecht & Quist (venture capital)
and Beacon Hill Mgt Group)(circa 2000 merged with Chase Manhattan Bank - which had already merged with Chemical & Manufacturers Hanover;
c. 2004 JP Morgan(Chase) merged with Bank One)
'Wachovia'
(merger rampage under retired CEO Crutchfield aka "Fast Eddy" for those rapid mergers : at first, caution under present CEO Thompson & Speed up now
- see below purchase of AG Edwards)
★ Edward Crutchfield ? 1985-2001
★ Ken Thompson ? 2002-present
Wachovia includes past independent banks First Union (also a NC bank as Wachovia) and SouthTrust (headquartered in Birmingham, Ala) and the
Wachovia of Charlotte , NC. Ken Thompson of First Union took over the combined bank after retirement of Wachovi'a Edward Crutchfield.
★ 2003 Wachovia bought 63% of Pru's brokerage arm-the former Bache & Co or Prudential Securities
★ 2004 Wachovia bought Southtrust
★ 2005 Wachovia bought Westcorp/Western Financial
★ 5/31/2007 announced Wachovia to buy St Louis based AG Edwards
'WAMU' (Washington Mutual(Savings & Loan)
Has now completed a national rollout of esp its mortgage dept and is noted for its highly successful sales of securities / wall street products via its branch network - about the ONLY bank to have ever had any success with that.
'Wells Fargo
★ Richard Kovacevich ceo ? - June 07
★ John Stumpf ceo June 07 - present
★ 1996 Wells Fargo acquires First Interstate for $17.3 billion.
★ 1998 Norwest buys Wells Fargo for $31.7 billion & adopts Wells Fargo name
★ 2000 Acquired First Security ?
Esp Wells Fargo results from merger of Wells Fargo and Norwest (Bank)
amnong scores of other mergers. Heavy in asset backed lending esp
and mortgages.
'UBS' / UBS AG
(strong position , slow follow through)
★ Marcel Ospel (ch-UBS Group) ?2000-present
★ Peter Wuffli (pres-UBS Gp) ?2000-July,2007-resigned
★ Marcel Rohner (pres-UBS Gp) July,2007-present
★ Markus Granziol (UBS Warburg) ?2002-present
★ John Costas (UBS Warburg) ?1992-June/2005
★ Kenneth Moelis (UBS Warburg)pres 2005-Mar 2007
★ Huw Jenkin (UBS Warburg)ceo July/05-Present
★ Joseph Granno (UBS Paine Webber) ?2000-present
(UBS represents surviving name of SBC-Swiss Bank Corp and UBS-
Union Bank of Switzerland)(UBS and predecessors bought Paine Webber &
Warburg and then bought Dillon Read)(UBS largest bank in Europe with $1.5 trillion in assets on books, so at very top with Citibank)(buying AMRO commodities unit, former Barings, well positioned esp across Asia and larger in commodities financial futures brokerage- target growth area for UBS with now 10-15% of that market).
Note
The above is addressing larger players and while the largest bank
in a smaller country is surely important for that country , it is
no global player ....
The same holds true for Canadian or US regional banks.
Other Overseas Banks
★ European Banks- We list above Deutsche Bank; UBS (plus former SBC/Union Bank of Switzerland)and Credit Suisse ... and mention others next below.
★ Brit / Scot banks
★
★ Barclays /
★
★ National Westminister (Bought by Royal Bank of Scotland)
★
★ Royal Bank of Scotland - bought $100 mm position in Sempra Financial
★
★ HSBC Group(Hong Kong Shanghai Bank Corp)-Michael Geoghegan.
★
★ Barings (Brit merchange bank - see above)wiped out by $1 billion in trading losses by rogue trader after 200 yr solid history with remains bought by AMRO now being sold to UBS.
★ France -
★
★ Credit Agricole
★
★ Credit Lyonnais
★
★ BNP Paribas with ~$1.3 Trillion in assets
★
★ SocGen(Societe Generale)/Cowen Group
are all there but not larger players either...
★ Germany and the other leading German banks have not been able to progress to be players in global financial markets.
★
★ Deutsche Bank AG included above
★
★ Dresden Bank
★ Spain - Banco Santander has emerged a larger merger player expanding into Caribbean and Mexico and steadily moving up...
★ Asian Banks-- While the massive ballooning of financial assets in 1970s and 1980s made the Japanese banks the leading global banks on paper- the bursting of this bubble 1991-1992 deflated that ranking; and today even with mega mergers that have consolidated the former mega sized Japanese banks into 3-4 main banks, the ongoing uncertain size of any underpinning assets leaves clout - but perhaps no substance...though still an amazing no. of Japanese banks are ranked in top 50 (like 20-30) on wisps of underpinnings.
(Japanese securities firms came to Wall St mid 1970s, bloomed, then mostly have downsized though still there - as Daiwa, Nikko, Nomura, Yamaguchi; & Sanyo went out of business)
★ China
Note: in China the People's Bank of China is the government central bank not to be confused with larger bank Bank of China (no Peoples in title) In the summer of 2005, many US firms scrambled to invest (1/2 to 3 billion sized investments) in China's largest banks.
see
★
★ Bank of China
★
★
★ $11.2 billion IPO June, 2006
★
★
★ 8.46% owned by Royal Bank of Scotland
★
★
★ 1.36% owned by UBS AG
★
★ Industrial and Commercial Bank of China (ICBC)
★
★
★ $19.1 billion IPO Oct, 2006
★
★
★ Investment of $3.78 billion by a group including Goldman's GS Capital Partners V fund, Allianz AG and American Express Co.
★
★
★ Investment by Citibank/Citigroup
★
★ China Construction Bank
★
★
★ $9.1 billion IPO 2005
★
★ China Development Bank (CDB)
★
★
★ $3 billion investment in Barclays PLC
★
★ CITIC Group
★
★
★ ?Buying stake in Bear Stearns ?
★
★ China Everbright Bank
★
★
★ Investment by Asian Dev Bank
★
★
★ Bought China Investment Bank
★
★ China investment banks
China investment banks selling securities have mushroomed as esp the Shanghai stock exchange has grown dramatically to several 100 million participants and 80% retail business and that continues to grow rapidly - esp noting its up and down, balloon like quality that makes millionaires rapidly and also ruins individuals rapidly.
(beginning listing)
★
★
★ SIC (China)State Investment Company - State merchant bank -250B US
★
★
★
★ bought (March 2007) 8 % of Blackstone Group (US Merch Bnk/LBO firm)
★
★
★ BOCI Bank of China International (Inv Bkg arm of Bk of China)
★
★
★
★ BOCI China - BOCI mainland investment banking arm
★ Australia
★
★ Macquarie Bank
★
★ Westpac
In Australia , Macquarie Bank is the major local merchant bank. It recently considered buying the London stock exchange in a consortium bid, however the proposed deal fell through. Macquarie has also focused on buying infrastructure related investments esp in the USA
as airports, toll road & toll bridges.
See larger / largest Aussie commercial bank - WestPac.
Capital Raising
The core function of investment banks is the raising of capital, in both debt and equity markets, for companies.
Financial Guarantee Companies
Financial Guarantee companies began as insurers for debt issues; they
were designed to change ratings (by an overlay of their higest rated guarantee on debt deals) from lower ratings to AAA ratings and so save substantially on interest paid. They began with guarantees of municipal
bonds and today have branched out to guarantee asset back pools (mortgage pools, credit card debt pools), projects -including real estate projects, etc.
See also credit default swaps & insured interest rate swaps
& guaranteed investments of (bond) proceeds
★ AMBAC
★
★ 1971 founded a sub of MGIC
★
★ 1982 Baldwin United buys MGIC including AMBAC
★
★ 1983 Baldwin United goes bankrupt
★
★ 1983/4 proprietary proposal by LEC to buy AMBAC to Citigroup
★
★ c. 1984 bought by managers and group lead by Citigroup who later bought out other participants; a "structured ruse" to 'cover' improper taking of LEC proprietary proposal by Citigroup
★
★ 1991 brought public/IPO
★
★ Phillip B Lassiter ceo ? - 2004
★
★ Robert J Genader - ceo 2004-present
★
★ Link
★ Bluepoint Re
★
★ 2004 founded by Wachovia to back up (reinsure) mainline financial guarantee companies
★ Cap Mac
★ CIFG
★
★ founded 2002
★ FIGIC
★
★ 1983 founded by group of companies including GE
★
★ 1985 IPO
★
★ 1989 acquired by GE
★
★ Frank Bivona - ceo
★
★ Link
★ FSA
★
★ 1985 founded
★
★ 1989 acquired by US West
★
★ 1994 public offering
★
★ Robert P Cochran - ceo
★
★ Link
★ MBIA
★
★ Founded by Jim Loop of Blyth Eastman in 1973 with backing by four insurers including Aetna, St Paul, Fireman's Fund , & CIGNA.
★
★ goes public in 1987
★
★ Chairman / CEO - Weil
★ RamRe
★
★ reinsurance for financial guarantee companies
★
★ Link
LBO Funds
Other larger funds today bring billions to invest as LBO funds
pouring billions into corporate purchases, restructurings.
This LBO Fund activity is the same as practiced for 100s of years by
"merchant banks" - those investment banks that besides raising capital
always many times invested their own capital in companys. See above
Barings, Jardine Matheson, Robert Fleming & co. and Morgan Grenfell.
And while today there are 100s of these funds, mention is made of the
earlier funds & recognized leaders as :
★ Apollo Management
★
★ founded c. 1991 by Leon Black
★ Bain Capital
★
★ Mitt Romney 1984-1999(?)
★ Blackstone Group (BX)
★
★ ipo June 07 , 31>37>30>23>25>27>25
★
★ Pete Peterson founder 1985, Sr Ch
★
★ Stephen A. Schwarzman founder 1985, CEO
★
★ Hamilton E. Tony James COO
★
★ J Tomilson Hill V Ch
★
★ Carrie McCabe 1985-present
★
★
★ Investment (March 07) by SIC of $4 billion for 8% of BX
★
★
★ New LBO Fund (Aug 07) $21 billion
★ Carlyle - Wm Conway/Carlucci 1989-present
★
★ China turns down Carlyle bid for small SW China bank
★ Clayton, Dubilier, and Rice - Joe Rice 1978-present
★
★ Clayton Dubilier website
★
★ Donald J. Goegel ceo
★ Forstmann Little - Ted Forstmann 1983-present
★ HM Capital(Hicks Muse) - (Thos Hicks ret) John Muse 1990-present
★ KKR (Kolberg, Kravis & Roberts)
★
★ Henry Kravis 1975-present
★
★ ipo planned for 07, revs claimed 1/2 of Blackstone
★ Thos H Lee Co - Tommy Lee 1986-present
★ JP Morgan Partners ?1998-present
★ Providence Equity Capital - Jonathan Nelson - ceo (esp media)
★ Texas Pacific Group
★
★ David Bonderman - ceo
Hedge Funds
Also today there are thousands of hedge funds. They attempt more active trading in markets to obtain investment returns touted to be higher than normal. (Estimates are that today there are 8,000 hedge funds with $1.3 trillion to invest.)
The overwhelming majority i.e. 98+ % struggle to merely make returns equal to the DJIA or LESS.
Recent market volatility (larger up and down moves) has led to hedge funds using heavy quant (quantitative analysis) to lose substantial funds as their market models don't work. See
Quant Quake Shakes Hedge Fund Giants
A small handful are noteworthy for far exceeding those returns - a handful having returns 25%-75% as:
★ Citadel Investment (Ken Griffith)
★ ESL Investments (Edward S. Lambert)
★ Renaissance Technologies (James H Simmons)
★ SAC Capital Advisors (Steven A. Cohen)
★ Soros Quantum Fund (George Soros)
★ Steinhardt Partners (Michael Steinhardt) (closed)
★ Tiger Fund (Julian Robertson) (closed)
★ Tudor Group (Paul Tudor Jones & James Paoletta)
Other Larger Hedge Funds
★ Appaloosa Mgt (David Tepper)
★ Atticus Capital (David Slager)
★ Avenue Cap Group (Marc Lasry)
★ Blue Ridge Capital (John Griffin)
★ TB Capital Mgt (T Boone Pickens)
★ Bridgewater Associates (Ray Dalio)
★ Caxton Associates (Bruce Kovner)
★ GLG Partners (Noam Gottesman & Pierre Lagrange)
★ JC Henry Fund
★ Omega Advisors (Leon Cooperman)
★ D. E. Shaw & Co. (David E. Shaw)
★ Third Point (Daniel Loeb)
★ Tontine Associates (Jeffrey Gendell)
★ Hedge Fund Manager Salaries
These larger salaries have become famous or infamous depending on your view and in 2004 the top 10 ranked from $100 million to $1 billion and in 2005 top 10 ranked from $300 million to $1.5 billion with returns single digit to 62% - huge disparities with a seeming disconnect between performance and the salary paid.
★ Hedge funds that wiped out
Notorious hedge funds for larger size and famous managements that went out of business are:
★ LTCM (Long Term Capital Mgt) (shut down)
★ Amaranth (shut down)
★ Goldman Sachs Alpha (Hedge) Fund & Global Equity Fund
Billions of losses in past 6 days of trading, capital infusion may save funds.
External Hedge Fund Info Source
Alpha Magazine
Venture Capital Funds
See also Venture Capital
There are 1000s of these funds in varying sizes that provide
seed capital to 1000s of startup companies, esp startup high tech
companies.
★ Warburg Pincus has been the leader in volume in venture capital for
decades.
★ Hamburg Quist-Leader in silicon valley venture capital
★
★ bought by Chase/JP Morgan c. 2003?
★ Kleiner Perkins-Also Silicon Valley venture capital leader
★
★ Tom Perkins-founder, recently built 300 foot long, 400 Ton,200 foot high
sails,$130 million yacht named Maltese Falcon of newest materials with
automated sails
For further listing of venture capital funds
See List of venture capital firms
==Sovereign wealth funds==
Several countries have accumulated larger pools of funds
that instead of just being invested in only government treasury
notes, bills and bonds, have instead also been invested in corporate
stocks, bonds, real estate and economic development.
These funds today have an estimated $2.5 trillion.
Some of the larger Sovereign wealth funds:
★ Country Fund Size
★
★ UAE Abu Dhabu Inv Auth $875 billion
★
★ China SIC/SAFE $250 billion of $1.3 trillion
★
★ Dubai Istithmar ?$60 billion
★
★
★ boght Barney's of NYC
★
★ Kuwait Kuwait Inv Authority $ 70 billion
★
★ Norway Govt Pension Fund $300 billion
★
★ Saudi Arabia Various $300 billion
★
★ Singapore Govt of Sing Inv Corp $330 billion
★
★ Singapore Temasek Holdings $100 billion
Market Sizes
There is an extreme weak understanding of today's market sizes -
both lack of understanding the US market sizes and the lack
of understanding global market sizes.
In general, the USA markets are 1/3 of global totals with
Europe another such 1/3 and Asia another third; and that
Asian third was until recently almost entirely Japan
but is now shifting to include both China & India.
Links
★ Hedge Fund
★ Venture Capital
Further reading
★ ''Bond Buyer Directory'', American Banker , NY.
★ ''F.I.A.S.C.O.'' Frank Partnoy ISBN 0-14-027879-6. Penguin, NY, 1997 1999.
★ ''Greed and Glory on Wall Street-The Fall of the House of Lehman''. Ken Auletta. ISBN 1-58567-088-X. The Overlook Press -Woodstock & New York.
★ ''Infectious Greed''. Frank Partnoy. ISBN 0805070982 Times Books/Henry Holt, NY, 2003.
★ ''Investment Banking in the US'' Vincent Caruso. 1970.
★ ''Nightmare on Wall Street'' Martin Mayer. ISBN 0-671-78187-1. Simon & Schuster, NY, 1993.
★ ''Our Crowd'' Stephen Birmingham. ISBN 0-8156-0411-4 Syracuse University Press, Syracuse, NY, 1996.
★ ''The Last Tycoons: The Secret History of Lazard Freres & Co.'' William D. Cohan ISBN 0385514514.
★ ''Wall Street A History'' Charles R. Geisst ISBN 0-19-511512-0 Oxford University Press, New York, Oxford.
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