Hayden, Stone & Co.

Hayden, Stone & Co.
Company typeAcquired
IndustryFinancial services
Founded1892 (1892)
FounderCharles Hayden
Galen L. Stone
Defunct1979 (1979)
FateAcquired in 1979 by Loeb, Rhoades, Hornblower & Co.
SuccessorShearson Hayden Stone, Shearson/American Express
Headquarters,
ProductsInvestment banking, Brokerage

Hayden, Stone & Co. was a major American securities firm founded in 1892 by Charles Hayden and Galen L. Stone. The firm was acquired by Cogan, Berlind, Weill & Levitt in 1972 and, after its name disappeared in 1979, was part of what would become Shearson/American Express in 1981.[citation needed]

History

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In 1892, Clark, Ward, & Co. clerks Charles Hayden (later the benefactor of the Hayden Planetarium) and Galen L. Stone opened a new brokerage house, Hayden, Stone & Co.[1] While Stone was known for remaining silent, Hayden gained a reputation for quick decisions and mastery of the brokerage business.[2] Foreseeing the needs of electrification, Hayden made his fortune by investing in copper mining. The new investment firm prospered, expanding from its Boston base to open a New York City branch in 1906.[1]

CBWL logo

In 1970, the prestigious Hayden, Stone found itself in financial trouble along with many other large securities firms. Hayden, Stone was acquired by Cogan, Berlind, Weill & Levitt (often jokingly referred to as Corned Beef With Lettuce), whose partners included Sandy Weill and Arthur Levitt, and renamed itself CBWL-Hayden, Stone, dropping the CBWL from the name just two years later, allowing Weill to rid himself of the Corned Beef With Lettuce moniker.[3]

The new Hayden Stone, Inc. then completed possibly its most significant acquisition to that point, merging with Shearson, Hammill & Co. Once again, Weill chose to adopt the target's branding to become Shearson Hayden Stone. The Hayden Stone name was finally abandoned in 1979, following the acquisition of Loeb, Rhoades, Hornblower & Co. to form Shearson Loeb Rhoades. Just two years later, in 1981, Weill sold the combined company to American Express to form Shearson/American Express.

At one point, the firm was considered to be the third largest "wire-house" in the country behind only Merrill Lynch and Bache & Co.

Acquisition history

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The following is an illustration of the company's major mergers and acquisitions and historical predecessors (this is not a comprehensive list):[4]


Shearson Lehman Hutton
(merged 1988)
Shearson Lehman Brothers
(merged 1984)
Shearson/American Express
(merged 1981)

American Express
(est. 1850)

Shearson Loeb Rhoades
(acquired 1981)
Shearson Hayden Stone
(merged 1973)
Hayden Stone, Inc.
(formerly CBWL-Hayden Stone, merged 1970)

Cogan, Berlind, Weill & Levitt
(formerly Carter, Berlind, Potoma & Weill, est. 1960)

Hayden, Stone & Co.

Shearson, Hammill & Co.
(est. 1902)

Loeb, Rhoades, Hornblower & Co.
(merged 1978)
Loeb, Rhoades & Co.
(merged 1937)

Carl M. Loeb & Co.
(est. 1931)

Rhoades & Company
(est. 1905)

Hornblower, Weeks, Noyes & Trask
(merged 1953-1977)

Hornblower & Weeks
(est. 1888)

Hemphill, Noyes & Co.
(est. 1919, acq. 1963)

Spencer Trask & Co.
(est. 1866 as Trask & Brown)

Paul H. Davis & Co.
(est. 1920, acq. 1953)

Lehman Brothers Kuhn Loeb
(merged 1977)

Lehman Brothers
(est. 1850)

Kuhn, Loeb & Co.
(est. 1867)

Abraham & Co.
(est. 1938, acq. 1975)

E. F. Hutton & Co.
(est. 1904)

Notable alumni

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See also

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References

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  1. ^ a b "Charles Hayden, Banker, Dies at 66". New York Times. January 9, 1937. p. 17.
  2. ^ "For Nobler Men". Time. January 25, 1937. Archived from the original on January 25, 2012.
  3. ^ "Creating a Wall Street Giant - For Weill, It's Doubly Sweet Deal". LA Times. March 13, 1993.
  4. ^ "Salomon Smith Barney" from Gambee, Robert. Wall Street. W. W. Norton & Company, 1999. p.73
  5. ^ "Look Who's Talking: Samuel J. Plumeri Jr". The Trentonian News. May 17, 2010. Archived from the original on March 1, 2012. Retrieved July 15, 2010.
  6. ^ Bianco, Anthony (March 30, 1998). "Joe Plumeri: The Apostle of Life Insurance E". Business Week. Archived from the original on December 9, 2012. Retrieved July 15, 2010.
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