Hayden, Stone & Co.
TypeAcquired
IndustryFinancial services
Founded1892
FounderCharles Hayden
Galen L. Stone
Defunct1979
FateAcquired in 1979 by Loeb, Rhoades, Hornblower & Co.
SuccessorShearson Hayden Stone, Shearson/American Express
HeadquartersNew York, New York, United States
ProductsInvestment banking, Brokerage

Hayden, Stone & Co. was a major 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.

History

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.

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

The following is an illustration of the company's major mergers and acquisitions and historical predecessors (this is not a comprehensive list):[3]


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

See also

References

  1. 1 2 "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. "Salomon Smith Barney" from Gambee, Robert. Wall Street. W. W. Norton & Company, 1999. p.73
  4. "Look Who's Talking: Samuel J. Plumeri Jr". The Trentonian News. May 17, 2010. Retrieved July 15, 2010.
  5. 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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