Cassatt & Company
From Wikipedia the free encyclopedia
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| Company type | Acquired |
|---|---|
| Industry | Financial services |
| Predecessor | Lloyd, Cassatt & Company |
| Founded | 1872 |
| Founder | Robert K. Cassatt |
| Defunct | 1940 |
| Fate | Acquired in 1940 by E.A. Pierce Merrill Lynch |
| Successor | Merrill Lynch, E. A. Pierce and Cassatt Merrill Lynch, Pierce, Fenner & Beane (later Smith) |
| Headquarters | Philadelphia, Pennsylvania, United States |
| Products | Brokerage, investment banking |
Cassatt & Company was a Philadelphia based investment banking and brokerage firm founded in 1872. The firm was acquired by Merrill Lynch in 1940, shortly after Merrill's merger with E.A. Pierce & Co. that created Merrill Lynch, E.A. Pierce & Cassatt.
The Cassatt name was dropped in 1940 when the newly combined firm acquired New Orleans-based Fenner & Beane.
History[edit]
Founding and early history[edit]
The firm, which was originally known as Lloyd, Cassatt & Company was founded by Robert S. Cassatt, father of railroad executive Alexander Cassatt.[1]
By 1919, the firm had offices in Philadelphia, New York, Pittsburgh and Baltimore.[2]
Acquisition by Merrill Lynch and E.A. Pierce[edit]
In 1931, the firm split its investment banking business from its traditional brokerage business.[3]
In 1934, Cassatt began discussions with E.A. Pierce & Co., the largest brokerage firm in the U.S. at the time about a potential merger.[4] In 1935, these discussions resulted in a partnership between the two firms. As part of the deal, Cassatt transferred its brokerage business to E.A. Pierce and focused exclusively on investment banking and merchant banking.[5]
In the late 1930s, E.A. Pierce began discussions with Merrill Lynch about a potential merger. E.A. Pierce was struggling financially in the 1930s and was thinly capitalized.[6] Following the death of Edmund C. Lynch in 1938, Winthrop Smith began discussions with Charles E. Merrill, who owned a minority interest in E.A. Pierce about a possible merger of the two firms. On April 1, 1940, Merrill Lynch, E.A. Pierce & Cassatt was formed when the two firms merged and also acquired Cassatt & Co.[6]
References[edit]
- ^ "Alexander J. Cassatt". The New York Times. June 18, 1899.
- ^ "Cassatt & Co. to Open Branch". The New York Times. July 1919.
- ^ "Cassatt & Co. Form Underwriting Unit; Stock Exchange Firm Divides Investing Business From Brokerage Activities". The New York Times. August 1931.
- ^ "Merger of Cassatt & Co. And Pierce & Co. on Way". The New York Times. December 1934.
- ^ "Business & Finance: Personnel". Time. January 14, 1935
- ^ a b Co-Leaders: The Power of Great Partnerships. John Wiley and Sons, 1999.
- "Cassatt & Company". Moody's Magazine, Volume 17. 1914
- "Cassatt & Company, Bankers and Brokers". The Banker's Magazine, Volume 73. 1906
- "Alexander J. Cassatt". The Railway Age, Volume 43, 1907
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