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Chemical Bank

Industry	Financial services
Founded	1960
Defunct	1972 (name is dropped) 1981 (firm is acquired)
Fate	Dropped usage of the name in 1972, acquired by American Express in 1981
Successor	Hayden, Stone & Co. Shearson Hayden Stone Shearson Loeb Rhoades Shearson/American Express
Headquarters	New York, New York
Products	Brokerage, Investment banking

Cogan, Berlind, Weill & Levitt, originally Carter, Berlind, Potoma & Weill was an investment banking and brokerage firm founded in 1960 and acquired by American Express in 1981. In its two decades as an independent firm, Cogan, Berlind, Weill & Levitt served as a vehicle for the rollup of more than a dozen brokerage and securities firms led by Sanford I. Weill that culminated in the formation of Shearson Loeb Rhoades.

Among the firms founding partners were Marshall Cogan, Roger Berlind, Sanford I. Weill and Arthur Levitt.

History

In May 1960, Arthur Carter, Roger Berlind, Peter Potoma and Sanford I. Weill formed Carter, Berlind, Potoma & Weill, the firm's earliest predecessor. In 1962 the firm became Carter, Berlind & Weill after the New York Stock Exchange brought disciplinary proceedings against Potoma.

Joe Plumeri, who later rose to become the President & Managing Partner of the firm's successor (Shearson Lehman Brothers) in 1990, and subsequently CEO of Willis Group Holdings, came to the firm in a serendipitous manner. Looking for a part-time job while in law school in the 1960s, he incorrectly assumed from the firm name that it must be a law firm. He received an audience with Weill, who discovered the 24-year-old's confusion, but hired him anyway as a part-time clerk and gofer. Weill took the door off a closet, and had the firm's future president start his Cogan career sitting there.

In 1965, the firm became Cogan, Berlind, Weill & Levitt with the arrival of Marshall Cogan and Arthur Levitt), more commonly referred to as CBWL. The firm was often referred to jokingly by Wall Street peers as Corned Beef With Lettuce.

Weill served as the firm's chairman beginning in 1965 and extending through its 1981 merger with American Express, ultimately leaving the firm in 1984. This period was marked by major consolidation of the old white shoe firms on Wall Street, and CBWL under Weill's leadership was a driving force in this consolidation. During this period, Weill led CBWL and its successors through more than 15 acquisitions. CBWL made its first acquisition in 1967, taking over Bernstein Macauley, Inc., a well-respected firm that specialized in investment management. On February 19, 1969, the firm changed its name to Cogan, Berlind, Weill & Levitt (CBWL).

Acquisition of Hayden Stone

Following the acquisition of Hayden, Stone & Co. in 1970, the company was renamed CBWL-Hayden, Stone, Inc. in 1970 to capitalize on the brand name of the older and larger, albeit financially challenged, Hayden Stone. Hayden Stone, founded in 1892 had a large retail network and a significant investment banking department. Additionally, Hayden Stone had grossed $113 million in 1968, five times its gross in 1960, earning significant profits. However, in the late 1960s, Hayden Stone had difficulties with its administrative functions, particularly as the size of the firm had expanded so rapidly. The firm was ultimately forced by the New York Stock Exchange to cut back on its trading. By 1970, the firm was effectively controlled by a group of creditors. CBWL negotiated to acquire the bulk of Hayden Stone from its creditors including the firm's name, 28 of its branches with 500 brokers and roughly 50,000 accounts. By acquiring Hayden Stone, CBWL launched itself from relative obscurity to become a major firm on Wall Street. In fact the acquisition was so transformative for CBWL thatin 1972, the CBWL was dropped from the name and the firm became Hayden Stone, Inc. in 1972.

Consolidation in the 1970s – Shearson Hammill

Following the acquisition of Hayden, Stone & Co., the newly minted Hayden Stone, Inc. continued its strategy of growth by acquisition. In 1973, during the 1973-1974 stock market crash, the firm acquired H.L. Hentz and Saul Lerner & Company.

As the economic conditions worsened in 1974, Weill had the opportunity to acquire Shearson, Hammill & Co. a venerable Wall Street investment banking and brokerage firm founded in 1902. Following the merger with Shearson Hammill & Co., the name of the combined company was changed again, this time becoming Shearson Hayden Stone. Weill adopted the Shearson brand, which had become a household name in the 1960s through a series of television commercials that suggested "If You Want To Know What’s Going On On Wall Street, Ask Shearson Hammill." The firm had 63 offices in the US and internationally supported by a well-regarded securities research department.

In 1976, after completing the integration of the two companies, the successor, Shearson Hayden Stone, made two notable purchases: Lamson Brothers, a commodities brokerage and Faulkner, Dawkins & Sullivan, a regional brokerage with an excellent equity research department. With these acquisition, the combined, in 1977 firm was the seventh largest investment banking firm in the United States with revenues of $134 million ($673.8 million in current dollar terms; more than triple its 1972 levels, just five years earlier) and more than 4,000 employees nationwide.

Finishing the puzzle – Loeb Rhoades

In 1979, Weill and the firm's successor, now Shearson Hayden Stone completed their most ambitious merger to that point, acquiring Loeb, Rhoades, Hornblower & Co. to make Shearson Loeb Rhoades the second largest investment banking firm. With capital totalling $250 million, Shearson Loeb Rhoades trailed only Merrill Lynch as the securities industry's largest firm.

Until shortly before the acquisition by Shearson, the firm, known as Loeb, Rhoades & Co., was one of Wall Street's oldest and most successful firms. In 1977, Loeb Rhoades acquired Hornblower, Weeks, Noyes & Trask to form Loeb, Rhoades, Hornblower & Co. The Hornblower merger turned out to be disastrous for Loeb Rhoades. The two firms incurred significant costs attempting to merge their back office operations, both of which had issues prior to the merger. By the end of 1978, less than a year after the merger, the combined firm was losing millions of dollars. During Mothers Day Weekend 1979, Loeb and Shearson agreed to a merger to form Shearson Loeb Rhoades. Weill was named the CEO of the combined firm and John Loeb became the firm's chairman.

Sale to American Express

In 1981 Shearson Loeb Rhoades was sold to American Express for about $930 million in stock to form Shearson/American Express, later known as Shearson Lehman Brothers following the 1984 acquisition of Lehman Brothers.

In 1993, American Express decided to divest Shearson Lehman Brothers, completing an IPO of Lehman Brothers and selling the core of what had been Shearson prior to the merger with Lehman Brothers to Sandy Weill's Primerica.

Notable former staff

• Roger Berlind, theatrical producer and long-time board member of Lehman Brothers
• Peter A. Cohen, CEO of Shearson Lehman Hutton and current CEO of the Cowen Group
• Clarence Benjamin Jones, lawyer, advisor and speech writer of Martin Luther King, Jr., and financial services executive
• Arthur Levitt, Chairman of the Securities and Exchange Commission
• Joe Plumeri, Citigroup executive, Chairman & CEO of the Willis Group, and owner of the Trenton Thunder
• Sanford I. Weill, Chairman & CEO of Citigroup
• Frank G. Zarb, Energy Czar under President Gerald Ford, and former Chairman of NASDAQ

Acquisition history

The following is an illustration of the CBWL's major mergers and acquisitions by which the firm was able to consolidate into Shearson/American Express and later Shearson Lehman Hutton.(this is not a comprehensive list):

See also

• Hayden, Stone & Co.
• Loeb, Rhoades & Co.
• Shearson Lehman Hutton

References

1. Adam Bryant, "Corner Office: On Passion and Playing in Traffic", The New York Times, December 5, 2009, accessed July 16, 2010]
2. "Shaken and stirred: Energetic and energizing Joe Plumeri has spiked revenue growth and retired debt since being installed as the head of Willis Group Holdings in late 2000". Best's Review. June 1, 2003. Retrieved July 16, 2010.
3. "Joe Plumeri, Playing in Traffic: with his quest for adventure and 'just go for it' philosophy, the CEO of insurance broker Willis Group Holdings has got the competitive spirit kicking in again at this 175-year-old company". Directors & Boards. June 22, 2004. Retrieved July 15, 2010. {{cite news}}: Text "James Kristie" ignored (help)
4. James Quinn (August 18, 2008). "London insurer that is plumping for the land of opportunity; Willis's American chairman has taken the broker in a new direction. But, writes James Quinn, he insists he hasn't forgotten its London roots". The Telegraph. Retrieved July 16, 2010.
5. Nash, Jeff (April 19, 1999). "The Chief Preacher: Joe Plumeri – Citibank Finds Sales Religion". Investment News. Retrieved July 16, 2010.
6. "Joseph J. Plumeri Profile". Forbes. Retrieved July 15, 2010.
7. ^ Bianco, Anthony (March 30, 1998). "Joe Plumeri: The Apostle of Life Insurance E". Business Week. Retrieved July 15, 2010.
8. ^ Shearson Lehman Brothers Company History. Funding Universe
9. Stone, Amey and Brewster, Mike. King of capital: Sandy Weill and the making of Citigroup, 2002.
10. Commercial Classics: Shearson Hammill Commercial
11. Benn, Alec. The unseen Wall Street of 1969–1975: and its significance for today. 2000, p.48
12. Loeb Capital Partners timeline
13. "Look Who's Talking: Samuel J. Plumeri Jr". The Trentonian News. May 17, 2010. Retrieved July 15, 2010.
14. "Salomon Smith Barney" from Gambee, Robert. Wall Street. W. W. Norton & Company, 1999. p.73

• A New Campaign to Repave Wall Street. TIME, Nov. 30, 1970
• CREATING A WALL STREET GIANT - For Weill, It's Doubly Sweet Deal. LA Times, March 13, 1993
• Langley, Monica. Tearing Down the Walls. 2004

• Former investment banks
• American Express
• Defunct financial services companies of the United States
• Companies established in 1960
• Companies disestablished in 1972
• Shearson Lehman/American Express