Paine Webber

History

Founding and early history

In May 1881, William Alfred (W.A.) Paine (with a loan from his father) and Wallace G. Webber founded Paine & Webber as a brokerage firm in Boston, Massachusetts with a seat on the Boston Stock Exchange.{{cite book

Controlled by the Paine family, Paine, Webber & Co. entered the investment banking business in the 1920s. After nearly fifty years at the head of the company, W.A. Paine died right before the Wall Street crash of 1929. His son F. Ward Paine became head of the firm, a position he held until 1940.{{citation

Following the difficult years of the Great Depression, Paine Webber merged with Jackson & Curtis, another Boston-based brokerage firm, in June 1942. In July 1879, Charles Cabot Jackson and Laurence Curtis had founded their brokerage firm Jackson & Curtis on Congress Street in Boston, not far from the original Paine Webber offices. The combined firm, Paine, Webber, Jackson & Curtis,{{cite news

1960s and 1970s

In October 1960, Paine Webber managed the initial public offering (IPO) of the Green Shoe Manufacturing Co., in which it introduced the concept of stabilization covered by an overallotment option, which has ever since been known by the colloquial name of greenshoe.

The firm moved its headquarters from Boston to New York in 1963. The firm's holding company was incorporated on June 30, 1969, as PaineWebber Inc., of which Paine Webber Jackson & Curtis was its main subsidiary.

In 1974, the firm completed an initial public offering of the stock of its holding company, PaineWebber Inc., and listed the company on the New York Stock Exchange. PaineWebber engaged in a number of acquisitions in the 1970s, as a wave of consolidation spread through the industry. In 1973, the firm acquired F.S. Smithers & Co., providing its first a presence in fixed income. PaineWebber also acquired Abbott, Proctor & Paine in 1970, the Abacus Fund, a closed-end investment company in 1972, Mitchum, Jones & Templeton Inc. in 1973.

In 1977, the firm acquired investment research and advisory firm Mitchell Hutchins, which had been founded in 1919.

In 1979 the company acquired Blyth, Eastman Dillon & Co., which itself was the product of a number of mergers. Among its predecessor firms were Blyth & Co. which had merged with Eastman Dillon Union Securities & Co. in 1972, itself the product of the 1956 merger of Union Securities (formerly the investment banking division of J. & W. Seligman & Co.) and Eastman Dillon & Co. The acquisition added more than 70 branch offices and more than 700 professionals as well as an investment banking business.

1980s

By 1980, PaineWebber had 161 branch offices in 42 states and six offices in Asia and Europe. With the acquisition of Rotan Mosle Financial Corp. in 1983, PaineWebber developed a national distribution network and with its advertising campaign "Thank You PaineWebber" developed its brand throughout the 1980s. In 1984, the company consolidated its two divisions, Paine Webber Jackson & Curtis and Blyth Eastman Paine Webber Inc., to form PaineWebber Inc. PaineWebber Group Inc. was established as the parent holding company.{{cite news

PaineWebber moved its headquarters from 140 Broadway to 1285 Avenue of the Americas in Midtown Manhattan in 1985.{{cite web

In 1986, the firm opened a new technology and transaction processing operation at Lincoln Harbor in New Jersey.{{cite news

1990s

In 1995, PaineWebber completed the acquisition of the brokerage and investment banking firm Kidder, Peabody & Co. from General Electric Company. Founded in 1865, Kidder, Peabody had been a preeminent player in investment banking and private services before becoming embroiled in insider trading scandals in the 1980s and suffering major trading losses in 1994. Chris Innes served as an Investment Banking analyst from 1992-1994 and later became one of BOFAs youngest Managing directors at age 27 before leaving to launch his own hedge fund (https://www.cnbc.com/2007/01/02/two-senior-executives-leave-bank-of-america.html). During these years Michael G. Ricciardi was the managing director and head of global fixed income sales at Paine Webber.

2000

Operating as PaineWebber Group Inc., by 2000 PaineWebber had emerged as the fourth largest private client firm in the United States with 385 offices employing 8554 stockbrokers.

In April 2000, PaineWebber acquired southeastern brokerage firm J.C. Bradford & Co. for US$620 million.{{cite news |newspaper=The New York Times

Merger with UBS

On November 3, 2000, under the leadership of chairman and CEO, Donald Marron, the company completed a US$10.8 billion cash and stock merger with UBS, a banking conglomerate headquartered in Zurich, Switzerland. Initially the business was given the divisional name "UBS PaineWebber", but in 2003, the 123-year-old name Paine Webber disappeared when it was renamed "UBS Wealth Management USA".{{cite news |newspaper=The New York Times

References

References

1. "Company History – Stride Rite".
2. (23 September 2014). "How Alibaba Boosted Its IPO Size by Taking a Walk in Greenshoes". Bloomberg News.
3. [https://query.nytimes.com/gst/fullpage.html?res=9E04E3DC1438F935A25751C1A962958260 Paine Webber Deal for Kidder]. ''The New York Times'', December 16, 1994
4. *[https://query.nytimes.com/gst/fullpage.html?res=9800E0DA133CF93BA25753C1A962958260 Paine Webber's Plan for Kidder]. ''The New York Times'', October 18, 1994
5. (1999-10-14). "Report of Receipts and Disbursements October 1999".
6. [https://query.nytimes.com/gst/fullpage.html?res=9407EFD71731F937A15753C1A9669C8B63 PaineWebber Merger Vote]. ''The New York Times'', October 24, 2000
7. *[https://query.nytimes.com/gst/fullpage.html?res=9B04E6D91138F931A25754C0A9669C8B63 Swiss Bank Is Acquiring PaineWebber]. ''The New York Times'', July 12, 2000
8. [https://www.nytimes.com/2001/03/05/business/05ADCO.html?ex=1226466000&en=1efd78d6fe2d3a1c&ei=5070 Advertising: Introducing UBS, PaineWebber, Post Merger]. ''The New York Times'', March 5, 2001