Cassatt & Company
Encyclopedia
Cassatt & Company was a Philadelphia based investment banking
and brokerage firm founded in 1872. The firm was acquired by Merrill Lynch & Co. in 1940, shortly after Merrill's merger with E.A. Pierce & Co.
that created Merril Lynch, E.A. Pierce & Cassatt.
The Cassatt name was dropped in 1941 when the newly combined firm acquired New Orleans-based Fenner & Beane
.
.
By 1919, the firm had offices in Philadelphia, New York, Pittsburgh and Baltimore.
business from its traditional brokerage business.
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. 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.
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. 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.
Investment banking
An investment bank is a financial institution that assists individuals, corporations and governments in raising capital by underwriting and/or acting as the client's agent in the issuance of securities...
and brokerage firm founded in 1872. The firm was acquired by Merrill Lynch & Co. in 1940, shortly after Merrill's merger with E.A. Pierce & Co.
E.A. Pierce & Co.
E.A. Pierce & Co. was a securities brokerage firm based in New York City. Originally founded as A.A. Housman & Co., the firm was renamed for Edward A. Pierce in 1927. In 1930, following the stock market crash of 1929 E.A. Pierce acquired the brokerage business of Merrill Lynch. Ten years later,...
that created Merril Lynch, E.A. Pierce & Cassatt.
The Cassatt name was dropped in 1941 when the newly combined firm acquired New Orleans-based Fenner & Beane
Fenner & Beane
Fenner & Beane was a brokerage firm based in New Orleans, Louisiana. Originally founded as Fenner Gatling & Beane in 1916, the firm was renamed in 1919. The firm was founded by the Beane Brothers, New Orleans cotton merchants, to manage their exposure to fluctuations in commodity prices.In 1941,...
.
Founding and early history
The firm, which was originally known as Lloyd, Cassatt & Company was founded by Robert S. Cassatt, father of railroad executive Alexander CassattAlexander Cassatt
Alexander Johnston Cassatt was the 7th president of the Pennsylvania Railroad , serving from June 9, 1899 to December 28, 1906. Frequently referred to as A. J. Cassatt, the great accomplishment under his stewardship was the planning and construction of tunnels under the Hudson River to finally...
.
By 1919, the firm had offices in Philadelphia, New York, Pittsburgh and Baltimore.
Acquisition by Merrill Lynch and E.A. Pierce
In 1931, the firm split its investment bankingInvestment banking
An investment bank is a financial institution that assists individuals, corporations and governments in raising capital by underwriting and/or acting as the client's agent in the issuance of securities...
business from its traditional brokerage business.
In 1934, Cassatt began discussions with E.A. Pierce & Co.
E.A. Pierce & Co.
E.A. Pierce & Co. was a securities brokerage firm based in New York City. Originally founded as A.A. Housman & Co., the firm was renamed for Edward A. Pierce in 1927. In 1930, following the stock market crash of 1929 E.A. Pierce acquired the brokerage business of Merrill Lynch. Ten years later,...
, the largest brokerage firm in the U.S. at the time about a potential merger. 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
Investment banking
An investment bank is a financial institution that assists individuals, corporations and governments in raising capital by underwriting and/or acting as the client's agent in the issuance of securities...
and merchant banking.
In the late 1930s, E.A. Pierce began discussions with Merrill Lynch
Merrill Lynch
Merrill Lynch is the wealth management division of Bank of America. With over 15,000 financial advisors and $2.2 trillion in client assets it is the world's largest brokerage. Formerly known as Merrill Lynch & Co., Inc., prior to 2009 the firm was publicly owned and traded on the New York...
about a potential merger. E.A. Pierce was struggling financially in the 1930s and was thinly capitalized. Following the death of Edmund C. Lynch
Edmund C. Lynch
Edmund Calvert Lynch and his friend, Charles E. Merrill, formed Merrill Lynch on October 15, 1915.-Early years:Edmund Lynch was born on May 19, 1885 in Baltimore, Maryland to Richard Lynch and Jennie Vernon Smith Lynch...
in 1938, Winthrop Smith began discussions with Charles E. Merrill
Charles E. Merrill
Charles Edward Merrill was an American philanthropist, stockbroker and co-founder, with Edmund C. Lynch of Merrill Lynch & Company .-Early years:...
, 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.