Dominick & Dominick LLC
Encyclopedia
Dominick & Dominick LLC formerly Dominick & Dominick Inc., is one of the oldest, privately held investment firms in the United States. It was one of the original members of the New York Stock Exchange
, with an original founder serving as a president. The firm was the syndicate head for General Motors Co.
Equity Issues in the early 20th century and the syndicate for Procter & Gamble
Equity The firm offers Wealth Management
, Investment Banking
, and Institutional Trading services to high net worth individual
s, institutions, and active investors.
Dominick & Dickerman opened its first branch in 1889 in Cincinnati, where the firm was one of only two exchange members. A year later, Dickerman left the firm when he was elected president of the New York Stock Exchange. He would serve as president from 1890 to 1892, then return to the firm. His cofounder, William Dominick, died in 1895 at the age of 50 to typhoid fever. Dickerman would retire in 1909, passing away at the age of 77 in 1923.
Dominick & Dickerman would change its name in 1899 to Dominick & Dominick, adding several new partners including Milnor B. Dominick, Andrew V. Stout, J.A. Barnard, and Bernon S. Prentice. The firm was one of the original sources for closed-end fund
s, launching the Dominick Fund, Inc in 1920 by selling 200,000 shares for a raise of $10 million. Despite the stock market crash in 1929
, the fund survived and was listed in 1959 on the NYSE before it was merged with Putnam Fund
in 1973.
Other European offices were subsequently opened, and Dominick & Dominick soon had a presence in all of the major cities in Europe.
. In 1935 he was elected a governor of the New York Stock Exchange and helped to hire the first paid president of the Exchange, at the behest of the new Securities and Exchange Commission (SEC). He then left the family firm in 1938 to enter public service, working for the Office of Price Administration
in the Roosevelt administration.
. The IPO gained attention because of objections raised by the SEC to the way the managers had announced the stock sale before filing a registration statement with the SEC, a violation of the law.
Dominick & Dominick ended registration as a partnership, reorganizing as a corporation in 1964. The 1960s also saw the firm spread its operation across the country, taking advantage of a bull market to build up a domestic retail brokerage business. In 1962 an office in Chicago was opened. Dominick & Dominick gained a major presence in New England in 1966 by acquiring the firm of Townsend, Dabney, Tyson. Not only did the firm pick up a large Boston office but another 15 offices throughout the Northeast. About 30 additional branch offices across the United States were opened by the end of the 1960s.
In 1970 Dominick & Dominick pursued a merger with Clark, Dodge & Co., Inc., a similar size firm, but called it off, electing instead to continue a program of opening new offices and pursuing the acquisition of smaller firms. This plan was also eventually terminated, however, as the stock market began to experience one of the worst bear markets in a generation, and Dominick & Dominick found that it had stretched itself far too thin.
. It also sold a significant stake in the business for $7.25 million to an investment group led by Pierce National Life Insurance Company, which was in turn controlled by Houston banker Joe L. Allbritton. While the infusion of capital was welcome, Dominick & Dominick still found itself in a difficult position and decided to exit the domestic retail brokerage business and to sell the bulk of its branch offices.
The firm's chairman and chief executive, Peter M. Kennedy, explained to the New York Times that "a national retail structure is not right for a firm of our size. We either had to be bigger or smaller." He added, "We are not going out of business. We are just changing the nature of our business."
Dominick & Dominick retained a modest retail business but mostly chose to focus on core strengths, including institutional business, money management, corporate finance, municipal bonds, and its international business. It was also in 1973 the Dominick Fund, which had about $55 million in assets, was taken over by Putnam Fund
.
Over the next 20 years, Dominick & Dominick reduced its work force and closed offices in an attempt to focus on more profitable financial services such as research. The firm also became involved in the fixed income area, making corporate and municipal bonds, Eurobond
s, and Treasury Notes available to its clients, and launched managed futures programs to participate in the global currency markets. The firm also did a healthy business providing clearing services to more than 100 NASD (National Association of Securities Dealers)
firms; its Dominick & Dominick Advisors unit provided investment and portfolio management services to high net worth investors and institutions in the United States, Europe, and Asia.
(DLJ) and a stint with Credit Suisse First Boston
after Credit Suisse acquired DLJ. With DLJ Campbell managed the private client group, expanding the firms high net worth and midsized institutional investor brokerage business from 75 advisors to a network of more than 500 investment profressionals.
Campbell joined Dominick & Dominick in 2003, bringing senior management from DLJ and Credit Suisse First Boston. The new management relocated the firm headquarters from lower Manhattan to Midtown Manhattan to an office on 52nd St. In addition, Campbell wasted little time in recruiting new advisors from Credit Suisse and other major financial firms.
Dominick & Dominick's first branch office to open under Campbell's management was in the fall of 2004 when an operation in Miami was opened to focus on wealthy Central and South American residents. It was not an acquisition, as Dominick was absorbing the Miami office of Pennsylvania-based First Security Investments, which had been opened by another former DLJ employee, Alain O'Hayon, who stayed on to manage the office. Campbell was very familiar with the potential of a Miami operation, having built up an office in the city for DLJ from just two brokers to more than 70.
In 2006 another regional office was added in Atlanta.
A year later, in 2007, Dominick & Dominick launched a new risk arbitrage
group with the hope to develop synergies with the firm's existing institutional and high-net-worth client base.
Brokerage to be transferred to Dominick & Dominick LLC. The Stanford Group was the firm run by Sir Allen Stanford
. Both Stanford Group Company and Dominick & Dominick LLC use Pershing LLC
as their clearing firm
. The transfer became effective on January 20, 2010.
New York Stock Exchange
The New York Stock Exchange is a stock exchange located at 11 Wall Street in Lower Manhattan, New York City, USA. It is by far the world's largest stock exchange by market capitalization of its listed companies at 13.39 trillion as of Dec 2010...
, with an original founder serving as a president. The firm was the syndicate head for General Motors Co.
General Motors
General Motors Company , commonly known as GM, formerly incorporated as General Motors Corporation, is an American multinational automotive corporation headquartered in Detroit, Michigan and the world's second-largest automaker in 2010...
Equity Issues in the early 20th century and the syndicate for Procter & Gamble
Procter & Gamble
Procter & Gamble is a Fortune 500 American multinational corporation headquartered in downtown Cincinnati, Ohio and manufactures a wide range of consumer goods....
Equity The firm offers Wealth Management
Wealth management
Wealth management is an investment advisory discipline that incorporates financial planning, investment portfolio management and a number of aggregated financial services...
, 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 Institutional Trading services to high net worth individual
High net worth individual
A high-net-worth individual is a person with a high net worth. In the private banking business, these individuals typically are defined as having investable assets in excess of US$1 million. As explained below, the U.S...
s, institutions, and active investors.
Founding
The Company was founded on June 15, 1870 as Dominick & Dickerman by William Gayer Dominick and Watson Bradley Dickerman. Dominick was born in Chicago, and moved to New York as a child. In 1869, at the age of 25, he purchased membership on the New York Stock Exchange. At the NYSE, Dominick met Connecticut-born Dickerman and they went into business forming a stock brokerage firm. Dominick's brothers, George and Bayard Dominick, also joined the Exchange and became partners in the firm.Dominick & Dickerman opened its first branch in 1889 in Cincinnati, where the firm was one of only two exchange members. A year later, Dickerman left the firm when he was elected president of the New York Stock Exchange. He would serve as president from 1890 to 1892, then return to the firm. His cofounder, William Dominick, died in 1895 at the age of 50 to typhoid fever. Dickerman would retire in 1909, passing away at the age of 77 in 1923.
Dominick & Dickerman would change its name in 1899 to Dominick & Dominick, adding several new partners including Milnor B. Dominick, Andrew V. Stout, J.A. Barnard, and Bernon S. Prentice. The firm was one of the original sources for closed-end fund
Closed-end fund
A closed-end fund is a collective investment scheme with a limited number of shares. It is called a closed-end fund because new shares are rarely issued once the fund has launched, and because shares are not normally redeemable for cash or securities until the fund liquidates.Typically an...
s, launching the Dominick Fund, Inc in 1920 by selling 200,000 shares for a raise of $10 million. Despite the stock market crash in 1929
Wall Street Crash of 1929
The Wall Street Crash of 1929 , also known as the Great Crash, and the Stock Market Crash of 1929, was the most devastating stock market crash in the history of the United States, taking into consideration the full extent and duration of its fallout...
, the fund survived and was listed in 1959 on the NYSE before it was merged with Putnam Fund
Putnam Investments
Putnam Investments is a privately owned investment management firm founded in 1937 by George Putnam, who established one of the first balanced mutual funds, The George Putnam Fund of Boston...
in 1973.
Expansion
In 1936 Dominick & Dominick expanded through acquisition, merging with A. Iselin & Co., also one of Wall Street’s oldest firms. Several months earlier the patriarch of the firm, Adrian Iselin, died at the age of 89. He had joined the firm, which his father formed, as a 22-year-old in 1868. At the time of the merger, Dominick & Dominick had 13 partners, including Gayer G. Dominick (senior partner since 1926), Bayard Dominick, and Gardener Dominick. It next picked up several partners from Iselin & Co., as well as Iselin Securities Corporation, which brought with it an office in Paris, and the Iselin Corporation of Canada with its office in Montreal. Because Dominick & Dominick already maintained a London office, the London office of Iselin Securities was closed.Other European offices were subsequently opened, and Dominick & Dominick soon had a presence in all of the major cities in Europe.
World War II
A large number of the firm's employees and partners entered the military, including Gayer Dominick. The firm was content to just keep its doors opened and operate. Gayer Dominick had been with the firm since 1909 after graduating from Yale UniversityYale University
Yale University is a private, Ivy League university located in New Haven, Connecticut, United States. Founded in 1701 in the Colony of Connecticut, the university is the third-oldest institution of higher education in the United States...
. In 1935 he was elected a governor of the New York Stock Exchange and helped to hire the first paid president of the Exchange, at the behest of the new Securities and Exchange Commission (SEC). He then left the family firm in 1938 to enter public service, working for the Office of Price Administration
Office of Price Administration
The Office of Price Administration was established within the Office for Emergency Management of the United States government by Executive Order 8875 on August 28, 1941. The functions of the OPA was originally to control money and rents after the outbreak of World War II.President Franklin D...
in the Roosevelt administration.
Post-War Expansion
After World War II came to an end and following a brief economic recession as the United States reverted to a peace-time footing, the economy enjoyed a long period of growth. Dominick & Dominick benefited from the country's prosperity. Some of the firm's most notable transactions during the postwar years involved Yonkers, New York-based Alexander Smith Carpet Company and Canada's Great Plains Oil. In the late 1950s Dominick & Dominick was also part of a banking syndicate that managed the initial public offering (IPO) of stock issued by Arvida Corporation, which was formed in Florida in 1958 to sell the real estate holdings of Arthur Vining DavisArthur Vining Davis
Arthur Vining Davis was an American industrialist and philanthropist.-Early history:Arthur Vining Davis was born in Sharon, Massachusetts, the son of Perley B. Davis, a Congregational minister, and Mary Frances...
. The IPO gained attention because of objections raised by the SEC to the way the managers had announced the stock sale before filing a registration statement with the SEC, a violation of the law.
Dominick & Dominick ended registration as a partnership, reorganizing as a corporation in 1964. The 1960s also saw the firm spread its operation across the country, taking advantage of a bull market to build up a domestic retail brokerage business. In 1962 an office in Chicago was opened. Dominick & Dominick gained a major presence in New England in 1966 by acquiring the firm of Townsend, Dabney, Tyson. Not only did the firm pick up a large Boston office but another 15 offices throughout the Northeast. About 30 additional branch offices across the United States were opened by the end of the 1960s.
In 1970 Dominick & Dominick pursued a merger with Clark, Dodge & Co., Inc., a similar size firm, but called it off, electing instead to continue a program of opening new offices and pursuing the acquisition of smaller firms. This plan was also eventually terminated, however, as the stock market began to experience one of the worst bear markets in a generation, and Dominick & Dominick found that it had stretched itself far too thin.
Dark Period
Strapped for cash the firm sold four of its five seats on the New York Stock Exchange and one of two seats on the American Stock ExchangeAmerican Stock Exchange
NYSE Amex Equities, formerly known as the American Stock Exchange is an American stock exchange situated in New York. AMEX was a mutual organization, owned by its members. Until 1953, it was known as the New York Curb Exchange. On January 17, 2008, NYSE Euronext announced it would acquire the...
. It also sold a significant stake in the business for $7.25 million to an investment group led by Pierce National Life Insurance Company, which was in turn controlled by Houston banker Joe L. Allbritton. While the infusion of capital was welcome, Dominick & Dominick still found itself in a difficult position and decided to exit the domestic retail brokerage business and to sell the bulk of its branch offices.
The firm's chairman and chief executive, Peter M. Kennedy, explained to the New York Times that "a national retail structure is not right for a firm of our size. We either had to be bigger or smaller." He added, "We are not going out of business. We are just changing the nature of our business."
Dominick & Dominick retained a modest retail business but mostly chose to focus on core strengths, including institutional business, money management, corporate finance, municipal bonds, and its international business. It was also in 1973 the Dominick Fund, which had about $55 million in assets, was taken over by Putnam Fund
Putnam Investments
Putnam Investments is a privately owned investment management firm founded in 1937 by George Putnam, who established one of the first balanced mutual funds, The George Putnam Fund of Boston...
.
Over the next 20 years, Dominick & Dominick reduced its work force and closed offices in an attempt to focus on more profitable financial services such as research. The firm also became involved in the fixed income area, making corporate and municipal bonds, Eurobond
Eurobond
A Eurobond is an international bond that is denominated in a currency not native to the country where it is issued. It can be categorised according to the currency in which it is issued. London is one of the centers of the Eurobond market, but Eurobonds may be traded throughout the world - for...
s, and Treasury Notes available to its clients, and launched managed futures programs to participate in the global currency markets. The firm also did a healthy business providing clearing services to more than 100 NASD (National Association of Securities Dealers)
Financial Industry Regulatory Authority
In the United States, the Financial Industry Regulatory Authority, Inc., or FINRA, is a private corporation that acts as a self-regulatory organization . FINRA is the successor to the National Association of Securities Dealers, Inc. ...
firms; its Dominick & Dominick Advisors unit provided investment and portfolio management services to high net worth investors and institutions in the United States, Europe, and Asia.
21st Century
By the start of the new century, Dominick & Dominick was in decline and needed an infusion of partner capital. In October 2003 the firm brought in a new president and CEO, hiring 58-year-old Michael J. Campbell, a former Marine who had 30 years of experience in the industry, including a 25-year tenure with Donaldson, Lufkin & JenretteDonaldson, Lufkin & Jenrette
Donaldson, Lufkin & Jenrette or DLJ is a defunct U.S. investment bank founded by William H. Donaldson, Richard Jenrette and Dan Lufkin in 1959. Its businesses included securities underwriting; sales and trading; investment and merchant banking; financial advisory services; investment research;...
(DLJ) and a stint with Credit Suisse First Boston
Credit Suisse First Boston
Credit Suisse First Boston was the former name of the banking firm Credit Suisse.-History:In 1978, Credit Suisse and First Boston Corporation formed a London-based 50-50 investment banking joint venture called the Financière Crédit Suisse-First Boston...
after Credit Suisse acquired DLJ. With DLJ Campbell managed the private client group, expanding the firms high net worth and midsized institutional investor brokerage business from 75 advisors to a network of more than 500 investment profressionals.
Campbell joined Dominick & Dominick in 2003, bringing senior management from DLJ and Credit Suisse First Boston. The new management relocated the firm headquarters from lower Manhattan to Midtown Manhattan to an office on 52nd St. In addition, Campbell wasted little time in recruiting new advisors from Credit Suisse and other major financial firms.
Dominick & Dominick's first branch office to open under Campbell's management was in the fall of 2004 when an operation in Miami was opened to focus on wealthy Central and South American residents. It was not an acquisition, as Dominick was absorbing the Miami office of Pennsylvania-based First Security Investments, which had been opened by another former DLJ employee, Alain O'Hayon, who stayed on to manage the office. Campbell was very familiar with the potential of a Miami operation, having built up an office in the city for DLJ from just two brokers to more than 70.
In 2006 another regional office was added in Atlanta.
A year later, in 2007, Dominick & Dominick launched a new risk arbitrage
Risk arbitrage
Risk arbitrage, or merger arbitrage, is an investment or trading strategy often associated with hedge funds.Two principal types of merger are possible: a cash merger, and a stock merger. In a cash merger, an acquirer proposes to purchase the shares of the target for a certain price in cash...
group with the hope to develop synergies with the firm's existing institutional and high-net-worth client base.
Stanford Financial Group Receivership
On November 13, 2009, the US District Court ordered the Brokerage Accounts of Stanford Financial GroupStanford Financial Group
The Stanford Financial Group was a privately held international group of financial services companies controlled by Allen Stanford, until it was seized by United States authorities in early 2009....
Brokerage to be transferred to Dominick & Dominick LLC. The Stanford Group was the firm run by Sir Allen Stanford
Allen Stanford
Robert Allen Stanford is a former prominent financier and sponsor of professional sports who is in prison awaiting trial on charges his investment company was a massive Ponzi scheme and fraud. Stanford was the chairman of the now defunct Stanford Financial Group of Companies. A fifth-generation...
. Both Stanford Group Company and Dominick & Dominick LLC use Pershing LLC
Pershing LLC
Pershing LLC is a subsidiary of The Bank of New York Mellon, the nation's oldest continuously operating bank, and one of the world's leading providers of securities services. Pershing has nearly $1 trillion in assets under administration...
as their clearing firm
Clearing house (finance)
A clearing house is a financial institution that provides clearing and settlement services for financial and commodities derivatives and securities transactions...
. The transfer became effective on January 20, 2010.
Key Previous or Current Employees
- Ray DalioRay DalioRay Dalio is an American businessman and founder of Bridgewater Associates.-Early Life and Education:...
: Founder of Bridgewater AssociatesBridgewater AssociatesBridgewater Associates is an American investment management firm founded by Ray Dalio in 1975 and is reported to be the world's largest hedge fund company with $122 billion in assets under management. The company has 270 clients including pension funds, endowments, foundations, foreign governments... - Jim RogersJim RogersJames Beeland Rogers, Jr. is an American investor, author, and occasional financial commentator. He is currently based in Singapore. Rogers is the Chairman of Rogers Holdings and Beeland Interests, Inc...
: Co-Founder of the Quantum Fund - Avery Rockefeller Jr: Former Chairman of the Board of Governors for FINRAFinancial Industry Regulatory AuthorityIn the United States, the Financial Industry Regulatory Authority, Inc., or FINRA, is a private corporation that acts as a self-regulatory organization . FINRA is the successor to the National Association of Securities Dealers, Inc. ...
. Son of Avery RockefellerAvery RockefellerAvery Rockefeller was the son of Percy Avery Rockefeller, one of the richest financiers of his time.Rockefeller attended Yale University, but on 20 September 1923, he secretly married Anna Griffith Mark , daughter of Clayton Mark , a wealthy steel manufacturer...
, great, great grandson of William RockefellerWilliam RockefellerWilliam Avery Rockefeller, Jr. , American financier, was a co-founder with his older brother John D. Rockefeller of the prominent United States Rockefeller family. He was the son of William Avery Rockefeller, Sr. and Eliza Rockefeller.-Youth, education:Rockefeller was born in Richford, New York,...
. - Michael Campbell: Former Head of Wealth Management at Donaldson, Lufkin and JenretteDonaldson, Lufkin & JenretteDonaldson, Lufkin & Jenrette or DLJ is a defunct U.S. investment bank founded by William H. Donaldson, Richard Jenrette and Dan Lufkin in 1959. Its businesses included securities underwriting; sales and trading; investment and merchant banking; financial advisory services; investment research;...
- Gaylord K. SwimGaylord K. SwimGaylord K. Swim was an American businessman. He was the founder of the Sutherland Institute and a prominent community leader.- Biography :...
: Founder of Sutherland InstituteSutherland InstituteSutherland Institute is a conservative public policy think tank located in Salt Lake City, Utah.The institute is an independent, non-partisan organization that produces policy research, provides award-winning educational seminars, and engages in legislative advocacy. The Institute was founded in... - John G. W. Husted, Jr.John G. W. Husted, Jr.John Grinnel Wetmore Husted, Jr. was a stockbroker who was briefly engaged to future First Lady of the United States Jacqueline Kennedy Onassis prior to her marriage to John F. Kennedy.-Biography:...
: Briefly engaged to Jacqueline Kennedy OnassisJacqueline Kennedy OnassisJacqueline Lee Bouvier "Jackie" Kennedy Onassis was the wife of the 35th President of the United States, John F. Kennedy, and served as First Lady of the United States during his presidency from 1961 until his assassination in 1963. Five years later she married Greek shipping magnate Aristotle...
prior to her marriage to John F. KennedyJohn F. KennedyJohn Fitzgerald "Jack" Kennedy , often referred to by his initials JFK, was the 35th President of the United States, serving from 1961 until his assassination in 1963.... - Peter Kennedy: Former Dominick & Dominick Investment Banker, Former Owner of Drexel Furniture Co
- Chuck CarneyChuck CarneyCharles "Chuck" Carney was an American football and basketball player. As an end and receiver, he played football for the University of Illinois from 1918-1921. He was elected to the College Football Hall of Fame in 1966...
: College Football Hall of FameCollege Football Hall of FameThe College Football Hall of Fame is a hall of fame and museum devoted to college football. Located in South Bend, Indiana, it is connected to a convention center and situated in the city's renovated downtown district, two miles south of the University of Notre Dame campus. It is slated to move...
member - Bronson ThayerBronson ThayerBronson Thayer current Chairman of the Board and Chief Executive Officer of http://www.bay-cities-bank.com/. From 1974 to 1983 he was Executive Vice President and Chief Financial Officer of Lykes Brothers in Tampa and Vice President of Dominick & Dominick, Inc. from 1969 to 1972 in New York. Mr....
: Chairman of the Board and Chief Executive Office of Bay Citites Bank - Habibollah HedayatHabibollah HedayatDr. Habibollah Hedayat , known as the father of modern nutrition sciences of Iran, is the founder of the Institute of Nutrition and Food Science of Iran...
: Founder of the Institute of Nutrition and Food Science of Iran - Peter Rittenhouse KelloggPeter KelloggPeter R. Kellogg is an American businessman and philanthropist with a net worth estimated by Forbes at around $2.6 billion.-Personal:Peter attended Berkshire School in Sheffield, MA. He is the son of James Crane Kellogg, Jr. of Wall Street specialist firm Spear, Leeds & Kellogg; he joined his...
: Former Partner at Spear, Leeds & Kellogg Specialists LLC, purchased by Goldman SachsGoldman SachsThe Goldman Sachs Group, Inc. is an American multinational bulge bracket investment banking and securities firm that engages in global investment banking, securities, investment management, and other financial services primarily with institutional clients...
in 2000 for $6.3 billion. - Seymour H. Knox III: philanthropist and founder/owner of the NHL Buffalo SabresBuffalo SabresThe Buffalo Sabres are a professional ice hockey team based in Buffalo, New York. They are members of the Northeast Division of the Eastern Conference of the National Hockey League .-Founding and early success: 1970-71—1980-81:...
- Susan Edwards: Executive Director of the Frist Center for Visual ArtsFrist Center for the Visual Arts-History:The museum is housed in what used to be the main post office designed by Marr & Holman Architects for the city of Nashville, which had been built in 1933-34 near Union Station, since most mail at that time was moved by train. As the city grew, the need for a more up-to-date main facility...