Alex. Brown & Sons
Encyclopedia
Alex. Brown & Sons was the first investment bank in the United States
, founded by Alexander Brown in 1800 and based in Baltimore, Maryland. The firm was acquired by Bankers Trust
in 1997 to form BT Alex. Brown and ultimately integrated into Deutsche Bank
following its acquisition in 1999.
Alexander Brown (1764 — 1834), an Irish linen merchant, emigrated in 1800 from Ballymena
in Ulster
to the United States
, settling in Baltimore, Maryland, where he established the first investment banking
firm in the U.S. In 1808, the company organized the first initial public offering
in the U.S., that of the Baltimore Water Company.
In 1810, Alexander Brown was joined in business by his sons, William
, George
, John, and James, and the firm was named Alex. Brown and Sons, Inc. By the 1820s, Alexander Brown had expanded his business interests into sterling exchange
and international trade
, including tobacco and cotton.
Brown's sons eventually started related businesses in various locations, beginning with William
. William founded William Brown and Company in Liverpool, England, which later became Brown, Shipley & Co.
In 1818, John and James started Brown Bros. & Co.
in Philadelphia, Pennsylvania
. James subsequently opened a branch in New York City
in 1825, a predecessor to Brown Brothers Harriman & Co
.
George
remained at the firm's Baltimore headquarters, where he took a leading role in the founding of the Baltimore and Ohio Railroad
in 1827. Upon Alexander Brown's death in 1834, George became the head of Alex. Brown and Sons, which proclaimed itself "America's foremost international banking enterprise in the nineteenth century."
Some historical records of Alex Brown & Sons are housed in the manuscript collections at New-York Historical Society
.
At the time the oldest privately-held bank in the U.S., Alex. Brown & Sons was bought by Bankers Trust
in 1997 to form BT Alex. Brown. Two years later, in 1999, BT Alex. Brown was acquired by Deutsche Bank
.
The Alex Brown name initially survived as Deutsche Bank Alex. Brown
, the brokerage services division of Deutsche Bank Securities
, but is now a part of Deutsche Bank AG.
, who was appointed Executive Director of the Central Intelligence Agency (CIA)
in 2001.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
, founded by Alexander Brown in 1800 and based in Baltimore, Maryland. The firm was acquired by Bankers Trust
Bankers Trust
Bankers Trust was an historic American banking organization. The bank merged with Alex. Brown & Sons before being acquired by Deutsche Bank in 1998.-History:A consortium of banks created Bankers Trust to perform trust company services for their clients....
in 1997 to form BT Alex. Brown and ultimately integrated into Deutsche Bank
Deutsche Bank
Deutsche Bank AG is a global financial service company with its headquarters in Frankfurt, Germany. It employs more than 100,000 people in over 70 countries, and has a large presence in Europe, the Americas, Asia Pacific and the emerging markets...
following its acquisition in 1999.
Founding and early history
Ballymena
Ballymena is a large town in County Antrim, Northern Ireland and the seat of Ballymena Borough Council. Ballymena had a population of 28,717 people in the 2001 Census....
in Ulster
Ulster
Ulster is one of the four provinces of Ireland, located in the north of the island. In ancient Ireland, it was one of the fifths ruled by a "king of over-kings" . Following the Norman invasion of Ireland, the ancient kingdoms were shired into a number of counties for administrative and judicial...
to the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
, settling in Baltimore, Maryland, where he established the first 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...
firm in the U.S. In 1808, the company organized the first initial public offering
Initial public offering
An initial public offering or stock market launch, is the first sale of stock by a private company to the public. It can be used by either small or large companies to raise expansion capital and become publicly traded enterprises...
in the U.S., that of the Baltimore Water Company.
Sir William Brown, 1st Baronet, of Astrop
Sir William Brown, 1st Baronet was a British merchant and banker, founder of the banking-house of Brown, Shipley & Co...
, George
George Brown (Financier)
George Brown was an Irish-American investment banker and railroad entrepreneur. He emigrated from Ulster to Baltimore, Maryland, at the age of 15 in 1802....
, John, and James, and the firm was named Alex. Brown and Sons, Inc. By the 1820s, Alexander Brown had expanded his business interests into sterling exchange
Foreign exchange market
The foreign exchange market is a global, worldwide decentralized financial market for trading currencies. Financial centers around the world function as anchors of trading between a wide range of different types of buyers and sellers around the clock, with the exception of weekends...
and international trade
International trade
International trade is the exchange of capital, goods, and services across international borders or territories. In most countries, such trade represents a significant share of gross domestic product...
, including tobacco and cotton.
Brown's sons eventually started related businesses in various locations, beginning with William
Sir William Brown, 1st Baronet, of Astrop
Sir William Brown, 1st Baronet was a British merchant and banker, founder of the banking-house of Brown, Shipley & Co...
. William founded William Brown and Company in Liverpool, England, which later became Brown, Shipley & Co.
Brown, Shipley & Co.
Brown, Shipley & Co. is a long-established British private bank, based in London.It provides investment management, pensions and associated advisory services for private, institutional and corporate clients.-History:...
In 1818, John and James started Brown Bros. & Co.
Brown Bros. & Co.
Brown Bros. & Co. was an investment bank from 1818 until its merger with Harriman Brothers & Company in 1931 to form Brown Brothers Harriman & Co.-History:...
in Philadelphia, Pennsylvania
Philadelphia, Pennsylvania
Philadelphia is the largest city in the Commonwealth of Pennsylvania and the county seat of Philadelphia County, with which it is coterminous. The city is located in the Northeastern United States along the Delaware and Schuylkill rivers. It is the fifth-most-populous city in the United States,...
. James subsequently opened a branch in New York City
New York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...
in 1825, a predecessor to Brown Brothers Harriman & Co
Brown Brothers Harriman & Co.
Brown Brothers Harriman & Co. is an American investment bank and securities firm, founded in 1818, it is the oldest and largest private bank in the United States. Brown Brothers Harriman serves clients globally in three main businesses: Investment Banking & Advisory, Wealth Management, Commercial...
.
George
George Brown (Financier)
George Brown was an Irish-American investment banker and railroad entrepreneur. He emigrated from Ulster to Baltimore, Maryland, at the age of 15 in 1802....
remained at the firm's Baltimore headquarters, where he took a leading role in the founding of the Baltimore and Ohio Railroad
Baltimore and Ohio Railroad
The Baltimore and Ohio Railroad was one of the oldest railroads in the United States and the first common carrier railroad. It came into being mostly because the city of Baltimore wanted to compete with the newly constructed Erie Canal and another canal being proposed by Pennsylvania, which...
in 1827. Upon Alexander Brown's death in 1834, George became the head of Alex. Brown and Sons, which proclaimed itself "America's foremost international banking enterprise in the nineteenth century."
Some historical records of Alex Brown & Sons are housed in the manuscript collections at New-York Historical Society
New-York Historical Society
The New-York Historical Society is an American history museum and library located in New York City at the corner of 77th Street and Central Park West in Manhattan. Founded in 1804 as New York's first museum, the New-York Historical Society presents exhibitions, public programs and research that...
.
Acquisition by Bankers Trust and integration into Deutsche Bank
At the time the oldest privately-held bank in the U.S., Alex. Brown & Sons was bought by Bankers Trust
Bankers Trust
Bankers Trust was an historic American banking organization. The bank merged with Alex. Brown & Sons before being acquired by Deutsche Bank in 1998.-History:A consortium of banks created Bankers Trust to perform trust company services for their clients....
in 1997 to form BT Alex. Brown. Two years later, in 1999, BT Alex. Brown was acquired by Deutsche Bank
Deutsche Bank
Deutsche Bank AG is a global financial service company with its headquarters in Frankfurt, Germany. It employs more than 100,000 people in over 70 countries, and has a large presence in Europe, the Americas, Asia Pacific and the emerging markets...
.
The Alex Brown name initially survived as Deutsche Bank Alex. Brown
Deutsche Bank Alex. Brown
Deutsche Bank Alex. Brown was the private client services division of Deutsche Bank Securities, the U.S. corporate and investment arm of German banking colossus Deutsche Bank. It is the organization successor to the 200 year-old investment bank Alex...
, the brokerage services division of Deutsche Bank Securities
Deutsche Bank
Deutsche Bank AG is a global financial service company with its headquarters in Frankfurt, Germany. It employs more than 100,000 people in over 70 countries, and has a large presence in Europe, the Americas, Asia Pacific and the emerging markets...
, but is now a part of Deutsche Bank AG.
Noted alumni
Alex. Brown's chairman in 1998 was A. B. "Buzzy" KrongardA. B. Krongard
Alvin Bernard "Buzzy" Krongard was the Executive Director of the Central Intelligence Agency. He was appointed by George Tenet on March 16, 2001....
, who was appointed Executive Director of the Central Intelligence Agency (CIA)
Central Intelligence Agency
The Central Intelligence Agency is a civilian intelligence agency of the United States government. It is an executive agency and reports directly to the Director of National Intelligence, responsible for providing national security intelligence assessment to senior United States policymakers...
in 2001.
See also
- Alex. Brown & Sons BuildingAlex. Brown & Sons BuildingThe Alex. Brown & Sons building, located at 135 East Baltimore Street in Baltimore, Maryland, served as the corporate headquarters during the 20th century for the banking firm Alex. Brown & Sons, which was the oldest banking firm in the United States when it was purchased by Bankers Trust in 1997. ...
- Brown, Shipley & Co.Brown, Shipley & Co.Brown, Shipley & Co. is a long-established British private bank, based in London.It provides investment management, pensions and associated advisory services for private, institutional and corporate clients.-History:...
- Brown Brothers & Co.
- Brown Memorial Presbyterian ChurchBrown Memorial Presbyterian ChurchBrown Memorial Park Avenue Presbyterian Church of Baltimore, Maryland, U.S., is a large, Gothic Revival-style church built in 1870 and located at Park and Lafayette Avenues in the city's Bolton Hill section...
- Deutsche Bank Alex. BrownDeutsche Bank Alex. BrownDeutsche Bank Alex. Brown was the private client services division of Deutsche Bank Securities, the U.S. corporate and investment arm of German banking colossus Deutsche Bank. It is the organization successor to the 200 year-old investment bank Alex...
- Bankers TrustBankers TrustBankers Trust was an historic American banking organization. The bank merged with Alex. Brown & Sons before being acquired by Deutsche Bank in 1998.-History:A consortium of banks created Bankers Trust to perform trust company services for their clients....
- BT Alex. Brown
- Deutsche BankDeutsche BankDeutsche Bank AG is a global financial service company with its headquarters in Frankfurt, Germany. It employs more than 100,000 people in over 70 countries, and has a large presence in Europe, the Americas, Asia Pacific and the emerging markets...