Howard Stein
Encyclopedia
Howard Mathew Stein) was an American
financier
who is widely considered one of the fathers of the mutual fund
industry. He was featured on the cover of TIME Magazine on August 24, 1970. Stein invented the first "no load" money market fund and created the first tax-free municipal bond fund.
, New York
on October 6, 1926. His parents were immigrants from Poland and also had another son and daughter, in addition to Stein. Stein initially planned to become a musician, beginning to learn the violin when he was 5. Stein attended the Straubenmuller Textile High School and the Juilliard School
. However, Stein gave up on his music career and went into business. At the age of 23, he loaded steel on to trucks. He then became a trainee at Bache & Co.
. in 1955, Stein left Bache and joined Dreyfus.
as an analyst in 1955. He was appointed President in 1965, and Chairman and CEO in 1970. Stein served as Chairman and CEO of Dreyfus for more than 30 years. When Stein started at Dreyfus in 1955 it had approximately 2 million dollars in assets. Before the sale in 1994 this had grown to 90 billion dollars. Dreyfus was sold to Mellon Bank Corporation in 1994 for $1.8 billion. Stein retired in 1996.
Dreyfus Third Century Fund was one of the first funds to combine socially conscious objectives with financial criteria. Created by Stein in 1972 and named for the coming national bicentennial, the fund has been influential in shaping similar philosophically-oriented investments. In addition, in 1974, Dreyfus introduced the first direct marketed, no-load money market fund. Stein became even more focused on money-market and bond funds and succeeded in creating the first tax-free municipal funds, which Dreyfus launched in 1976.
Stein's progressive politics made him a target of Richard Nixon
, and Stein was one of the people on Nixon's enemies list
.
In 1988 Stein served on The Brady Commission, also known as the Presidential Task Force on Market Mechanisms, created by President Ronald Reagan
to investigate the stock market crash of October 19, 1987, or Black Monday
.
In 1999 Stein started Joy of Giving Something, Inc. (JGS, Inc.), a not-for-profit philanthropic corporation dedicated to the photographic arts.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
financier
Financier
Financier is a term for a person who handles typically large sums of money, usually involving money lending, financing projects, large-scale investing, or large-scale money management. The term is French, and derives from finance or payment...
who is widely considered one of the fathers of the mutual fund
Mutual fund
A mutual fund is a professionally managed type of collective investment scheme that pools money from many investors to buy stocks, bonds, short-term money market instruments, and/or other securities.- Overview :...
industry. He was featured on the cover of TIME Magazine on August 24, 1970. Stein invented the first "no load" money market fund and created the first tax-free municipal bond fund.
Early life
Howard Mathew Stein was born in BrooklynBrooklyn
Brooklyn is the most populous of New York City's five boroughs, with nearly 2.6 million residents, and the second-largest in area. Since 1896, Brooklyn has had the same boundaries as Kings County, which is now the most populous county in New York State and the second-most densely populated...
, New York
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
on October 6, 1926. His parents were immigrants from Poland and also had another son and daughter, in addition to Stein. Stein initially planned to become a musician, beginning to learn the violin when he was 5. Stein attended the Straubenmuller Textile High School and the Juilliard School
Juilliard School
The Juilliard School, located at the Lincoln Center for the Performing Arts in New York City, United States, is a performing arts conservatory which was established in 1905...
. However, Stein gave up on his music career and went into business. At the age of 23, he loaded steel on to trucks. He then became a trainee at Bache & Co.
Bache & Co.
Bache & Company was a securities deim that provided stock brokerage and investment banking services. The firm, which was founded in 1879, was based in New York, New York....
. in 1955, Stein left Bache and joined Dreyfus.
Career
Stein joined the Dreyfus CorporationDreyfus Corporation
Dreyfus, established in 1951 and headquartered in New York City, is one of the nation’s leading managers of investment products and strategies. The company merged with Mellon Financial in 1994, and then became a subsidiary of Bank of New York Mellon when Mellon Financial and The Bank of New York...
as an analyst in 1955. He was appointed President in 1965, and Chairman and CEO in 1970. Stein served as Chairman and CEO of Dreyfus for more than 30 years. When Stein started at Dreyfus in 1955 it had approximately 2 million dollars in assets. Before the sale in 1994 this had grown to 90 billion dollars. Dreyfus was sold to Mellon Bank Corporation in 1994 for $1.8 billion. Stein retired in 1996.
Dreyfus Third Century Fund was one of the first funds to combine socially conscious objectives with financial criteria. Created by Stein in 1972 and named for the coming national bicentennial, the fund has been influential in shaping similar philosophically-oriented investments. In addition, in 1974, Dreyfus introduced the first direct marketed, no-load money market fund. Stein became even more focused on money-market and bond funds and succeeded in creating the first tax-free municipal funds, which Dreyfus launched in 1976.
Stein's progressive politics made him a target of Richard Nixon
Richard Nixon
Richard Milhous Nixon was the 37th President of the United States, serving from 1969 to 1974. The only president to resign the office, Nixon had previously served as a US representative and senator from California and as the 36th Vice President of the United States from 1953 to 1961 under...
, and Stein was one of the people on Nixon's enemies list
Nixon's Enemies List
Nixon’s Enemies List is the informal name of what started as a list of President of the United States Richard Nixon’s major political opponents compiled by Charles Colson, written by George T. Bell , and sent in memorandum form to John Dean on September 9, 1971...
.
In 1988 Stein served on The Brady Commission, also known as the Presidential Task Force on Market Mechanisms, created by President Ronald Reagan
Ronald Reagan
Ronald Wilson Reagan was the 40th President of the United States , the 33rd Governor of California and, prior to that, a radio, film and television actor....
to investigate the stock market crash of October 19, 1987, or Black Monday
Black Monday (1987)
In finance, Black Monday refers to Monday October 19, 1987, when stock markets around the world crashed, shedding a huge value in a very short time. The crash began in Hong Kong and spread west to Europe, hitting the United States after other markets had already declined by a significant margin...
.
In 1999 Stein started Joy of Giving Something, Inc. (JGS, Inc.), a not-for-profit philanthropic corporation dedicated to the photographic arts.
Death
Stein died on Tuesday July 26, 2011, at his home in Southampton, N.Y at the age of 84. The cause was complications of a stroke, his son-in-law Jamie Stokien said.Sources
- Staff report (January 16, 1983). Dreyfus bets on the Lion Again. New York Times
- Robert Lenzner (November 19, 1987). The Dreyfus Lion Roars: Leader of Mutual Fund Titan Sees Opportunity Where Others See Trouble. Boston Globe