Paine Webber
Encyclopedia
Paine Webber and Company was an American
stock broker
age and asset management firm that was acquired by the Swiss bank UBS AG
in 2000. The company was founded in 1880 in Boston, Massachusetts, by William Alfred Paine
and Wallace G. Webber. Operating with two employees, they leased premises at 48 Congress Street
in May 1881. The company was renamed Paine, Webber & Co. when Charles Hamilton Paine became a partner. Members of the Boston Stock Exchange
, in 1890 the company acquired a seat on the New York Stock Exchange
. Wallace G. Webber retired after the business weathered a major financial crisis that hit the market in 1893.
. With the admission of Charles H. Paine to the partnership, the firm was renamed, Paine, Webber & Co. The firm would purchase a seat on the New York Stock Exchange
in 1890. Also in the 1890s, W.A. Paine entered into a partnership with Copper Range Company
and Copper Range Railroad
, controlled by John Stanton.
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 just weeks before the Wall Street Crash of 1929
. His son, F. Ward Paine became head of the firm, a position he held until 1940.
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, Massachusetts not far from the original Paine Webber offices. The combined firm, Paine, Webber, Jackson & Curtis, operated a combined total of 22 branch offices. With its greater combined asset base Paine Webber Jackson & Curtis had become a significant participant in the New England
financial market.
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
. As was the case for many firms, Paine Webber 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. Paine Webber 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. Mitchell Hutchins, which traced its roots to 1919 had evolved to become one of America's leading equity research boutiques.
Two years later, 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 in addition to a strong investment banking business.
and Europe
. With the acquisition of Rotan Mosle Financial Corp. in 1983 Paine Webber had developed a national distribution network and with its active advertising campaign "Thank You Paine Webber" developed its brand throughout the 1980s. The company would consolidate its two divisions, Paine Webber Jackson & Curtis and Blyth Eastman Paine Webber Inc., to form Paine Webber Inc. in 1984. After this point, the company would operate under the Paine Webber brand.
Paine Webber moved its headquarters from 140 Broadway to 1285 Avenue of the Americas in midtown in 1985. Paine Webber became a visible presence on Sixth Avenue. At the time, the illuminated name on the building (today UBS) was unique among investment banks, and the building hosted a ground floor gallery of art exhibitions.
In 1986, the firm opened a new technology and transaction processing operation at Lincoln Harbor in New Jersey.
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.
With a significant nationwide presence, and operating as PaineWebber Group Inc., by late 2000 Paine Webber had emerged as the fourth largest private client firm in the United States with 385 offices employing 8554 brokers.
In 2000, two months before the merger with UBS, Paine Webber acquired southeastern brokerage firm J.C. Bradford & Co.
for $620 million. The deal was not profitable for PaineWebber as a great number of brokers left the firm, taking their clients with them.
, the company merged with UBS AG
, a banking conglomerate headquartered in Zurich
, Switzerland
. The acquisition pushed UBS to the top Wealth and Asset Management Firm in the world. 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."
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
stock broker
Stock broker
A stock broker or stockbroker is a regulated professional broker who buys and sells shares and other securities through market makers or Agency Only Firms on behalf of investors...
age and asset management firm that was acquired by the Swiss bank UBS AG
UBS AG
UBS AG is a Swiss global financial services company headquartered in Basel and Zürich, Switzerland, which provides investment banking, asset management, and wealth management services for private, corporate, and institutional clients worldwide, as well as retail clients in Switzerland...
in 2000. The company was founded in 1880 in Boston, Massachusetts, by William Alfred Paine
William A. Paine
William Alfred Paine was an American businessman who co-founded the stock brokerage firm, Paine Webber....
and Wallace G. Webber. Operating with two employees, they leased premises at 48 Congress Street
Congress Street (Boston)
Congress Street in Boston, Massachusetts is located in the Financial District and South Boston. It was first named in 1800. It was extended in 1854 as far as Atlantic Avenue, and in 1874 across Fort Point Channel into South Boston...
in May 1881. The company was renamed Paine, Webber & Co. when Charles Hamilton Paine became a partner. Members of the Boston Stock Exchange
Boston Stock Exchange
The Boston Stock Exchange is a regional stock exchange located in Boston, Massachusetts. The third-oldest stock exchange in the United States, it was founded in 1834...
, in 1890 the company acquired a seat on the New York Stock Exchange
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...
. Wallace G. Webber retired after the business weathered a major financial crisis that hit the market in 1893.
Founding and early history
In May 1881, William Alfred (W.A.) Paine and Wallace G. Webber founded Paine & Webber as a brokerage firm in Boston, Massachusetts with a seat on the Boston Stock ExchangeBoston Stock Exchange
The Boston Stock Exchange is a regional stock exchange located in Boston, Massachusetts. The third-oldest stock exchange in the United States, it was founded in 1834...
. With the admission of Charles H. Paine to the partnership, the firm was renamed, Paine, Webber & Co. The firm would purchase a seat on the New York Stock Exchange
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...
in 1890. Also in the 1890s, W.A. Paine entered into a partnership with Copper Range Company
Copper Range Company
The Copper Range Company was a major copper-mining company in the Copper Country of Michigan, United States. It began as the Copper Range Company in the late 19th century as a holding company specializing in shares in the copper mines south of Houghton, Michigan...
and Copper Range Railroad
Copper Range Railroad
The Copper Range Railroad was a small railroad company that operated from 1899 to 1972 in the western Upper Peninsula of the state of Michigan, United States....
, controlled by John Stanton.
Controlled by the Paine family, Paine, Webber & Co. entered the 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...
business in the 1920s. After nearly fifty years at the head of the company, W.A. Paine died just weeks before the Wall Street Crash of 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...
. His son, F. Ward Paine became head of the firm, a position he held until 1940.
Following the difficult years of the Great Depression
Great Depression
The Great Depression was a severe worldwide economic depression in the decade preceding World War II. The timing of the Great Depression varied across nations, but in most countries it started in about 1929 and lasted until the late 1930s or early 1940s...
, 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, Massachusetts not far from the original Paine Webber offices. The combined firm, Paine, Webber, Jackson & Curtis, operated a combined total of 22 branch offices. With its greater combined asset base Paine Webber Jackson & Curtis had become a significant participant in the New England
New England
New England is a region in the northeastern corner of the United States consisting of the six states of Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, and Connecticut...
financial market.
1960s and 1970s
The firm moved its headquarters from Boston to New York in 1963. The firm's holding company was incorporated in 1970 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
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...
. As was the case for many firms, Paine Webber 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. Paine Webber 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. Mitchell Hutchins, which traced its roots to 1919 had evolved to become one of America's leading equity research boutiques.
Two years later, in 1979, the company acquired Blyth, Eastman Dillon & Co.
Blyth, Eastman Dillon & Co.
Blyth, Eastman Dillon & Co. was an American investment bank founded in 1914. Blyth Eastman operated for many years as one of the only major investment banking firms on the West Coast of the U.S. At the time of its acquisition, Blyth Eastman had more than 700 finance related employees with over...
, 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
Union Securities
Union Securities Corporation was an independent investment banking firm in existence from 1938 through its acquisition in 1956 although the name would survive through 1972. Union Securities was created in 1938 as a spinoff of the investment banking operations of J. & W. Seligman & Co. as a result...
(formerly the investment banking division of J. & W. Seligman & Co.
J. & W. Seligman & Co.
J. & W. Seligman & Co., founded in 1846, was a prominent U.S. investment bank c. 1860s–1920s until the divestiture of its investment banking arm in the aftermath of the Glass–Steagall Act. The firm was involved in the financing of several major U.S. railroads in the 1870s and the construction of...
) and Eastman Dillon & Co. The acquisition added more than 70 branch offices and more than 700 professionals in addition to a strong investment banking business.
1980s
By 1980 Paine Webber had 161 branch offices in 42 states and six offices in AsiaAsia
Asia is the world's largest and most populous continent, located primarily in the eastern and northern hemispheres. It covers 8.7% of the Earth's total surface area and with approximately 3.879 billion people, it hosts 60% of the world's current human population...
and Europe
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...
. With the acquisition of Rotan Mosle Financial Corp. in 1983 Paine Webber had developed a national distribution network and with its active advertising campaign "Thank You Paine Webber" developed its brand throughout the 1980s. The company would consolidate its two divisions, Paine Webber Jackson & Curtis and Blyth Eastman Paine Webber Inc., to form Paine Webber Inc. in 1984. After this point, the company would operate under the Paine Webber brand.
Paine Webber moved its headquarters from 140 Broadway to 1285 Avenue of the Americas in midtown in 1985. Paine Webber became a visible presence on Sixth Avenue. At the time, the illuminated name on the building (today UBS) was unique among investment banks, and the building hosted a ground floor gallery of art exhibitions.
In 1986, the firm opened a new technology and transaction processing operation at Lincoln Harbor in New Jersey.
1990s
In 1995 Paine Webber completed the acquisition of the brokerage and investment banking firm, Kidder, Peabody & Co.Kidder, Peabody & Co.
Kidder, Peabody & Co. was a U.S.-based securities firm, established in Massachusetts in 1865. Its operations included investment banking, brokerage, and trading....
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.
With a significant nationwide presence, and operating as PaineWebber Group Inc., by late 2000 Paine Webber had emerged as the fourth largest private client firm in the United States with 385 offices employing 8554 brokers.
In 2000, two months before the merger with UBS, Paine Webber acquired southeastern brokerage firm J.C. Bradford & Co.
J.C. Bradford & Co.
J.C. Bradford & Co. was a Nashville-based investment banking and brokerage firm founded by James Cowdon Bradford Sr. in 1927. The firm was the first from Nashville to buy a seat on the New York Stock Exchange....
for $620 million. The deal was not profitable for PaineWebber as a great number of brokers left the firm, taking their clients with them.
Merger with UBS AG
On November 3, 2000, under the leadership of Chairman and CEO, Donald MarronDonald Marron
Donald B. Marron is a financier, private equity investor and entrepreneur, notable as the chairman and chief executive officer of brokerage firm Paine Webber from 1980 through the sale of the company in 2000, as well as the founder of private equity firm Lightyear Capital and of Data Resources...
, the company merged with UBS AG
UBS AG
UBS AG is a Swiss global financial services company headquartered in Basel and Zürich, Switzerland, which provides investment banking, asset management, and wealth management services for private, corporate, and institutional clients worldwide, as well as retail clients in Switzerland...
, a banking conglomerate headquartered in Zurich
Zürich
Zurich is the largest city in Switzerland and the capital of the canton of Zurich. It is located in central Switzerland at the northwestern tip of Lake Zurich...
, Switzerland
Switzerland
Switzerland name of one of the Swiss cantons. ; ; ; or ), in its full name the Swiss Confederation , is a federal republic consisting of 26 cantons, with Bern as the seat of the federal authorities. The country is situated in Western Europe,Or Central Europe depending on the definition....
. The acquisition pushed UBS to the top Wealth and Asset Management Firm in the world. 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."
See also
- UBS AGUBS AGUBS AG is a Swiss global financial services company headquartered in Basel and Zürich, Switzerland, which provides investment banking, asset management, and wealth management services for private, corporate, and institutional clients worldwide, as well as retail clients in Switzerland...
- Kidder, Peabody & Co.Kidder, Peabody & Co.Kidder, Peabody & Co. was a U.S.-based securities firm, established in Massachusetts in 1865. Its operations included investment banking, brokerage, and trading....
(acquired) - Blyth, Eastman Dillon & Co.Blyth, Eastman Dillon & Co.Blyth, Eastman Dillon & Co. was an American investment bank founded in 1914. Blyth Eastman operated for many years as one of the only major investment banking firms on the West Coast of the U.S. At the time of its acquisition, Blyth Eastman had more than 700 finance related employees with over...
(acquired)