This article is about Shearson Hammill, the brokerage and investment banking firm in existence from 1902–1974. For extended usage of the Shearson brand in finance, see Shearson and Shearson (disambiguation).
Edward Shearson (c. 1904), founder of Shearson, Hammill & Co.
Shearson, Hammill & Co. was founded by Edward Shearson and Caleb Wild Hammill in 1902. Before forming the firm, Shearson had served as comptroller of U.S. Steel and of Federal Steel Company before that. Shearson, who was raised in Ontario, Canada began his career as an auditor for the Wisconsin Central Railroad before taking a position in the steel industry in 1898. Shearson was an active member of New York society.[2] Hammill, who was raised in Albion, Michigan, moved first to Chicago and subsequently to New York in 1890.
By the end of World War I, Shearson Hammill had six branch offices and seven correspondents.[3]
In the 1960s Shearson, Hammill became well known for its commercials that suggested "If You Want To Know What’s Going On On Wall Street, Ask Shearson Hammill."[4] The firm had 63 offices in the US and internationally supported by a well-regarded securities research department.[5]
Shearson logo from 1978
In the early 1970s, Shearson faced financial difficulties as did many of the venerable Wall Street firms in the midst of the 1973–1974 stock market crash. In response to the crisis, Shearson laid off a large portion of its staff in 1973.[6] Meanwhile, through the 1960s and 1970s, Sanford I. Weill, the chairman of the up-and-coming Cogan, Berlind, Weill & Levitt, had been acquiring many of Wall Streets oldest and most venerable investment banking and brokerage firms. By 1973, Weill's firm was known as Hayden Stone, Inc. following the acquisition of Hayden, Stone & Co. Despite its strong retail brokerage business, Shearson's capital reserves were diminished and by 1974, it was clear that Shearson did not have sufficient capital to survive as an independent firm, opting to merge with Weill's better capitalized Hayden Stone, Inc. The combined firm was renamed Shearson Hayden Stone, as Weill retained the Shearson brand, which was widely recognized as a major underwriter and brokerage.[7]
Weill's next major target in 1979 was another prominent investment bank, Loeb, Rhoades, Hornblower & Co., which like Shearson had been suffering financial difficulties and was looking for a potential acquiror. During Mothers Day Weekend 1979, Shearson and Loeb agreed to an $83 million all-stock merger to form Shearson Loeb Rhoades, with Weill assuming the position of CEO of the combined firm. At the time of the merger, Shearson Loeb Rhoades, with $260 million of combined assets and approximately $550 million of revenue, was among the largest investment banking houses. By most measures, Shearson became the second largest brokerage firm in the U.S. after Merrill Lynch. The merger with Loeb Rhoades was notable for introducing a stronger investment banking business to Shearson.[8][9]
The Shearson name was finally abandoned in 1994 following Primerica's acquisition of Shearson from American Express. Although initially Primerica had intended to brand its retail brokerage business as Smith Barney Shearson, the Shearson name was dropped.[10]
Acquisition history
The following is an illustration of the company's major mergers and acquisitions and historical predecessors (this is not a comprehensive list):[11]
