Kidder Peabody & Co.

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Kidder, Peabody & Co. (Kidder Peabody) was an independent U.S. investment bank for over 120 years until bought first by General Electric and then, after trading scandals, by now-defunct Wall Street rival Paine Webber, which eliminated the Kidder Peabody brand. Paine Webber was itself consumed by Swiss investment banking giant UBS in 2000.

Kidder, Peabody & Co. began in 1865 in Massachusetts as a commercial, investment and merchant bank and later developed as an independent securities dealing and trading firm until 1986, when it was sold to General Electric for $600 million.[1] In 1994 GE sold Kidder Peabody to Paine Webber for $670 million and a 25% stake in the buyer after the firm became entangled first in an insider trading scandal and then a $350 million bond-trading scam.[2] GE's 25% stake in Paine Webber acquired after selling Kidder Peabody netted it $1.5 billion when Paine Webber was acquired by UBS in 2000.

References

  1. Kidder, Peabody & Co.. Answers.com.
  2. GE's Investment in Kidder Finally Pays Off. TheStreet.com.