Shearson American Express
Shearson American Express was a subsidiary of American Express after it acquired Shearson Loeb Rhoades, then the second largest brokerage house on Wall Street in April of 1981. Sanford Weil, who had built up Shearson through 40 acquisitions, became the chairman of Shearson/American Express.[1][2]
In 1984, Shearson/American Express bought Lehman Brothers Kuhn Loeb, Inc. for $360 million and the firm becomes Shearson Lehman Brothers.
In 1988, the firm becomes Shearson Lehman Hutton Inc. after it buys E.F. Hutton & Company, an 83-year old brokerage firm, for $1 billion. The firm again became the second largest on Wall Street.
Then, in 1993, American Express sold the retail brokerage business of Shearson to what was then Travelers Corp. The next year, American Express CEO Harvey Golub spun off the Lehman Brothers investment banking unit into an independent company owned by American Express shareholders and Lehman employees.[3]
References[edit]
- ↑ Key Events in Shearson's History. New York Times.
- ↑ Shearson Lehman Brothers Holdings Inc. History. Fundinguniverse.com.
- ↑ American Express to Spin Off Lehman Bros. : Finance: The investment banking unit will become an independent company, leaving a core of service businesses.. Los Angeles Times.