Loeb, Rhoades & Co. was a

Wall Street Wall Street is an eight-block-long street in the Financial District of Lower Manhattan in New York City. It runs between Broadway in the west to South Street and the East River in the east. The term "Wall Street" has become a metonym for t ...

brokerage firm founded in 1931 and acquired in 1979 by

Sanford I. Weill Sanford I. "Sandy" Weill (; born March 16, 1933) is an American banker, financier and philanthropist. He is a former chief executive and chairman of Citigroup. He served in those positions from 1998 until October 1, 2003, and April 18, 2006, re ...

Shearson Hayden Stone Shearson was the name of a series of investment banking and retail brokerage firms from 1902 until 1994, named for Edward ShearsonShearson Loeb Rhoades Shearson was the name of a series of investment banking and retail brokerage firms from 1902 until 1994, named for Edward ShearsonAmerican Express American Express Company (Amex) is an American multinational corporation specialized in payment card services headquartered at 200 Vesey Street in the Battery Park City neighborhood of Lower Manhattan in New York City. The company was found ...

to form

Shearson/American Express Shearson was the name of a series of investment banking and retail brokerage firms from 1902 until 1994, named for Edward ShearsonShearson Lehman/American Express Shearson was the name of a series of investment banking and retail brokerage firms from 1902 until 1994, named for Edward ShearsonJewish Jews ( he, יְהוּדִים, , ) or Jewish people are an ethnoreligious group and nation originating from the Israelites Israelite origins and kingdom: "The first act in the long drama of Jewish history is the age of the Israelites""The ...

father Carl M. Loeb and son

John Langeloth Loeb Sr. John Langeloth Loeb Sr. (November 11, 1902 – December 8, 1996) was an American investor and executive who served as president of Loeb, Rhoades & Company. Early life and education Loeb was born to a Jewish family on November 11, 1902, in St ...

in 1931, shortly after the onset of the

Great Depression The Great Depression (19291939) was an economic shock that impacted most countries across the world. It was a period of economic depression that became evident after a major fall in stock prices in the United States. The economic contagio ...

. Carl M. Loeb & Co. merged with Rhoades & Company, a

white shoe A white-shoe firm is an American term used to describe prestigious professional services firms that have traditionally been associated with the upper-class elite who graduated from Ivy League colleges. The term is most often used to describe leadi ...

Wall Street brokerage firm, in 1937 to form what became Loeb, Rhoades & Co. Rhoades & Company had been founded in 1905 by John Harsen Rhoades Jr. (born 1869), formerly a partner of Rhoades & Richmond. The firm operated under the Loeb, Rhoades name from 1937 through 1979 when it briefly used the name Shearson Loeb Rhoades, for two years prior to its acquisition by

American Express American Express Company (Amex) is an American multinational corporation specialized in payment card services headquartered at 200 Vesey Street in the Battery Park City neighborhood of Lower Manhattan in New York City. The company was found ...

in 1981. Carl Loeb, who had built his personal wealth as president of

American Metal Company American Metal Company was an American nonferrous metal trading and production company. History The origin of the American Metal Company (AMCO) begins with Metallgesellschaft AG of Germany, one of whose founders, Wilhelm Ralph Merton Wilhelm R ...

resigned from the company and bought a seat on the

New York Stock Exchange The New York Stock Exchange (NYSE, nicknamed "The Big Board") is an American stock exchange in the Financial District of Lower Manhattan in New York City. It is by far the world's largest stock exchange by market capitalization of its listed c ...

, at the urging of his son John in 1931. While on the New York Stock Exchange, he pushed through many reforms. Three years after Loeb left American Metals, the company's stock was nearly worthless. Together with his son, Carl ran Loeb, Rhoades for its first 24 years, from 1931 until his death in 1955. John L. Loeb was a partner in the firm from 1931 to 1955 and following the death of his father became the senior partner, a role which he retained through 1977 when the firm was merged. In 1951, John Loeb became a governor of the

. In 1956, Loeb, Rhoades acquired a controlling interest in the Cuban Atlantic Sugar Company and sold its stake on December 31, 1958, a day before the

Cuban Revolution The Cuban Revolution ( es, Revolución Cubana) was carried out after the 1952 Cuban coup d'état which placed Fulgencio Batista as head of state and the failed mass strike in opposition that followed. After failing to contest Batista in cou ...

. In 1973, Carl M. Mueller assumed management control of the firm before Loeb resumed his management responsibilities in the firm in 1977. Loeb oversaw the merger of Loeb, Rhoades with

Hornblower, Weeks, Noyes & Trask Hornblower & Weeks was an investment banking and brokerage firm founded by Henry Hornblower and John W. Weeks in 1888. At its peak in the late 1970s, Hornblower ranked eighth among member firms of the New York Stock Exchange in number of retail o ...

to form Loeb, Rhoades, Hornblower & Co. in January 1978 before handing over day to day control of the firm to his nephew, Thomas Kempner, a grandson of Carl Loeb who had joined the firm in 1950. The Hornblower merger turned out to be disastrous for Loeb, Rhoades. The two firms incurred significant costs attempting to merge their back office operations, both of which had issues prior to the merger. By the end of 1978, less than a year after the merger, the combined firm was losing millions of dollars. Through the 1960s and 1970s,

was acquiring brokerage firms and by 1979 was running

Shearson Hayden Stone Shearson was the name of a series of investment banking and retail brokerage firms from 1902 until 1994, named for Edward ShearsonShearson Loeb Rhoades Shearson was the name of a series of investment banking and retail brokerage firms from 1902 until 1994, named for Edward ShearsonThe Urge to Merge
New York Magazine, May 28, 1979, p. 13 In 1981, Shearson Loeb Rhoades bought the Boston Company holding company of the Boston Safe Deposit & Trust Co., a money manager. The same year, Weill sold the combined company to

to form

Shearson/American Express Shearson was the name of a series of investment banking and retail brokerage firms from 1902 until 1994, named for Edward Shearsonfamily office A family office is a privately held company that handles investment management and wealth management for a wealthy family, generally one with at least $50-$100 million in investable assets, with the goal being to effectively grow and transfer w ...

clients. In 2008, Loeb Capital Management, a d/b/a for Loeb Arbitrage Management, Loeb Offshore Management and Carl M. Loeb Advisory Partners Inc., was launched under common control with Loeb Partners Corporation. In 2013 Loeb Capital Management was renamed Loeb King Capital Management.

Acquisition history

The following is an illustration of the company's major mergers and acquisitions and historical predecessors (this is not a comprehensive list):"Salomon Smith Barney" from Gambee, Robert.
Wall Street
'. W. W. Norton & Company, 1999. p.73

Notable alumni

Daniel J. Bernstein Daniel Julius Bernstein (sometimes known as djb; born October 29, 1971) is an American German mathematician, cryptologist, and computer scientist. He is a visiting professor at CASA at Ruhr University Bochum, as well as a research professor of ...

, American businessman and left-wing political activist *

William Eacho William Carlton Eacho III (born 1954) is the former United States Ambassador to Austria. Eacho was nominated by President Barack Obama in June 2009. He was confirmed by the US Senate and sworn in during August 2009. He succeeded David F. Girard-d ...

, business executive and

United States Ambassador to Austria This is a list of ambassadors of the United States to Austria. The United States first established diplomatic relations with Austria in 1838 during the time of the Austrian Empire. Relations between the United States have been continuous since t ...

Mario Gabelli Mario Joseph Gabelli (born June 19, 1942) is an American stock investor, investment advisor, and financial analyst. He is the founder, chairman, and Chief executive officer, CEO of GAMCO Investors, Gabelli Asset Management Company Investors (Gam ...

, an American stock investor, investment advisor and financial analyst * Ajit Hutheesing, head of International Capital Partners *

E. Pierce Marshall Everett Pierce Marshall (January 12, 1939 – June 20, 2006) was an American petroleum industry executive. He was the beneficial owner of 16% of Koch Industries, which he received as an inheritance from his father, J. Howard Marshall II. He spent ...

, American businessman and a son of

J. Howard Marshall II James Howard Marshall II (January 24, 1905 – August 4, 1995) was an American billionaire businessman, academic, and government official. He was involved with and invested in the petroleum industry via academic, government and commercial ende ...

Michael Steinhardt Michael H. Steinhardt (born December 7, 1940) is an American billionaire hedge fund manager, philanthropist, and former antiquities collector. In 1967, he founded a hedge fund, Steinhardt Partners which he ran until he closed it in 1995. After a ...

, investor and philanthropist *

Walter Schloss Walter Jerome Schloss (August 28, 1916 – February 19, 2012) was an American investor, fund manager, and philanthropist. He was a well-regarded value investor as well as a notable disciple of the Benjamin Graham school of investing. He d ...

, American Investor, fund manager, and philanthropist (1916–2012) *

Armand G. Erpf Armand Grover Erpf (December 8, 1897 – February 2, 1971) was an American investment banker, philanthropist, and art collector. He was a senior partner at Loeb, Rhoades & Co., chairman of the Executive Committee of the Crowell-Collier Publishing ...

, investor and art collector, chairman of the

Crowell-Collier Publishing Company Crowell-Collier Publishing Company was an American publisher that owned the popular magazines ''Collier's'', ''Woman's Home Companion'' and ''The American Magazine''. Crowell's subsidiary, P.F. Collier and Son, published ''Collier's Encyclopedia,' ...

Paul F. Warburg Paul Felix Warburg (October 6, 1904 – October 8, 1965) was a Jewish-American banker from New York. Life Warburg was born on October 6, 1904 in New York City, New York City, New York, the son of banker Felix M. Warburg and philanthropist Frieda ...

, American investment banker

References

John L. Loeb Sr. Dies at 94; Investor and Philanthropist
New York Times, December 9, 1996 *Stone, Amey and Brewster, Mike.
King of capital: Sandy Weill and the making of Citigroup
2002 *Langley, Monica.
Tearing Down the Walls
2004
CREATING A WALL STREET GIANT - For Weill, It's Doubly Sweet Deal
LA Times, March 13, 1993

External links

Loeb Capital Partners
company website for an existing family investment firm tracing its roots to Loeb Rhoades & Co. {{DEFAULTSORT:Loeb, Rhoades and Co. Defunct financial services companies of the United States Brokerage firms American companies established in 1931 Financial services companies established in 1931 Financial services companies disestablished in 1979 Former investment banks of the United States 1931 establishments in New York City 1979 disestablishments in New York (state) Carl M. Loeb family Shearson Lehman/American Express

Acquisition history

Notable alumni

See also

References

External links