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The Info List - Warburg Dillon Read





Dillon, Read & Co. was an investment bank based in New York City. In 1991, it was acquired by Barings Bank
Barings Bank
and, in 1997, it was acquired by Swiss Bank Corporation, which was in turn acquired by UBS
UBS
in 1998.

Contents

1 History

1.1 Origins 1.2 Dillon Read Capital Management

2 Further reading 3 References

History[edit] Origins[edit] Dillon Read traces its roots to 1832 with the founding of the Wall Street brokerage firm Carpenter & Vermilye.[1] The firm was notable for selling war bonds during the U.S. Civil War. In 1905, it was renamed after its principal partner, William A. Read.[1] In 1921, it was renamed as Dillon, Read & Co. to include partner Clarence Dillon.[2] The firm underwrote bonds issued by New York City
New York City
and underwrote stocks and bonds of railroads and other companies. In 1921, the firm managed the rescue of faltering Goodyear Tire & Rubber Company. In 1925, it engineered the buyout of Dodge Brothers
Dodge Brothers
and the sale of the company to Chrysler
Chrysler
in 1928. In the 1930, it underwrote foreign bonds and arranged financing for the petroleum industry. In 1937, it underwrote the bonds used to finance the Triborough Bridge.[1] C. Douglas Dillon, the son of Dillon Read co-founder Clarence Dillon, served as chairman of the company before serving as U.S. Secretary of the Treasury under John F. Kennedy
John F. Kennedy
and as U.S. Undersecretary of State and U.S. Ambassador to France under Dwight Eisenhower.[3] Nicholas F. Brady
Nicholas F. Brady
served as Chairman
Chairman
from 1970 to 1982, before serving as a United States Senator from New Jersey and as U.S. Secretary of the Treasury under Ronald Reagan
Ronald Reagan
and George H.W. Bush.[4] In 1986, the company was sold by its 35 partners to The Travelers Companies for $157.5 million.[5] In 1991, the company was Dillon Read was sold to Barings for $122 million.[6] Barings went bankrupt and in 1995, management bought back the firm.[7] In 1997, the company was sold to Swiss Bank Corporation
Swiss Bank Corporation
in 1997 and merged with S. G. Warburg & Co., to become Warburg Dillon Read.[8] In 1998, it became part of UBS
UBS
when UBS
UBS
bought SBC.[9] Dillon Read Capital Management[edit] The Dillon Read name was dropped by 2000. In June 2005, UBS established Dillon Read Capital Management (DRCM), led by former UBS Investment Bank head John P. Costas. On May 3, 2007, UBS
UBS
announced the closure of Dillon Read Capital Management. The division lost 150 million Swiss Francs in the first quarter of 2007, primarily due to bets on the sub-prime mortgage industry in the United States. The assets under management were transferred into UBS's main asset management business.[10] The division had raised $1.2 billion in assets under management.[11][12] In her 2008 book, UBS: les dessous d'un scandale, Myret Zaki asserted that had UBS
UBS
listened to Dillon Read Management, UBS
UBS
could have limited its losses from the subprime mortgage crisis to $500 million instead of $40 billion.[13] Further reading[edit]

Sobel, Robert (1991). The Life and Times of Dillon Read. New York: Truman Talley Books/Dutton. ISBN 0-525-24959-1.  Geisst, Charles R (2001). The Last Partnerships: Inside the Great Wall Street Money Dynasties. New York: McGraw-Hill. ISBN 0-07-136999-6.  WetFeet.com (2001). The WetFeet.com Insider Guide: Warburg Dillon Read. San Francisco, CA: WetFeet.com. ISBN 1-58207-078-4. 

References[edit]

^ a b c "The Encyclopedia of New York City: Second Edition". Yale University Press. December 1, 2010.  ^ "BANKING FIRM CHANGES.; William A. Read & Co. Dissolves and Dillon, Read & Co. is Formed". The New York Times. January 14, 1921.  ^ PACE, ERIC (January 12, 2003). " C. Douglas Dillon
C. Douglas Dillon
Dies at 93; Was in Kennedy Cabinet". The New York Times.  ^ Romano, Lois (April 25, 1989). "THE CASUAL FORCE OF NICK BRADY". The Washington Post.  ^ STERNGOLD, JAMES (July 16, 1986). "TRAVELERS BUYING DILLON, READ". The New York Times.  ^ EICHENWALD, KURT (November 13, 1991). "Travelers Is Selling Dillon Firm". The New York Times.  ^ STROM, STEPHANIE (May 31, 1995). "Barings Successor Sells Back Dillon Stake". The New York Times.  ^ TRUELL, PETER (May 16, 1997). "Swiss Bank Steps Up to Buy Dillon, Read on Rebound". The New York Times.  ^ Swardson, Anne (December 9, 1997). "SWISS BANKING GIANTS SBC, UBS
UBS
TO MERGE". The Washington Post.  ^ Clark, Andrew (May 3, 2007). " UBS
UBS
shuts hedge fund after big sub-prime losses". The Guardian.  ^ Hamilton, Dane; Giannone, Joseph (May 3, 2007). " UBS
UBS
blames Dillon Read closure on costs, not losses". Reuters.  ^ WERDIGIER, JULIA (May 4, 2007). " UBS
UBS
Closing Hedge Fund; Losses Cited on Mortgages". The New York Times.  ^ Bradley, Simon (October 30, 2008). "" UBS
UBS
could have curbed losses to $500 million"". Swissinfo. 

v t e

UBS
UBS
AG

Historical Predecessors

Union Bank of Switzerland

Bank in Winterthur Toggenburger Bank Interhandel Phillips & Drew Schröder, Münchmeyer

Swiss Bank Corporation

Basler & Zürcher Bankverein Basler Handelsbank Warburg Dillon Read S. G. Warburg & Co. Dillon, Read & Co. Brinson Partners O'Connor & Associates

Paine Webber, Inc.

Paine & Webber Jackson & Curtis Blyth, Eastman Dillon & Co. Kidder, Peabody & Co. Mitchell Hutchins Union Securities

Other Companies

McDonald & Co.

Current Executives and Directors

Axel A. Weber
Axel A. Weber
(Chairman) Sergio Ermotti
Sergio Ermotti
(CEO) Tom Naratil Markus U. Diethelm John A. Fraser Ulrich Körner Carsten Kengeter Alex Wilmot-Sitwell Robert McCann Chi-Won Yoon Philip Lofts Jürg Zeltner Lukas Gähwiler Beatrice Weder di Mauro William G. Parrett Phil Gramm

Former executives

Gary P. Brinson John Costas John Cryan Blair Effron Oswald Grübel Marten Hoekstra Jerker Johansson Peter Kurer Ken Moelis Marcel Ospel Marcel Rohner Olivier Sarkozy Kaspar Villiger

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