Dillon, Read & Co. was an investment bank based in New York City.
In 1991, it was acquired by
Barings Bank and, in 1997, it was acquired
by Swiss Bank Corporation, which was in turn acquired by
UBS in 1998.
1.2 Dillon Read Capital Management
2 Further reading
Dillon Read traces its roots to 1832 with the founding of the Wall
Street brokerage firm Carpenter & Vermilye. 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. In 1921,
it was renamed as Dillon, Read & Co. to include partner Clarence
Dillon. 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 and the
sale of the company to
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
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.
Nicholas F. Brady
Nicholas F. Brady served as
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 and George H.W. Bush.
In 1986, the company was sold by its 35 partners to The Travelers
Companies for $157.5 million.
In 1991, the company was Dillon Read was sold to Barings for $122
Barings went bankrupt and in 1995, management bought back the firm.
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.
In 1998, it became part of
UBS bought SBC.
Dillon Read Capital Management
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 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. The
division had raised $1.2 billion in assets under management.
In her 2008 book, UBS: les dessous d'un scandale, Myret Zaki asserted
UBS listened to Dillon Read Management,
UBS could have
limited its losses from the subprime mortgage crisis to $500 million
instead of $40 billion.
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.
WetFeet.com (2001). The WetFeet.com Insider Guide: Warburg Dillon
Read. San Francisco, CA: WetFeet.com. ISBN 1-58207-078-4.
^ 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,
^ 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
^ 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,
MERGE". The Washington Post.
^ Clark, Andrew (May 3, 2007). "
UBS shuts hedge fund after big
sub-prime losses". The Guardian.
^ Hamilton, Dane; Giannone, Joseph (May 3, 2007). "
UBS blames Dillon
Read closure on costs, not losses". Reuters.
^ WERDIGIER, JULIA (May 4, 2007). "
UBS Closing Hedge Fund; Losses
Cited on Mortgages". The New York Times.
^ Bradley, Simon (October 30, 2008). ""
UBS could have curbed losses to
$500 million"". Swissinfo.
Union Bank of Switzerland
Bank in Winterthur
Phillips & Drew
Swiss Bank Corporation
Basler & Zürcher Bankverein
Warburg Dillon Read
S. G. Warburg & Co.
Dillon, Read & Co.
O'Connor & Associates
Paine Webber, Inc.
Paine & Webber
Jackson & Curtis
Blyth, Eastman Dillon & Co.
Kidder, Peabody & Co.
McDonald & Co.
Axel A. Weber
Axel A. Weber (Chairman)
Sergio Ermotti (CEO)
Markus U. Diethelm
John A. Fraser
Beatrice Weder di Mauro
William G. Parrett
Gary P. Brinson