Bank of New York
Encyclopedia
The Bank of New York was a global financial services
company established in 1784 by the American Founding Father Alexander Hamilton
. It existed until its merger with the Mellon Financial Corporation on July 2, 2007. The company now continues under the new name of The Bank of New York Mellon
or BNY Mellon.
The Bank of New York was founded on June 9, 1784, making it the oldest bank
in the United States
. Alexander Hamilton
wrote the new bank's constitution
, and became the individual most actively involved in the organization of The Bank of New York, guiding it through its early stages. The bank opened for business at the Walton House in Lower Manhattan
only a few months after the departure of British troops from American soil. It opened with a capitalization of $500,000.
In connection with its 210th anniversary, BNY Mellon posted to its Web site a series of videos narrated by historian Richard Brookhiser recapping the company’s history. The segments are entitled A Company of New Beginnings, A Company of Visionaries, and A Catalyst for Success.
about a possible amalgamation between the Bank of New York and Mellon Financial Corporation. The $
16.5 billion deal was finalized on July 1, 2007, with Kelly as the Chief Executive Officer
(CEO) of the new company, and Renyi as Executive Chairman. Per the deal, the new Board of Directors
is composed of ten directors appointed by the Bank of New York, and eight by Mellon. The Bank of New York Mellon launched its new brand identity as on October 1, 2007.
Financial services
Financial services refer to services provided by the finance industry. The finance industry encompasses a broad range of organizations that deal with the management of money. Among these organizations are credit unions, banks, credit card companies, insurance companies, consumer finance companies,...
company established in 1784 by the American Founding Father Alexander Hamilton
Alexander Hamilton
Alexander Hamilton was a Founding Father, soldier, economist, political philosopher, one of America's first constitutional lawyers and the first United States Secretary of the Treasury...
. It existed until its merger with the Mellon Financial Corporation on July 2, 2007. The company now continues under the new name of The Bank of New York Mellon
Bank of New York Mellon
The Bank of New York Mellon Corporation is a global financial services company formed on July 1, 2007 as result of the merger of The Bank of New York and Mellon Financial Corporation...
or BNY Mellon.
History
Bank
A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...
in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
. Alexander Hamilton
Alexander Hamilton
Alexander Hamilton was a Founding Father, soldier, economist, political philosopher, one of America's first constitutional lawyers and the first United States Secretary of the Treasury...
wrote the new bank's constitution
Constitution
A constitution is a set of fundamental principles or established precedents according to which a state or other organization is governed. These rules together make up, i.e. constitute, what the entity is...
, and became the individual most actively involved in the organization of The Bank of New York, guiding it through its early stages. The bank opened for business at the Walton House in Lower Manhattan
Lower Manhattan
Lower Manhattan is the southernmost part of the island of Manhattan, the main island and center of business and government of the City of New York...
only a few months after the departure of British troops from American soil. It opened with a capitalization of $500,000.
In connection with its 210th anniversary, BNY Mellon posted to its Web site a series of videos narrated by historian Richard Brookhiser recapping the company’s history. The segments are entitled A Company of New Beginnings, A Company of Visionaries, and A Catalyst for Success.
Timeline
- 1792: The Bank of New York was the first corporate stock to be traded on the New York Stock ExchangeNew York Stock ExchangeThe New York Stock Exchange is a stock exchange located at 11 Wall Street in Lower Manhattan, New York City, USA. It is by far the world's largest stock exchange by market capitalization of its listed companies at 13.39 trillion as of Dec 2010...
. - 1922: The Bank merged with the New York Life Insurance & Trust Company.
- 1948: The Bank acquired The Fifth Avenue Bank.
- 1966: The Bank acquired the Empire Trust CompanyEmpire Trust CompanyEmpire Trust Company was a trust company established in 1902 by McVickar Realty Trust Company in New York, NY.-History:On March 1, 1904, the company was acquired by merger by the Empire State Trust Company, and changed its name to the Empire Trust Company....
. - 1968: The Bank formed its holding company, The Bank of New York Company, Inc.
- 1988: The Bank of New York acquired the Irving Bank Corporation and moved its headquarters to One Wall Street, now known as the Bank of New York BuildingBank of New York BuildingOne Wall Street, originally the Irving Trust Company Building, then the Bank of New York Building , and after 2007 the BNY Mellon Building, is a bank headquarters building which remains one of the finest Art-Deco-style skyscrapers in downtown Manhattan, New York City. It is located in the...
. - 1990s: The Bank acquired the National Community Banks in New Jersey and the Putnam Trust Company in Connecticut.
- 2003: The Bank of New York acquired Pershing LLC, a provider of correspondent clearing and outsourcing services for broker dealers, asset managers. and financial intermediaries. That same year, the Bank integrated Lockwood Financial Services, Inc. into Pershing, creating one of the largest providers of managed account programs with client assets totaling nearly US$18 billion.
- Late 2005: The Bank of New York settled with federal regulators for US$38 million regarding a money launderingMoney launderingMoney laundering is the process of disguising illegal sources of money so that it looks like it came from legal sources. The methods by which money may be laundered are varied and can range in sophistication. Many regulatory and governmental authorities quote estimates each year for the amount...
scandal that began in 1996. The illegal operation involved two Russian emigres—one who was a Vice President of the bank—moving over US$7 billion via hundreds of wires, and ended in the prosecution of at least nine individuals. - April 7, 2006: J.P. Morgan Chase & Co. announced they would swap their corporate trust unit for Bank of New York Co.'s retail and small business banking network. The swap valued the Bank of New York business at US$3.1 billion, and JPMorgan's trust unit at US$2.8 billion and gave Chase access to 338 additional branches and 700,000 new customers in the New York, New Jersey, and Connecticut Tri-State area.
- December 4, 2006: The Bank of New York and Mellon Financial Corporation announced a merger, in which the name would be changed to The Bank of New York Mellon Corporation, or BNY Mellon, creating the world's largest securities servicing provider and a top asset management firm globally.
- May 2007: RussiaRussiaRussia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects...
filed a US$22.5 billion lawsuit against the bank for money launderingMoney launderingMoney laundering is the process of disguising illegal sources of money so that it looks like it came from legal sources. The methods by which money may be laundered are varied and can range in sophistication. Many regulatory and governmental authorities quote estimates each year for the amount...
. The suit was subsequently settled for $14 million.
Merger with Mellon
Talks of a merger began when Tom Renyi approached Robert KellyRobert P. Kelly
Robert P. Kelly is the former CEO of The Bank of New York Mellon. Robert Kelly grew up in Nova Scotia, and went to Saint Mary's University in Halifax. After getting an MBA at Cass Business School, he spent 19 years at Toronto-Dominion Bank. He joined First Union as chief financial officer in 2000...
about a possible amalgamation between the Bank of New York and Mellon Financial Corporation. The $
United States dollar
The United States dollar , also referred to as the American dollar, is the official currency of the United States of America. It is divided into 100 smaller units called cents or pennies....
16.5 billion deal was finalized on July 1, 2007, with Kelly as the Chief Executive Officer
Chief executive officer
A chief executive officer , managing director , Executive Director for non-profit organizations, or chief executive is the highest-ranking corporate officer or administrator in charge of total management of an organization...
(CEO) of the new company, and Renyi as Executive Chairman. Per the deal, the new Board of Directors
Board of directors
A board of directors is a body of elected or appointed members who jointly oversee the activities of a company or organization. Other names include board of governors, board of managers, board of regents, board of trustees, and board of visitors...
is composed of ten directors appointed by the Bank of New York, and eight by Mellon. The Bank of New York Mellon launched its new brand identity as on October 1, 2007.