Keefe, Bruyette & Woods
Encyclopedia
Keefe, Bruyette & Woods, Inc. is an investment banking firm headquartered in New York City
, specializing exclusively in the financial services sector. KBW's primary business lines include Research, Corporate Finance
, Equity Sales and Trading, Fixed Income
Sales and Trading, Equity Capital Markets
, Debt Capital Markets, and Asset Management.
The firm provides a broad range of services to corporate clients such as banking companies, insurance companies, real estate and REITs, broker-dealer
s, mortgage banks, asset management companies, and specialty finance firms as well as to the institutional investor community. KBW's research analysts cover more than 600 companies in the financial services industry globally.
The company, which was founded in 1962, currently has eight offices in the United States as well as offices in London
, Hong Kong
and Tokyo
.
. Beginning in the 1950s, Keefe had been one of the first Wall Street research analysts to focus on bank stocks, which later became the specialty of the firm he co-founded. Norbert Woods died in 1972 and the firm was led by Keefe and Bruyette through the 1970s and 1980s.
Under Harry Keefe, the firm advised on several mergers that helped form large regional banks in the 1980s. The firm advised on a series of deals that created the Bank of New England
out of smaller banks in Massachusetts and Connecticut. KBW also advised on the creation of SunTrust Bank from a group of Florida and Georgia based banks. In 1985, KBW negotiated the merger of Wachovia
and First National Bank of Atlanta. More recently, in 2005, the firm was sole adviser to Bank of America
in their takeover of MBNA
.
Harry Keefe left the firm in 1989 after a business dispute with his associates and founded his own money management and consulting firm. By 1990, KBW had transitioned management of the firm from the original founders to a new group including Charles Lott and James McDermott. Gene Bruyette retired from the firm in 1991. James McDermott was later convicted of violating insider trading rules in 2000 by providing stock tips to a girlfriend.
In November 2006, KBW completed a $100 million initial public offering
of stock. The firm is traded on the NYSE under the ticker 'KBW'. As of the end of 2010, KBW employees owned approximately one-third of the stock in the company.
's South tower at the time of the terrorist attacks
of September 11, 2001. Out of the firm's 172 New York employees, 67 died as a result of the attack when the South tower collapsed. Among the employees killed in the attack were the firm's co-CEO Joseph Berry, CFO Jeffrey Fox, as well as several notable research analysts David Berry, Dean Eberling and Thomas Theurkauf.
Prior to September 11, the firm had been engaged in discussions with BNP
about a possible acquisition. The firm had held an annual 9/11 memorial service and also maintains a charitable fund it set up to help victims' families.
New York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...
, specializing exclusively in the financial services sector. KBW's primary business lines include Research, Corporate Finance
Corporate finance
Corporate finance is the area of finance dealing with monetary decisions that business enterprises make and the tools and analysis used to make these decisions. The primary goal of corporate finance is to maximize shareholder value while managing the firm's financial risks...
, Equity Sales and Trading, Fixed Income
Fixed income
Fixed income refers to any type of investment that is not equity, which obligates the borrower/issuer to make payments on a fixed schedule, even if the number of the payments may be variable....
Sales and Trading, Equity Capital Markets
Equity Capital Markets
Equity capital is raised in many ways; the major types of equity capital are unlisted equity, listed equity and hybrids. Equity capital market practices traditionally advise in a full range of equity, debt equity-linked, hybrid, asset-backed, credit-linked and derivative products that are offered...
, Debt Capital Markets, and Asset Management.
The firm provides a broad range of services to corporate clients such as banking companies, insurance companies, real estate and REITs, broker-dealer
Broker-dealer
A broker-dealer is a term used in United States financial services regulations. It is a natural person, a company or other organization that trades securities for its own account or on behalf of its customers....
s, mortgage banks, asset management companies, and specialty finance firms as well as to the institutional investor community. KBW's research analysts cover more than 600 companies in the financial services industry globally.
The company, which was founded in 1962, currently has eight offices in the United States as well as offices in London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
, Hong Kong
Hong Kong
Hong Kong is one of two Special Administrative Regions of the People's Republic of China , the other being Macau. A city-state situated on China's south coast and enclosed by the Pearl River Delta and South China Sea, it is renowned for its expansive skyline and deep natural harbour...
and Tokyo
Tokyo
, ; officially , is one of the 47 prefectures of Japan. Tokyo is the capital of Japan, the center of the Greater Tokyo Area, and the largest metropolitan area of Japan. It is the seat of the Japanese government and the Imperial Palace, and the home of the Japanese Imperial Family...
.
History
The firm was founded in 1962 by Harry Keefe Jr., Gene Bruyette and Norbert Woods. The three founders previously had worked together at Tucker, Anthony & R. L. DayTucker Anthony
Tucker Anthony was an independent investment banking and brokerage firm based in Boston, Massachusetts. In 2001, the firm was acquired by Royal Bank of Canada and was merged with the bank's Dain Rauscher Wessels subsidiary to create RBC Dain Rauscher....
. Beginning in the 1950s, Keefe had been one of the first Wall Street research analysts to focus on bank stocks, which later became the specialty of the firm he co-founded. Norbert Woods died in 1972 and the firm was led by Keefe and Bruyette through the 1970s and 1980s.
Under Harry Keefe, the firm advised on several mergers that helped form large regional banks in the 1980s. The firm advised on a series of deals that created the Bank of New England
Bank of New England
The Bank of New England Corporation was a regional banking institution based in Boston, Massachusetts, which was seized by the Federal Deposit Insurance Corporation in 1991 as a result of heavy losses in its loan portfolio and was placed into Chapter 7 liquidation...
out of smaller banks in Massachusetts and Connecticut. KBW also advised on the creation of SunTrust Bank from a group of Florida and Georgia based banks. In 1985, KBW negotiated the merger of Wachovia
Wachovia
Wachovia was a diversified financial services company based in Charlotte, North Carolina. Before its acquisition by Wells Fargo in 2008, Wachovia was the fourth-largest bank holding company in the United States based on total assets...
and First National Bank of Atlanta. More recently, in 2005, the firm was sole adviser to Bank of America
Bank of America
Bank of America Corporation, an American multinational banking and financial services corporation, is the second largest bank holding company in the United States by assets, and the fourth largest bank in the U.S. by market capitalization. The bank is headquartered in Charlotte, North Carolina...
in their takeover of MBNA
MBNA
MBNA Corporation was a bank holding company and parent company of wholly owned subsidiary MBNA America Bank, N.A., headquartered in Wilmington, Delaware, prior to being acquired by Bank of America in 2006...
.
Harry Keefe left the firm in 1989 after a business dispute with his associates and founded his own money management and consulting firm. By 1990, KBW had transitioned management of the firm from the original founders to a new group including Charles Lott and James McDermott. Gene Bruyette retired from the firm in 1991. James McDermott was later convicted of violating insider trading rules in 2000 by providing stock tips to a girlfriend.
In November 2006, KBW completed a $100 million initial public offering
Initial public offering
An initial public offering or stock market launch, is the first sale of stock by a private company to the public. It can be used by either small or large companies to raise expansion capital and become publicly traded enterprises...
of stock. The firm is traded on the NYSE under the ticker 'KBW'. As of the end of 2010, KBW employees owned approximately one-third of the stock in the company.
Impact of September 11
The company's prior New York headquarters was located on the 85th, 88th, and 89th floors of the World Trade CenterWorld Trade Center
The original World Trade Center was a complex with seven buildings featuring landmark twin towers in Lower Manhattan, New York City, United States. The complex opened on April 4, 1973, and was destroyed in 2001 during the September 11 attacks. The site is currently being rebuilt with five new...
's South tower at the time of the terrorist attacks
September 11, 2001 attacks
The September 11 attacks The September 11 attacks The September 11 attacks (also referred to as September 11, September 11th or 9/119/11 is pronounced "nine eleven". The slash is not part of the pronunciation...
of September 11, 2001. Out of the firm's 172 New York employees, 67 died as a result of the attack when the South tower collapsed. Among the employees killed in the attack were the firm's co-CEO Joseph Berry, CFO Jeffrey Fox, as well as several notable research analysts David Berry, Dean Eberling and Thomas Theurkauf.
Prior to September 11, the firm had been engaged in discussions with BNP
BNP
-Politics:*Bahujana Nidahas Peramuna, a Sri Lankan political party*Balochistan National Party, a Pakistani political party*Bangladesh Nationalist Party, a Bangladeshi political party*Barbados National Party, a defunct political party in Barbados...
about a possible acquisition. The firm had held an annual 9/11 memorial service and also maintains a charitable fund it set up to help victims' families.
External links
- Keefe, Bruyette & Woods (company website)