Mellon Financial
Former investment firm located in the US From Wikipedia, the free encyclopedia
Former investment firm located in the US From Wikipedia, the free encyclopedia
Mellon Financial Corporation was an American investment firm which was once one of the world's largest money management firms. Based in Pittsburgh, Pennsylvania, it was in the business of institutional and high-net-worth individual asset management, including the Dreyfus family of mutual funds, business banking, and shareholder and investor services. On December 4, 2006, it announced a merger agreement with Bank of New York, to form BNY. After regulatory and shareholder approval, the banks completed the merger on July 2, 2007.
 | |
| Industry | Financial services |
|---|---|
| Founded | January 2, 1870[1][2][3] |
| Founder | Thomas Mellon |
| Defunct | July 2, 2007 |
| Fate | Merged with Bank of New York to become BNY Mellon |
| Successor | The Bank of New York Mellon |
| Headquarters | Pittsburgh, Pennsylvania, U.S. |
| Website | mellon.com |
Mellon was opened in January 1870 by Thomas Mellon and his sons Andrew Mellon and Richard B. Mellon, as T. Mellon & Sons' Bank. In 1902, the institution became Mellon National Bank.
Mellon Bank was an important force in the mass production revolution in the United States, especially in the Midwest.[citation needed] The Mellon family using the bank as a proxy had direct involvement with founding the modern aluminium, oil, consumer electronics and financial industries. Alcoa, Gulf Oil (now Chevron-Texaco), Westinghouse (now CBS Corporation and Siemens) and Rockwell, all were directly founded and managed by the bank. U.S. Steel (the world's first billion-dollar corporation), Heinz, General Motors, Koppers and ExxonMobil (as Rockefeller's Standard Oil) were born and nurtured by Mellon.[citation needed]
In 2006, Mellon announced its plans to merge with Bank of New York. Talks began when Tom Renyi approached Robert Kelly about a possible amalgamation between the Bank of New York and Mellon Financial Corporation.[5] The $16.5 billion deal ($24.9 billion today) was announced in December 2006 and finalized on July 1, 2007, with Kelly as the chief executive officer (CEO) of the new company, and Renyi as executive chairman.[5][6] Per the deal, the new Board of Directors is composed of ten directors appointed by the Bank of New York, and eight by Mellon.[7]
The merger was completed July 1, 2007, as The Bank of New York Mellon. Headquartered in New York, it is the world's largest securities servicing firm and one of the world's top ten asset managing firms.[citation needed] The new venture launched its brand identity on October 1, 2007.[8]
These two companies, along with State Street, followed essentially the same evolution. All were originally large diversified financial service providers, particularly in the corporate banking space in the regions they were located in. However, competition in the corporate loans and retail banking businesses saw them jettison these operations in favor of what were believed to be more stable, fee based business: asset management (i.e. investment management in the form of mutual funds and other separately managed accounts) and asset servicing (i.e. corporate trust, stock transfer services and depository receipts).
Mellon is a large provider of what are known as controlled disbursement accounts. These are checking accounts in specialized locations which are given early warning by the Federal Reserve as to what checks will be clearing them. Companies can then transfer the exact amount needed to pay those checks, while then investing the unneeded money or using other funds to pay down debt.
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