343:, who had been the primary advocate for the Warburg investment in Becker, died. Although Warburg had originally planned to buy out Paribas, after Siegmund Warburg's death, Paribas bought out Warburg's interest in the joint venture in early 1983. Following the departure of Warburg from the joint venture, the firm was renamed A.G. Becker Paribas.
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A.G. Becker enjoyed a rich history of producing leading banking figures who received their early training and up to two decades of experience with Becker before emerging as leaders in their own rights at other banks and in other fields. Many younger Becker bankers, hired from 1977 through 1984, never
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Now effectively in control of the firm, Paribas, took a more visible role in managing Becker. In June 1983, Paribas' president Herve M. Pinet, became chairman and chief executive of Becker, and Daniel J. Good became president and chief operating officer. Even though the profitability of other firms
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throughout the mid-1970s. However, the firm was plagued by competition between
Warburg and Paribas, as well as cultural conflicts between French, English and American executives and internal management issues in the U.S. In 1978, Becker's president, Paul Judy, an architect of the joint venture was
402:
to a leadership in the commercial paper markets and also enhanced certain of its investment banking advisory and underwriting businesses. After the acquisition of Becker, a number of executives remained with
Merrill, most notably Barry S. Friedberg who would serve as head of Investment Banking in
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bought out the 50% of the company owned by employees and other shareholders, taking full control of the business. However, within a few months, Paribas soured on the business after investing additional capital. Becker had lost in excess of $ 80 million, through the trading of government bonds, in
228:
Through the early part of the 20th century, Becker became one of the leading commercial paper firms in the U.S. Becker's commercial paper business had been founded on the dealing of "bankers acceptances", another form of short term finance for corporate borrowers, that was popular in the
Chicago
217:. Becker, who had been a junior partner under Schaffner, paid in $ 50,000 from a life insurance policy to start his own firm and by 1904 Becker had paid back the losses suffered by Schaffner's customers. Initially, Becker paid needy customers, particularly widows, first out of his own pocket.
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had the opportunity to rise through the Becker ranks because of its sale to
Merrill Lynch in 1984. Nonetheless they can now be counted within the senior ranks of bankers, financiers and academics in roles throughout the United States, including Becker's original home in Chicago.
27:
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and 60% owned by the existing shareholders of Becker, a combination of employees and management. In 1982, the two
European firms increased their stake from 40% to just over 50%, after they made a joint investment of $ 15 million to $ 20 million.
298:(Compagnie Financiere de Paris et des Pays-Bas, prior to the bank's nationalization in 1982). As a result of the transaction, the firm operated under the name A.G. Becker-Warburg Paribas Becker and was 40% owned by the two European
229:
markets. At one point in the development of the commercial paper market in the United States, two banks were the dominant commercial paper dealers: A G Becker (concentrating its business in the MidWest and West and in the
314:
and Becker's president Paul Judy, expanded Becker's capital base and added an international dimension to its investment banking business. At the time, the deal was considered emblematic of the globalization of finance.
335:. In July 1982, the two European partners increased their stake to just over 50% taking control of the business, in exchange for an equity injection needed to stabilize the company's finances. In October 1982,
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the final months of
Paribas' ownership, losing approximately $ 15 million each month. However, the company suffered more long-term challenges including high overhead costs and decreased revenues from its
635:"The Financial Times has examined the problems which caused S G Warburg, a Mercury Securities subsidiary, and Paribas to lift their joint stake in A G Becker-Warburg Paribas Becker to just over 50%".
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Becker's president Ira Wender was forced out of the firm in 1982 when the firm announced a major restatement of its financials revealing larger operating losses. He was replaced by Daniel J. Good and
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375:. Merrill Lynch acquired Becker for $ 100 million in stock but absorbed only a few hundred of the firm's employees. The acquisition of Becker came on the heels of the purchase of
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In 1893, Abraham G. Becker took control of
Herbert Schaffner & Co., a commercial paper business in Chicago. The firm, which was founded by Becker's uncle had failed during the
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as well as equity and fixed income businesses. In May 1984, Becker sold its securities-correspondent business, representing 500 employees or one-third of its workforce, to
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836:"Mercury Securities, the parent of S G Warburg, has severed its financial links with Paribas, the nationalised French bank." April 30, 1983
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replaced by Ira Wender. Under Wender, a number of key executives who had built the firm either were forced out or left the company.
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consulting business with the creation of "Green Book" tables comparing results to benchmarks, to help identify the performance of
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In 1974 A.G. Becker entered into a merger with
Warburg Paribas, a newly formed American joint venture between London-based
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The firm slowly branched out into a stock and bond brokerage. In 1911, the firm completed its first underwriting for
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Daniel J. Good who became
President of EF Hutton LBO, Inc. and Head of Merchant Banking of Shearson Lehman Bros.
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233:) and Goldman Sachs (concentrating more on the East Coast and in the various financial markets of New York).
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Barry S. Friedberg, following the purchase of Becker, would go on to be head of
Investment Banking at
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rebounded significantly in the bull market of late 1982 and 1983, Becker continued to sustain losses.
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367:. Then in August 1984, Paribas announced the sale of the remainder of the company, comprising its
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enter the commercial paper market; as Lehman's CEO he engineered the storied sale of that firm to
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455:, founder of Gilder, Gagnon, Howe & Co. began his career as a broker at Becker in the 1960s.
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spent two years at A.G. Becker, from 1960 to 1962, before winning election to serve in the
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began his career in the Institutional Trading department at Becker in the late 1960s.
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A.G. Becker Cuts Staff 10%, Cites Weak Markets. Wall Street Journal, May 30, 1984
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Merrill Moves To Reorganize Its Top Ranks. Wall Street Journal, March 26, 1993
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The joint venture was initially successful in elevating Becker's position in
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house. It evolved into a full line investment banking firm with offices in
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282:, part-owner of Sears, had tapped his friend Becker to lead the offering.
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began his career in investment banking at Becker from 1959 through 1970.
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in the United States and as of 2009 managed in excess of $ 22 billion.
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Richard Elden, a former analyst at Becker in the 1960s, established
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By 1919, the firm had opened offices along the west coast in
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and rumors during the summer of 1984 had paired Becker with
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Abraham G. Becker, founder of A. G. Becker & Co. in 1893
275:. Also in 1919, Becker arranged $ 50 million of notes for
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Defunct financial services companies of the United States
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Institutions were a life raft for fund-of-funds managers
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Becker Paribas and the sale to Merrill Lynch (1982-1984)
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Joint venture with S.G. Warburg and Paribas (1974-1982)
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149:
Becker's history goes back to the 1880s when it was a
801:"Stephen Weiss, Benefactor to Cornell, Is Dead at 72"
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Financial services companies disestablished in 1984
822:
A Chronicle of the History of A.G. Becker & Co.
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75:
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51:
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488:(born 1939), Olympic fencer and hedge fund manager
685:Joint Ventures, Alliances, and Corporate Strategy
482:from 1977 to 1981 would join Becker in July 1982.
887:Financial services companies established in 1893
667:"French Partner To Buy British Share In Becker"
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551:
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306:The transaction, which had been championed by
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877:Former investment banks of the United States
772:. Pensions & Investments, April 5, 2010
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754:Sam Kirschner, Eldon Mayer, Lee Kessler.
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541:The Jews of Chicago: from shtetl to suburb
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16:American investment bank based in Illinois
591:Handbook On the History of European Banks
559:"A Short History of A.G. Becker & Co"
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240:. Thereafter, the firm raised debt for
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543:. University of Illinois Press, 1996
244:and later issued preferred stock for
7:
615:"Becker Paribus: An Ill-Fated Union"
843:A.G. Becker & Co., Inc. Records
757:The Investor's Guide to Hedge Funds
371:and other securities businesses to
902:Defunct banks of the United States
867:Defunct companies based in Chicago
14:
721:"Behind Becker's Unhappy Breakup"
682:Harrigan, Kathryn Rudie (2003).
398:The purchase of Becker propelled
363:, which at the time was owned by
827:"2 Holders Widen Role in Becker"
651:"Becker Appoints New Leadership"
594:. Edward Elgar Publishing, 1994
403:the late 1980s and early 1990s.
365:Donaldson, Lufkin & Jenrette
25:
897:1893 establishments in Illinois
799:Weber, Bruce (April 20, 2008).
698:"Paribus Sets Funds for Becker"
588:Manfred Pohl, Sabine Freitag.
1:
503:U.S. House of Representatives
760:. John Wiley and Sons, 2006
461:left Becker in 1963 to help
438:industry creating the first
428:Grosvenor Capital Management
192:Becker was a pioneer in the
480:Comptroller of the Currency
421:Driehaus Capital Management
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209:Founding and early history
505:. He later served as U.S.
381:Shearson/American Express
377:Lehman Brothers Kuhn Loeb
238:Hart Schaffner & Marx
97:San Francisco, California
24:
491:Jeff Peek, President of
277:Sears, Roebuck & Co.
521:Weiss, Peck & Greer
198:institutional investors
862:Banks based in Chicago
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132:A. G. Becker & Co.
20:A. G. Becker & Co.
434:was a pioneer in the
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507:Secretary of Defense
440:fund of hedge funds
119:Number of employees
21:
831:The New York Times
805:The New York Times
727:. August 26, 1984.
725:The New York Times
702:The New York Times
671:The New York Times
655:The New York Times
620:The New York Times
369:investment banking
357:investment banking
320:investment banking
226:
108:Investment banking
46:Financial services
872:Merrill (company)
790:. April 23, 1984.
673:. March 24, 1983.
623:. August 7, 1984.
231:commodity markets
189:), among others.
146:, United States.
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92:Chicago, Illinois
63:Abraham G. Becker
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847:Newberry Library
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641:. July 13, 1982.
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564:. Archived from
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517:Stephen H. Weiss
509:under President
467:American Express
417:Richard Driehaus
341:Siegmund Warburg
312:Siegmund Warburg
294:and Paris-based
280:Julius Rosenwald
246:Hupp Motor Works
151:commercial paper
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833:. July 2, 1982.
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688:. Beard Books.
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657:. July 9, 1982.
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499:Donald Rumsfeld
476:John G. Heimann
463:Lehman Brothers
459:Lewis Glucksman
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333:John G. Heimann
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136:investment bank
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815:External links
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704:. May 4, 1984.
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571:on 2011-08-11
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573:. Retrieved
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385:Paine Webber
361:Pershing LLC
349:
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337:S.G. Warburg
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308:S.G. Warburg
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292:S.G. Warburg
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235:
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131:
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125:1,600 (1984)
123:2,450 (1983)
88:Headquarters
79:Acquired by
34:Company type
782:"Fire Sale"
391:as well as
257:Los Angeles
242:U.S. Gypsum
187:Switzerland
163:Los Angeles
856:Categories
575:2010-08-26
528:References
478:, former
436:hedge fund
430:in 1971.
493:CIT Group
432:Grosvenor
273:St. Louis
138:based in
112:brokerage
339:founder
310:founder
261:Portland
159:New York
144:Illinois
104:Products
42:Industry
37:Acquired
845:at the
352:Paribas
296:Paribas
265:Seattle
204:History
194:pension
179:England
155:Chicago
140:Chicago
134:was an
83:in 1984
68:Defunct
60:Founder
52:Founded
393:Nomura
183:Geneva
181:) and
175:London
171:Boston
99:, U.S.
94:, U.S.
569:(PDF)
562:(PDF)
787:Time
271:and
263:and
76:Fate
71:1984
55:1893
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379:by
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709:^
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185:(
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