Wall Street & Technology is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Trading Technology

02:14 PM
Becca Lipman
Becca Lipman
Slideshows
Connect Directly
Facebook
Google+
Twitter
RSS
E-Mail
50%
50%

Merrill Lynch Turns 100 - 5 Core Principles That Led It This Far

On January 6 Merrill Lynch will celebrate its 100 year anniversary. Former Chairman of Merrill Lynch International and son of one of ML's founders, Winthrop H. Smith Jr. reflects on its colorful history.
Previous
2 of 6
Next


Prior to the 1970's, there were standards were preventing clients from receiving what they wanted, if they had a savings account and the government regulated it below inflation they couldn't aggregate accounts or access brokerage accounts easily. "You had to request a check and couldn't use a credit card," Smith explains. "The innovation Merrill Lynch came up with was a cash management account that brought together securities, credit card and checking accounts and gave ease of access to the client." That move helped to launch the private wealth side of the firm in 1970s-1980s.

Also back in 1970's there were fixed commissions on Wall Street, with no competition on price. "Don Regan was chairman of time. He argued for a negotiated rate which is not at all popular with peers on Wall Street," Win recalls, "In his view a company had to be competitive and those that did well would survive and those that didn't would go out of business, and that's what happened."

The first history of Merrill Lynch, Catching Lightning in a Bottle: How Merrill Lynch Revolutionized the Financial World, by Win Smith can be purchased here.

 

Becca Lipman is Senior Editor for Wall Street & Technology. She writes in-depth news articles with a focus on big data and compliance in the capital markets. She regularly meets with information technology leaders and innovators and writes about cloud computing, datacenters, ... View Full Bio

Previous
2 of 6
Next
Register for Wall Street & Technology Newsletters
Video
Exclusive: Inside the GETCO Execution Services Trading Floor
Exclusive: Inside the GETCO Execution Services Trading Floor
Advanced Trading takes you on an exclusive tour of the New York trading floor of GETCO Execution Services, the solutions arm of GETCO.