Wood Gundy: Difference between revisions
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{{Short description|Canadian stock brokerage and investment banking firm}} |
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{{about|the former investment banking and brokerage firm|the division of CIBC World Markets|CIBC Wood Gundy}} |
{{about|the former investment banking and brokerage firm|the division of CIBC World Markets|CIBC Wood Gundy}} |
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{{Infobox company |
{{Infobox company |
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|name = Wood Gundy |
|name = Wood Gundy Inc. |
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|logo = [[File:Wood Gundy logo.png|120px|Wood Gundy logo]] |
|logo = [[File:Wood Gundy logo.png|120px|Wood Gundy logo]] |
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|foundation = 1905 |
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|defunct = 1988 |
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|fate = Acquired by [[Canadian Imperial Bank of Commerce]] |
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|successor = [[CIBC Wood Gundy]]<br>[[CIBC World Markets]] |
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|predecessor = |
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|successor = [[CIBC Wood Gundy]]<br>[[CIBC World Markets]] |
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|location = [[Toronto]], [[Ontario]], Canada |
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|location = [[Toronto|Toronto, Ontario, Canada]] |
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|area_served = |
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|industry = [[Financial services]] |
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|num_employees = |
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|industry = [[Financial services]] |
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|products = [[Brokerage firm|Brokerage]] |
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|revenue = |
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|operating_income = |
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|net_income = |
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|assets = |
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|equity = |
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|caption = |
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|homepage = |
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'''Wood Gundy Inc.''' was a leading Canadian [[brokerage firm|stock brokerage]] and [[investment banking]] firm. |
'''Wood Gundy Inc.''' was a leading Canadian [[brokerage firm|stock brokerage]] and [[investment banking]] firm. Founded in 1905, it was acquired by the [[Canadian Imperial Bank of Commerce]] in 1988 as it attempted to build an investment banking business. The Wood Gundy name was used extensively by the bank's investment banking arm, which was known as CIBC Wood Gundy until 1997. Today, CIBC's investment banking business is known as [[CIBC World Markets]], and the name [[CIBC Wood Gundy]] is used as the brand for the bank's retail brokerage business. |
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The firm, which was founded in 1905 was acquired by the [[Canadian Imperial Bank of Commerce]] in 1988 as it attempted to build an investment banking business. The Wood Gundy name was used extensively by the bank's investment banking business, which was known as [[CIBC Wood Gundy]] until 1997. Today, CIBC's investment banking business is known as [[CIBC World Markets]] and [[CIBC Wood Gundy]] is used as the brand for the bank's retail brokerage business. |
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==History== |
==History== |
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===Founding and early history=== |
===Founding and early history=== |
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Wood, Gundy & Company was established in [[Toronto|Toronto, Ontario]] in 1905 by [[George Herbert Wood]] and [[James Henry Gundy]]. The firm first specialized in the distribution and underwriting of government and municipal bonds |
Wood, Gundy & Company was established in [[Toronto|Toronto, Ontario]], in 1905 by [[George Herbert Wood]] and [[James Henry Gundy]]. The firm first specialized in the distribution and underwriting of government and municipal bonds. In 1919, the firm opened an office in [[New York City]].<ref>{{cite web |title=New Incorporations |url=https://query.nytimes.com/gst/abstract.html?res=9A0DE6DB1E39E13ABC4952DFB5668382609EDE |website=[[The New York Times]] |date=1919-03-11 |archive-url=https://web.archive.org/web/20160413075529/https://query.nytimes.com/gst/abstract.html?res=9A0DE6DB1E39E13ABC4952DFB5668382609EDE |archive-date=2016-04-13 |url-status=live}}</ref> Founded as a partnership, the firm incorporated in 1925. |
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[[File:Wood Gundy logo (1921).png|thumb|225px|left|Original Wood Gundy & Company logo c. 1921]] |
[[File:Wood Gundy logo (1921).png|thumb|225px|left|Original Wood Gundy & Company logo c. 1921]] |
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Following [[World War II]], Wood Gundy |
Following [[World War II]], Wood Gundy expanded its operations, starting to underwrite and distribute securities of Canadian corporations. Continued growth was driven through Canada's increasing [[industrialization]] and growing population, leading to greater demand for capital and investment securities. This expansion transformed Wood Gundy into a full-service investment house. Wood Gundy was the first Canadian dealer to open an office in Tokyo, and the first firm to employ a female trader on the floor of the [[Toronto Stock Exchange]]. |
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The operations of the company, then called "Wood, Gundy & Company Limited" were split into two newly incorporated companies in 1962. The first, responsible for investment dealer operations, was called "Wood Gundy Securities Limited". The second, responsible for the investment holding business, was named "Wood Gundy Holdings Limited". |
The operations of the company, then called "Wood, Gundy & Company Limited", were split into two newly incorporated companies in 1962. The first, responsible for investment dealer operations, was called "Wood Gundy Securities Limited". The second, responsible for the investment holding business, was named "Wood Gundy Holdings Limited". These two firms existed until the early 1970s, when they reunited as a single firm under the name "Wood Gundy Limited". At this time, Charles Gundy, the son of the founder, was Chairman. Wood Gundy remained the largest brokerage and securities firm in Canada until the early 1980s, when the merger of [[Dominion Securities]] and A.E. Ames created the largest firm in the country.<ref>{{cite web |title=Vast Capital Needs Forged The Merger Of 2 Canada Brokers |url=https://www.nytimes.com/1981/06/12/business/vast-capital-needs-forged-the-merger-of-2-canada-brokers.html |website=[[The New York Times]] |date=1981-06-12 |archive-url=https://web.archive.org/web/20160306205447/https://www.nytimes.com/1981/06/12/business/vast-capital-needs-forged-the-merger-of-2-canada-brokers.html |archive-date=2016-03-06 |url-status=live}}</ref> |
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===Acquisition by CIBC=== |
===Acquisition by CIBC=== |
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[[File:CIBC Wood Gundy (1988-1997) Logo.png|right|thumb|175px|CIBC used the Wood Gundy brand for its investment banking and securities businesses from 1988 through 1997, after which it was used exclusively for the bank's retail operations]] |
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By the mid-1980s, Wood Gundy, which was owned by approximately 600 of its employees, was looking for a merger partner. In 1986, Wood Gundy had nearly merged with Gordon Capital Corporation but that deal was aborted at the last minute.<ref name=rbctalksend> |
By the mid-1980s, Wood Gundy, which was owned by approximately 600 of its employees, was looking for a merger partner. In 1986, Wood Gundy had nearly merged with Gordon Capital Corporation, but that deal was aborted at the last minute.<ref name=rbctalksend>{{cite web |title=COMPANY NEWS; Canada Bank Ends Wood Gundy Talks |url=https://www.nytimes.com/1987/06/23/business/company-news-canada-bank-ends-wood-gundy-talks.html |website=[[The New York Times]] |date=1987-06-23 |archive-url=https://web.archive.org/web/20230119154154/https://www.nytimes.com/1987/06/23/business/company-news-canada-bank-ends-wood-gundy-talks.html |archive-date=2023-01-19 |url-status=live}}</ref> By 1987, there were a number of banks actively pursuing a deal with Wood Gundy, including [[First National Bank of Chicago]], the [[Union Bank of Switzerland]] and the [[Royal Bank of Canada]],<ref>{{cite web |title=Scramble for Canada Brokers |url=https://www.nytimes.com/1987/03/25/business/scramble-for-canada-brokers.html |website=[[The New York Times]] |date=1987-03-25 |archive-url=https://web.archive.org/web/20171108110154/https://www.nytimes.com/1987/03/25/business/scramble-for-canada-brokers.html |archive-date=2017-11-08 |url-status=live |last1=Burns |first1=John}}</ref> however these deals fell apart in the middle of the year due to high price expectations.<ref name=rbctalksend /> The firm was impacted by the [[1987 stock market crash]] in October 1987 and intensified its efforts to find a buyer.<ref>{{cite web |title=COMPANY NEWS; Wood Gundy Cuts |url=https://www.nytimes.com/1987/12/03/business/company-news-wood-gundy-cuts.html |website=[[The New York Times]] |date=1987-12-03 |archive-url=https://web.archive.org/web/20230119154045/https://www.nytimes.com/1987/12/03/business/company-news-wood-gundy-cuts.html |archive-date=2023-01-19 |url-status=live}}</ref> |
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CIBC purchased a 60 percent stake in Wood Gundy in June 1988 for C$110 million (US$86 million), representing a total value of the firm of C$183 (US$143 million).<ref> |
CIBC purchased a 60 percent stake in Wood Gundy in June 1988 for C$110 million (US$86 million), representing a total value of the firm of C$183 (US$143 million).<ref>{{cite web |title=COMPANY NEWS; Canadian Imperial |url=https://www.nytimes.com/1988/01/27/business/company-news-canadian-imperial.html |website=[[The New York Times]] |date=1988-01-27 |archive-url=https://web.archive.org/web/20230119154045/https://www.nytimes.com/1988/01/27/business/company-news-canadian-imperial.html |archive-date=2023-01-19 |url-status=live}}</ref> At the time of its acquisition, Wood Gundy was the leading Canadian investment dealer. Following the acquisition, CIBC formed [[CIBC Wood Gundy]], which offered primarily [[asset management]] services for corporate and institutional clients. |
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Two years later, in 1990, CIBC continued to expand in the Canadian securities business by acquiring much of Merrill Lynch & Company's Canadian securities business. |
Two years later, in 1990, CIBC continued to expand in the Canadian securities business by acquiring much of Merrill Lynch & Company's Canadian securities business. The acquisition included 20 offices and between 700 and 800 employees as well as access for CIBC to Merrill's [[equity research]]. The transaction made Wood Gundy once again the largest brokerage firm in Canada.<ref>{{cite web |title=Merrill Lynch Deal to Sell Canada Unit |url=https://www.nytimes.com/1990/01/04/business/merrill-lynch-deal-to-sell-canada-unit.html |website=[[The New York Times]] |date=1990-01-04 |archive-url=https://web.archive.org/web/20160305020322/https://www.nytimes.com/1990/01/04/business/merrill-lynch-deal-to-sell-canada-unit.html |archive-date=2016-03-05 |url-status=live}}</ref> In 2001, CIBC would buy the remainder of Merrill's Canadian business. |
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In 1997, [[CIBC Wood Gundy]] acquired the U.S. brokerage house [[Oppenheimer & Co.]] |
In 1997, [[CIBC Wood Gundy]] acquired the U.S. brokerage house [[Oppenheimer & Co.]] After the acquisition the U.S. division took the name CIBC Oppenheimer, eliminating the use of the Wood Gundy brand through much of the bank.<ref>{{cite web |title=Canadian Bank Is Expected to Buy Oppenheimer |url=https://www.nytimes.com/1997/07/19/business/canadian-bank-is-expected-to-buy-oppenheimer.html |website=[[The New York Times]] |date=1997-07-19 |archive-url=https://web.archive.org/web/20230407145239/https://www.nytimes.com/1997/07/19/business/canadian-bank-is-expected-to-buy-oppenheimer.html |archive-date=2023-04-07 |url-status=live}}</ref><ref>{{cite web |title=CIBC takes a big step toward a global securities business. |url=https://www.nytimes.com/1997/07/23/business/cibc-takes-a-big-step-toward-a-global-securities-business.html |website=[[The New York Times]] |date=1997-07-23 |archive-url=https://web.archive.org/web/20160304030849/https://www.nytimes.com/1997/07/23/business/cibc-takes-a-big-step-toward-a-global-securities-business.html |archive-date=2016-03-04 |url-status=live}}</ref> |
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==Executives== |
==Executives== |
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'''Chair''' |
'''Chair''' |
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* George Herbert Wood ( |
* George Herbert Wood (1925–1932): investment dealer, Sec/Supt of Sales, Manager with Dominion Securities Corp (1900–1905), Chairman of Victory Loans Special Committee 1911–1918, Acting President YMCA Toronto |
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* James Henry Gundy ( |
* James Henry Gundy (1932–1951): investment dealer with Central Canada Loans and Savings Co. 1898–1902, [[RBC Dominion Securities|Dominion Securities Corp.]] 1902–1905, Chair of Special Subscriptions Committee – Victory Loans 1911·1918, President – Investment Dealer Association of Canada 1920–1921, Governor -of the Investment Bankers' Association America, Director of [[Lafarge (company)|Canada Cement]], [[Massey-Harris]], [[Simpson's|Simpsons Ltd]], [[Dominion Steel and Coal Company]]. |
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*William Pearson Scott ( |
*William Pearson Scott (1961–1967) |
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* Charles Lake Gundy ( |
* Charles Lake Gundy (1967–1978) |
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* G Edmund King (1988-1995): Chairman and CEO of Wood Gundy 1988-1992, Chairman and CEO of the CIBC Wood Gundy Corporation 1992-1995 |
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* John Hunkin ( |
* John Hunkin (1990–1992): President of Investment and Corporate Banking CIBC WG 1992–1997, President of Investment and Corporate Banking CIBC World Markets 1997–1999 |
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'''President''' |
'''President''' |
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* James Henry Gundy ( |
* James Henry Gundy (1925–1948) |
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* Charles Lake Gundy ( |
* Charles Lake Gundy (1948–1978): World War II – Canadian Army 1939–1945, Vice-President 1945–1948, President 1948–1967, Chairman 1967–1978, son of JH Gundy |
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* Charles Edward "Ted" Medland ( |
* Charles Edward "Ted" Medland (1978–1988) |
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* John Hunkin ( |
* John Hunkin (1988–1990) |
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==References== |
==References== |
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{{Reflist}} |
{{Reflist}} |
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{{refbegin}} |
{{refbegin}} |
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*[https://books.google.com/books?id=6MnzYrLerlwC&pg=PA535 The Investment banking handbook]. John Wiley and Sons, 1988 |
*[https://books.google.com/books?id=6MnzYrLerlwC&pg=PA535 The Investment banking handbook]. John Wiley and Sons, 1988 |
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{{refend}} |
{{refend}} |
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[[Category:Defunct financial services companies of Canada]] |
[[Category:Defunct financial services companies of Canada]] |
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[[Category:Stock brokerages and investment banks of Canada]] |
[[Category:Stock brokerages and investment banks of Canada]] |
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[[Category:Companies disestablished in 1988]] |
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[[Category:Canadian Imperial Bank of Commerce]] |
[[Category:Canadian Imperial Bank of Commerce]] |
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[[Category:Financial services companies established in 1905]] |
[[Category:Financial services companies established in 1905]] |
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[[Category:Financial services companies disestablished in 1988]] |
[[Category:Financial services companies disestablished in 1988]] |
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[[Category:1988 disestablishments in Ontario]] |
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[[Category:1905 establishments in Ontario]] |
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[[Category:Canadian companies established in 1905]] |
Latest revision as of 15:32, 22 February 2024
Industry | Financial services |
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Founded | 1905 |
Defunct | 1988 |
Fate | Acquired by Canadian Imperial Bank of Commerce |
Successor | CIBC Wood Gundy CIBC World Markets |
Headquarters | Toronto, Ontario, Canada |
Products | Brokerage |
Wood Gundy Inc. was a leading Canadian stock brokerage and investment banking firm. Founded in 1905, it was acquired by the Canadian Imperial Bank of Commerce in 1988 as it attempted to build an investment banking business. The Wood Gundy name was used extensively by the bank's investment banking arm, which was known as CIBC Wood Gundy until 1997. Today, CIBC's investment banking business is known as CIBC World Markets, and the name CIBC Wood Gundy is used as the brand for the bank's retail brokerage business.
History
[edit]Founding and early history
[edit]Wood, Gundy & Company was established in Toronto, Ontario, in 1905 by George Herbert Wood and James Henry Gundy. The firm first specialized in the distribution and underwriting of government and municipal bonds. In 1919, the firm opened an office in New York City.[1] Founded as a partnership, the firm incorporated in 1925.
Following World War II, Wood Gundy expanded its operations, starting to underwrite and distribute securities of Canadian corporations. Continued growth was driven through Canada's increasing industrialization and growing population, leading to greater demand for capital and investment securities. This expansion transformed Wood Gundy into a full-service investment house. Wood Gundy was the first Canadian dealer to open an office in Tokyo, and the first firm to employ a female trader on the floor of the Toronto Stock Exchange.
The operations of the company, then called "Wood, Gundy & Company Limited", were split into two newly incorporated companies in 1962. The first, responsible for investment dealer operations, was called "Wood Gundy Securities Limited". The second, responsible for the investment holding business, was named "Wood Gundy Holdings Limited". These two firms existed until the early 1970s, when they reunited as a single firm under the name "Wood Gundy Limited". At this time, Charles Gundy, the son of the founder, was Chairman. Wood Gundy remained the largest brokerage and securities firm in Canada until the early 1980s, when the merger of Dominion Securities and A.E. Ames created the largest firm in the country.[2]
Acquisition by CIBC
[edit]By the mid-1980s, Wood Gundy, which was owned by approximately 600 of its employees, was looking for a merger partner. In 1986, Wood Gundy had nearly merged with Gordon Capital Corporation, but that deal was aborted at the last minute.[3] By 1987, there were a number of banks actively pursuing a deal with Wood Gundy, including First National Bank of Chicago, the Union Bank of Switzerland and the Royal Bank of Canada,[4] however these deals fell apart in the middle of the year due to high price expectations.[3] The firm was impacted by the 1987 stock market crash in October 1987 and intensified its efforts to find a buyer.[5]
CIBC purchased a 60 percent stake in Wood Gundy in June 1988 for C$110 million (US$86 million), representing a total value of the firm of C$183 (US$143 million).[6] At the time of its acquisition, Wood Gundy was the leading Canadian investment dealer. Following the acquisition, CIBC formed CIBC Wood Gundy, which offered primarily asset management services for corporate and institutional clients.
Two years later, in 1990, CIBC continued to expand in the Canadian securities business by acquiring much of Merrill Lynch & Company's Canadian securities business. The acquisition included 20 offices and between 700 and 800 employees as well as access for CIBC to Merrill's equity research. The transaction made Wood Gundy once again the largest brokerage firm in Canada.[7] In 2001, CIBC would buy the remainder of Merrill's Canadian business.
In 1997, CIBC Wood Gundy acquired the U.S. brokerage house Oppenheimer & Co. After the acquisition the U.S. division took the name CIBC Oppenheimer, eliminating the use of the Wood Gundy brand through much of the bank.[8][9]
Executives
[edit]Chair
- George Herbert Wood (1925–1932): investment dealer, Sec/Supt of Sales, Manager with Dominion Securities Corp (1900–1905), Chairman of Victory Loans Special Committee 1911–1918, Acting President YMCA Toronto
- James Henry Gundy (1932–1951): investment dealer with Central Canada Loans and Savings Co. 1898–1902, Dominion Securities Corp. 1902–1905, Chair of Special Subscriptions Committee – Victory Loans 1911·1918, President – Investment Dealer Association of Canada 1920–1921, Governor -of the Investment Bankers' Association America, Director of Canada Cement, Massey-Harris, Simpsons Ltd, Dominion Steel and Coal Company.
- William Pearson Scott (1961–1967)
- Charles Lake Gundy (1967–1978)
- G Edmund King (1988-1995): Chairman and CEO of Wood Gundy 1988-1992, Chairman and CEO of the CIBC Wood Gundy Corporation 1992-1995
- John Hunkin (1990–1992): President of Investment and Corporate Banking CIBC WG 1992–1997, President of Investment and Corporate Banking CIBC World Markets 1997–1999
President
- James Henry Gundy (1925–1948)
- Charles Lake Gundy (1948–1978): World War II – Canadian Army 1939–1945, Vice-President 1945–1948, President 1948–1967, Chairman 1967–1978, son of JH Gundy
- Charles Edward "Ted" Medland (1978–1988)
- John Hunkin (1988–1990)
References
[edit]- ^ "New Incorporations". The New York Times. 1919-03-11. Archived from the original on 2016-04-13.
- ^ "Vast Capital Needs Forged The Merger Of 2 Canada Brokers". The New York Times. 1981-06-12. Archived from the original on 2016-03-06.
- ^ a b "COMPANY NEWS; Canada Bank Ends Wood Gundy Talks". The New York Times. 1987-06-23. Archived from the original on 2023-01-19.
- ^ Burns, John (1987-03-25). "Scramble for Canada Brokers". The New York Times. Archived from the original on 2017-11-08.
- ^ "COMPANY NEWS; Wood Gundy Cuts". The New York Times. 1987-12-03. Archived from the original on 2023-01-19.
- ^ "COMPANY NEWS; Canadian Imperial". The New York Times. 1988-01-27. Archived from the original on 2023-01-19.
- ^ "Merrill Lynch Deal to Sell Canada Unit". The New York Times. 1990-01-04. Archived from the original on 2016-03-05.
- ^ "Canadian Bank Is Expected to Buy Oppenheimer". The New York Times. 1997-07-19. Archived from the original on 2023-04-07.
- ^ "CIBC takes a big step toward a global securities business". The New York Times. 1997-07-23. Archived from the original on 2016-03-04.
- The Investment banking handbook. John Wiley and Sons, 1988
- Former investment banks
- Defunct financial services companies of Canada
- Stock brokerages and investment banks of Canada
- Canadian Imperial Bank of Commerce
- Financial services companies established in 1905
- Financial services companies disestablished in 1988
- 1988 disestablishments in Ontario
- 1905 establishments in Ontario
- Canadian companies established in 1905