Edmund C. Lynch
Edmund Calvert Lynch | |
|---|---|
| Born | 19 May 1885 Baltimore, Maryland, U.S. |
| Died | 12 May 1938 (aged 52) London, England |
| Occupation | Investment banker |
| Known for | Co-founder of Merrill Lynch |
Edmund Calvert Lynch (born May 19, 1885 – died May 12, 1938) joined forces with Charles E. Merrill to establish Merrill Lynch on October 15, 1915.
Early years
Lynch, who was of Irish heritage, entered the world in Baltimore, Maryland, as the son of Richard H. Lynch and Jennie Vernon Smith Lynch. He completed his education at the Boys' Latin School of Maryland before earning a degree from Johns Hopkins University in 1907.
Merrill and Lynch
While employed as a stockbroker on Wall Street, Lynch crossed paths with Charles E. Merrill. In 1907, both men resided at the same YMCA boarding facility in New York City, where they explored the idea of creating a brokerage firm together. Their partnership culminated in the official founding of Merrill Lynch on October 15, 1914.
Lynch was instrumental in arranging financing and brokerage services for significant American retail enterprises including S.S. Kresge Corporation (present-day Kmart), J. C. Penney, and Safeway Inc.. Additionally, he acquired the French film company Pathé Exchange in 1921 and subsequently rebranded it as Keith-Orpheum (RKO Pictures).
Edmund C. Lynch gained particular recognition for anticipating the Wall Street crash of 1929, advising clients of Merrill Lynch to reduce their stock holdings as early as 1928. Despite soaring market prices, he cautioned investors with a letter stating:
Now is the time to get out of debt. We think you should know that with a few exceptions all the larger companies financed by us today have no funded debt. This is not the result of luck but of carefully considered plans on the part of their managements and ourselves to place these companies in an impregnable position. The advice that we have given important corporations can be followed to advantage by all classes of investors. We do not urge you to sell securities indiscriminately, but we advise you in no uncertain terms that you take advantage of present high prices and put your own financial house in order. We recommend that you sell enough securities to lighten your obligations, or better yet, pay them entirely.
His conviction was so strong that in 1928 he warned President Calvin Coolidge and even proposed a partnership, which Coolidge declined.
In an interview with the New York Times in 1933, Lynch remarked, "The lesson that I had learned—when stocks are too high they come down—stood me in good stead in 1928-29." His prescient advice is credited with saving clients more than $83 million (approximately $1.3 billion when adjusted for inflation).
Personal life
In 1923, Edmund Lynch married Signa Janney Fornaris; together they had three children: Vernon, Edmund Calvert Jr. (who later became part of Merrill Lynch), and Signa Janney. Vernon married Robert G. Merrill, son of Joseph Merrill. The couple had six children: Lynn Gray, Gail Merrill, Edmund Merrill, Douglas Merrill, Signa Hermann, and Nina Merrill; they also had nine grandchildren: Kelli Merrill, Austen (Baron) Gray, Dustin Merrill, Lily Gray, Nick Merrill, Merrill Hermann, Taylor Ogan, Robert Hermann III, and Chase Merrill.
Death and legacy
He passed away in London on May 12, 1938, during a business trip.
In his will, he left $59,000 to the Johns Hopkins medical school, honoring his brother's memory.