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Loeb, Rhoades & Co.

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Loeb, Rhoades & Co.
Company typePrivate
IndustryFinancial services, Brokerage
PredecessorCarl M. Loeb & Co., Rhoades & Company
Founded1931
FounderCarl M. Loeb, John Langeloth Loeb Sr.
Defunct1979
FateMerged with Shearson Hayden Stone to form Shearson Loeb Rhoades; later acquired by American Express
SuccessorShearson Loeb Rhoades
Headquarters
New York City
,
United States
Area served
United States
Key people
Carl M. Loeb (founder), John Langeloth Loeb Sr. (founder), Carl M. Mueller (leader from 1973), Sanford I. Weill (CEO of merged company)
ProductsBrokerage, Investment banking

Loeb, Rhoades & Co. was a brokerage firm based on Wall Street, established in 1931 by the father-son duo Carl M. Loeb and John Langeloth Loeb Sr. Operating out of New York City, the company combined forces with Shearson Hayden Stone in 1979 to create Shearson Loeb Rhoades. This entity was subsequently acquired by American Express in 1981, evolving into Shearson/American Express.

History

The firm began as Carl M. Loeb & Co. amid the Great Depression and later united with Rhoades & Company—a prestigious brokerage founded in 1905—resulting in the formation of Loeb, Rhoades & Co. in 1937. Carl Loeb, who had served as president of American Metal Company, left to purchase a seat on the New York Stock Exchange, where he actively supported regulatory reforms. He and his son jointly directed the firm until Carl passed away in 1955; thereafter, John Loeb took on the role of senior partner until 1977 and was appointed an NYSE governor in 1951.

In 1956, Loeb, Rhoades secured a controlling stake in Cuban Atlantic Sugar Company but divested this interest shortly before the Cuban Revolution in 1958. Leadership transitioned in 1973 when Carl M. Mueller assumed control; however, John Loeb returned to management in 1977 and spearheaded the merger with Hornblower, Weeks, Noyes & Trask that formed Loeb, Rhoades, Hornblower & Co. in 1978.

The merger with Hornblower placed significant strain on operations due to expensive back-office integration challenges, leading to losses amounting to several million dollars by late 1978. At the same time, Sanford I. Weill was expanding his brokerage empire through acquisitions and ultimately became head of Shearson Hayden Stone. Confronted with financial difficulties by early 1979, Loeb, Rhoades pursued acquisition talks and merged with Shearson during Mother's Day weekend to establish Shearson Loeb Rhoades. Weill took on the CEO position while John Loeb served as chairman. The combined organization ranked among the largest investment banks with $250 million in equity capital.

In 1981, Shearson Loeb Rhoades purchased Boston Company, a money management subsidiary of Boston Safe Deposit & Trust Co., before Weill orchestrated the sale of the firm to American Express, leading to the creation of Shearson/American Express.

Loeb Partners Corporation

Founded in 1982 by Thomas L. Kempner—grandson of Carl M. Loeb and former chairman of Loeb, Rhoades—Loeb Partners Corporation is a registered broker-dealer and investment advisor concentrating on asset management for the Loeb family alongside high-net-worth individuals and institutional clients.

In 1988, the firm introduced the Loeb Arbitrage Fund as an investment vehicle tailored for family office clientele. By 2008, it had established Loeb Capital Management as a d/b/a encompassing affiliated entities such as Loeb Arbitrage Management and Carl M. Loeb Advisory Partners Inc., all operating under unified control with Loeb Partners Corporation. This entity was rebranded as Loeb King Capital Management in 2013.

Acquisition history

The company’s key mergers and acquisitions illustrate its dynamic corporate evolution amid broader industry consolidation:


Notable alumni

See also

External links

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