Mellon Financial
| Company type | Public |
|---|---|
| Industry | Investment management, banking |
| Predecessor | T. Mellon & Sons' Bank, Mellon National Bank |
| Founded | January 1870 |
| Founder | Thomas Mellon, Andrew Mellon, Richard B. Mellon |
| Defunct | July 2, 2007 |
| Fate | Merged with Bank of New York to form BNY Mellon |
| Headquarters | Pittsburgh, Pennsylvania , United States |
Area served | United States, international |
Key people | Martin G. McGuinn (Chairman and CEO 1999–2006), Robert E. Kelly (CEO 2006–2007) |
| Products | Asset management, business banking, mutual funds (Dreyfus family) |
| Website | www |
Mellon Financial Corporation was a prominent American investment company based in Pittsburgh, Pennsylvania. It focused on managing assets for institutions and high-net-worth individual clients, overseeing the Dreyfus family of mutual funds, as well as offering business banking and services for shareholders and investors. On December 4, 2006, Mellon declared a merger agreement with Bank of New York, resulting in the creation of BNY. This merger was finalized on July 2, 2007, after receiving the necessary regulatory and shareholder consents.
History
Established in January 1870 by Thomas Mellon alongside his sons Andrew Mellon and Richard B. Mellon under the name T. Mellon & Sons' Bank, the institution was rebranded as Mellon National Bank in 1902.
Mellon Bank significantly influenced the mass production era within the United States, especially across the Midwestern United States. The Mellon family leveraged the bank to support foundational industries such as aluminium, oil, consumer electronics, and finance. Through the bank’s involvement, enterprises including Alcoa, Gulf Oil (presently Chevron-Texaco), Westinghouse (now integrated into CBS Corporation and Siemens), and Rockwell were either established or managed. The bank also played a role in advancing companies like U.S. Steel, Heinz, General Motors, Koppers, and ExxonMobil (originating from Rockefeller's Standard Oil).
- Andrew Mellon departed from the bank in 1920 to serve as the longest-tenured U.S. Treasury Secretary.
- In 1929, Richard Mellon created Mellbank Corporation; by 1946, Mellon National, Mellbank, and Union Trust Company combined to form Mellon National Bank and Trust Company.
- A corporate restructuring in 1972 resulted in the establishment of holding company Mellon National Corporation and a name change to Mellon Bank, N.A.
- In 1983, Mellon acquired Girard Bank of Philadelphia and Central Counties Bank of State College; it was renamed Mellon Bank Corporation in 1984 after purchasing Northwest Pennsylvania Corporation.
- The acquisition of Commonwealth National Financial of Harrisburg occurred in 1986; at that time, it operated one of the world’s largest financial computing systems.
- Between 1991 and 1992, expansion continued with the purchase of United Penn Bank of Wilkes-Barre and 54 branches from the insolvent Philadelphia Savings Fund Society—the first savings bank in the nation.
- In 1996, a joint venture was formed with CIBC, establishing CIBC Mellon Global Securities Services (CMGSS) as an equal partnership.
- During 1993-94, Mellon acquired The Boston Company from American Express and AFCO Credit Corporation from The Continental Corporation; additionally, it merged with the Dreyfus Corporation to incorporate mutual funds into its offerings.
- The year 1998 saw acquisitions including United Bankshares of Miami, 1st Business Bank of Los Angeles, and Founders Asset Management.
- Martin G. McGuinn assumed roles as chairman and CEO in 1999; subsequently, Mellon Bank Corporation was renamed Mellon Financial Corporation. Retail banking operations were divested to Citizens Financial Group in 2001.
- In 2004, Mellon acquired Safeco Trust Company from Seattle-based Safeco Corporation and purchased London-based Pareto Partners, providing them workspace within its newly inaugurated Mellon Financial Center.
Merger with Bank of New York
In 2006, Mellon revealed its intention to merge with the Bank of New York following initial talks between Tom Renyi and Robert Kelly. This $16.5 billion transaction, completed on July 1, 2007, resulted in Kelly assuming the role of CEO and Renyi becoming the executive chairman of the newly formed organization. The combined board of directors consisted of ten members from Bank of New York and eight from Mellon.
The merger gave rise to The Bank of New York Mellon, headquartered in New York City, which emerged as the largest securities servicing company worldwide and ranked among the top ten global asset managers. The unified brand was officially introduced on October 1, 2007.
Both Mellon and Bank of New York, similar to State Street Corporation, shifted their focus from broad-based financial services centered on corporate banking toward fee-driven operations such as asset management and asset servicing. These services encompass areas like corporate trust, stock transfer services, and depository receipts, enabling more predictable revenue generation.
Additionally, Mellon is known for its expertise in controlled disbursement accounts—specialized checking accounts that receive early notifications from the Federal Reserve about check clearings. This service allows businesses to efficiently manage cash flow by transferring precise payment amounts while investing excess funds or reducing liabilities.
Mellon Bank CEOs
- Frank R. Denton (1946 – February 8, 1963)
- John A. Mayer (February 8, 1963 – August 1, 1974)
- James H. Higgins (August 1, 1974 – March 1, 1981)
- J. David Barnes (March 1, 1981 – April 13, 1987)
- Frank Cahouet (April 13, 1987 – January 1, 1999)
- Martin G. McGuinn (January 1, 1999 – February 13, 2006)
- Robert E. Kelly (February 13, 2006 – July 1, 2007)
See also
External links
- Articles with short description
- 1869 establishments in Pennsylvania
- 2007 mergers and acquisitions
- BNY Mellon
- Companies based in Pittsburgh
- Defunct banks of the United States
- Financial services companies established in 1869
- Financial services companies disestablished in 2007
- Investment management companies of the United States
- Companies formerly listed on the New York Stock Exchange