Mellon Bank
In a world of constant change, survival is the key to success. And in a world where competition rules, the only way to stand out is to outdo others. In some cases however, the rule saying “if you can’t beat them, join them” applies. But in the case of companies like banks, ‘joining to beat them’ is not always the solution or the implication. Take, for example, the case of Mellon Bank, who merged recently with The Bank of New York not to dominate the market but to gain benefits for the many.
Mellon Bank and The Bank of New York share many significant and remarkable milestones in the course of their operation. Both companies have contributed so much to the US government including the position as the very first institution to ever provide loan for the US government and for holding important and radical seats in office such as the US Secretary of Treasury. Mellon Bank and The Bank of New York agree to merge in the month of July, day 1st, year 2007 and combined a total assets of $20 trillion for under custody, not to mention over $1 trillion worth of assets for under management.
Truly both banks have a very rich history. With more than 200 years of heritage and history it is without a doubt that these two banks have become the pillars of United States’ financial backbone. The combined experience of Mellon Bank and The Bank of New York is truly a feat of amazement and success.
The story begins in 1784 when a future New York statesman by the name of Alexander Hamilton, whose name will later ring a bell all throughout the continental US, established what was known to be as New York’s premiere bank – The Bank of New York.
85 years later and more than 300 miles from the Big Apple, a judge retiree from Ireland migrated to the US to form a private bank together with his sons. Thomas Mellon started the Mellon and Son’s Bank in 1869 in Pittsburg, Pennsylvania. Both companies would then face so many challenges and successes over the course of time.
Thomas Mellon, along with his sons Richard and Andrew, was able to manage his bank effectively. The Mellon and Sons Bank even collaborated with the Pittsburgh steel companies making itself the bank which helped grow the industrial revolution in Pennsylvania. In 1873, however, financial plague struck the economic streets of Pittsburgh, but the Mellon And Sons Bank endured and was able to survive the post Civil War days. Although, more than half of the Pittsburgh banks closed, the Mellons stood the test of time.
In the meantime, the Bank of New York became the active supporters in the making of New York particularly in local commerce and transportation. The Bank of New York partly helped in funding the Erie and Morris Canals that was considered a big step in the growth of NY’s economy. The Mellon Bank History also showed the same role providing capital for many businessmen in Pittsburgh.
In the dawn of the 20th century, the Bank of New York was able to expand its reach to international markets. The Mellons also did the same in 1904, as the bank established its international bureau. Both banks have undergone processes of acquisition and expansion including the Mellons’ collaboration with ABN AMRO – a leading financial service company in The Netherlands. The Bank of New York continued to obtain assets to further its trading and investment venture.
And in 2006, the Mellon Financial Corporation and the Bank of New York Company, Inc, agreed to merge and both are now known today as The Bank of New York Mellon. According to a press release, the merger was like a rebirth to The Bank of New York and Mellon Bank, only this time, they are now able to reach and help more people. The Bank of New York Mellon is headquartered in New York City and is now serving products and services ranging from personal to corporate needs.