Bank of New York Mellon

The Bank of New York was, until its merger with Mellon, the oldest bank in the United States. BoNY was the first bank formed in New York (1784) (the bank's constitution was drafted by Alexander Hamilton), and its stock was the first corporate stock to be traded on the New York Stock Exchange (1792). BoNY was a major backer of large transportation projects, including the Erie Canal, the New York city subway system, and various railroads. BoNY also served the Roosevelts and Varicks and other affluent families.

BoNY won a 20-year charter from Congress that was rescinded in 1811, due to its association with the Bank of England, tight monetary policies, and competition with state chartered banks.

In 1913, the Bank of New York became the controlling bank of America's new central bank, the Federal Reserve System.

Thomas Mellon, a retired judge and Irish immigrant, along with his sons Andrew and Richard, founded T. Mellon and Sons' Ban, which opened its Pittsburgh offices in 1869. Mellon and Sons' backed steel magnate Henry Clay Frick (the founder of the company that became U.S. Steel), as well as Alcoa and Westinghouse. Andrew W. Mellon, like Hamilton before him, became the U.S. Secretary of the Treasury, eventually serving under three U.S. Presidents. Mellon became the largest private bank west of New York.

The 20th Century

At the beginning of the century, The Bank of New York began expanding its international reach. Mellon was close behind, forming a foreign bureau in 1904.

Post-WW I, both banks also used mergers and acquisitions to grow.

BoNY merged with the New York Life Insurance & Trust Company in 1922; acquired The Fifth Avenue Bank (1948), the Empire Trust Company (1966), and the Irving Bank Corp. (1988). The bank's holding company, The Bank of New York Company, Inc., was formed in 1968. After merging with Irving, BoNY moved its headquarters to One Wall Street - now known as the Bank of New York Building. The bank has acquired over 80 other companies since the mid-1990s, including Pershing LLC (2003), a provider of correspondent clearing and outsourcing services for broker dealers and other financial intermediaries.

In July 1922, The Bank of New York merged with the New York Life Insurance and Trust Company, expanding the Bank's capital structure and adding a well-established trust business.

By that time, Mellon had grown to a point where it had only one serious competitor — the company that now owned it, Union Trust, which was also controlled by the Mellon family. The two companies finally merged in 1946, creating a bank with the size, scale and expertise to compete with the nation's largest banks.

For Mellon and The Bank of New York, other mergers followed, helping each company strengthen its capital base, build its client base and grow its product offering.