DuPont Walston

DuPont Walston, Inc. was a former American brokerage and investment banking firm operating during a period of consolidation and instability on Wall Street. It was formed in 1973 through the merger of F. I. DuPont, Glore Forgan & Co. and Walston & Co., bringing together several established securities businesses under one organization. The resulting firm briefly ranked among the largest brokerage houses in the United States and was described as the country's second-largest brokerage firm at its peak in the early 1970s. The company's formation reflected the complicated merger history of its constituent businesses. F. I. DuPont had itself been created in 1970 through the combination of Francis I. duPont Co. and Glore Forgan Staats, Inc. The latter had been formed in 1964 by the merger of Glore, Forgan Co. and Wm. R. Staats Co. Walston & Co., meanwhile, had been one of Wall Street's major brokerage houses and was described as the third-largest brokerage firm in the United States before its acquisition by Ross Perot. That acquisition followed pension-account fraud at Walston and was followed by the combination of Walston with the financially troubled DuPont business. The DuPont Walston name therefore represented a large but fragile merger platform rather than a long-lived consumer-facing brand. Its business was centered on securities brokerage and investment banking, rather than on products sold to consumers. The firm's size after the merger did not translate into lasting stability. Following further corporate changes and financial problems, DuPont Walston collapsed and ceased operations in 1974, only about a year after its creation. The company is consequently remembered as a short-lived participant in the consolidation of the U.S. securities industry and as an example of the risks associated with combining distressed brokerage firms.

DuPont Walston emerged from a chain of mergers involving several American securities firms. One important predecessor was Glore Forgan Co., which combined with Wm. R. Staats Co. in 1964 to create Glore Forgan Staats, Inc. The resulting organization later became part of the corporate lineage that led to F. I. DuPont. In 1970, Francis I. duPont Co. and Glore Forgan Staats, Inc. combined to form F. I. DuPont. This enlarged brokerage business subsequently encountered financial difficulties. The other major component of the later DuPont Walston organization was Walston & Co., a prominent Wall Street brokerage house that had ranked third in the United States by size. Walston became associated with pension-account fraud, after which Ross Perot acquired the firm. Perot then pursued a combination between Walston and the financially troubled DuPont business. The merger of F. I. DuPont, Glore Forgan & Co. and Walston & Co. was completed in 1973, creating DuPont Walston, Inc. The new company operated as a brokerage and investment banking firm and rapidly attained a substantial position in the American securities market. At its early-1970s peak, it was described as the second-largest brokerage firm in the United States. The scale achieved through the merger was short-lived. The organization remained exposed to the financial and operational difficulties associated with its predecessor firms and with the broader process of consolidating securities businesses. After additional merger activity and continuing financial problems, DuPont Walston collapsed. It closed in 1974, approximately one year after its formation. Because of its brief existence, the firm's historical significance lies less in a durable brand franchise than in its role as the endpoint of a complex sequence of Wall Street mergers and the illustration it provides of the fragility of heavily consolidated brokerage companies.

• 1974

  The firm closes

  [1]DuPont Walstonen.wikipedia.org

  DuPont Walston collapsed following a series of mergers and financial difficulties and ceased operations.

• 1973

  DuPont Walston is formed

  [1]DuPont Walstonen.wikipedia.org

  F. I. DuPont, Glore Forgan & Co. and Walston & Co. merged to establish DuPont Walston, Inc.

• 1970

  F. I. DuPont is created

  [1]DuPont Walstonen.wikipedia.org

  Francis I. duPont Co. and Glore Forgan Staats, Inc. combined to form F. I. DuPont.

• 1964

  Glore Forgan Staats is formed

  [1]DuPont Walstonen.wikipedia.org

  Glore, Forgan Co. combined with Wm. R. Staats Co. to create Glore Forgan Staats, Inc., a predecessor in the corporate lineage that later contributed to F. I. DuPont.

A large U.S. securities brokerage and investment banking firm created through the consolidation of established Wall Street businesses.

• Brokerage services · 1973

  Securities brokerage

  DuPont Walston's principal business was securities brokerage in the United States. The firm inherited brokerage operations from its predecessor companies and, at its peak, ranked among the country's largest brokerage houses. Available reference material does not identify particular securities products, client segments, or distribution channels.

• Capital-markets services · 1973

  Investment banking

  The company also operated as an investment banking firm, placing it within the full-service Wall Street securities model of its period. Specific underwriting mandates, advisory assignments, or named transactions are not identified in the available reference material.

• Pension-account fraud associated with Walston & Co.

  Before Walston & Co. became part of DuPont Walston, the brokerage was associated with pension-account fraud. The episode preceded Ross Perot's acquisition of Walston and its subsequent merger with the financially troubled DuPont business. The available reference does not provide a precise date, quantified losses, legal disposition, or named individuals responsible.

  Source

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• 1973

  Combination of F. I. DuPont and Walston businessesM&A

  Background

  Walston & Co. was a major U.S. brokerage that had been acquired by Ross Perot after pension-account fraud. F. I. DuPont had developed from earlier mergers and was experiencing financial difficulties.

  Action taken

  F. I. DuPont, Glore Forgan & Co. and Walston & Co. were combined to create DuPont Walston, Inc.

  Aftermath

  The merged firm briefly became one of the largest U.S. brokerage companies, reportedly reaching second place by size, but later collapsed and closed in 1974.

  Source

1. 1DuPont Walstonen.wikipedia.org