Bankers Trust was a historic American banking organization. The bank merged with Alex. In a group of New York national banks formed trust company Bankers Trust to provide trust services to customers of state and national banks throughout the country on the premise that it would not lure commercial bank customers away.

In addition to offering the usual trust and commercial banking functions, it also acted as a "bankers' bank" by holding the reserves of other banks and trust companies and loaning them money when they needed additional reserves due to unexpected withdrawals. Despite technically having numerous stockholders, the voting power was held Bankers Trust Company London three associates of J. Thus, it was widely viewed as a Morgan company. Morgan himself held a controlling Nuts And Bolts Company Man, and Edmund C.

Conversea steel manufacturer turned financier and then president of Liberty National Bank, was chosen to serve as Bankers Trust's first president. Bankers Trust quickly grew to be the second largest U. During the Panic ofBankers Trust worked closely with J. Morgan to help avoid a general financial collapse by lending money to sound banks.

He Members Mortgage Company Inc succeeded by his son-in-law Benjamin Strong Jr. Strong served as president for less than a year, leaving Bankers Trust to become the first governor of the Federal Reserve Bank of New York after helping to establish the Federal Reserve System. In October the company became a member of the Federal Bespoke Company Limited system.

The bank attempted to sell its credit portfolio and branches to Bank of Montreal ; however, the deal was not completed due to a disagreement over BankAmercard Visa. Bank of Montreal wanted to include BankAmercard in the terms of sale, but Bankers Trust did not want to sell the new credit card program licensed Georgetown Running Company Dc Bank of America due to its profitable future.

Republic National Bank of New York expanded its branch network to 32 with the opening of a new branch in Manhattan's World Trade Center Best Website Design Company In Usa the acquisition of a dozen Bankers Trust Company branches—ten in Manhattan, one in the Bronx, and one in Brooklyn.

Bankers Trust became a leader in the nascent derivatives business under the management of Charlie Sanfordwho succeeded Alfred Brittain III, in the early s. Having de-emphasized traditional loans in favor of trading, the bank became an acknowledged leader in risk management.

MorganBT attempted to make a virtue of necessity by specializing in trading and in product innovation. The company shied away from using market data distribution products from companies such as Reuters, instead choosing to develop its own systems in-house. In earlydespite all its prowess in managing the risks in the trading roomthe bank suffered irreparable reputational damage when some complex derivative transactions caused large losses for major corporate clients.

InBankers Trust acquired Alex. The bank suffered major losses in the summer of due to the bank having a large position in Russian government bonds. Shortly before the Deutsche Bank acquisition in NovemberBankers Trust Company London pleaded guilty to institutional fraud due to the failure of certain members of senior management to escheat abandoned property to the State of New York and other states. Rather than turn over to the states funds from dormant customer accounts and uncashed dividend and interest checks as required by law, some of the bank's senior executives credited this money as income and moved it to its operating account.

Bruce J. Kingdon, the head of the bank's Corporate Trust and Agency group spearheaded the fraud and in entered into a guilty plea in the US District Court for the Southern District of New York and was sentenced to community service. Some of his subordinates were thereafter barred forever by the SEC from working in the securities markets. Consequently, the acquisition by Deutsche Bank was a windfall to the bank's shareholders, who avoided losing their entire investments.

The sale finalized in February Inlitigation by two major corporate clients against Bankers Trust shed light on the market for over-the-counter derivatives. Bankers Trust employees were found to have repeatedly provided customers with incorrect valuations of their derivative exposures. There was no record keeping requirement imposed on participants in the market. There was no reporting. We had no information.

Both the magnitude of losses and the litigation by well-known companies caused market regulators to intervene. Concerns motivated by the particular Bankers Trust case eventually extended to the OTC derivatives market in general. The thesis of an October 20,broadcast of the PBS television magazine FrontlineEarly Warnings of the Economic Meltdownwas that the failure of Congress to allow CFTC a role in regulating derivatives was a key element eventually leading to the financial crisis of — From Wikipedia, the free encyclopedia.

Bankers Trust Logo in use prior to its acquisition of Alex. Banks portal. Andrews 1 December The New York Times. Accompany In French BT Investment Management. Archived from the original on Deutsche Bank. Singapore: World Scientific. Deutsche Postbank Sal. Oppenheim Deutsche Bank Italy. Hidden categories: All articles with unsourced statements Articles with unsourced statements from September Namespaces Article Talk.

Views Read Edit View history. By using this site, you agree to the Terms of Use and Privacy Policy. Logo in use prior to its acquisition of Alex. Trust company. Merged with Alex. New York CityNew York. Financial services.

Bankers Trust - Wikipedia

Bankers Trust quickly grew to be the second largest U.S. trust company and a dominant Wall Street institution. During the Panic of 1907, Bankers Trust worked closely with J.P. Morgan to help avoid a general financial collapse by lending money to sound banks. In 1911 it acquired the Mercantile Company and a year later the Manhattan Trust Company.Headquarters: New York City, New York…

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Stock Index: New York London Company History: Bankers Trust New York Corporation, a multibillion-dollar bank holding company, is one of the largest commercial banks in the United States. The nature of the company's business has changed repeatedly since it was founded in 1903. It was first a bankers trust company; by the end of the 1920s it was ...…

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