How it started
Early history
In May 1960, Arthur L. Carter, Roger Berlind, Peter Potoma, and Sanford I. Weill formed Carter, Berlind, Potoma & Weill, the firm's earliest predecessor with capital of $200,000 contributed by the four partners. The firm's first office was at 37 Wall Street, which was followed by an office at 60 Broad Street and then 55 Broad Street. The firm brought in $400,000 (equivalent to $3.2 million in 2024) in revenue in 1960.
Carter, Berlind, as it was then known, initially carved out a niche as a small research boutique, though it also offered brokerage and investment banking services The firm was nicknamed "the Jewish DLJ" in reference to Donaldson, Lufkin & Jenrette, a former investment banking firm acquired by Credit Suisse in 2000.
In the winter of 1962, the firm learned from the New York Stock Exchange surveillance officer that Peter Potoma face suspension for "free riding", a violation of the NYSE rules for which he would be suspended by the NYSE for one year. Shortly before his suspension, the other partners forced Potoma's resignation and dropped his name from the firm, becoming Carter, Berlind & Weill. In 1963, Arthur Levitt, the future chairman of the Securities and Exchange Commission joined the firm. The next year, Marshall Cogan, who had previously worked at CBS and investment firm Orvis & Co., joined the firm as an auto sector research analyst, later becoming a partner.
Weill served as the firm's chairman beginning in 1965 and extending through its 1981 merger with American Express, ultimately leaving the firm in 1984. This period was marked by major consolidation of the old white shoe firms on Wall Street. Carter, Berlind under Weill's leadership was a driving force in this consolidation. During this period, Weill led Carter, Berlind, and its successors through more than 15 acquisitions. Carter, Berlind made its first acquisition in 1967, taking over Bernstein-Macaulay Inc., a well-respected firm founded by Peter L. Bernstein, that specialized in investment management.
Arthur Carter, increasingly unhappy at the firm, sold out his stake to his partners for several million dollars in 1968 and pursued a number of personal investments in manufacturing companies. Carter would go on to own a number of media properties first acquiring The Nation and later founding The New York Observer. On February 19, 1969, the firm changed its name to Cogan, Berlind, Weill & Levitt (CBWL), with the arrival of Marshall Cogan and Arthur Levitt. The firm was often referred to jokingly by Wall Street peers as "Corned Beef With Lettuce". The firm brought in $19 million in 1969 (equivalent to $120 million in 2024).
From Wikipedia’s article on Cogan, Berlind, Weill & Levitt, shared under CC BY-SA 4.0.2