The 1960s:

u  Private equity funds emerged on Wall Street.

 Year 1962:

u  Warren Buffett started purchasing the shares of Berkshire Hathaway, a textile manufacturing company.

u  Morgan Stanley developed the first computer model that provides financial analysis.

 Year 1964:

u  The New York Stock Exchange set up a US$10-million fund to deal with speculation and turbulence in the financial market. Wall Street finally realized that there are common interests above the interests of every individual company.

 Year 1967:

u  Muriel Siebert, known as "The First Woman of Finance", became the first woman to own a seat on the New York Stock Exchange and the first woman to head one of its member firms.

 Year 1968:

u  Fannie Mae was converted into a private shareholder-owned corporation by the U.S. government.

u  The National City Bank of New York (later known as Citibank), founded a holding company called First National City Corporation as its parent company. In this way, it managed to provide a wider variety of financial services without violating the Glass-Steagall Act.

 Year 1970:

u  The New York Stock Exchange (NYSE) lifted the ban on its member companies selling stock to the public, making it possible for security companies to go public.

u  To increase competition in the secondary market for mortgages in the U.S., the Federal Home Loan Mortgage Corporation (Freddie Mac) was founded.

u  On February 12 1970, Joseph L. Searles III became the first black floor member and floor broker on the New York Stock Exchange.

 Year 1971:

u  In February, the NASDAQ (acronym of National Association of Securities Dealers Automated Quotations) was founded by the National Association of Securities Dealers (NASD). Four years later, the group defined its own standards for a NASDAQ listing.

u  Merrill Lynch went public, becoming the first member company listed on the New York Stock Exchange (NYSE).

 Year 1972:

u  Goldman Sachs set up a Private Wealth Management Department and a Fixed-income Management Department.

u  On November 14, the Dow Jones Industrial Averages (DJIA) closed above 1,000 (1003.16) for the first time.

 Year 1974:

u  Morgan Stanley conducted the first hostile takeover on behalf of Inco, a major nickel producer. This successful takeover made Morgan Stanley the NO.1 merger advisor in the US.

u  Goldman Sachs was the first to use the strategy of White Knight in the defense of Morgan Stanley.

 Year 1975:

u  In 1975, 183 years after it was signed, the Buttonwood Agreement replaced the fixed-commission system with a floating commission system.

u  The Securities Acts Amendments of 1975 passed, designed to build a national market system in the US by connecting every individual stock exchange to the third market.

 Year 1976:

u  Kohlberg Kravis Roberts & Co, commonly referred to as KKR, was founded. KKR is a New York-based private equity company.

u  Morgan Stanley moved to Manhattan from Wall Street. It was one of the first major securities firms to take such move.

 Year 1977:

u  Citibank went public.

 Year 1978:

u  The ITS (Intermarket Trade System) was initiated. The ITS is an electronic communication network that now connects nine stock exchanges, including the New York (NYSE), American (AMEX), Boston (BSE), Chicago (MSE), Cincinnati (CSE), Pacific (PSE) and Philadelphia (PHLX) stock exchanges, the Chicago Board Options Exchange (CBOE), and the NASD.

u  The First Boston Corporation and Credit Suisse formed a 50-50 investment banking joint venture in London, which became today’s Credit Suisse First Boston (CSFB).

 Year 1979:

u  IBM regained its seat in the Dow Jones Industrial Average (DJIA).

u  The late 1970s: Asset securitization emerged on Wall Street.