Praise the news gods

Jan 19, 2014 @ 12:01 am

By Frederick P. Gabriel Jr.

You gotta love a newsroom. On Wednesday evening, Bob Hordt, one of my deputy editors, and I were lamenting the fact that we did not have a strong news story to put on Page 1 this week. “Don't worry,” I said. “The news gods will deliver.”

Did they ever.

Actually, quite a few news gods delivered — not the least of whom was Nicholas Schorsch, the so-called REIT czar who since June has turned the independent-broker-dealer world on its head by announcing a spate of B-D acquisitions that would put him at the helm of a network with 9,200 registered reps and $1.73 billion in revenue.

On Thursday morning, Mr. Schorsch's RCS Capital Corp. announced a $1.15 billion cash deal to buy Cetera Financial Group Inc. from Lightyear Capital. Twenty-four hours later, RCS said it is also buying J.P. Turner & Co. to the tune of $27 million in cash and stock.

Stupid me. I was proud of myself for splurging on six pairs of socks last week.

The good news is that between reporter Mark Schoeff Jr.'s continuing coverage of the SEC's plans to step up adviser examinations this year and senior columnist Bruce Kelly's story about the Schorsch deals, as well as his overview of deal making in the IBD arena last year, our news cup runneth over.

It remains to be seen how all this deal making will turn out for Mr. Schorsch. Will he succeed in building a broker-dealer network that gives such long-established players as Raymond James Financial Inc. and LPL Financial a real run for their money? Or will he go down in the annals of B-D history as just another deal maker who is long on ambition and short on stamina?

The news gods will let us know.


What do you think?

View comments

Recommended for you

Featured video


Schwab's Clark: How next-gen can position themselves for success

How can the next generation position themselves for success in the industry? Our student correspondent from Texas Tech, speaks with Bernie Clark to find out.

Latest news & opinion

Nontraded REITs to post worst sales since 2002

The industry is on track to raise just $4.4 billion, well off the $19.6 billion it raised just four years ago, as new regulations hinder sales.

Broker protocol for recruiting a boon for clients

New research finds advisers whose firms have joined the agreement take better care of customers.

Meet our 2017 Women to Watch

Introducing 20 female financial advisers and industry executives who are distinguished leaders, advancing the business of providing advice through their creativity and hard work.

Raymond James executives call on industry to keep broker protocol

Also ask firms to pay for the administration of the protocol to 'ensure its longevity and relevance.'

Senate committee approves tax plan but full passage not assured

Several Republican senators expressed reservations about the bill, and the GOP cannot afford too many defections.


Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print