Stoever, Glass & Co. Inc., a New York-based broker-dealer located on Wall Street, has shut down after filing on Monday its bankruptcy petition in federal court in Manhattan.
The firm, which filed bankruptcy under Chapter 7, also filed its formal termination on Monday with the Financial Industry Regulatory Authority Inc., according to the firm’s BrokerCheck profile.
Its affiliated registered investment advisor, Stoever Glass Wealth Management Inc., with $248 million in client assets, has also shut its doors.
A message at the firm’s Manhattan office on Tuesday morning was not returned. CEO Michael Carrigg could not be reached to comment. The firm also had an office in Boca Raton, Florida.
Julie B. Wlodinguer, the attorney who filed the bankruptcy petition for the firm, also did not return a phone message on Tuesday.
Stoever, Glass & Co., which opened in May 1964 and focused on municipal bonds, had revenues of $5 million in 2024 and a loss last year of more than $1.9 million, according to a filing with the SEC.
On the firm’s website, Stoever, Glass describes itself as: “A leader in the municipal bond industry with more than 55 years of experience.”
“Our traders and salespeople do nothing but bonds – all day, every day,” the firm stated on its website.
It’s not clear why the firm is closing, but its liabilities outweighed its assets.
According to the bankruptcy filing, Stoever, Glass had more than 60 creditors, liabilities of up to $10 million, and between $500,000 to $1 million in assets.
But the firm recently reported it had faced the scrutiny of the Securities and Exchange Commission and Finra.
“The Securities and Exchange Commission and Financial Industry Regulatory Authority conducted separate examinations of the company in the past year,” Stoever, Glass & Co. reported in October in its annual Focus report to the SEC. “The examinations identified deficiencies and/ or weaknesses in internal controls and non-compliance with certain rules. The company has fully responded to the criticisms.”
“The company has a significant working capital deficiency, has incurred significant losses, and needs to raise additional funds to meet its obligations and sustain its operations,” the firm reported to the SEC in October. “These conditions raise substantial doubt about the company's ability to continue as a going concern.”
Small broker-dealers like Stoever, Glass & Co. at times run afoul of the industry’s net capital rule, but it’s not clear if that’s what happened in this instance.
The rule essentially regulates the amount of capital a broker-dealer has in the till at the end of the day to settle trades. Small broker-dealers typically use clearing firms to trade, but they can still fall short of required capital on hand.
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