Brookstreet exec makes move

Scott Brooks has jumped from Brookstreet to Wedbush Morgan and has asked Brookstreet's reps to join him.
JUN 22, 2007
In an attempt to save a semblance of his family's broker-dealer, Scott Brooks, son of the founder of Brookstreet Securities Corp., yesterday jumped to Wedbush Morgan Securities Inc. and immediately invited Brookstreet's 500 affiliated reps to join him. Hammered by exposure to a risky type of mortgage backed security, Brookstreet Securities of Irvine, Calif., a day earlier on Wednesday told reps and advisers that "disaster" had struck, igniting speculation that the firm would be acquired. Wedbush Morgan of Los Angeles does not have an independent-contractor brokerage arm, and Mr. Brooks, formerly executive vice president of Brookstreet, will "substantially build and staff" that part of the business, he told advisers in an e-mail message. "I understand that you have options," he told the reps. "I believe this is an optimal solution for you." He stands to face some stiff competition from other independent-contractor broker-dealers for those reps. Securities America Inc. of Omaha, Neb., is making particularly aggressive offers, said one industry source, who asked not to be named. On Wednesday, Brookstreet Securities told its advisers that it could be forced to close if it didn't come up with lat least $5 million, according to an internal e-mail message.

Latest News

Stratos Wealth Holdings closes 11 acquisitions in push for advisory scale
Stratos Wealth Holdings closes 11 acquisitions in push for advisory scale

RIA aggregator adds $4.8 billion in client assets across seven states as demand grows for alternatives to traditional succession models.

Beyond wealth management: Why the future of advice is becoming more human
Beyond wealth management: Why the future of advice is becoming more human

As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management

Shareholder sues FS KKR Capital board, alleges NAV and dividend cover-up
Shareholder sues FS KKR Capital board, alleges NAV and dividend cover-up

Shareholder targets FS KKR Capital's directors over alleged portfolio valuation and dividend missteps.

UBS loses $1.2 million arbitration claim linked to variable annuities and margin
UBS loses $1.2 million arbitration claim linked to variable annuities and margin

UBS has a history of costly litigation stemming from the sale of volatile investment products.

'We are monitoring the situation,' SEC says of private funds
'We are monitoring the situation,' SEC says of private funds

New director David Woodcock puts firms on notice over fees, conflicts, and liquidity risk as private credit shows signs of stress.

SPONSORED Beyond wealth management: Why the future of advice is becoming more human

As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management

SPONSORED Durability over scale: What actually defines a great advisory firm

Growth may get the headlines, but in my experience, longevity is earned through structure, culture, and discipline