The wirehouses appear to have escaped major exposure to Bernard Madoff's alleged Ponzi scheme.
Does Mary Schapiro have the right stuff to take on the big firms? Although praise is coming in from many quarters for the nomination of the Finra chief to head up the Securities and Exchange Commission, there may be cause for concern.
Pershing LLC, the securities clearing and RIA custody affiliate of The Bank of New York Mellon Corp., has set up a website and suite of tools for stockbrokers who are considering shifting from large broker-dealers to other business models.
The following is an edited transcript of the round-table discussion.
The outlook for traditional retail-brokerage firms has never been so uncertain.
The bull market in broker recruitment deals has peaked.
Regional and independent brokers such as LPL Financial, D.A. Davidson & Co., Raymond James Financial Inc. and Stifel Financial Corp. are thriving while brawnier brokers struggle, but the firms' executives have deep concerns even as they rev up their recruiting.
Brokers and industry observers worry that the Department of the Treasury's capital purchase program to inject $250 billion into the financial services industry could mark a new era of government control and mistrust of the industry.
The following is an edited transcript of the round-table discussion. It was moderated by InvestmentNews news editor Bruce Kelly and InvestmentNews reporter Jed Horowitz.
Wirehouse representatives have been on tenterhooks since last week, awaiting the fate of their parent companies — while at the same time trying to deal with the market meltdown.
Sallie Krawcheck may have spoken up one too many times.
Wirehouse reps were breathing a bit easier last week as their employers were able to step back from the brink of financial collapse.
Charles Schwab & Co. is taking advantage of the financial crisis by attempting to lure brokers from Merrill Lynch and Morgan Stanley and other wirehouse brokerage firms to go independent and use Schwab as their custodian.
Following this weekend’s turmoil on Wall Street, financial-sector job cuts may hit new heights, according to a report from Challenger Gray & Christmas Inc. of Chicago.
“There will be massive defections of clients and advisers,” said Liz Nesvold, managing partner of Silver Lane Advisors LLC of New York. “The wirehouse model, which was damaged, is now broken.”
Lehman Brothers is verging on collapse, even as Bank of America has reportedly bought Merrill Lynch for $44 billion; AIG hammering out its own rescue strategy.
Handful of firms peddled equity swaps, stock loans to clients; 'IRS pussyfooted on this.'
