AGE / Brookstreet
9 RepliesJump to last post
Relocated from the Moderation in Moderation thread under General in order to stay on topic.
[quote=ymh_ymh_ymh]
Jeff, sidebar comments if you will:
Have you seen much in terms of AGE brokers defecting for the indy channel?
Also, am certain you've read the Brookstreet cover story by now. Do you see any other small to medium firms in the same situation? Would guess if you do, the number of incoming "get me out of here" calls are increasing.
[/quote]
I may be the wrong guy to ask. I don't see much in the way of AGE going indy. Then again, I'm known as a Wirehouse guy so they wouldn't necessarily be reaching out to me.
I don't think that the problems that you see at Brookstreet are indicative of the industry as a whole. But the stability of smaller firms is something to consider when you make a move.
Yes, we often hear from reps at small or medium sized firms looking to enter (or re-enter) the big league. Most are younger or mid-career with great momentum and growth potential. They move for the obvious reasons (better support, net payout, name recognition, broken promises...). Yes, we regularly hear concerns about a firm's investment style and product favoritism. But I can't say there's a rush of "get me out of here" calls because of the CMO situation.
Thanks, and no I don't mind you moving this topic.
What happened at Brookstreet is tragic. Most of the non Boca/Coral Springs brokers didn't know the game was over until it was too late.
For some reason I thought you recruited for the indy channel. Welcome back, by the way.
[quote=ymh_ymh_ymh]
For some reason I thought you recruited for the indy channel. Welcome back, by the way.
[/quote]
Thanks. I've been lurking, mostly.
Decided to try posting again now that there's a little moderation. Hopefully things will continue to improve.
[quote=JCadieux] [quote=ymh_ymh_ymh]
For some reason I thought you recruited for the indy channel. Welcome back, by the way.
[/quote]
Thanks. I've been lurking, mostly.
Decided to try posting again now that there's a little moderation. Hopefully things will continue to improve.
[/quote]
More proof that for every reaction there is an equal and opposite reaction.
[quote=ymh_ymh_ymh]
Thanks, and no I don't mind you moving this topic.
What happened at Brookstreet is tragic. Most of the non Boca/Coral Springs brokers didn't know the game was over until it was too late.
For some reason I thought you recruited for the indy channel. Welcome back, by the way.
[/quote]
Yolanda...exactly what DID happen? Did the margin positions of just a few brokers bring down the whole b/d?
The let's do more than just plain vanilla CMO's was hatched in Boca Raton by Cliff Popper (the now infamous trader). Some broker (can't recall his name) in Coral Springs then came up with a website about it and was the in-house mouthpiece. A few others in Boca and Coral Springs piled on.
Things were going great for quite a while and word got around in the firm about how much $$$ those guys were making so a few other brokers (not necessarily jumpers and with clean U-4's) started telling their clients how much $$$ could be made and how safe these bets were (highly leveraged ones).
Then the market turned and liquidity dried up and all of a sudden there were margin calls which Brookstreet could not meet.
The Orange County Register and the Sun-Sentinel (Boca) have quite a bit more on this mess if you have interest. Both also have a similar forum to this one in that readers can post. There must be at least 200 or so posts on this matter mostly by ex employees and/or Brookstreet clients as far as I can tell.
If you GOOG(le) up the OC Register plug in Ron Campbell (he's the one who is covering this mess). On the Sun-Sentinel, GOOG(le) up Ian Katz.
To get an even better understanding of how/why Brookstreet blew up, try this:
1. go to GOOG(le)
2. key in "blog" and "Brookstreet"
Quite a few industry specific blogs discuss this mess in depth, to include "CalculateRisk."
Looks like we're in for another volatile open thanks to BNP Paribas today.