The brokerage business is good or better, at least. The market is climbing slowly, firms are showing a profit and hiring again (albeit after massive layoffs), and, according to industry studies, affluent investors are in search of advice. The bad...

If you don't look too closely, you might think the securities industry is in a golden age. After all, the thing that matters most profits is up. Way up. The Securities Industry Association estimates that pre-tax profits for the broker/dealer...