The Alamo

I’ve talked about the last remaining broker-dealers with aggressive telemarketing salesforces ad nauseum, both here and in the book Backstage Wall Street.

I’ve been predicting their demise for four years now, not exactly an out-on-the-limb call, but still…

There are only a few dozen of these firms left. They tend to be located on Wall Street (looks good on the firm letterhead), Staten Island, New Jersey and Long Island. Maybe a few in Florida and one or two in Westchester. Fifteen years ago there were thousands. Ten years ago there were hundreds.

Now there are just a handful.

And today is the Alamo, the final gunfight between the regulators and the last few holdouts. The business of pushing investments over the phone and turning over retail accounts dozens of times a year for commissions is going away.

I have no special knowledge or judgment to make about the current story that’s blowing up the brokerage community as we speak, I can only say that it is apparent the gloves have come off and time is up…

Here’s the New York Post

Here’s Investment News