The Unseen Wall Street of 1969-1975: And Its Significance for Today

By Alec Benn | Go to book overview

17
The Biggest Stock Fraud in the District Attorney's Memory1

Very soon after Tom Hofstetter became national insurance sales manager, he learned why Bill Fleming was extra anxious to get Walston & Co., Inc. into the insurance business. Walston & Co. needed capital, and Bill Fleming hoped that an insurance company profiting from a relationship with Walston would supply it.

The Glass-Steagall Act of 1933 had inspired the founding of Walston & Co. and spurred its early growth by forbidding commercial banks to engage in the brokerage business. Walston & Co.'s founder, Vernon C. Walston, had been the male SECretary to A. P. Giannini, the CEO of the then largest bank in the United States, San Francisco-based Bank of America. Vern Walston had located Walston & Co.'s offices near those of Bank of America throughout Califomia, and the bank had steered customers to Walston & Co.

The firm had spread northward and eastward across the country partly through mergers, partly by opening new offices, and had relocated its headquarters from San Francisco to City. By the sixties, Walston had more than a hundred offices from coast to coast, making it one of the largest brokerage firms in the United States.

Walston & Co.'s need for capital in 1971 and 1972 didn't, however, derive from its fast growth. Nor did it need capital because it had too many fails. Its back office operated efficiently.

Walston needed capital partly because its top officers had been overly ambitious but mostly because they made a mistake that no sensible investor would. First the story about the management being overly ambitious:

The most prestiguous firms on Wall Street were -- and continue to be --

-144-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this book

This book has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this book

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited page

Bookmark this page
The Unseen Wall Street of 1969-1975: And Its Significance for Today
Table of contents

Table of contents

Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen
/ 216

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.