Magazine article American Banker

Bevill Bresler Fallout Claims More Victims: Most of Little Rock Bank's Capital Is Wiped Out

Magazine article American Banker

Bevill Bresler Fallout Claims More Victims: Most of Little Rock Bank's Capital Is Wiped Out

Article excerpt

Shock waves from the Easter Sunday collapse of a New Jersey securities firm continued to roll through the financial community last week, engulfing some companies and battering others.

Among the victims of Bevill, Bresler & Schulman Asset Management Corp. were Worthen Bank & Trust Co., Little Rock, Ark., whose capital was virtually wiped out.

Brokers Capital Ltd. of Chicago also fell, forcing the closing of Collins Securities Group, Little Rock. In addition, it was disclosed at the end of the week that 11 thrifts and a national bank are among the creditors of Brokers Capital and are therefore threatened with potential losses from that firm's failure.

Another Chicago firm, Midwest Government Securities, told a federal court judge that because of Bevill's demise, his firm was "simply on the brink of disaster" because it lacked securities to make good on obligations coming due.

Coming only a month after the failure of E.S.M. Government Securities and the thrift crisis in Ohio which resulted, the closing of Bevill Bresler added to the pressure for some government control over the largely unregulated government securities market. Self-Regulation Bill Proposed

A bipartisan congressional group that includes Rep. John Dingell, D-Mich., chairman of the House Energy and Commerce Committee, introduced a bill that would establish a self-regulatory organization to police government securities dealers. Meanwhile, the Securities and Exchange Commission is gearing up to discuss whether -- and how -- government securities dealers should be regulated. …

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